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Romania
Organic Products
Organic Agriculture in Romania
2008
Approved by:
Susan Reid
U.S. Embassy
Prepared by:
Carson Marries
Ioana Ionescu
Report Highlights:
The value of organic agricultural production in Romania expanded by over 40% in 2007,
reaching USD102 million. Retail products are becoming more widely available, and local
consumption has increased. In 2007, over 200,000 ha of farmland were cultivated
organically. Exports continue to account for 90 percent of the value of Romania’s organic
production. The first organic specialty shop opened in Romania in 2007, and is being
expanded in 2008. During the period 2007-2013, Romanian farmers will have access to USD
390 million in EU funds.
Includes PSD Changes: No
Includes Trade Matrix: No
Unscheduled Report
Sofia [BU1]
[RO]
USDA Foreign Agricultural Service
GAIN Report
Global Agriculture Information Network
Template Version 2.09
GAIN Report - RO6023 Page 2 of 7
UNCLASSIFIED USDA Foreign Agricultural Service
Regulatory Framework
Romania’s organic agricultural law is based on a collection of ministerial orders,
parliamentary decisions and emergency ordinances. The resulting regulatory body requires
independent organizations, approved by the Organic (“Ecological”) Agriculture Department of
the Ministry of Agriculture, to conduct initial certifications and regular inspections to
guarantee that all principles laid out in applicable ordinances are being followed at farms and
processing facilities. Currently there are 14 certification agencies operating in Romania.
Producers have commented that the resulting competition has driven certification and
inspection prices to very low levels.
If a producer has been properly certified, his/her products may carry the national organic
label approved by the Ministry of Agriculture (Figure 1).
Before certification, farms must undergo a conversion period during which organic principles
are implemented to reduce non-approved input residues in the fields. Due to minimal use of
fertilizers and pesticides on Romanian farmland over the past fifteen years, reduced
transition periods are frequently offered to potential producers. While farmers in EU countries
can face transition periods of five or six years, a typical conversion period in Romania is as
low as one or two years. As a result, the potential for rapid growth in the sector is significant.
Production
Graph 1. Hectares of Registered Organic Farm Land (‘000)
28.8
43.9
57.2
73.8
110.4
143
200
0
50
100
150
200
2001 2002 2003 2004 2005 2006 2007
Source: Ministry of Agriculture and Rural Development
GAIN Report - RO6023 Page 3 of 7
UNCLASSIFIED USDA Foreign Agricultural Service
In 2007, close to 4000 organic farmers cultivated 200,000 hectares. However, due to the
Romanian government’s slow release of agricultural subsidies for organic production, growth
is likely to slow over the next 2-3 years. According to the Ministry of Agriculture, 1.8-2.2
million hectares can easily be converted to organic production if the effort is made.
The value of organic production has grown in proportion with the land under cultivation.
According to the Ministry of Agriculture and Rural development the market value of organic
products in Romanian reached USD102 million in 2007, up from USD72.9 million in 2006.
Production is primarily organic hay and other feed crops, cereals, honey, sunflower oil and
organic milk.
Organic milk production in particular has been a success. LaDorna, one of the largest milk
producers in Romania, began producing organic dairy products in 2004. They have
succeeded in exporting their products to Greece, Germany, Austria, and the Netherlands.
LaDorna will produce 6000 tons of organic cheese in 2008 according to its CEO, Jean Valvis.
This is remarkable considering the entire Romanian production of organic cheese was 1738
tons in 2006. Mr. Valvis, the Swiss born founder of LaDorna, continues to urge more farmers
to convert to organic production.
Romania has traditionally been a producer of organic commodities, exporting basic products
to be converted into finished products for consumption in Germany or Austria. In addition to
milk products, Romanian producers have begun to produce organic breakfast cereal, fruit
and vegetable preserves, and desserts made with locally produced organic honey. According
to Radu Panait, owner of the largest Romanian distributor of organic products, 30 percent of
Romanian organic commodities are now processed for retail packaging and distribution in
Romania.
