10044017 Market survey Romania - Fruits and Vegetables

This Market special is carried out by Business Development Group, by order of EVD and in cooperation with the Dutch embassy in Bucharest.

EVD November 2009

Further information: EVD Market adviser: Annemarieke Roelfzema Telephone: +31 70 778 89 17 | Email: [email protected]

November 2009 The ministry of Economic Affairs, EVD EVD supplies this information for free. The content needs to be available for free for our clients, Dutch companies. It is not allowed to multiply or publish anything out of this edition by photocopy, microfilm or on any other possible way, without previous notice of the publisher. In spite of all the care that is taken over this edition, the Ministry of Economic Affairs cannot be held legally liable for possible inaccuracy.

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Table of content 1 2

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4 5 6

Summary ........................................................................................................................................5 The Structure of the Romanian Market for fruits and vegetables ..................................................6 2.1 General considerations regarding the market for fruits and vegetables in Romania....... 6 2.2 Production of fruits and vegetables.................................................................................. 7 2.2.1 Production areas ......................................................................................... 9 2.2.2 Fruits............................................................................................................ 9 2.2.3 Vegetables................................................................................................. 11 2.2.4 Greenhouse sector .................................................................................... 11 2.2.5 Processing ................................................................................................. 12 2.3 Mushrooms .................................................................................................................... 13 2.4 Potatoes ......................................................................................................................... 13 2.5 Vineyards ....................................................................................................................... 15 2.6 Major governmental institutions and main legislation .................................................... 15 2.7 Main players................................................................................................................... 18 2.7.1 Small farmers ............................................................................................ 18 2.7.2 Commercial farmers .................................................................................. 19 2.7.3 Producer organizations.............................................................................. 21 2.7.4 Retailers .................................................................................................... 22 2.7.5 Wholesalers ............................................................................................... 23 2.7.6 Processors................................................................................................. 24 2.7.7 Horeca ....................................................................................................... 25 2.7.8 Research & education ............................................................................... 26 2.8 Fact sheet of the sector ................................................................................................. 27 Opportunities for the Dutch horticultural sector............................................................................30 3.1 Export of fresh fruits and vegetables ............................................................................. 30 3.2 Imports of fruits and vegetables..................................................................................... 31 3.3 Distribution and retail of fruits and vegetables ............................................................... 33 3.4 Quality aspects............................................................................................................... 35 3.5 Main developments in the fruits and vegetables sector & opportunities for market entry and business development ............................................................................................ 36 Contact details main stakeholders ...............................................................................................38 Main Fairs and Exhibitions in the fruits and vegetables sector in Romania, 2010.......................50 Information sources......................................................................................................................51

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Abbreviations

ADS ANCA ANIF APDRP APIA CAP CLCA DARD DMPHS EAFRD EAGF EBRD EC F&V FMCG G2G GD GDP GO IACS IFS INCS INSSE ISCTPVLF ISTIS KA MA MAFRD NRDP OJCA OMCA PGB PGI PSO/PSOM SA SC SRL

State Domain Agency National Agency for Agricultural Consultancy National Administration for Land Reclamation Paying Agency for Rural Development and Fishery Agency for Paying and Intervention in Agriculture Common Agricultural Policy Local Centre for Agricultural Consultancy Directorates for Agriculture and Rural Development Directorate for Market Policies in the Horticultural Sector European Agricultural Fund for Rural Development European Agricultural Guarantee Fund European Bank for Reconstruction and Development European Commission Fruits & Vegetables Fast Moving Consumer Goods Government to Government Government Decision Gross Domestic Product Government Ordinance Integrated Administration and Control System International Food Standard National Inspection of Seed Quality National Institute of Statistics Inspection for Technical Control of the Production and Marketing of Fruits and Vegetables State Institute for Testing and Registering Plant Varieties Key Account Management Authority Ministry of Agriculture, Forestry and Rural Development National Rural Development Program County Offices for Agricultural Consultancy Municipal Office for Agricultural Consultancy Bucharest Wholesale Market Protected Geographical Indications Program for Cooperation with Emerging Markets Joint Stock Company Commercial Company Limited Liability Company

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1

Summary

Business Development Group was commissioned by the Netherlands Agency for International Business and Cooperation (EVD) to carry out the present survey of the Romanian Market of Fruits and Vegetables, for the benefit of Dutch companies and organizations with a strategic interest in accessing this market. The report presents a comprehensive view of the market, developed with the help of both desk study and field research, including interviews with local players (horticultural suppliers, fruits and vegetables producers, importers, wholesalers, retailers, logistics operators, etc.), relevant organizations (authorities, professional associations, etc.), and individuals (end users, key experts, etc.). The resulting survey provides a detailed insight into different aspects of the market, by compiling strategic information that will allow Dutch enterprises to strengthen their local market position. The report also answers a series of main questions that are especially relevant for Dutch SMEs, and combines indepth knowledge of sector specificity with the practical tools for capitalizing on development opportunities in this market. As the Dutch (beneficiary) group is not homogeneous, the survey offers tailored information and advice for various categories, such as suppliers of input, equipment, technology & final products, potential investors and traders. In the first part of the report, Dutch companies can get a better understanding of the structure of the Romanian market of fruits and vegetables, including real size and characteristics, market profile and potential by sub-sector, quantitative indicators, detailed structure analysis, specific business practices, key players, risks and opportunities. Special attention is paid to major players (especially large retail chains), but also to the peasant markets and small producers/traders. As information is generally not fully available from official sources, field investigation was the main instrument of determining real trends, facts and figures. As there are differences between Dutch and Romanian approach as regards including mushrooms, potatoes and vineyards in the fruits and vegetables sector the three categories are treated separately within the report. The second part of the report focuses on opportunities for the Dutch horticultural sector, especially aspects in which Dutch companies have good market openings through competitive advantage – quality (production input, technology and final products), commercial know-how, and logistics. There is a special chapter reserved for opportunities for market entry and business development which aims to formulate the essential principles for Dutch success in the Romanian fruit and vegetables market. The report is rounded off with a list of upcoming promotional events in 2010 as well as a consistent list of major stakeholders in the sector, which can be a used as a strong basis for initiating business relationships with key local players.

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The Structure of the Romanian Market for fruits and vegetables Map 1: Map of Romania with counties

Romania is one of the most important horticultural producers from the European Union, with a total th cultivated surface ranking 6 (after France, Spain, Poland, Italy and Germany) and accounting for about 5% in total EU production volume. Even on a descending trend from levels before 1990, the agriculture played an important role in Romania’s economic transition mainly as an occupational “buffer” absorbing a large part of the labour force laid off from industry as result of post communist restructuring. As of 2007, one third of Romania’s labour force was active in agriculture (a level high above the EU average of 5.9%) while the sector had a solid 6.7% contribution to the national GDP. The ration of arable land to the number of inhabitants in Romania is 0.42 ha/inhabitant, a value also above that of most European countries, and almost double that of the European average (0.236 ha/inhabitant). Despite the comparative advantages of the country given by the abundance of arable land and a favourable climate, the Romanian agriculture suffers from fragmentation and obsolete production methods. The Romanian agriculture sector is often referred to as a significant beneficiary of European Union membership because EU integration can give Romanian farmers the opportunity to upgrade and rd access to a market with more than 500 million consumers. Romania is now in its 3 year of implementing EU regulations with regard to the common organization of the fruits and vegetables market. The EU financial support has been the engine for the investments needed to raise the sector’s competitiveness and helping local farmers improve efficiency through upgraded technology.

2.1

General considerations regarding the market for fruits and vegetables in Romania

The total consumption (industrial processing and individual consumption) of fruits and vegetables in Romania is on an increasing trend after 2001, with an average growth rate of 10% per year, reaching 5.6 million tons in 2008 (equivalent for about 260 kg per capita).

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Table 1: Monthly average consumption of fruits and vegetables, per capita,

Potatoes

2005 4.028

2006 3.705

-Kilograms2007 3.639

Vegetables and fresh and canned -carrots and edible roots -tomatoes -dry onion -cabbage and cauliflower -bullion -canned vegetables

6.769 0.660 0.825 0.831 0.651 0.304 0.175

6.987 0.661 1.007 0.814 0.714 0.280 0.168

7.036 0.693 1.032 0.798 0.678 0.300 0.182

Fruits -apples and pears -cherry and sour cherry -apricots and peaches -plums -citrus, exotic and other tropical fruits

2.560 1.306 0.075 0.088 0.096 0.606

2.705 1.214 0.069 0.108 0.110 0.727

3.082 1.364 0.077 0.123 0.074 0.877

Pulses

0.452

0.428

0.398

Source: INSSE

The current level of total consumption for fresh fruits and vegetables is estimated by MAFRD at 120 kg/capita/year out of which fruits vary between 40 and 60 kg/capita/year. This is lower than European average of approximately 180-200 kg/capita/year. The weight of local products in total consumption is increasing up to 60% for vegetables from May to October while for fruits the imports represents 70% to 75% all year long. Most popular fruits are apples, grapes, plums, citrus fruits, bananas, pears, sour cherries, peaches and nectarines. The market for fresh vegetables is dominated by cabbage, tomatoes, onions, carrots, sweet peppers, cucumbers and garlic. Potatoes and melons are also major product categories. Consumption on the Romanian market has the tendency to orientate towards domestic fruits and vegetables, not only because lack of awareness but also because the local perception is that they are more natural and tasteful. The Romanian consumer is rather conservative even if in the last years important changes in mentality can be noticed as regards both willingness to pay more for a quality product and the choice for new varieties. Total market value is currently estimated at 1 billion EUR also on an increase trend based on the domination of imports and increased prices of local production. The sales of fresh fruits and vegetables are highly seasonal with 70-80% growth during the warm season compared to winter. The constant market increase after 2001 relates to the improvement of the purchasing power, increase of awareness and sophistication of consumer taste as well as the development of the retail and HoReCa sectors.

2.2

Production of fruits and vegetables

The country has a century-long tradition of family farming interrupted by the nationalization and communisation of farmland during the communist regime. In this period, traditional farms were replaced, in most areas, by state-controlled administrative structures. The inhabitants of rural areas gradually became employees of the state, paid in cash, or in cash and agricultural products. After 1989 and the fall of the communist regime, the nationalized lands were gradually returned to their original owners.

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The legal framework for this action was composed of a series of laws that had a deep impact on the production systems, the post-harvest processing, the agricultural infrastructure, research and consultancy leading to a dramatic decrease of local production. The area cultivated with vegetables in 2008 represented 2.9% of the agricultural surface, while fruit trees accounted for 1.7%. The private sector controls approx. 98% of the total surface, the 2% balance being state property (horticultural research centres or directly under State Domain Administration). Romania’s horticultural production amounts on average to 4.9 million tons per year, 35% of which vegetables and melons, 35% potatoes, 15% grapes and 15% fruits. The structure of the production per varieties was highly influenced by the evolution of the demand on the market and the aging of the existing patrimony in both the fruit and vegetables sectors. Table 2: Romania’s Horticultural Production Surface

Production

Thousand ha

Thousand tons

2006

2007

2008

2009*

2006

2007

2008

2009*

Vegetables (including melons)

280

253

269

232

4,139

3,117

3,809

3,054

Potatoes

278

268

255

4,016

3,712

3,649

Fruits trees

157

156

149

660

673

Vineyards

191

188

189

873

992

161 912

710

Source: The Romanian Food Sector, Agricultural Office of Embassy of the Kingdom of the Netherlands in Bucharest, August 2009, INSSE, MAFRD *Provisional data for the first 9 months of the year

While for vegetables the figures show a decrease of production and harvested surface, the first nine months of 2009 bring better results for the fruits where both production and harvested surface increased – a direct consequence of the latest investments in the sector as presented further in the report. The average levels of fruits production in the 3 years before Romania’s accession to the EU show the domination of apples (with a production of over 5,000 thousand tons) and plums (with 2,700 thousand tons) while other categories are registering lower levels. Table 3: Structure of Fruit Production -Thousand tonsVariety Romania FruitGrowing Production (average 2004-2006)

Apple 5,363

Pear 262

Peach 124

Apricot 137

Cherry 373

Plum 2,768

Nectarine 6

Walnut 181

Strawberry 180

Source: MAFRD

As regards the production of vegetables cabbage, tomatoes, aubergine, garlic and melons contribute significantly to the EU production output:

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Table 4: Romanian Production of Vegetables -Thousand tonsVariety

Cabbage

Tomato

Cucumber

6,790

3,637

37,900

17.9

Production average 2004-2006, (thousand tons) EU27 Vegetables production average 2004-2006, (thousand tons) Share Romania in EU (%)

Water Mellon 6,467

Aubergine

Garlic

Onion

Peas

640

Yellow Mellon 533

1,001

511

2,700

189

Green beans 447

17,5850

21,480

23,640

28,410

8,150

3,100

54,900

7,820

11,500

2.1

3.0

2.3

22.8

12.3

16.5

4.9

2.4

3.9

Source: MAFRD

For 2009 the production is expected to be higher for cucumbers, peppers and cabbage (as a result of introducing more productive varieties) but lower for carrots and onion. 2.2.1

Production areas

As of 2005, 25.9% of EU-27 holdings growing fresh vegetables, melons and strawberries were located in Romania. The Romanian soil map below gives an indication of the variety of soil categories and their location in Romania. Romania’s climate and soil offers favourable conditions to fruit trees and shrubs, which are cultivated, according to their biological demands, throughout the country, from low plains to altitudes above 800-1,000 m. Map 2: Romanian Soil Categories

2.2.2

Fruits

The fruit tree patrimony (orchards and nurseries) used to cover 290 thousand ha in the 1980’s representing 2% of Romania’s agricultural surface at that time.

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After 1990 the fruit tree patrimony constantly diminished, to as low as 142.3 thousand ha in 2005. Currently the surface covered with fruit trees represents 1.7% of the total agricultural surface respectively 2.2% of the total cultivated surface. The big socialist orchards of 200-300 hectares/unit were fragmented by land restitution and gradually diminished due to lack of resources and knowledge of the private owners. As a result the number of viable orchards is currently very low with a generally aged tree patrimony and a low regeneration rhythm. Each year, 2,000 ha are newly cultivated with various fruit trees, while over 30 times as many ha are in decline. The production statistics point out that the main fruit tree species in Romania are plum, apple, cherry and sour cherry. Plum tree is still having an extensive presence of up to 50% of the existing orchards (used to be 70-80% up to the Second World War), with local varieties cultivated mainly for distillation use. Crops systems are still extensive (for example apple trees are cultivated with densities of 800-1,200 trees/ha as compared with western standards of 2,500-3,000 trees/ha) and high productivity varieties are used at very low levels (for example grafting rootstock M9 generally used in Europe is seldom present in Romanian orchards). The Romanian fruits are of inferior quality, up to 35-50% being used for processing. From the point of view of areas and total number of trees, the largest concentrations of orchards are in: - sub-Carpathian area of Oltenia and Muntenia (Arges, Valcea, Prahova, Buzau, Dambovita, Olt 1 and Dolj counties) - North-East Transylvania (Bistrita Nasaud, Salaj, Satu Mare, Maramures and Bihor counties) The zoning of orchards, based on the tree species criteria, is as follows: - apple trees O o favourable areas, average annual temperature 8-9 C + 700-800 mm annual precipitations o mid sub-Carpathian area (Arges, Valcea, Dambovita, Prahova counties) o North-West Romania (Bistrita Nasaud, Maramures, Salaj, Cluj, Satu-Mare, Bihor counties) o North Moldavia o also good conditions: Mures, Sibiu, Bacau, Iasi, Buzau, Dolj, Caras Severin, Timisoara, Arad, Hunedoara, Alba, Gorj, Mehedinti, Olt, Brasov, Harghita, Botosani, Vaslui and Vrancea counties - plum trees o widely cultivated in most of Romania O o favourable areas, average annual temperature 9-10 C + precipitations 650-700 mm annually o counties: Arges, Valcea, Olt, Prahova, Buzau, Caras Severin, Hunedoara, Dambovita, Mehedinti, Arad, Salaj, Bihor, Cluj - cherry and sour cherry trees o on all forms of relief o most often found in the following counties: Iasi, Vaslui, Botosani, Bacau, Neamt, Vrancea, Arges, Giurgiu, Dolj - pear trees o less cultivated in Romania O o favourable areas, maximum temperature in July and August 24-26 C + minimum O temperature in July 10-12 C o counties: Arges, Prahova, Buzau, Dambovita, Valcea, Dolj, Mehedinti, Caras-Severin, Timisoara, Arad, Bihor, Neamt, Bacau, Suceava, Botosani, Iasi, Mures - apricot trees o the most climate-sensitive species o mostly found in S Romania: Dolj, Giurgiu, Calarasi, Constanta, Ialomita, Tulcea, Olt Teleorman counties o also found in W Romania: Bihor, Arad counties - peach trees o mostly found in S and W Romania: Dolj, Constanta, Giurgiu, Olt, Mehedinti, Bihor, Arad counties + Bucharest area

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For county location see map under Summary chapter

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2.2.3

other species: walnut trees, chestnut trees, fruit shrubs, strawberries
present all around the country, with concentrations in several micro-zones o walnut tree in the Targu Jiu (Gorj) and Geoagiu (Hunedoara) area o chestnut tree in Gorj and Maramures counties o strawberries in Satu Mare, Olt, Valcea counties Vegetables

Romania has a high potential for producing field vegetables, mainly due to the high natural fertility of soils and the diversity of the climate. Based on those parameters the following zones are determined: •

•

•

O

Zone I
medium annual temperature 10-11 C, precipitations 400-500 mm/year, relative air humidity 30-60%, soil categories: steppe brown, chestnut and brown chernozem (mainly in South Romania and the Western Plains), availability of irrigations. O Zone II
medium annual temperature 5-11 C, precipitations 550-650 mm/year, relative air humidity 65-70%, types of soil: chocolate and degraded chernozem, forest brown, swamps, meadows, solidified sandy soils (mainly in Moldavian sub-Carpathians, Satu Mare region in North Romania). O Zone III
medium annual temperature 6-8 C, precipitations 600-650 mm/year, relative air humidity 65-70%, types of soil: chernozem, brown forest soil, weak or medium podzolite soils, alluvial soils (mainly in the Transylvania Plateau-centre Romania).

The territorial development of the main vegetable crops is based on the utilization of the environmental conditions for best economic profitability: - Tomato crops (early, semi-early and late), representing 25% of all surfaces cultivated with vegetables are located in zone I and II, in specialised areas for different varieties. Main geographical zones are Arad (Arad), Sanicolau Mare (Timis), Bailesti (Dolj), Alexandria, Zimnicea, Vidra (Teleorman). - Onion crops are to be found in S Romania, Western Plains and Iasi county. - Peppers are generally cultivated in zone I and II in similar conditions as tomatoes. - Cabbage, a highly adaptable crop, can be found in all regions (early crops mostly in South and Western Romania). - Garden peas around canneries, mostly in zone II. - Garden beans, more demanding plants are still cultivated in all zones including early crops. However a second crop can be obtained generally in South Romania. - Cucumbers, even if sensitive to heat, are traditionally cultivated in the south of the country but also in the Transylvania Plateau and N Moldavia based on favourable micro-zones conditions. - Root vegetables have favourable conditions all over the country but best productions are obtained in the Western plains and centre Transylvania. Production expanded also in the radius of the big cities based on constant demand. 2.2.4

Greenhouse sector

Before 1989 Romania ranked second in Europe after the Netherlands with a total surface of 2,500 ha greenhouses. In the last 20 years this surface constantly diminished due to the increase of energy costs in connection with the gradual reduction of state involvement in the field. The greenhouses were generally set up in the proximity of city power plants using steam as heating agent at preferential prices. Along with the restructuring of the energy sector (privatisation of main players) the preferential regime was not possible anymore the solution was to privatise also the greenhouses. Competition in real market conditions resulted in closing down many operations especially in the beginning of 2000’s, most of the traditional units becoming more interesting as real estate opportunities. One interesting example is the Isalnita greenhouses (nearby Craiova, Dolj) the biggest in the world at its establishment in 1969 (200 ha). The company was privatised in 1998 and in order to cope with the increase of energy costs, set up its own heating station and reduced the production range to one variety: cucumbers mainly for processing. Other three major greenhouses Codlea (Brasov), Agroser Campia Turzii (Cluj) and Orser (Oradea) were also privatized (same format-same owner) became bankrupt in 1-2 years, the equipment was sold as scrap and the land became target for future residential projects. 11

As a direct consequence of the reduction in surfaces, the level of vegetable production in greenhouses decreased severely from 203 thousand tons in 1991, to a minimum of 48 thousand tons in 2000, picking up after 2001 but nowadays still far from levels before 1989. In 2007 the total surface of greenhouses used for fruits and vegetables reached 420 ha, while current MAFRD estimations are a 2000ha surface would cover the current domestic demand. The main vegetables grown in greenhouses in Romania are: tomatoes, cucumbers, cabbage, peppers. The main downsizing factors for the greenhouse sector remain: high energy costs (the economic efficiency and productivity of greenhouse per hectare are conditioned by the ability to facilitate appropriate growth and development conditions for plants, by compensating for exterior climate with heating; heating expenses represent over 65% of total greenhouse costs) high costs of inputs (seeds, fertilizers, etc) and irrigation works lack of qualified labour force the seasonal nature of production; the intensive production of vegetables takes place over 2 production cycles (with the exception of the new greenhouses in Pipera designed for continuous production cycle): cycle I
1 November – 30 April; cycle II
1 July – 31 December specificity of consumption habits: Romanian consumers are unaccustomed to consuming fresh vegetables during winter time (demand picks up starting May) lack of an efficient storage & distribution system high bureaucracy in setting up a new facility (same permits are required as for regular building market conditions (unfair competition of un-organized market, strong competition from imported products) The majority of private owned greenhouses currently active in Romania are small surfaces solariums (plastic tunnels generally on wooden structures), rarely operated on commercial basis (more for self consumption). The largest concentration of plastic tunnels is in Matca (Galati) on approximately 125 ha. Main problem there is the absence of storage facilities in the area; a producer group is currently under establishment aiming at gathering local owners and identify a partner/investor to build collecting centre & warehouse. Major commercial glasshouses still functional are:  Leoser (Popesti Leordeni, Ilfov) – 120 ha (heated)  Berser (Berceni, Bucharest) – 30 ha (heated)  Pipera (Bucharest, member of Leader International) – 13 ha (heated)  Leader Constanta (Constanta, member of Leader International) – 36 ha (unheated)  Agro Codlea (Arad) – 14 ha (heated)  Agroindustrial Sere Izvoarele Neamt (Neamt) – 22 ha (heated) 2.2.5

Processing

In Romania there are 89 processing and canning units functional with a total capacity of 237 thousand tons fruits and vegetables. The processed fruits and vegetables production amounts to 11% of the total horticultural production in Romania. The consumption of canned vegetables is estimated at 6.5-6.8 kg/inhabitant and for canned fruits of 2.1-2.4 kg/inhabitant, in 2008. The main factors that currently influence the buyer’s decision in the canned fruits and vegetables sector are: shelf life, the use of preservatives and the actual percentage of fruits or vegetables contained by the product. Price is also an important factor, but consumers are not willing to give up on quality to save on price. According to the National Producer’s Association Romconserv, Romanians prefer local brands of canned fruits and vegetables. The main distribution channels for canneries are modern retail chains, which have, consequently, become the main target for the direct sales of processors.

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Some of the main challenges that processors of fruits and vegetables face are:  vegetables, as raw materials, are difficult and costly to produce and harvest, especially tomatoes, pepper, eggplants and root vegetables  retail chains have hidden taxes (display, shelf positioning, store openings, remodelling, promotions, etc.) which directly affect producers These challenges have led to a modification in the structure of fruits and vegetables canneries. Some of the top players in the industry have opted to become vertically integrated – they own the greenhouses and culture fields and control their supply flows of raw material. Almost 80% of the current processing facilities have been modernized by using own funds and preaccession EU financing (SAPARD). Over the last 2 years, more than 40 million EUR were invested in processing plants for improvement of the quality and profitability of production but also to implement quality standards (HACCP) opening the possibility to export to the EU and international market. Today, the canned goods are in Romania’s top 3 exports of fruits and vegetables. The processors mostly target retail chains directly, and also focus on exports to countries where there are consistent Romanian communities. Most canned goods are vegetables: tomatoes in tomato sauce, peas, vegetable mixes, green beans, vegetables in vinegar. Pickles and lactic-fermented vegetables are gaining market ground, especially in old EU member states. The main canned fruit products are: preserved fruits, jam, natural juice, dried fruits and a traditional plum jam (“magiun” – a registered Romanian national trademark in the EU).

2.3

Mushrooms

The main mushroom species cultivated in Romania are Agaricus Bisporus (the dung mushroom, inappropriately named "champignon") and Pleurotus Ostreatus (also known as "beech trout"). Other species of mushrooms grown in Romania are: - thermopile white mushroom (Agaricus Edulis) - red sponge (Pleurotus Florida) - brown sponge (Pleurotus Sajor-Caju) - horn sponge (Pleurotus Cornucopiae) - morel sponge (Coprinus Comatus) - straw mushroom (Stropharia-Rugoso-Annullata) The main production areas for mushroom cultures are Arad, Harghita, Mures and Olt. The evolution of production of mushrooms was as follows: Table 5: Mushroom production in Romania 2006

2007

2008

2,559 tons

1,083 tons

1,664 tons

Source: MAFRD

Out of all the species of mushrooms available for consumption, Romanians prefer the Agaricus while, abroad, Peurotus is the leader in consumer preferences. Pleurotus cultures have seen an explosive development over the past few years across the world, as they are easy to grow, are low maintenance and they can be grown on layers of paper waste, sawdust and other types of compost. In Romania, the main players in mushroom production are Euromix, Eurom Greens, Val Padana Trans, Boglar Champ, Agaricus SRL. There is also a Romanian Association of Mushroom Producers and Distributors with 34 members.

2.4

Potatoes

Romania is one of the top 20 potato producers in Europe. Potato production followed and ascending trend until 2006, when it reached 4 million tons. 13

Starting with 2007, however, the total quantity began to decrease, as a result of the decrease of cultivated surface. In 2008, the total surface cultivated with potatoes was 255,000 ha, and production reached only 3.64 million tons. The main reasons for this decrease in cultivated surface are: wholesalers offer low prices to producers (0.08 – 0.10 EUR per kg), due to the predominance of cheap imports (mostly imports not accepted in other EU states); this price does not cover production costs production costs reach 2,000 EUR/ha, and yield an average production of 25 t/ha (in some areas: 40 t/ha) the high production costs are mainly due to the high price of seed potatoes, pesticides, labour force and fuel (fuel costs are subsidized at 0.25EUR/l but not exceeding 9.75 EUR/ha and only for crop establishment and not for additional works such as irrigation) Romanian CAP subsidies are generally smaller than those received by Western European farmers The main areas for growing potatoes are: central Romania (Brasov, Harghita, Covasna counties) NE Romania (Neamt, Suceava counties) Some of the varieties of seed potatoes on the market at the moment area: Condor, Desiree, Laura, Bellarosa, Minerva, Tresor, Adora, Impala, Almera, Jelly, Cosmos, Inova, Everest, Piccolo Star, Santana, Saphire, etc. In 2008, potato cultures benefited from direct payments of 106 EUR/ha and in 2009, the subsidies are set for 116 EUR/ha. The national subsidies are only for potato crops for processing and are of 33 EUR/t. Romania also produces seed potatoes, but the surface reserved for this activity has also decreased. The main factors limiting the evolution of the seed potatoes sector are: a lack of subsidies for fighting bacteria (an infestation with Dithylencus Destructor, in 2009 resulted in a large part of production placed under quarantine) the analyses for quarantine bacteria in potato are done for seed potatoes only in the Central Phytosanitary Laboratory in Bucharest, the other phyto-sanitary laboratories in the country are not yet accredited for bacteriological analyses for potatoes. there are no means of performing counter-testing (enforced legislation does not allow) risk of spreading bacteria
animals eat infested potatoes and contaminate healthy soils no proper legal framework for protecting authorized producers from the unfair competition of “small producers” Romania has a national research & development institute for potatoes and sugar beet, in Brasov, with two local offices – Targu Secuiesc and Miercurea Ciuc (all potato-growing areas). Brasov also hosted th in 2008 the 17 edition of the European Association for Potato Research Conference (international year of the potato). Dutch knowledge in the sector is present on the market since 1990’s via governmental projects (such as the PSOM project of STOAS GreenWise, aiming the development of the seed potato sector in the Covasna and Brasov counties) as well as various commercial initiatives (support to local producers, cooperation with local producers for development of their operations or setting up own branches in Romania): - The Company Agro Turdean Impex from Badeni (Cluj) was set up in 1994 the owner benefiting from a scholarship in the Netherlands on intensive technolgies for potato cultivation. Today the company has a 50 ha potato farm and production is delivered for chips production to Star Foods, one of the largest players in this sector. The seed potatoes (Lady Claire variety) are still coming from The Netherlands together with other inputs for the farm. -

Another successful example is the project developed by HZPC Holland BV at Astra Trifesti (Iasi). Dutch potato varieties adapted to particular conditions of the Iasi region are cultivated on 100 hectares using upgraded techniques for cultivation, crop maintenance, harvesting, sorting and

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packaging (sales mainly on the local institutional market and via and intermediary to McDonald’s for processing). -

The Dutch company Van Rijn is an active player through its local divisions in Romania: Van Rijn Balkan in Constanta (Constanta) that produces mainly seed potatoes on 4 ha and Van Rijn Danubiana, focusing on marketing of the production (and also importing fruits and vegetables).