Distributors estimate that 10% of final products produced in Romania are consumed
domestically. EU accession is likely to assist in the expansion of these products.
2007 also saw the first major investment in Romania for organic production. French
Businessman Gilles Caillaud, in partnership with Groupe Arrive, is investing USD 20.5 million
in Calarasi (south-eastern Romania). The investment includes a farm for raising fowl (chicken
turkey, etc) as well as farm land for producing bird feed.
Table 1. Production of Major Organic Products
2005 2006
1) Quantity of organic plant products: M.U. 131,898 166,574
Cereal t 55,000 48,441
Export of Cereal t 11,100 16,500
Vegetables t 7,200 8,708
Fruits t 1,000 340
Medicinal Flora t 16,748 24,962
Export of Medicinal Flora t 14,200 15,400
Other t 51,950 84,123
2) Production of Organic Animal
Products:
Cow's Milk hl 100,000 112,000
Export of Cow's Milk hl 7,492
Goat and Sheep's Milk hl 13,500 15,500
Eggs 1,820,000 1,075,000
GAIN Report - RO6023 Page 4 of 7
UNCLASSIFIED USDA Foreign Agricultural Service
3) Principal Processed Products:
Telemea Cheese t 480 520
Export of Telemea Cheese t 180 141
Schweitzer Cheese t 268 576
Export of Schweitzer t 160 22
Cascaval Cheese t 330 642
Export of Cascaval t 210 43
Fruit and Vegetable preserves t 50 42
Honey t 610 1,242
Export of Honey t 509 755
Source:MARD and Bioterra
Consumption
With less than 0.01% of the products consumed in Romania being organic, compared with 3-
4% within Europe, growth is inevitable. However, with average disposable income of less the
USD 750 per month most Romanians are unwilling to pay the additional 30-40% premium
for organic products.
According to Natura Land the demographics of the organic product consumers is 25-39 years
old, urban, and educated (and 70% female). The net income level of organic product
consumers starts at 3000 RON (1215 USD). As the Romanian middle class expands more
consumers will enter this economic -demographic segment.
Natura Land, the largest distributor of organic products, currently has a line of over 40
products. The turnover of the company in 2007, which supplies 20% of the domestic organic
market, is USD 1.47 million. The domestic market for organic products expanded from USD
4.4 million in 2006 to 7.35 million in 2007, a growth of 67%.
Natura Land has successfully placed its product lines in many of the major
super/hypermarkets in Romania, including Metro, Carrefour, Mega-Image, Auchan and Cora.
Sales of organic products in these stores have grown from USD 350,000 to 1.47 Million in
two years. This success has convinced the management of Natura Land that it is time to
open a specialty store in Bucharest, selling only organic products.
Natura Land was not the only company with this idea. The opening of the first organic
specialty store in Timisoara (70 M2) on December 6th of 2007 shows that domestic demand is
rising. Bio-Markt has plans to open another 150 M2 shop in Bucharest in 2008.
The Bio-Markt business plan is to capture the niche market with a product line of
approximately 1000 items, generally not of Romanian origin. Their supply is from Austrian
wholesalers and a few German processors.
Expanding consumer purchasing power and awareness of organic products has convinced
many that this niche market is worth investing in. U.S. products are well regarded among the
distributors and wholesalers. They desire to imp ort maple syrup, peanuts, peanut butter and
organic soy products when the market expands enough to justify transportation costs.
GAIN Report - RO6023 Page 5 of 7
UNCLASSIFIED USDA Foreign Agricultural Service
Exports
Exports continue to represent over 90% of the market for Romanian-produced organic
products. Between 60 and 70% of these exports continue to be bulk commodities. Demand
for organic honey, cereals, milk and nut cores continues to grow. However, Romanian firms
have also begun to find markets for their packaged retail products.