2.5

Vineyards

In 2008, Romania’s total production of grapes was 800,000 t (both for wine and direct consumption), th th which ranked it 18 among world grape producers, and 6 among European grape producers. th

Also in 2008, Romania ranked 4 in Europe as regards the surfaces cultivated with vine (194,000 ha) th and 5 in terms of wine production. In mid-September 2009, the total production of wine grapes was estimated at 156,000 t, while the production of grapes for consumption totals an estimated 34,000 t. Half the vine surface in Romania is cultivated with noble vine, significantly beneath the 240,000 ha limit negotiated with the EU. Ecological vineyards only cover 400 ha, with only 18 farmers of ecological vine registered to date. The largest vine farmer in Romania is the wine producer Murfatlar, which manages 3,000 ha of vine. Over the last 4 years, over 100 million EUR have been invested in the vine and wine sector, not only in new technologies but also to set up new vine cultures. Currently, in Romania there are 8 vine regions, 37 vine estates and 171 vine centres. The most popular types of grapes for consumption are those locally produced, such as Muscat, Pearl of Csaba, Queen of the Vineyards, Cardinal, Chasselas dore, Early Pance, Muscat de Hamburg, Cinsaut Muscat d’Adda, Aiuz-Ali, Chasselas Napoleon. Among the favourite imported types of grapes are Red Globe, Crimson Seedless, Victoria, Italia.

2.6

Major governmental institutions2 and main legislation

The Ministry of Agriculture, Forestry and Rural Development (MAFRD) is the specialized governmental institution responsible for elaborating, regulating and implementing national and EU agricultural policies, as well as modernizing the sectors under its administration:  agriculture  food production  rural development  fishing and aquaculture  forestry  land reclamation  optimizing exploitations and preserving soils  scientific research Also, MAFRD is the Management Authority (MA) for EAFRD funding granted for agriculture and rural development by the EU, through the National Rural Development Program (NRDP). The MAFRD agency in charge with NRDP management, payments and connected activities is the Paying Agency for Rural Development and Fishery (APDRP). MAFRD acts locally, at county level, through its 42 Directorates for Agriculture and Rural Development (DARD). There is a DARD in each of the 41 counties and 1 in Bucharest. There are several institutions and directorates involved in transposing and implementing regulations in the horticultural sector, all subordinated to MAFRD and operating within its framework. Through their local offices, these organizations must disseminate and enforce, at county and local level, the obligations set by CE Regulation 2200/96 and CE Regulation 1182/2007, regarding the common organization of the fruits and vegetables market. 2

The current institutional structure is expected to be adjusted in 2010 due to government budget cuts

15

The main roles in the fruits and vegetables sector have been allocated to:  Directorate for Market Policies in the Horticultural Sector (DMPHS)  Directorate for Technical Inspections and Control in the Plant Sector
through the State Inspection for Technical Control of the Production and Marketing of fruits and vegetables (ISCTPVLF)  Paying and Intervention Agency in Agriculture (APIA)  National Agency for Agricultural Consultancy (ANCA) The Directorate for Market Policies in the Horticultural Sector (DMPHS) is subordinated to the General Directorate for Implementing Agricultural Policies, which is part of subordinated to MAFRD. DMPHS elaborates strategies for the horticultural sector, surveys the status of national production of fruits and vegetables, as well as of land areas allocated to fruits and vegetables. This Directorate also collects information with regards to market prices for fruits and vegetables in Romania, which it then communicates to the EC. The State Inspection for Technical Control of the Production and Marketing of fruits and vegetables (ISCTPVLF) is responsible for coordinating control activities for ensuring conformity with quality (commercial) standards. The conformity control ensures that commercial parameters are respected for fresh fruits and vegetables, in the entire supply chain, from the producer to the end consumer. This control is performed according to EU specifications, respecting the methodology established by CE Regulation 1148/2001. ISCTPVLF is run by the Coordination Authority (at MAFRD level) and acts through its Control Bodies (at DARD level, for each county). The ministerial body performs periodic controls at production sites, as well as in fruits and vegetables markets. The Agency for Paying and Intervention in Agriculture (APIA) has been managing European funding from the European Agricultural Guarantee Fund (EAGF) since 1 January 2007. APIA grants subsidies as direct payments per hectare, managed by the Integrated Administration and Control System, and implements the market measures foreseen by taken to implement commercial mechanisms according to the Common Agricultural Policy (CAP). APIA is responsible for:  the import-export certificate system  guarantees for agricultural imports and exports  intervention systems for agricultural products In order to operate efficiently, APIA has a central coordination unit (at ministry level), 42 county centres and 210 local centres. The National Agency for Agricultural Consultancy (ANCA) is a public institution with juridical status, subordinated to MAFRD. It is responsible for:  Informing the rural population about provisions of the Romanian legal framework that are harmonized with those of the EU  Promoting of the rural development programs  Providing technical assistance for studies (business, research, etc.)  Applying research results in the field of rural development  Providing management consultancy for farms  Providing assistance and technical advisory to help farmers access structural funds, other finance programs and support measure  Supplying vocational training programs to the rural population, in the fields of agriculture, fish breeding and forestry  Disseminating information through events, promotional materials, etc. ANCA operates at county level through the County Offices for Agricultural Consultancy (OJCA), in Bucharest through the Municipal Office for Agricultural Consultancy (OMCA), and at commune level through Local Centres for Agricultural Consultancy (CLCA). Other MAFRD institutions relevant for the horticultural sector are: • The State Domain Agency (ADS) is the specialized institution that privatises state agricultural enterprises and concessions state agricultural lands. • The National Administration for Land Reclamation (ANIF) performs complex works to build structures and improve soil, in order to ensure the integrated and sustainable development of agriculture and rural development: irrigations, agro-technical measures, dams, draining, 16

•

•

combating soil erosion, increasing agricultural production (switching from subsistence to commercial agriculture). The State Institute for Testing and Registering Plant Varieties (ISTIS) is the only specialized body of MAFRD responsible for the technical examination of Romanian and foreign varieties, and for their registration in the official Varieties Catalogue and the Varieties Registry. The National Inspection for Seed Quality (INCS) is the official regulatory body, within MAFRD, with the responsibility of official certification of seeds and propagation material in Romania.

Main European Legislation applicable in Romania Council Regulation (EC) No 73/2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) No 247/2006, (EC) No 378/2007 and repealing Regulation (EC); Commission Regulation (EC) No 1580/2007 laying down implementing rules of Council Regulations (EC) No 2200/96, (EC) No 2201/96 and (EC) No 1182/2007 in the fruit and vegetable sector REC 1234/2007 – common organization of agricultural markets; Commission Regulation (EC) No 1973/2004 laying down detailed rules for the application of Council Regulation (EC) No 1782/2003 as regards the support schemes provided for in Titles IV and IV a of that Regulation and the use of land set aside for the production of raw materials; Commission Regulation (EC) No 796/2004 laying down detailed rules for the implementation of crosscompliance, modulation and the integrated administration and control system provided for in of Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers. Main National Legislation in the sector Government Decision (GD) 1078/2008 – granting financial aid to producer groups and producer organizations from the fruits and vegetable sector; Government Order (GO) 694/2008 – conditions for recognizing producer groups and organizations in the fruits and vegetables sector, as well as the means for their financing; Romania benefits from the system of direct aids to the farmers, being registered in the Integrated Administration and Control System (IACS) with a surface for production of fruits &vegetables of 169,099.1 ha. In 2007, the methods for supporting farmers directly were established, as premiums and subsidies, for cultivate surfaces, for sugar cultures, for energy cultures, etc. In the fruits and vegetables sector, support was directed towards setting up and supporting recognized producers groups and implementing the best practice system EUREPGAP for greenhouse vegetables and mushrooms in climate controlled spaces. Vineyard owners received subsidies for producing wine grapes and producing wine. Also, seed and planting material producers received subsidies for potatoes, fruit trees and vines. As regards national support a total of 1,067,073 EUR was made available from the state budget, in 2008, for producers of fruits whose orchards were affected by the late spring freeze of 2007.The table below is presenting main subsidies allocated for 2009 in the horticultural sector: Table 6: National Subsidies Horticultural Sector, Romania 2009 Subsidized activity Eligible crops Costs Available aid covered Implementing the 70% of Up to 2,300 EUREPGAP/GLOBALGAP certification, EUR/contract system for best practices analysis, in the fruits and vegetables permit costs sector Facilitating the operations 9,000 of recognized producer EUR/group groups Financial support for Vegetables in 140 EUR/t - vegetables produced in greenhouses heated greenhouses – Mushrooms 180 EUR/t

Total available aid 45,000 EUR

5 mil EUR 830,000 EUR 17

mushrooms produced in climate controlled spaces

Financial aid for fruits and vegetables cultivated for processing

Financial aid for purchasing packaging material and other materials necessary for packaging and fresh delivery Storage

Energy for greenhouses

Phyto-sanitary treatment for vineyards Supporting production of potatoes for industrial use

35% (VAT excluded) of heating and/or electricity bills, or fuel of any kind Tomatoes Peas Green beans Peppers (all types) Cucumbers Apples Plums Cherries Sour cherries Peaches Grapes for consumption

370,000 EUR

80 EUR/t 70 EUR/t 80 EUR/t 70 EUR/t

845,000 EUR 210,000 EUR 165,000 EUR 110,000 EUR

30 EUR/t 35 EUR/t 45 EUR/t 45 EUR/t 45 EUR/t 70 EUR/t 70 EUR/t

35,000 EUR 167,000 EUR 82,000 EUR 73,000 EUR 28,000 EUR 35,000 EUR 25,000 EUR

Vegetables, strawberries, fruit trees and fruit shrubs

30% of cost of materials

Up to 1 EUR/piece

Vegetables – 445,000 EUR Fruit – 220,000 EUR

Onions, root vegetables, apples, pears, grapes for consumption Vegetables and mushrooms Treatment costs

30% of storage expenses

Up to 15 EUR/t/storage period

670,000 EUR

35% of energy bills

2.5 mil EUR

110 EUR/ha

510,000 EUR

33 EUR/t

890,000 EUR

Source: GD 693/June 10, 2009, exchange rate 1 EUR=4.2 RON

Major limitation factor in using the subsidies is they are paid with substantial delays with direct effects on farmers’ profitability. Some subsidies will continue past 2010, with some modifications according with EU Regulation 1857/2006. Some state aid will continue as payment for services (such as compensations for natural disasters) and direct support will be given to farmers for financing phyto-sanitary campaigns at national level, new investments including credit guarantees as well as reducing the excise on diesel fuel and electricity used in agriculture (pumping stations for irrigation).

2.7

Main players

2.7.1

Small farmers

IACS data submitted by Romania for the fruits and vegetables sector shows that farms with surfaces less than 3 ha are predominant, 90% of these farms being managed by private parties. The high fragmentation and dispersion of cultivated areas (especially for field vegetables) is a result of the reinstatement of the private property in agriculture after 1990. The high number of existing plots creates major limitations for technological upgrade (agricultural works, production structure, 18

professional training of farmers, etc) and the increase of the production costs. On the other hand due to the lack of experience in using insurance instruments any negative climate phenomena, diseases or pest attack create a direct loss for the producer. At the same time the large number of farms producing primarily for own consumption but also selling part of the harvest from their doorsteps or via unofficial selling points do not allow a clear separation between commercial and subsistence farming and consequently makes it difficult to implement a coherent fiscal policy. All these factors have a direct influence on fluctuations of farmers’ income, promotion of consumption, and enhancement of the environmental safeguards as well as a strong impact on the improvement of the competitiveness and market orientation of the fruit and vegetable sector. 2.7.2

Commercial farmers

One of the consequences of the high fragmentation is that the number of the real commercial players in the fruits and vegetable sector is quite reduced. There are several individual producers working bigger surfaces for commercial purpose (such as Jolt Varga with 6 ha used for cruciferous in Covasna) but the market is in fact dominated by strong holdings with mixed activities. Major players in the fruits sector are: Andany Trading (Giurgiu) was set up in 2003, part of a big holding (to include Blue Air-low cost flights and Romstrade –infrastructure) and reached a turnover of 104 million EUR in 2008. In 2004 the company set up an intensive production orchard on 100 hectares in Adunatii Copaceni (Giurgiu), an investment of 7 million EUR made using Dutch consultancy (Adviesburo Hillebrand-van der Heide BV who was also the main contractor), equipment (Besseling Ulo Systems, Van Wamel Fa. Hol), fertilizers (Aquaned) and saplings (in a wide variety: apples, pear, cherry, peach, quince, plum, sour cherry, walnut, strawberry, raspberry and vineyard). The orchard is already productive and this year delivered over 1,000 tons of fruits under the brand “La Mosie” (mainly to hypermarkets Real and Carrefour). The farm has also a nursery on 4 ha (to cover its own needs and also to sell on the market) as well as own capacities for sorting, packaging and warehousing in controlled atmosphere. Targets set for 2010 are to reach 2,000 tons of apples, pears and cherries delivered to retailers. The company acquired additional 30 ha and plans to expand to production of vegetables and technical plants, processing and export. The company representatives declared they consider applying an associative system for also collecting fruits from small private farmers to be resold to big retailers and partner with other producers for using warehousing facilities. Agrohorticola Batos (Mures) A major producer of fruits (especially apples), the company is located in an area with a tradition in fruit cultures handling also other activities such as processing (producer of apple vinegar Batos Aceto) as well as trade with cereals and construction activities. Agrohorticola is the initiator of one producer group (Dedrad - Batos), active since 2006 and consisting of 2 companies (Pomicola Batos and Agrohorticola Batos) and 8 individual producers covering 500ha in Reghin area (Mures). The group has a yearly production potential of de 8-9,000 tons apples for consumption and 3-4,000 tons apples for processing as well as the biggest facility in Romania for apple warehousing in controlled atmosphere. Horticola International Sibiu Part of Atlassib Holding, the company is a major player in fruit production. Orchards are not the only agricultural investment of Atlassib – the company also invests in field crops, animal breeding and milk processing. Comly Buzau is both a fruit producer with an orchard in the Buzau region and at the same time a trading company. Comply benefited of a Dutch financed project in 1992 in partnership with Hagé International B.V. a leading import and export company for fruits and vegetables in the Netherlands. The aim of the project was to modernize the existing Comly orchard and also to set up a 5 ha demonstration field with a new planted orchard for apples, plums and sweet cherries using highdensity fruit-growing and planting techniques and irrigation technology. Also, within the project a three storage rooms with a capacity of 300 tons was build as well as facilities for training and dissemination. Another successful Dutch example is the company Nedarco owned by the family De Waart that started its activity in Romania in 1998 when they set up a commercial society selling agricultural equipment. In 2005 they started together with the company Flevo Plant from Netherland (with Dutch governmental funds PSOM) a farm in Valea Argovei.

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Nowadays the company is operating a strawberry greenhouse with an area of 1 ha and is cultivating other 24 ha with strawberry, cabbage and water melon. As regards propagation material (grafted trees) Romania’s production of certified varieties has decreased drastically due to low demand for rejuvenation of existing orchards after 1990. Romanian nurseries produce about 1-1.5 million trees per year while the need would be of 7 – 8 million trees for a normal rejuvenation rhythm. For many years no significant investments in modern technology or diversification of the assortment were made. As a consequence the current local production cannot keep the rhythm of the new developments on the market, the demand for raw materials of the new investors in the sector being covered mainly by imports (mainly form Italy). Currently grafted trees are produced in Romania mainly by research units and small producers (selling on peasant markets at regional level). A new law in the research field is envisaging that part of the research units will be transferred in the custody of the Agricultural Universities as a solution for their development. For example the University in Craiova will take over the unit in Valcea, Voinesti will be taken over by the Bucharest University -that also owns the research unit in Istrita (Buzau) Moara Domneasca (Ilfov) and Baneasa (almost 100% transformed into a real estate project), research unit Iasi and Sirca nursery will belong to the Iasi University while the Geoagiu unit (Hunedoara) will be taken over by the University in Timisoara. According also to the turnover data registered for 2008, the top of the first 10 commercial players in the vegetables sector is dominated by Leader International. The company was set up in 1994, having the production of fruits and vegetables as main activity and works under current structure, since 2001 controlled by one shareholder Mr. Horia Culcescu. The group covers about 1,400 ha, produces 15,000 tons annually (mainly tomatoes and cucumbers) and has 347 employees. Leader is the majority stockholder in Berser (a group of greenhouses in the Berceni neighbourhood, Bucharest), Leoser (greenhouses in Popesti-Leordeni, Ilfov) and Ostrovit (vineyards and orchards in Ostrov, Constanta). The company owns a cannery in Caracal (Olt), a vegetable farm in Turnu Magurele (Teleorman), and a vegetable farm in Isalnita (Dolj). About 70% of the greenhouse production is exported (Czech Republic, France, Switzerland and Germany).They also import products as raw materials (about 8% of the total need mainly mushrooms and Thailand pineapple) or for trading (lemons, oranges). Leader is also an active investor for increasing its production capacity (4 million EUR investment out of which 2 million EUR from SAPARD funds), purchasing new processing lines for vegetables (1.5 million EUR vegetable freezing line, 2.5 million EUR line for processing tomatoes), setting up irrigation systems and storage facilities (in Craiova, Dolj country) or farm endowment (in Turnu Magurele 500,000 EUR investment using SAPARD funds). By far the most spectacular investment made by Leader International was in 2007 when they took over 26 ha of greenhouses in Pipera (Bucharest outskirts) through a concession contract signed with the Autonomous Regie “Administration of State Protocol”. The old greenhouses were demolished and a new, modern, mono-block greenhouse was built, on a 15 million EUR worth investment. This is a first major attempt to narrow the current gap between vegetable supply and demand in Romania. The greenhouse is 7 m high, covers 13.5 ha (the only one of this height in Romania), has a production capacity of 600 tons of tomatoes per ha per year and was projected and built by Dutch company Debets-Schalke B.V. The Pipera greenhouse has no sorting, storage or packaging facilities these operations are done centrally at Leoser. The tomatoes obtained at Pipera are sold in large retail chains, such as (Metro Kaufland, Carrefour). The company produces its seedlings in-house. Approx. 80 employees work in the greenhouses permanently, and 100 employees are active during the peak season. Sud Oil another important player, is the company that took over in 2004 the greenhouses in Isalnita (148 ha in total out of which 75 ha covered with glass including a sorting hall, pre-refrigerating rooms, heating station, mechanical workshops and storage halls). The company is specialized in the production of gherkins with 8000 tons per year in 2 production cycles. 80% of the production is exported in Western Europe. Besides the big players mentioned above, there are also smaller companies becoming more active on the market. Few relevant examples are Quardena – Codlea (Brasov) working about 8 ha in field for producing cruciferous (cabbage, cauliflower, turnip) and carrots; the company sells directly to big processors such as Timbark or suppliers of fast food chains like McDonalds) or Romgreen (Constanta) producing lettuce, carrots and mushrooms on 5 ha (with a 800square meters solarium).

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2.7.3

Producer organizations

Even if supported by various pre-accession programmes, farmers association as a concept is still far from being re-accepted by the individual mentality in Romania. As a direct consequence of the past experiences of communist cooperatives (when association was in reality a forced transfer of the private property towards the state), the individual farmer is not easy to be convinced of the advantages offered by the producer organizations. Based on interviews with MAFRD at this stage the available staff at institutional level is still low for actively raise awareness at the individual farmer level. The setting up of producer groups was encouraged as early as 1998 (projects financed by PHARE programs) but the market conditions did not allow transposing the EU legislation in one step. As a result at this moment both national legislation and EU legislation are in force for creation of producer groups, however only the groups that meet EU criteria are eligible for EU financial support. Based on national legislation a total of 44 producer groups are recognized. Out of them only 4 producer groups: Agricultural Society of Apple Producers “Dedrad - Batos", S.C.Paradisul Legumelor Curtici & Marcea SRL (they recently built up a modern warehouse facility with up-to-date sorting installation and controlled atmosphere) , S.C.Cerasus SRL and S.C.Agroleg Grup SRL and 1 producer organisation S.C. Hortifruct Bucharest (members being the companies of Horia Culcescu) are recognised based on EU regulation no. 1182/2007. Hortifruct is already a powerful market presence with an important influence at governmental level. The latest proposal submitted by the group to the Ministry is for a 500 ha greenhouse project, to be build at Ostrov, where Ostrovit, a company within the group is based. The rural area around Ostrov has good resources for greenhouse vegetable production, especially labour resources. Given the high costs of the project, the Hortifruct group has asked MAFRD to issue governmental guarantees for bank financing. In 2009 the following producer groups are additionally recognized in a preliminary procedure: - SC Legumes SRL (Tulcea) SC Bratesleg Grup SRL – Razboieni (Galati) - Agricultural Society “Legume Fructe” – Matca, (Galati) - Association of the Agricultural Producers Group “Hortipomicola” – Reghin (Mures) - Early Potato Producers Group– Lunguletu (Dambovita) Contact details for all these organizations are provided in the key contacts section at the end of the report. Two other organizations have also submitted files for certification and recognition. According to the legislation in force, producer groups can benefit from support for setting up and administrative activities, amounting to different percentages (%) of the value of traded production: rd th th 10% in the first 2 years; 8% in the 3 year, 6% in the 4 year, 4% in the 5 year as well as up to 75% of the value of investments made for certification and recognition. Producer organizations can receive 4.1% of the value of traded production. The 4 groups recognized in 2008 received, in 2009, their 10% of the value of traded production. Romania has agreed to grant these groups consistent financial support – 75% of the total investment value (50% EU funds, 25% national funds). According with statements made during direct interviews with various representatives of producer groups and professional associations main threats in the sector are: - the lack of interest at the governmental level (due to rather narrow vision as regards the importance of the sector based only on its low contribution to Romania’s GDP) that influenced both the conditions negotiated at Romania’s accession in EU and current limitations in developing and implementing coherent strategies; - the fact that Romanian growers pay one of the highest prices for energy used for agriculture works makes the final product totally uncompetitive compared with any imports (EU or non EU) of similar products; - the unfair competition of the black market. Hortifruct is actively interested to promote the separation between subsistence and commercial agriculture, in order to eliminate unfair competition on the part of small producers. A well organized vegetable commodities exchange would be the solution for establishing a fair price-quality ratio and to stimulate consumption. The existing gap between the needs of association and actual situation on the market is acknowledged by all stakeholders as a major limitation factor for future development of the sector. However the governmental resources to raise awareness and stimulate association remain scarce, real progress on medium and long term being influenced exclusively by market development. 21

A Dutch financed project is currently carried on in cooperation with MAFRD and major producer groups with the aim to set up and make functional inter-professional organisation in the sector of fruits and vegetable (Prodcom)for increased commercial strength of the existing producer groups. The organization will be structured in five directions: o fruits (gathering producers or groups of producers of fruits under coordination of Mr Emil Farago of Agrohorticola Batos) o vegetables – (gathering producers or groups of producers of vegetables both in the open field and protected, coordination of Mr. Aurel Tanase of Romconserv and Mr. Constantin Stanciu of Leoser) o mushrooms- (gathering producers or groups of producers of mushrooms under coordination of Mr. Eugen Bajenaru of Euromix, president of mushrooms industry association) o canned fruits and vegetables- (gathering producers or groups of producers of canned fruits and/or vegetables under coordination of Romconserv) o producer groups- aimed at increasing the visibility of recognised groups on the market and with public authorities The project, managed by the company Food Industries Research & Engineering Holland BV, can be not only a successful solution for the horticulture sector but also a pilot to be replicated in other agricultural sectors in Romania. 2.7.4

Retailers

Romanian retail is still underdeveloped in comparison to that of Western European countries but is catching up rapidly. The food retail infrastructure changed a lot in the last years, conditioning the development of modern trade and disfavouring traditional trade. The majority of the investments came from multinational retail groups, 2007 being considered a milestone mainly because the territorial expansion of the retailers was exceptionally rapid, a period of concentration started, and the presence of stores from the same chain in the same town being already a common thing for the population. Fruits and vegetables in Romania are sold in farmers’ markets, small shops, street kiosks or directly from the doorsteps of small farmers as well as in hypermarkets, supermarkets, discount and cash & carry stores. Specialized stores of naturist, ecological products are starting to gain share on the market. As Romanian consumers generally give importance to the origin of the products they purchase, as well as the price or quality of goods there is a split in retailing between specialised retailers and nonspecialised retailers (such as supermarkets) which have a considerable bargaining strength when negotiating prices with suppliers and wholesalers. In Romania the farmers’ market is a special by arranged place from a locality destined for the commercialization of the agricultural or non-agricultural products (in contrast with the Western Europe concept where farmers, growers or producers from a defined local area are present in person to sell their own product, directly to the public and where products sold should have been grown, reared, caught, brewed, pickled, baked, smoked or processed by the stallholder). The main difference is that in EU the local producers are protected by forbidding the access of producers of other geographical areas, while in Romania this “protectionism” is not present and the farmers’ market is a mixture of agricultural, non agricultural or general use products commercialization. The stallholder can be a certified producer, an authorized physical person or a (limited liability) commercial company. Farmers’ markets in Romania generally existed for along time in the same place (generally well located within the cities) and are commonly characterized by a poor organization, administration and control. The modernization of market places is a process of interest for both governmental and local authorities but (as the area they are built on represents in many cases also attractive real estate opportunities) the process is more focused in creating new more flexible formats (temporary or itinerant markets) rather than structural changes. One interesting example was set this year when the yard of MAFRD in Bucharest was transformed every weekend of October in produce market open for local farmers. The data registered by the Romanian Trade Register make it difficult to establish a top of the specialized local retailers based on the turnover because in general this is a result of more activities than selling of fruits and vegetables. At the same time wholesale and retail are combined within one company.

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Based on the market information gathered via direct interviews the most active players are considered to be: - Agroaliment (set up in 1991, the company has shops for fruits & vegetables, but also owns a restaurant) - Suk Star (set up in 1993, the company owns shops specialized in fresh fruits & vegetables, but also distributes the Tadal brand of olives) - Trans Akropol (the company sells fruits & vegetables and also import lemons from Greece ) - Distrib Manu (non specialized shops- food products, fresh vegetable and fruits, alcoholic drinks and tobacco) - Horticom (set up in 1994, food shops including fruits and vegetables) As regards modern retail main players are: - hypermarkets (Carrefour, Real, Auchan, Cora, Kaufland) - supermarkets (Billa, Mega Image, Plus) - discount stores (Penny Market, Profi, Plus, Minimax) - cash & carry (Metro, Selgros) 2.7.5

Wholesalers

Main limitation for the development of the wholesales markets in Romania is the small size of the local farmers. Their limited production both quantity and range do not justify renting a booth for all year round therefore wholesale activity is in generally connected with importing and market places have a mixed range of products on display. In Bucharest the most active wholesale market is Su Market (on Bucharest – Urziceni road). The 2 premises were finalized in 2007, and they spread over 70,000 m . There are 12 storage modules, st 2 which feature 132 stands (ground floor + 1 floor), with a total surface of 215 m . The ground floor has st 2 a cool storage chamber and a ramp, while the 1 floor is used for administrative activities (50 m ). Each stand is connected to the utilities network and has 2 washrooms. The rent is 3,000 EUR/month, and the space there is in popular demand (no free spaces at the time of visit). Some of the main names in the facilities were Agricantus, Alfredo Food, Yuksek, Pasha and other Turkish exporters. The Bucharest Wholesale Market (PGB) started in 1993 as a project financed by EBRD to facilitate wholesale transactions with horticultural products. The market was state owned and the intention was to be privatised after complete reimbursement of the EBRD credit. The project did not have the expected financial success and currently the market does not function as intended and trade a wide variety of food items. The available infrastructure consists of storage facilities with possibilities to 2 2 load/unload. The rent for a 60 m booth is 1,200 EUR/month, completed with a 12 m exhibition space 2 and 120 m of parking space. Rent does not include utilities (these cost extra) or stock manipulation – PGB only provides security on the premises. There is no cold storage space available for rent (usually this is solved by tenants parking a cooling van in the parking lot). The main vegetables stored at PGB are potatoes, tomatoes and onions, all produced in Romania. PGB is not usually used by direct importers (only Abbara Trading Co is present). A similar project co financed by the German government was developed in Timisoara on 2.5 ha towards the western border. One private initiative is of Trident Group which opened at the end of 2008 the biggest wholesale 2 deposit in Sibiu with a total surface of 4,000 m and a warehousing capacity of 1,600 tons for its own use. Most visible importers & wholesalers on the on the market are: 2 Interfruct – company owns a 3,000 m warehouse nearby the Su-Market in Afumati, warehouse with some cold rooms and a sorting and packaging area. They import more than 120 varieties of fruits & vegetables from Turkey and Europe and distribute both to the large retailers as Selgros, Billa, Penny Market, Cora and for several other small and medium stores as well as for the HORECA system. Distrifrut was set up in 1998 in Ploiesti by Fadi Nahas and today has warehouses all over the country with an estimated 25% market share. The main products are large variety of bananas, oranges, lemons and other exotic fruits. Their clients are cash & carry stores such as Metro or Selgros and also supermarkets such as Billa or Profi. They were for many years agent for Dole who took them over in June this year. Dole has decided to operate in Romania directly in order to provide top quality products and services to its European retail partners who are also operating in the country. Dole is the first international fruit company to enter Romania, where Distrifrut was the sole distributor of the Dole 23

brand. Dole Romania will operate from six different locations in the country: Bucharest, Constanta, Timisoara, Cluj, Iasi, and Bacau. The Company will benefit from a brand new state-of-the-art fruit terminal in Agigea port (near Constanta), on the Black Sea, where Dole bananas - arriving mainly from Ecuador - are discharged from Dole ships. Other known names as importer of fruits and vegetables is Yuksek International Fruct and Pasha IceLand Warehouse both present in the en-gross market of Afumati SU Market. Yukesk is importing only fruits and vegetables mainly from Turkey while Pasha, beside the import of fruit& vegetables import also frozen poultry meat. Most traders, are often mentioned in the media under suspicion for tax evasion. 2.7.6