LaDorna, the most successful dairy producer in Romania, began exporting small amounts of
organic milk to Greece in 2004. By 2007, they had 65% of the Greek market for organic
milk. In 2007, the company sold USD 6.62 million of organic products in Greece. The CEO,
Jean Valvis, expects rapid growth of exports. In his opinion, the increase in demand cannot
be met in the short to medium term due to production constraints. His plans for 2008 are to
quadruple exports to Europe. Over 6,000 tons of organic dairy products will be exported to
Germany and Greece, with plans to expand to the U.S. and UK by the end of the year.
Beyond LaDorna’s success with milk products, Romanian producers have found success
exporting organic Musli breakfast cereals and deserts.
Organic meat continues to suffer from restrictive EU inspection policies and virtually nonexistent
domestic consumption. This is unlikely to change until the Government policy on
subsidies is finalized and fully funded.
Government Policy
The Ministry of Agriculture and Rural Development has a stated goal of 400,000 ha under
organic cultivation and production by 2010. This is a doubling of the current level of 200,000
ha. The Ministry continues to stress its dedication to promoting organic agriculture in
Romania, and have publicly stated that they would like to assist investment in larger organic
operations.
The law under which subsidies are distributed, Regulamentul Comisiei (CE) 1071/2005,
dictates that 50% of the funds must come from the EU, 20% from professional
organizations, and the remaining 30% from the Romanian budget. For reasons that the
government did not explain, the funds where not issued in 2007, and as of early 2008 the
funds still had not been distributed. This oversight and delay of USD 390 million of EU
funding puts Romanian farmers at something of a competitive disadvantage.
With EU accession, SAPARD funds are no longer available. If small scale organic operations
are to develop, the government subsidy scheme must be worked out.
Conclusion
Access to the entire EU market, with its rapidly increasing demand for organic products,
combined with Romania’s low-cost and fairly skilled workforce and easily converted
agricultural land makes Romania a great location for organic production.
Romania’s domestic market is likely to continue to be a small niche market. Therefore, in
Post’s view, best products for U.S. companies are organic fertilizers, bio-control inputs and
other organic -compliant technology.
GAIN Report - RO6023 Page 6 of 7
UNCLASSIFIED USDA Foreign Agricultural Service
For further information on this report, please contact the following office in Bucharest:
Foreign Agricultural Service Bucharest
American Embassy, Romania
7-9 Tudor Arghezi St.
Phone: 40 21 2003316
Fax: 40 21 3165998
E-mail:
Web site: http://www.usembassy.ro/Embassy/Agricul ... index.html
You can also visit the FAS website to read previous GAIN reports produced by the
FAS/Bucharest office and the US EU Mission http://useu.usmission.gov/agri/wineCMO.html
Appendix 1
List of Organic product producers
Sector of Interest
Name Address
Fruits&
Vegetables
Animal
Products Apiculture
SC TRANS VEGA
SRL
Reghin,Str.Raului 5/A
jud.MURES, tel.0744- 505-134
fax:0265-511-048 X
SC ROMBIO SRL
Str.Valcele nr.24, Cluj-
Napoca,CLUJ, tel.0264-222-474
fax:0264-215-503 X
A.F TIVADAR
PETRU
Sighetul Maramatiei, Maramures
tel.0745-311-249, fax:0262-
330-137 X
SC
AGROEUROSERV
SRL
Slobozia,Str.M.Basarab, bl. MB
18, IALOMITA, tel.0243-231-
160 fax:0243-231-160 X
SC NERA SRL
Loc.Voluntari, jud. ILFOV,
tel.021/350.51.33,
fax:021/350.51.35 X
SC APIPRODEX
SRL
Oras.Targu-Mures,Str.Lucernei
nr.2, jud.MURES,
tel.0265/311.045
fax:0265/311.045 X
HIPROMA SA
Otopeni,Str.T.Vladimirescu nr.2,
ILFOV tel. 021-316-7611
fax:021-316-7617 X X
PFA MAFTEI
TIBERIU
Comuna Francesti, Sat
Francesti, tel. 0741-123-
032 X X
GAIN Report - RO6023 Page 7 of 7
UNCLASSIFIED USDA Foreign Agricultural Service
_______________________________________
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