Processors

The main companies active in the processing of fruits and vegetables are: Contec Foods is part of the distribution company Marathon Distribution Group (MDG) and was set up in 2007 in Tecuci, Galati county by incorporating several fruits and vegetables processing companies: the original factory Contec (set up in 1953, it was the largest fruits and vegetables processor and exporter before 1989, it was bought in 2004 by MDG and modernized), the factory in Ghidici, Dolj county (set up in 1998 and specialised in processing cucumbers, bell pepper, fruit jam, fruit compote) and the factory in Scornicesti, Olt county (set up in 2000 specialized in tomatoes: paste, concentrate, juice). Contec received the International Food Standard (IFS) certification in 2006 and produces today over 150 fruits and vegetables products under different brands: own brands (Olympia, Winmark, Daria, Picnic) and private labels mainly for large retailers (Aro, Winny, Clever, Tip, Rio Bucovina, Grande Familia, Master Fresh, Giani, Golden Line). Products are distributed through all the key account channels, through local distributors and also exported (4% of the total turnover) to Spain, Italy, Germany, Greece, England, France, the Netherlands, UK and Russia. Contec produces 20,000 t annually reaching a turnover of 14 mil EUR, with a profit of 1.9 mil EUR and a market share estimated at 35% in 2008.The total investment so far was of 5.5 million EUR, with additional 3 million EUR planned for the near future. Contec will focus on the HoReCa segment, introducing new product types such as jams (apricot, sour cherry, strawberry, blackberry, roses) and honey in 20 g packaging. The group also purchased 135 ha of orchards currently undergoing rejuvenation. Conserv Buftea is located in Ilfov county nearby Bucharest and it is one of the first canneries in Romania set up in 1870. In 1948 the company was nationalized, re-privatized in the 90’s, and is currently owned by 2 foreign entrepreneurs. The company produces: compote, jam, vegetables in tomato sauce, vinegar, oil or salty water, mustard, tomatoes paste and soup vegetable mixes. 70% of the products are traded in Bucharest and also exported to UK, Germany and Israel. They also recently implemented a 4 mil EUR project to modernize the production facilities using SAPARD funding and own resources. Klevek Fetesti is located in Fetesti (Ialomita) in the centre of the Baragan plains, one of the most fertile areas in Romania . In 2005, Klevek bought Horticons, a fruits and vegetables canning factory 2 2 founded in 1968. The factory owns 40,000 m production facilities and 120,000 m farmland (13 farms) reaching a maximum 4 h between harvesting and canning. Main products: peas, beans, cucumbers in water/vinegar (largest capacity in Romania for this product category), tomato paste and derivatives, vegetable mixes, vegetables in water, jam, compote. They recently finalized a rehabilitation project partially funded through SAPARD, upgrading their transport fleet and purchasing new complete industrial lines for peas, beans, gherkins, pasteurizers, labelling and packaging technology. Using MAFRD financing, they also upgraded the laboratory being able to provide quality controls throughout the manufacturing process. The company is certified ISO 22000:2005. Mandy one of the largest food companies in Romania has been processing fruits and vegetables since 2002, when they bought Fructons SA (former state-owned company in Roman, Neamt county); produces: jam, compote, pickles, vegetables in water, tomato paste. MIB Prodcom was set up in 1942 in Cluj Napoca, Cluj county and over the last 10 years has been processing fruits and vegetables under the brand Arovit. Main products are household jam, jam for HoReCa (20 g packaging), jam for bakeries (1-5 kg), fruit juice, apple concentrate, low-sugar jam and fruit juice, vegetables in water, tomatoes (paste, juice). The company implemented HACCP and also SR EN ISO 9001:2001, DS 3027E:2002. Conservfruct set up in 1993, in Baltatesti (Neamt) is specialized in processing fruits and vegetables. It also used the SAPARD facility to modernize de factory and has implemented ISO 9001:2001 (since 24

2003) and HACCP (2006). Main products are jam, compote, pickles, vegetables in water, tomatoes (juice, paste), fruit concentrate. They also export to Israel, Greece, Italy, Ireland, UK, Canada, USA. Orkla Foods Romania is the local subsidiary of the Norwegian group Orkla Foods. They currently process fruits and vegetables in Covasna county, with recently modernized production lines (production relocated from Targoviste, Dambovita county) producing jams, fruit paste, sauces, tomato paste. Many smaller canneries became more active on the market in the last 2 years mainly based on the transitional payments scheme for tomatoes for processing. One interesting example is SonImpex Toploveni that has in its portfolio the only Romanian brand that applied under EU PGI (protected geographical indications) scheme: ‘magiun natural de prune Topoloveni”. 2.7.7

Horeca

The importance of the HoReCa sector has increased over the past few years, along with the increase in out-of-home consumption caused by a rise in income. This phenomenon is widespread among the active population and families without children, where both partners work. Standards in the HoReCa sector have also changed after Romania’s EU accession – fruits and vegetables used in HoReCa facilities must be procured from authorized producers, with a quality certification. The HoReCa segment includes, besides restaurants, hotels and other recreational facilities, establishments such as mess halls, hospitals, prisons, army facilities, schools, universities, etc. In the case of state HoReCa units, fruits and vegetables are usually sold through public tender, depending on the value of the order. HoReCa units use both fresh and processed fruits and vegetables, with a growing emphasis on frozen vegetables. The most used products are: pickles, jams, compote, fresh exotic fruit, frozen vegetables, canned vegetables, vegetable mixes for cooking. The distribution of fruits and vegetables in the HoReCa segment requires a series of modifications in the logistics of suppliers. First of all, since HoReCa works in a deliver-and-use system, there is great emphasis on fresh, next-day deliveries. The direct distribution system for the HoReCa system is based on speed and responding promptly to punctual customer needs. fruits and vegetables are also delivered through cash & carry networks, which operate under the discount mechanism, with a focus on the HoReCa sector and companies from the food sector. Packaging is also different for the HoReCa sector. There are 2 categories of packaging used: small packaging (single-serving portions for direct placement with end users) large packaging (bulk, larger than 1 kg, for cooking) The preferred large packaging is plastic and metal, for better, long-term preservation. The HoReCa market in Romania is still developing, with a significant improvement expected for 2010, as more international chains are entering the Romanian market, and with local chains developing at a rapid pace. Both importers and producers are adding special fruits and vegetables products to their portfolio, to target the HoReCa segment. For example, frozen vegetables are targeting HoReCa aggressively with: -

bulk packaging (1 – 5 kg) vegetables processed especially for hotels, restaurants, etc. (baked/grilled peppers, squash, eggplant, etc) ready-to-cook FRUITS AND VEGETABLES mixes(for convenience and quick service)

Contec Foods, for example, plans to focus on the HoReCa segment with new products: jams (apricot, sour cherry, strawberry, blackberry, roses) and honey in 20 g packaging. MIB Prodcom also produces mini-portion jam for HoReCa (20 g packaging), bulk jam for bakeries & other food producers (1-5 kg). Also, more and more companies are introducing frozen fries to the market, to target the fast-food segment. There are fruits and vegetables distributors in the market specialized exclusively in supplying the HoReCa segment with fruits and vegetables.

25

One such company is Livcom Impex, a Romanian company founded in 2001. The company delivers fresh fruits and vegetables exclusively to the HoReCa segment, with products and logistics adapted especially to this niche (high quality products, cold store & delivery, etc.). They offer next-day and same-day delivery, within a maximum 12 hours time frame. They also offer emergency 3-hour deliveries. A special feature of the company is that it offers direct import of fruits and vegetables from Holland, with a 5-day delivery period. Another company is Solutions 4 Restaurants, also distributors of fresh fruits and vegetables to the HoReCa segment. Besides fresh vegetable, they offer cleaned/sliced vegetables, as well as vegetables packed in vacuum. All these companies offer the following advantages: -

timely and reliable delivery fresh products quality products specially-processed products (basic processing, for easier use by the customer)

In the HoReCa segment, fresh fruits and vegetables also have a key decorative purpose, with artistic arrangements used as centre pieces or as eye-catching meal courses. Emphasis is thus placed on fresh, aesthetically-pleasing fruits and vegetables, sometimes in the detriment of taste. HoReCa business-to-business events often include demonstrations of fruits and vegetables arrangements, alongside other arrangements, such as flowers. Creative culinary art makes use of fruits and vegetables in new and innovative ways, and requires producers and distributors to adapt their offer to this particular demand. 2.7.8

Research & education

Less than 1/3 of horticultural research institutes founded before 1989 are still operational. Moreover, there is little to no connection between research and practical application. This is mainly due to the privatization of greenhouses and to the return of nationalized land to its original owners (for example the main research institute in Bucharest reorganized and had to transfer its greenhouses to the company Berser, the fruit and vegetables research station in Oradea lost its orchards as a result of land restitution). The results of the research projects reach producers only with great difficulty and are rarely put into practice. Producers have limited financial means and cannot support massive investments (modern greenhouse or field technologies, intensive tree culture, etc.), and they are also skeptical with regards to the ability of research projects to increase efficiency and quality. Due to lack of association structures information is not easily distributed among producers and is not seen as a valuable asset. Even today, producers still to follow traditional production procedures, outdated but with strong historical tradition. Most large scale research projects are financed through national, European or international programs. However, the results of these projects are only presented in conferences and congresses, or are published as scientific papers, without being promoted among producers (demonstrations, test cultures, etc.). The Research and Development Institute for Vegetable and Flowers Vidra is the main research institute as regards the vegetables and flowers. It was set up in 1967 through the re-organization of the Horticulture-Viticulture Research Institute. The initial head office of the new research institute was in Tiganesti (Teleorman) but later on they moved to Vidra (Ilfov), a commune nearby Bucharest with a long tradition in vegetable production. Vidra Institute is producing seeds for mainly for open field vegetables recognized in Europe. The main vegetables for which they create well known local varieties are the bell-pepper, the aubergine, the onion, the cabbage and most recently the carrot (such as the bell-pepper “Asteroid” and “Cornel” (productivity of 40 t/ha), the aubergine “Luiza” (productivity of 50 t/ha and resistant to specific diseases) or the cabbage variety “Varza de Buzau” with flat ribs (suitable for the Romanian traditional food - stuffed cabbage). As regard the fruits production the most important player is the Research and Development Institute for Fruit Growing, Maracineni (Arges). The institute was also set up in 1967 and initially had about 26 research offices all over the country out of which only 7 existing today. In their history they created a large number of varieties for the main fruit trees cultivated in Romania adjusted to loacla conditions and diseases. Beside the creation of fruit trees varieties the institute makes physiological and biochemical studies for trees and fruit shrubs and also studies the behavior of various varieties in different regions and different soil types. 26

Among the varieties they have created and still present in Romanian orchards there are: for the appleColonade (in 2007) and Rustic (2008); for the pear- Trivale (1982), Ervina (2003), Paradise and Paramis (2008); for the cherry- Amara (1983), Cerna (1984), Simbol (1996), Superb (2003); for the sour cherry- Crişana 2 (1975), Sătmărean (1994), Rival (2004) The fruit growing and vegetables production technologies are taught in Romania within the Faculties of Horticulture. The main Faculties of Horticulture are in the Universities of Agronomic Studies in Bucharest, Craiova, Iasi, Cluj-Napoca and Timisoara. In the last years, horticulture faculties were set up also in Pitesti or Sibiu. The lack of a modern educational infrastructure and curricula not fully adjusted to market conditions represent the main problems for all horticulture faculties, confronted in the last years with a decreasing number of students. There are ongoing efforts to bring the Romanian curricula to the European level (for example the Faculty of Horticulture in Bucharest cooperates in this respect with the University of Perugia), but the problems start on a deeper level. On one side the more general situation of the education system in Romanian where the academic professorate is not seen anymore as a rewarding alternative for best specialists while on the other side the quality of the students is on a descending trend. In spite of all exchange programs (such as Tempus, Socrate, Leonardo) addressed both to teachers and students, education has very little connection with market conditions and needs. Companies in the field of production or trading of horticultural inputs often complain that graduates from the horticulture faculties have good background knowledge but less practical approach. A better dialogue between all stakeholders of the sector also on educational themes is the key for improvement of this situation on long term.

2.8

Fact sheet of the sector

The following table presents a snapshot summarizing the strong and weak points of the Romanian horticultural sector: Table 7: Fact sheet horticultural sector Romania Sector Field Strengths Agricultural Numerous holdings with a wide holdings array of fruits and vegetables varieties

Surfaces and production capacities

Weaknesses High number of small size holdings (up to 3 ha), especially in the vegetable sector

Modernization of processing units Favourable soil and climate conditions for growing vegetables, fruit trees and shrubs

Low technical level of plantations Decrease of surfaces used for vegetables, fruit trees and shrubs, as % of total arable land

New trend for development of orchards and vegetable farms (including greenhouses) using high production techniques

High degree of land fragmentation and lack of a coherent strategy for consolidating lands Low degree of orchard rejuvenation + large areas with declining orchards

The increase of mushroom production capacities including climate-controlled spaces Production Volumes

Increase of the average production of fruits and vegetables

Large areas of abandoned and/or technologically out-dated greenhouses Increase of the fruits and vegetables production for processing disfavouring the market for fresh products Out-dated growth techniques (crop maintenance, choice and application of treatments, etc.)

Value

Important economic sector fruits and vegetables production represents 24% of total vegetal

Low productivity per ha Low production volumes off-season Low added value of products due to: - lack of marketing skills for preparation of trading process 27

production

Production management

Processing is still a major solution for excess production in the fresh products market

(sorting, classification) as well as product presentation (packaging, labelling) to ensure safety and attractiveness for the consumer - lack of technical support for washing, sorting, packaging, labelling, storage and transport of production to the market - lack of a production planning system adjusted to market demands Large number of economicallyvulnerable enterprises, especially due to unplanned production Large number of sites with no technology for limiting the effects of extreme weather, disease and pests

Consumers

Consumers appreciate the quality of local-grown products fruits and vegetables consumption is associated with good health

Quality

Trade networks and infrastructure

Consumption of processed fruits and vegetables still at high levels Implementation of quality systems for conditioning and trading fruits and vegetables Relatively large market Expanding international retail networks

Low, almost non-existent degree of crop insurance Relatively high price of fruits and vegetables Low degree of consumer education with regard to food quality and safety

Low implementation of fruits and vegetables trade standards by the small merchants Lack of an efficient market information monitoring system that result in incapacity to adapt to market trends and demands Lack of trade associations (groups and organizations of producers) Fragmented distribution and persistence of doorway selling points, as result of limited technology for collecting, sorting, packaging, warehousing (including cold storage) and transport

Market

Low degree of production concentration + lack of production collection centres (platforms and wholesale markets

Certification and quality marking

The increase of the number of holdings with certified production according with good agriculture practices and food safety norms

Limited access of domestic production to the large retail networks as result of no inter-professional trade agreements and the large number of speculators Lack of certifications and quality marking Low level of quality warrantees (especially regarding utilisation of plant protection chemicals) 28

High potential for certification of geographical origin

Foreign trade

Diversified offer

Low level of quality management Lack of concerted actions on food safety No programs for trade promotion on local or foreign markets

Dispatch market Major international players present

Negative trade balance (imports highly surpass exports) Low competitivity of products Lack of inter-professional agreements

Source: Based on MAFRD ROMANIA / National Strategy for Operational Programs in the Fruits and Vegetables Sector, 2008

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3

Opportunities for the Dutch horticultural sector

3.1

Export of fresh fruits and vegetables

The foreign exchanges with fruits and vegetables have a non significant importance within total Romanian foreign trade (weight between 0.1% - 0.3% both quantity and value). From 2004 to 2008, Romania’s exports of fruits and vegetables were on a variable trend with the lowest level in 2004 and a maximum in 2005. Forecasts are positive for 2009, as in the first 5 months of the year, fruits and vegetables exports have almost doubled in comparison to the same period in 2008. However, Romania still imports at least 60% of its necessary fruits and vegetables annually, as local production cannot meet domestic demands. Romania is also used as a platform for re-exports, especially in the EU. Table 8: Total exports of fruits and vegetables Quantity Thousand Value 2008 tons thousand EUR Fruits 20.9 30,816.3 Vegetables 28.7 39,565.2 Total 49.6 70,381.5 Source: INSSE

In terms of volumes, cucumbers are Romania’s best sellers, followed by potatoes, processed fruits and dried vegetables. Romania has a tradition of producing all those types of products and, despite its declining production, exports for these categories are still active. Table 9: Top 5 categories of fruits and vegetables exports, in terms of volumes

Products Cucumbers Potatoes Processed fruit Apricots, cherries, peaches, nectarines, plums Dried vegetables with pods (legumes)

Quantity tons 7,381.1 6,744.6 5,561.5 5,226.9 4,600.7

Main country of destination Austria Moldova Germany Russian Federation UK

Source: INSSE

However, the most valuable Romanian exports of fruits and vegetables are processed fruits and vegetables. These processed products hold the top 3 positions in terms of value in the hierarchy of Romanian exports of fruits and vegetables. Table 10: Top 3 categories of fruits and vegetables exports, in terms of value Value Products thousand EUR Processed fruit 9,863.8 Processed vegetables 8,957.5 Dried vegetables 4,661.5 Source: INSSE

Other high sellers, from a segment just starting to pick up, are ecological fruits and vegetables. This type of products is spread out between different categories of fruits and vegetables and it is estimated that 25% of fruits and vegetables exported in 2008 were eco products. 30

Romanian eco walnuts are of great interest abroad, especially in Western European countries. Still, ecological agriculture only holds around 1% of the current agricultural market. Italy is the main destination for Romanian fruits and vegetables, despite the fact that a large part of imports also come from Italy. Neighbour Moldova is also a significant importer of fruits and vegetables, as is the Russian Federation, despite the fact that a few years back there was little demand for Romanian products in this market. Table 11: Top 5 countries of destination for fruits and vegetables exports Quantity Value tons thousand EUR Country Italy 8,340.7 29,323.17 Austria 7,412.5 4,458.157 Moldova 7,403.3 1,409.128 Germany 5,048.0 1,1359.25 Russian Federation 3,301.2 1,715.171 Source: INSSE

3.2

Imports of fruits and vegetables

Over 300 thousand tons of vegetables and over 425 thousand tons of fruits were imported into Romania in 2008, with a combined value of 390 million EUR. 2008 was also another peak year for the growing imports of fruits and vegetables that remained dominant on the market in comparison with local production. Table 12: Total Imports of fruits and vegetables in Romania 2008 Thousand tons Vegetables 300.5 Fruits 425.6 Total 726.1

Thousand EUR 150.3 242.2 392.5

Source: INSSE

In previous years the exotic fruit used to represent the majority of imports on Romanian market. In 2008, as well, citric fruits and bananas were the top 2 imports. However, in recent years, even products in which Romania used to excel as a producer are abundantly imported (tomatoes, potatoes, apples, pears). Table 13: Top 5 categories of fruits and vegetables imports 2008 Main country Products Tons of origin Citric 148.6 Turkey Bananas 127.1 Ecuador Tomatoes 66.0 Turkey Potatoes 52.0 Germany Apples, pears 49.5 Italy Source: INSSE

Turkey is by far the leading country of origin for fruits and vegetables imports. The fast growing technologies (including the range of fertilizers used, many of them not recognized in EU) as well as the different level of state support as non-EU country make the Turkish producer an unfair competitor for the other players on the market even if the quality of the products is at very low levels. The Turkish are also the starting point of the high level tax evasion estimated at over 100 million EUR annually, a situation claimed difficult to control by the Romanian authorities as long as trucks are already controlled at the entrance point in EU in Bulgaria.

31

Table 14: Top 5 countries of origin for FRUITS AND VEGETABLES imports, 2008 Quantity Value Country thousand thousand EUR tonnes Turkey 184.6 75,273 Ecuador 98.8 47,109 Greece 70.0 43,725 Italy 51.9 45,330 45.6 32,448 The Netherlands Source: INSSE

Even though Dutch products tend to be more expensive, they maintain their position in the top 5 due to their superior quality. In 2008, the Netherlands exported over 45,500 t of fruits and vegetables to Romania, with a combined value of over 32 million EUR. The Dutch presence in top 5 per product categories is as follows: Table 15: Categories of fruits and vegetables for which Holland is in the Top 5 countries of origin of imports ( based on quantities, 2008) Potatoes

1

Germany

Onions

Cabbage

Lettuce

Egypt

Macedonia

Italy

Turkey

Poland

Spain

Holland

Holland

Holland

(19%)

(13%)

(15%)

Carrots, Beet Turkey

Cucumbers

Processed Vegetables

Semiprocessed Vegetables

Turkey

Belgium

Greece

Greece

Poland

Germany

Spain

Germany

Hungary

Egypt

Bulgaria

Hungary

Hungary

Holland (4%)

Holland (5%)

Exotic

Exotic

Nuts

Fruits

Indonesia

Holland (48%)

Grapes

Italy

Holland (19% of total potato 2 3 4 5

Holland (22%)

Holland

Greece

(17%)

imports) France

Turkey

Holland

Iran

(13%)

Holland (3%)

Source: INSSE

Based on statistics for quantities imported in 2008 the main country of origin for potato imports is Germany but The Netherlands rank first as regards the value of potato imports with a total of almost 3500 thousand EUR. The Netherlands ranks first both quantities and as values for seed potatoes and exotic fruits in the same year. Between 2002 and 2008 the volume of Romania’s grape imports increased 5 times, reaching 20,000 t in 2008. Italy has become the main supplier, increasing its market share to 44% in 2008 (from 12% in 2003). The main countries of origin for grape imports in Romania are: 1. Italy – 9,000 t in 2008 2. Greece – 5,400 t in 2008 3. Turkey – 2,600 t in 2008 4. Holland – 767 t in 2008 At the same time, due to the increase of average import prices, the value of imports increased 18 times, from 800 thousand EUR in 2003 to 15.1 mil EUR in 2008. The price range varies from Dutch products estimated at an average 1,778 EUR/t, to Italian and Greek estimated at 800 EUR/t. The highest flow of imports is registered from July to December, the production season of the main suppliers (Italy and Greece). Between January and June the main supplier is Holland (grapes from the Southern Hemisphere), with a higher import price. Between August and November local production is predominant. The explosion of information regarding a balanced diet has caused Romanian consumers to reconsider their menu, leading to an increase in the percentage of vegetables included in meals, all year round. Thus, frozen vegetables have become a convenient solution for consumers. Also, the 32

tradition of preserving fruits and vegetables for the winter, long standing in Romanian households, is beginning to fade, as a result of the accelerated pace of everyday life. In 2008, Romanian purchased 22,000 t of frozen vegetables, 4.5% more in volume than in 2007, and 20.1% more in value. The frozen vegetables market is currently abundant in products and brands, as a result of European companies entering the segment. Retail outlets sell a wide range of products, from rice & vegetable mixes, to vegetable mixes, one-type vegetables and potatoes. Romanian consumers prefer traditional frozen vegetables and vegetable mixes, as opposed to more evolved markets, which are more favourable towards spiced vegetables, vegetables in sauce and rice/pasta & vegetable mixes. Also, individual Romanian consumers choose small packaging over bulk, combined with frequent purchasing trips, while buyers for institutional consumption purchase packaging from 1 kg upwards. Hyper/supermarkets are the top destination for suppliers and consumers of frozen vegetables. However, most producers also target HoReCa, especially for frozen fries. The peas, gumbos and beans, registered 41.9% increase of sales volume in 2008. Mixes registered 41.5% increase of sales, and special products only 16.6%. Overall, pea is the top seller in the Romanian market, as Romanians are intense consumers, in comparison to other European countries. Also, vegetables that are associated with health and wellness, such as spinach and broccoli, are experiencing an ascending trend. The frozen vegetables market is dominated by imports, with international companies taking the first 5 spots in market. Also, quality is a deciding factor in the race for market leadership – the top 5 spots in the market are held by top brands, such as Bonduelle and Uncle Stathis. Bonduelle, for example, has seen its sales doubled between 2006 and 2008.

3.3

Distribution and retail of fruits and vegetables

There are 2 main categories of retail outlets in the Romanian fruits and vegetables market:  modern retail outlets (include international retail chains)  traditional retail outlets (small operations) The current ratio of modern to traditional outlets is 70/30, with modern outlets dominating urban areas, and being virtually absent in rural areas. The current trend is similar to that in Western European countries, in which modern outlets cover 80% of the market
the take-over of modern trade is still in progress. The modern retail outlets are the main targets for producers, and the centre of all distribution channels and strategies for the fruits and vegetables market. Very few outlets (especially modern) import fruits and vegetables directly, but rather procure their stock from major importers and distributors. In the case of foreign products (imports) especially, it is unlikely for modern retail outlets to negotiate directly with the foreign producers. The main distribution channel for foreign companies aiming to export to Romania is presented below:

Source: BDG

33

The main advantages of using an importer as a point of entry in the fruits and vegetables distribution network are:  Lower administration costs  Strong and adequate positioning of products from the moment of entering the market  A clear, bilateral policy of prices, discounts, terms of cooperation, etc. can be set  Importer helps define the best combination of distribution channels  Key Accounts (KA) have a stable local contact with whom they can define a stable pricing policy  Flexibility in planning and implementing promotional campaigns  Increased interest of the importer concerning the product’s evolution in the market  Flexibility in the dynamic aspects of the market Importers usually perform the following operations:  importing  storing  delivering to distributors and KA’s These operations entail a series of costs that the exporter aiming to distribute his fruits and vegetables must bear:  logistics costs
approx. 12% of actual import price  ongoing operational costs
3 – 6%  profit margin
minimum 15% Thus, the final cost is, approximately, the price of imports + 31% of that price. The main targets of fruits and vegetables distribution channels are the KAs (retail chains). This mode of distribution is complex and requires major investments, due to a wide array of taxes. Working with KAs only becomes profitable once the product is known on the market. However, due to the massive expansion of KAs and the contraction of traditional retail outlets, distributing to KAs remains a priority for producers and exporters. The presence of products in KAs is a method of promotion with a high impact on the consumers, which view the offer of modern retail outlets as trustworthy and prestigious. The KA costs are covered by producers, even if the products are distributed through importers or distributors, in order to ensure a direct and lasting connection between the producer and the KAs. There are 2 main categories of KA costs:  Financial costs (taxes)  Operational costs (discounts, bonuses, etc.) The main taxes collected by KAs are:  supplier placement tax
at the moment of signing the contract with a new supplier (around 10,000 EUR)  product placement tax
at the moment of placing new products from a supplier (100 – 2,500 EUR per chain)  preferred placement tax
product is made visible through preferred shelf placement  new outlet tax  in-store magazine promotion tax  taxes for other in-store promotional activities  promotion campaign tax Some KAs give up to part of their taxes and replace them with additional discounts. KA discounts are calculated as a % of the product price. The main types of KA discounts are:  general price discounts
5 – 10%  promotional discounts
2 – 10%  marketing discounts
9 – 17% of monthly/quarterly supplier invoice  logistic discounts
1 – 4% Bonuses are paid by suppliers to KAs as a % of sales recorded by the KAs:  unconditional bonus
paid even if the sales targets are not reached 1 – 2%  conditional bonus
paid only if the sales targets are reached 1 – 3%

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According to professional organizations in the fruits and vegetables sector, 70% of the business carried out in the sector is the subject of fiscal evasion. Most illegalities occur in the small producers’ sector, where paperwork is scarce and even some producer certificates are falsified. Along the supply chain from producers to consumers the prices double, even triple. Moreover, intermediaries and some traders also avoid using invoices, leading to enormous values of fiscal evasion. Only 20-25% of local production is sold in modern retail outlets, while the remaining production is sold in food marketplaces. Small and medium traders usually operate in marketplaces, most often without the proper documentations, or the quantity declared in the documents is much smaller than what they are really selling. Even though this is a well know practice, measures are few and ineffective. Fiscal evasion is not found only in domestic production, but also in imports, favoured by the faulty market structure and by the lack of unitary legislation. Since imports still dominate the fruits and vegetables market, the largest share of fiscal evasion comes from this sector. Importing via phantomcompanies or using invoices with lower prices and quantities are practices often found with especially but not exclusively Turkish importers. In the case of imports from the EU, the mechanism is simpler: immediate resale of the products prevents any uncomfortable questions and ensures a speedy delivery to end customers. The existence of fiscal evasion is well known and acknowledged and it has come to the attention of producers and government officials, and counter-measures are scheduled for implementation. Producers are lobbying for the introduction of several measures to support fair trade in the fruits and vegetables market:  unitary legislation for all sectors of the market (including small producers) 

facilitating direct access of producers to food retail outlets



separating imported and domestic fruits and vegetables at the points of sale



careful monitoring of wholesale marketplaces to check trucks at entry and exit for correspondence between declared and actual quantities

However, companies aiming to operate in the fruits and vegetables sector must acknowledge some unfair competition and take precautionary measures. Despite the widespread fiscal evasion, there are still legal and market mechanisms that support fair trade, with several more to come. While caution and careful strategic planning is recommended, the fruits and vegetables sector in Romania is not made inaccessible by fiscal evasion. The market is free, though challenging, and quality and professionalism still carry a high added value.

3.4

Quality aspects

Quality standards for fruits and vegetables on the Romanian market leave much room for improvement. Even though there is a general effort to bring Romania to EU standards, progress is slow, but steady. The overall tendency is to improve quality and meet sector-relevant standards, a tendency to which both authorities and economic agents adhere. Consumers are becoming better informed with regard to quality standards and their own rights, and are putting pressure on traders to improve the quality of their products. Frequent inspections, awareness campaigns, legal developments and the market entry of professional, high quality players are leading the market in the right direction. According with Romanian legislation in force from 2002 any trader no matter if wholesaler or retailer must make the following information available at visible place: general: name of the producer and packing company, variety, quality and quantity specific: for fruits and vegetables that were treated will mention “product treated by ionization” or “product treated with ionic radiations”. Also, if the producer uses chemical fertilizers, he must have a specific permit from a specialist in the field, and the use of fertilizers must be specified on the products. However in practice few producers and traders abide the law. The agricultural and sanitation services are limited (available only at county level not for every village) therefore are used mainly by commercial farmers with crops over 100 tons while the majority of small players flow products into the market without an accurate control. In many cases fruits and vegetables 35

are subject to artificial improvements that in the absence of clear knowledge on the use of various enhancers can lead up to negative effects on the health of the consumer. Imported products are also often of lower quality, even though they are sold at higher prices. Turkey, for example, uses certain pesticides not authorized in Romania and the EU. Because of this, Turkish producers have a problem with selling their products in foreign markets, so they are using markets such as Romania to unload their supply, at dumping prices. Romanian authorities cannot cope with the problem efficiently as the lead time to perform inspections and analyses is too long and before receiving proofs the products are already spread in the market generally without a trace. In many cases Bulgaria is used as first entry point in EU so once the customs checks are performed there Romanian authorities do not interfere. Reinforcing law provisions in practice is essential for increasing the quality level of fruits and vegetables traded on Romanian market.

3.5

Main developments in the fruits and vegetables sector & opportunities for market entry and business development

The survey revealed that Dutch fruit and vegetable companies can find ample opportunities for business development in Romania. By providing invaluable input to a sector with high yet still restricted market potential, Dutch players can actively contribute to its development, all while capitalizing on the business opportunities which result from this development. Despite such competitive advantages as abundance of arable land and a favourable climate, Romanian horticulture is hindered by land fragmentation and obsolete production methods. Trade in the sector is characterized by chaotic distribution, inefficient logistics and, very often, poor quality. After 3 years of implementing EU standards in fruits and vegetables production and trade, largely using EU funding, Romania still needs substantial investments to raise the sector’s competitiveness. However, with a total consumption of fruits and vegetables of 5.6 mil t in 2008 (10% average annual growth rate) and a total market value of over 1 billion EUR, Romania’s fruits and vegetables sector is a tempting challenge for companies, both foreign and local. As consumers are becoming more complex, new consumption trends are entering the market and opening doors for niche businesses (HoReCa, frozen products, eco products, etc.). Even though Dutch products tend to be more expensive, they maintain their position among the market leaders due to their superior quality. In 2008, the Netherlands exported over 45,500 t of fruits and vegetables to Romania, with a combined value of over 32 million EUR. The market offers opportunities as well as constraints for Dutch exporters. Opportunities are determined primarily by the ascending product consumption trend and the inability of domestic producers to satisfy the existent demand both in quality and diversity terms. Imports are clearly dominant, spurring opportunities for Dutch traders (Holland in one of the top 5 countries of import origin for major categories of products) who will continue to deliver products to the market via modern retail channels. The trend of local consumption structure reveals long term market opportunities for fresh fruits (apples, grapes, peaches, nectarines and citric fruits), fresh vegetables (tomatoes, sweet pepper, onion, cabbage and niche products such as endives, cherry tomatoes, etc.) as well as frozen products (vegetables and mixes). At the same time, new opportunities on the long term should be investigated based on the immediate need for re-consolidation of the Romanian sector for fruit and vegetable cultivation and processing, also by using the opportunity of current European financing programs. This can be also turned in an opportunity for Dutch suppliers of inputs for the horticultural sector who will find a market in need of new technologies and production methods. Currently there is only mild competition in local production, as farms with surfaces less than 3 ha are still predominant, producers are reluctant to form groups and technology is outdated. Dutch technology is already involved in several major development projects in the sector and can take this advantage further by using the good reputation in new commercial ventures especially in setting up high intensive production capacities (orchards, greenhouses, etc) as well as storage (especially cold and refrigerating) and processing capacities.

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Main entry points: - cooperation with local traders for the diversification of current product portfolios and/or increased product quality - cooperation with major producers and/or producer groups for the development of additional activities (mainly storage, processing, distribution) - expanding production operations in Romania based on the opportunity of free access to acquisition of good quality land at fair prices - exposure and increased awareness regarding the possibilities offered by the Dutch horticultural sector on the Romanian market as well as the adjustment of Dutch techniques to local conditions (also by participation in local fairs and exhibitions, comprehensive list of events planned for 2010 provided in the attachment) Given the existing Dutch success in Romania and the market’s high, unexplored potential, the present report hopes to encourage and support Dutch companies in accessing a market full of business opportunities and using their experience and innovation not only to become key players in the fruit and vegetables sector, but also to raise its level and shape future trends.

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4

Contact details main stakeholders

Hypermarkets, Supermarkets, Discount Stores, Cash & Carry SC Carrefour Romania SA Contact person: Mr. Arnaud Dussaix– Acquisitions Director Anchor Plaza Building, et.8, 26Z Timisoara Blvd., Sector 6, Bucharest T: 0040 21 20674 00 F: 0040 21 20674 51 [email protected] www.carrefour.ro

Carrefour Orhideea Contact person: Mr. Bogdan Stanciu – Fruits and Vegetables Dep. 210-210B Splaiul Independentei, Bucharest T: 0040 21 3177646 F: 0040 21 3177636 [email protected] www.carrefour.ro

Carrefour Baneasa Contact person: Mr. Laurentiu Tampa - Fruits and Vegetables Dep. 44A Soseaua Bucuresti - Ploiesti, Sector 1, Bucharest T: 0040 21 3118900 F: 0040 21 3118903 [email protected] www.carrefour.ro

Carrefour Colentina Contact person: Mr. Valentin Done - Fruits and Vegetables Dep. 426-426A Sos. Colentina, Sector 2, Bucharest T: 0040 21 3013700 F: 0040 21 6555984 [email protected] www.carrefour.ro

SC Real - Hypermarket Romania SRL Contact person: Mr. Eugen Stirbu – Acquisitions Director 51 Theodor Pallady Street, Sector 3, Bucharest T: 0040 31 4031000 F: 0040 31 4031009 [email protected] www.real-hypermarket.ro

Plus Romania SCS Contact person: Ms. Veronica Apetroaiei Fruits and Vegetables Department. Dn 72, Nedelea, Com. Aricestii Rahtivani,

Cora Pantelimon Contact person: Ms. Elena Mihaela Mocanu Fruits and Vegetables Dep. 21 Sos. Vergului, Sector 2, Bucharest T: 0040 21 2053500 F: 0040 21 2053651 [email protected] www.cora.ro

Cora Lujerului Contact person: Ms. Aura Fuduli, Mr. Daniel Chirita -Fruits and Vegetables Dep. 19 Iuliu Maniu Blvd., Sector 6, Bucharest T: 0040 21 4075500 F: 0040 21 4075555 [email protected] www.cora.ro

Metro Cash & Carry Romania Contact person: Mr. Bart Blomme– Food Purchasing & Merchandising Director Bart Van Werkum - Head Of Supply Chain Managment at Metro Cash & Carry Romania and Moldova 1 Sos. Pipera Tunari, Complex Twin Towers Barba Centre, et. 3, 5-7, Voluntari, Ilfov T: 0040 31 4234140 F: 0040 31 4234149 [email protected] www.metro.ro

Metro Cash & Carry Voluntari Contact person: Ms. Ramona Lazariu - Fruits and Vegetables Dep. DN2 Sos. Afumati, km 10, Voluntari, Ilfov T: 0040 21 2703793 F: 0040 21 2703802 [email protected] www.metro.ro

T: 0040 244 40 81 40 F: 0040 244 40 83 79 [email protected] www.plus-discount.ro

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Metro Cash & Carry Berceni Contact person: N/A 130A Metalurgiei Blvd., Sector 4, Bucharest T: 0040 21 4066150 F: 0040 21 4066198 [email protected] www.metro.ro

Metro Cash & Carry Baneasa Contact person: Ms. Loredana Ciurea- Fruits and Vegetables Dep. 44D Sos. Bucuresti-Ploiesti, Bucharest T: 0040 21 2003195 F: 0040 21 2003106 [email protected] www.metro.ro

Metro Cash & Carry Brasov 1 Contact person: Mr. Razvan Enache- Fruits and Vegetables Dep. Ghimbav Loc., DN1 Brasov-Sibiu, km 174, Brasov County T: 0040 268 258430 F: 0040 268 258425 [email protected] www.metro.ro

Metro Cash & Carry Ploiesti Contact person: Mr. Podaru Marius - Fruits and Vegetables Dep. DN1, Km 6 (Ploiesti-Brasov), Prahova County T: 0040 244 402150 F: 0040 244 597696 [email protected] www.metro.ro

Selgros Cash & Carry Contact person: Ms. Claudia Lascu – Fruits and Vegetables Acquisitions Dep. 231 Calea Bucureşti, Brasov T: 0040 268 307300 F: 0040 268 307210 [email protected] www.selgros.ro

Selgros Pantelimon Contact person: Mr. Stefan Argeseanu – Fruits and Vegetables Dep. 90 Biruintei Blvd., Pantelimon Commune, Ilfov T: 0040 21 2093000 F: 0040 21 2093199 [email protected] www.selgros.ro

Selgros Berceni Contact person: Mr. Iulian Malciu – Fruits and Vegetables Dep. 92-108 Turnu Magurele Street, Sector 4, Bucuresti T: 0040 21 4068000 F: 0040 21 4068199 [email protected] www.selgros.ro

Selgros Baneasa Contact person: Mr. Stefan Savu– Fruits and Vegetables Dep. 55-65 Bucureşti-Ploieşti Street, Sector 1, Bucuresti T: 0040 21 3078000 F: 0040 21 3078199 [email protected] www.selgros.ro

Billa Romania Contact person: Mr. Calin Stirbu - Fruits and Vegetables Acquisitions Dep. 154-158 Barbu Vacarescu Street, Sector 2, Bucharest T: 0040 21 2055600 F: 0040 21 2055663 [email protected] www.billa.ro G’market – SC Gimrom Holding SA Contact person: Mr. Marius Neacsu- Fruits and Vegetables Dep. 55-59 Calea Vitan, Parter, Birou G47, Bucuresti Mall, Sector 3, Bucharest T: 0040 734 844 991; 0040 21 3276740 F: 0040 21 3276751 [email protected] www.gmarket.ro

Mega Image Contact person: Ms. Diana Dobre - Fruits and Vegetables Acquisitions Department 95 Siret Street, Sector 1, Bucharest T: 0040 21 2246677 F: 0040 21 2246011 [email protected] www.mega-image.ro Trident Trans Tex SRL Contact person: Mr. Constantin Mateescu 42 Arad Street, Sibiu T: 0040 269 218957 F: 0040 269 219338 [email protected] www.tridenttranstex.ro

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Trident Supermarket Sibiu Contact person: Mr. Florin Dragusiu - Fruits and Vegetables Dep. Steflesti Street, Cartier Vasile Aaron, Sibiu T: 0040 269 212212 F: 0040 269 212126 [email protected] www.tridenttranstex.ro

Trident Hypermarket Deva Contact person: N/A Mihai Eminescu Blvd., Cartier Micro 15, Deva T: 0040 254 235740 F: 0040 254 235741 [email protected] www.tridenttranstex.ro

Wholesalers PGB - Bucharest Wholesale Market Contact person: Ms. Gratiela Claudia Lucaciu – Commercial Director 132 Metalurgiei Blvd. , Bucharest T: 0040 21 4610050 F: 0040 21 4610472 [email protected] www.pgb.ro

PGC - Cluj Wholesale Market Contact person: Mr. Andrian Portarescu Criseni FN Street, Apahida commune, sat Dezmir, Cluj county T: 0040 264 504200 M: 0040 723 474548 [email protected] [email protected] www.piata-agricola.ro

PGT - Timisoara Wholesale Market Contact person: N/A 2 Ovidiu Balea Street, Timisoara T: 0040 256 494482 [email protected] www.piete-sa.ro

Depozit XL Iasi Contact person: N/A 35 Calea Chisinaului, Iasi T: 0040 232 227282 F: 0040 232 224554 [email protected] www.depozitxl.ro

Depozit XL Suceava Contact person: N/A 106B Humorului Street, Suceava T: 0040 230 526353 F: 0040 230 526564 [email protected] www.depozitxl.ro Su Market Contact person: Mr. Edhem Yeral – Financial Director 1A Sos. Bucuresti-Urziceni, Bucharest T: 0040 21 232 90 12 F: 0040 21 232 90 12 [email protected] www.sumarket.ro

Asil 2000 Trading Impex Contact person: N/A 1A Soseaua Bucuresti - Urziceni, Afumati, Ilfov, Stand: A3-A6 T: 0040 723399888 F: 0040 213690909 www.asil2000.com Abbara Trading Co Contact person: N/A 2 Barsei Street, Voluntari, Ilfov county T: 0040 722 325 170 F: 0040 21 352 94 42 [email protected] www.abbara.ro

Interfruct SRL Contact person: Mr. Bartis Stefan 4A Sos. De Centura Dreapta, Afumati, Ilfov county T: 0040 21 724 550 810 F: 0040 31 817 47 99 [email protected] www.interfruct.ro

Distrifrut SRL Contact person: Ms. Mariana Petre- General Director 3-5 Scoala Ciocanu Street, et.1, Sector 3, Bucharest T: 0040 21 744 483 000 F: 0040 21 327 70 86

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SC Pasha Ice-Land Warehouse SRL Contact person: N/A 34 Sos. Bucuresti-Urziceni, Afumati, Ilfov county T: 0040 21 310 32 34 F: 0040 21 310 62 92

Tip Dole SRL Contact person: Mr. Claudiu Cojocaru Rulmentului Street, Suceava T: 0040 230 52 62 54

SC Yuksek International Fruct SRL Contact person: Ms. Mirela Petrescu 9 Busteni Street, Sat Stefanestii de Jos, Stefanestii de Jos commune, Ilfov county T: 0040 372 168 500 F: 0040 372 168 501 [email protected] www.yuksek.ro

Producers’ Groups and Organizations SC Selagro Seleus SRL Contact person: Mr. Berce Moise 183 Seleus village, Seleus commune, Arad T: 0040 257 329 100 F: 0040 749 972 185

Association of the Vegetables and Potatoes Producers Constanta Contact person: Ms. Dumbrava Jeni 78 Albatros Street, Poiana village, Ovidiu, Constanta county T: 0040 744 634 774

Cooperativa Agricola “LOTUS” Halmeu Contact person: Mr. Ignat Vasile 7 Petofi Street, Halmeu , Satu Mare county T: 0040 740 815 796

Cooperativa Agricola “TARINA” Iaslovat Contact person: Mr. Olariu Vasile 53 Iaslovat, Suceava county T: 0040 745 491 093

SC Agropomicola SRL Contact person: Mr. Andres Vasile 352 S Radaseni, Suceava county T: 0040 722 390 864

Cooperativa Agroecologica 2002 Contact person: Mr. Apostoloiu Emil 268 Cretesti village, Vidra commune, Ilfov county T: 0040 724 395 522

SC Compil D.C.A SA Contact person: Mr. Papuc Liviu 24 Cuza Voda Street, Tecuci, Galati county T: 0040 745 603 616 T: 0040 788 567 899

SC Grupul de valorificare a legumelor Maramures SRL Contact person: Ms. Veres Mirela 102 Valea Rosie Street, Baia Mare, Maramures county T: 0040 722 553 907

SC Legumicultorul Danesti SRL Contact person: Mr. Tinc Vasile 33 Chioarului Street, Danestii, Maramures county T: 0040 744 103 612

Asociatia Agricola “ Fru-vit Dealul Mare “ Contact person: Mr. Cristea Constantin Valea Calugareasca commune, Prahova county T: 0040 722 912 701

SC Biolegum SRL Contact person: Mr. Barbu D. Maia commune, Ialomita county T: 0040 723 206 001

SC Primileg Poiana SRL Contact person: Ms. Voichici Tita Ovidiu, Constanta county T: 0040 723 137 285

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Cooperativa FAMILIA Contact person: Mr. Dinca George Brezoaiele commune, Dambovita county T: 0040 728 188 533

SC Agro Grup Ecologica SRL Contact person: Mr. Cosmache Nicolae Dobren village, Varasti commune, Giurgiu county T: 0040 724 248 537

SC Marmalus SRL Maramures Contact person: Mr. Oteanu Ion 42A Plevnei Street, Baia Sprie, Maramures county T: 0040 740 046 366

SC Grup de Producatori Brezoaiele SRL Contact person: Mr. Ionescu Dumitru Brezoaiele commune, Dambovita county T: 0040 721 203 068

Cooperativa Agricola “Grup de Producatori Frutis Voinesti” Contact person: Mr. Ionescu Danil 4 Voinesti village, Voinesti commune, Dambovita county T: 0040 723 365 957

Asociatia-Judeteana a Cultivatorilor de Capsuni, Arbusti si Pomi Fructiferi Contact person: Mr. Patrut Sorinel Cerna village, Vaideni commune, Valcea county T: 0040 766 244 515

SC “BIHORTI” SRL Contact person: Mr. Manole M. 56 Avalansei Street, Tandarei, Ialomita county T: 0040 722 782 305

SC “LEGSOG” SRL" Contact person: Mr. Ardeleanu Liviu 528 Socodor commune, Arad county T: 0040 257 358 063 T: 0040 743 946 949

SC “LAMARO SERE” SRL Contact person: Ms. Oprea Angela 3 Calea Zimandului, ap. 1 jud. Arad T: 0040 744 604 106

SC “LEGUME NATURAL” SRL Contact person: Mr. Neagu Nicu Varasti commune, Giurgiu county T: 0040 722 691 524

Distripod –Cooperativa Agricola Contact person: Mr. Patrascu Ion Brezoaiele, Dambovita county T: 0040 727 356 872

SC Agro Partener Invest Contact person: Mr. Pintilie Marcel Valea Dragului commune, Giurgiu county T: 0040 728 268 280

SC Grupul de producatori Slobozia Moara NATURAL SRL Contact person: Mr. Manolache I. 239 Slobozia Moara, Dambovita T: 0040 723 687 071

Societatea Agricola VIITORUL Glodeanu Sarat Contact person: Mr. Platica Cristi Glodeanu Sarat, Buzau county T: 0040 722 815 831

Coop. Agr. Proleg Slobozia Moara Contact person: Mr. Pitulice Chiriac Slobozia Moara, Dambovita T: 0040 740 249 858

SC Best Vegetables Import Export SRL Contact person: Mr. Roman J.Cristinel 6 Furnalistilor Street, bl. J4, ap. 35, Galati T: 0040 740 309 911

SC PROD AGRICOLA SRL Contact person: Mr. Ghita Petru Varasti commune, Giurgiu county T: 0040 726 253 947

Cooperativa Agricola Legumicola Plesoiu Contact person: Mr. Ciobanu Fl. Plesoiu commune, Olt county T: 0040 745 015 699

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SC LEGUMES SRL Contact person: Mr. Cristea Nic Sabangia, Tulcea county T: 0040 744 336 706

Association of the Agricultural Producers Group “Hortipomicola” Contact person: Mr. Dumitru V. Reghin, Mures county T: 0040 265 512 730 F: 0040 742 137 000

SC PROD LEGUMICOLA SRL Contact person: Ms. Mihalache Ioana Colibasi, Giurgiu county T: 0040 722 317 823

SC ECOLOGICA 2006 SRL Contact person: Mr. Radu Constantin Varasti, Giurgiu county T: 0040 723 982 989

SC LEGUME GRUP SRL Contact person: Mr. Oncica Gheorghe Motatei, Dolj county T: 0040 743 428 548

SC AGRO ECO SABAR SRL Contact person: Mr. Bolocan Petrica Colibasi, Giurgiu county T: 0040 723 497 821

SC LEGUMICOLA PROD. SRL Contact person: Mr. Mocanu Marius Miroslavesti village, Puchenii Mari, Prahova county T: 0040 726 686 969

ASOCIATIA FERMIERILOR OLARI Contact person: Mr. Leonte Mirica Olari, Prahova county T: 0040 721 297 809

SC ”CASA PEPENILOR VERZI” Contact person: Mr. Diaconu F. Dabuleni, Dolj county T: 0040 745 505 398

SC “FABRIA “COM SRL Contact person: Ms. Mihai Emilia, Mr. Limbosanu V. 1b Calarasilor Street, Bl. 150H, SC. A, et.1, ap. 6, Ploiesti, Prahova county T: 0040 729 824 439 T: 0040 721 882 540 SC LEGUME FRUCTE SARATA Contact person: Mr. Sirboiu Gabi Calarasi,Dolj county T: 0040 745 369 319

As. AGRO LEGUMICOLA OLARI Contact person: Mr. Pirvan N. 260 OLARI, Prahova county T: 0040 741 998 541 F: 0040 244 471 086 SC Mafil Prodagro SRL Contact person: Mr. Treanta Leonard Dabuleni, Dolj county T: 0040 728 906 056 T: 0040 744 708 351

SC Paradisul Legumelor Curtici&Marcea SRL Contact person: Mr. Mot Ioan– Administrator 19, 1 Decembrie Street, Curtici, Arad county T: 0040 237 464 100 T: 0040 728 004 784 SC Agroleg Grup SRL Contact person: Mr. Marius Cristian Guita 289 Traian Street, Galati T: 0040 236 41 31 85 F: 0040 236 41 31 85

Agricultural Society of Apple ProducersDedrad Batos Contact person: Mr. Farago Emil – Administrator 302 Primariei Street, Batos commune, Mures county T: 0040 265 511 462 T: 0040 744 505 551 SC Cerasus SRL Contact person: Baianu Vasile– Administrator Cotnari, Iaşi T: 0040 232 730 395 T: 0040 766 730 395

SC Hortifruct Bucharest Contact person: Mr. Horia Culcescu 6 Drumul Binelui Street, Sector 4, Bucharest T: 0040 728 112 442 F: 0040 21 332 12 86 43

SC Bratesleg Grup SRL Contact person: Mr. Oreste Mandru Administrator 77A Razboieni Street, Galati T: 0040 745 759 838 F: 0040 236 31 51 80

Early Potato Producers Group– Lunguletu (Dambovita) Contact person: Mr. Vasile Costache Lunguletu, Dambovita county T: 0040 722 692 742

Research Institutes Vegetable Research Institute Buzau Contact person: N/A 23 Mesteacanului Street, Buzau T: 0040 238 722 560 F: 0040 238 722 593 www.scdlbuzau.ro

Vegetable Research Institute Bacau Contact person: Mr. Lucian Stoian – Director 220 Barladului Street, Bacau T: 0040 234 544 963 F: 0040 234 517 370 [email protected] www.artelecom.net/legumebac/

Vegetable Research Institute Iernut Contact person: Ms. Heitz Minerva - Director Str. Energeticianului 1A, Iernut, judetul Mures T: 0040 265 471407 F: 0040 265 471407 www.scdliernut.ro

Vegetable Research Institute Isalnita Contact person: N/A DN E70, KM7, Isalnita commune, Dolj county T: 0040 251 485636

The Research and Development Institute for Horticultural Products Processing and Marketing of the Horticultural Products " HORTING" Bucharest Contact person: Mr. Marian Bogoescu, Ms. Bibicu Miruna 1A Intrarea Binelui Street, Sector 4, Bucharest T: 0040 21 4610706 T: 0040 21 4600725 [email protected] www.horting.ro

Research and Agricultural Development Institute- Livada (mainly strawberry) Contact person: Mr. Fritea Teofil – General Director 7 Baia Mare Street, Livada, Satu Mare T: 0040 261 840361 F: 0040 261 840361 [email protected] www.scdalivada.sm.rdsnet.ro

Vegetable and Flower Cultures Research Centre – Vidra Contact person: Mr. Vasile Lacatus Vidra, Ilfov county T: 0040 21 3612094 Research and Development Institute for Fruit Growing Mărăcineni Contact person: Mr. Razvan Popescu – Marketing Director Marului Street, Maracineni, Arges county T: 0040 248 278889 F: 0040 248 278477 [email protected] www.icdp.ro

Research Institute for plants cultivation on sands- Dabuleni Contact person: N/A Dabuleni, Dolj county T: 0040 251 334 402 Research and Development Institute for Fruit Growing Valu lui Traian Contact person: N/A Calea Dobrogei, Valu lu Traian, Constanta county T: 0040 241 231324 F: 0040 241 231383

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Research and Development Institute for Fruit Growing Voinesti Contact person: N/A Voinesti, Dambovita county T: 0040 245 679085 F: 0040 245 679085

Research and Development Institute for Potato- Miercurea-Ciuc Contact person: N/A 22 Progresului, Miercurea-Ciuc, Harghita county T: 0040 266 371455

Research and Development Institute for Potato- Targu Secuiesc Contact person: N/A 55 Ady Endre 55, Targu Secuiesc, Covasna county T: 0040 267 363755

National Federation of Potatoes Cultivators Contact person: Mr. Ioan Benea Brasov T: 0040 268 367 053 F: 0040 268 367 551 M: 0040 0722 354 913

National Institute of Research and Development for Potato and Sugar Beet Brasov Contact person: Mr. Sorin Claudiu Chiru – General Director 2 Fundaturii Street, Brasov T: 0040 268 476 795 F: 0040 268 476 608 [email protected] www.potato.ro

Institutions and Professional Associations MAFRD – Ministry of Agriculture, Forestry and Rural Development 24 Carol I Blvd., Sector 3, Bucharest T: 0040 21 307 24 46 F: 0040 21 307 85 54 www.madr.ro

APIA - Agency for Paying and Intervention in Agriculture 17 Carol I Blvd., Sector 2, Bucharest T: 0040 21 305 48 02 F: 0040 21 305 49 00 [email protected] www.apia.org.ro

ANCA - National Agency for Agricultural Advisory Contact person: Mr. Stefan Mantea – General Director 17-19 Doamnei Street, Sector 3, Bucharest T: 0040 21 312 46 20 F: 0040 21 312 46 43 M: 0040 722 360 672 [email protected] www.consultantaagricola.ro

ANIF - National Administration of Land Improvement Contact person: Mr. Cornel Popa – General Director 35-37 Sos. Oltenitei, Sector 4, Bucharest T: 0040 21 332 28 16 F: 0040 21 332 21 83 [email protected] www.anif.ro

ISTIS - State Institute for Testing and Registering Plant Varieties Contact person: Ms. Antonia Ivanescu– General Director 61 Marasti Blvd., Sector 1, Bucharest T: 0040 21 223 14 25 F: 0040 21 222 56 05 [email protected]

INCS - National Inspection of Seed Quality 24 Carol Blvd., Sector 3, Bucharest T: 0040 21 307 86 63 F: 0040 21 307 24 28 [email protected] www.incs.ro

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INSSE - National Institute of Statistics 16 Libertatii Blvd., Sector 5, Bucharest T: 0040 21 318 18 71 F: 0040 21 312 48 75 [email protected] www.insse.ro Employers’ Association of the Food Wholesalers– ASCALGROS Contact person: N/A 3-5 Calea Crangasi, Sector 6, Bucharest T: 0040 21 315 89 22 F: 0040 21 313 05 03

The Inter-professional Union for Agriculture and Food Industry Splaiul Independentei, nr. 202A, sector 6, Bucuresti T: 0040 21 411 76 10 F: 0040 21 411 72 25 [email protected] National Society of the Fruit Growers Contact person: Dr. eng. Ilarie Isac -president Principala Street, Maracineni, 117450, Arges county T: 0040 248 278066; 0040 745 068410 F: 0040 248 278477 [email protected]

Agrostar Federation (trade union) Contact Person: Stefan Nicolae-President 1-3 Piaţa. Cpt. Walter Mărăcineanu, etaj. 4, Cam. 303 - 305, sector.1 Bucharest T: 0040 21 3111514 F:00 40 21 3134041 [email protected] www.federatiaagrostar.ro Employers Association Of The Fruits And Vegetables Canning Industry– ROMCONSERV Contact person: Aurel Tanase 1-3 Valter Maracineanu Street, Sector 1, Bucharest T: 0040 21 314 97 24 F: 0040 21 314 97 40 [email protected] www.legume-fructe.ro National Association of Mushrooms Producers and Distributors Contact Person: Eugen Bajenaru Str. Odai nr. 6 Bucharest T : 0040 722 216790 [email protected]

Farmers' Associations in Romania Contact person: Adelina Popescu 61 Marasti Blvd., Sector 1, Bucharest Tel.: 0040 21 3177332 Mobile: 0040 745 079940

Universities University of Agronomy and Veterinary Medicine Bucharest Contact person: Mr. Dorel Hoza Dean of Horticultural Faculty 59 Marasti Blvd., Sector 1, Bucharest T: 0040 21 318 04 66 F: 0040 21 318 25 64 [email protected] www.agro-bucuresti.ro

University of Agricultural Studies and Veterinary Medicine Cluj 3-5 Str. Calea Manastur, Cluj-Napoca T: 0040 264 596 384 F: 0040 264 593 792 [email protected] www.usamvcluj.ro

University of Agricultural Sciences and Veterinary Medicine Timisoara 119 Calea Aradului, Timisoara T: 0040 256 494 023 F: 0040 256 200 296 [email protected] www.usab-tm.ro

University of Agricultural Sciences and Veterinary Medicine Iasi 3 Aleea Mihai Sadoveanu, Iasi T: 0040 232 274933 F: 0040 232 260650 [email protected] www.univagro-iasi.ro

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Commercial Farmers SC Andany Trading SRL Contact person: N/A 53 Adunatii Copaceni Commune, Giurgiu county T: 0040 741 11 16 25 F: 0040 21 317 58 26 SC Horticola International SRL Contact person: Ms. Simona Radu 56 Viile Sibiului Street, Sibiu T: 0040 269 22 84 31 F: 0040 269 21 70 69 SC Nedarco SRL Contact person: N/A Bucharest T: 0040 21 330 26 52 F: 0040 31 815 45 77 [email protected] www.nedarco.ro SC Sud Oil SRL Contact person: N/A Madona Dudu Street, Craiova, Dolj county T: 0040 251 41 39 23 F: 0040 251 41 39 23

SC Agrohorticola Batos SRL Contact person: Mr. Grigore Farcas 2 Batos, Mures county T: 0040 265 51 13 24 F: 0040 265 51 14 14

Comly Buzau Contact Person: Mrs Gherase Georgeta 7 Sos Spatarului, Buzau T: 0040 238 720065 F: 0040 238 720065 [email protected] SC Serele Pipera Contact person: Cristian Rusu 79-81Sos.Pipera, Bucharest T: 0040 728 112474 F: 0040 21 2320815

SC. BOGLAR CHAMP Contact person: Németi Gergely Str. Gh. Doja, Nr. 117, ap. D 450151, Zalau, Salaj T: 0040 260 616 642; 0040 740 227335 F: 0040 260 616642

Retailers SC Agroaliment SRL 8 Preparatiei Street, Vulcan, Hunedoara county T: 0040 254 57 14 75

SC Suk Star Prodcom Impex SRL 3 Razboieni Street, Cluj-Napoca T: 0040 264 16 97 07 F: 0040 264 43 62 75

SC Trans Akropol SRL 178 Calea Calarasilor, Sector 3, Bucharest T: 0040 21 314 01 50

SC Distrib Manu SRL Atelierelor Street, Moinesti, Bacau county T: 0040 722 976 222 F: 0040 234 306 019

SC Horticom SRL Contact person: Ms. Daniela Carburean 18 Ludwig Roth Street, Medias, Sibiu county T: 0040 269 83 17 92

Processors SC Contec Foods SRL Contact person: Mr. Aifun Suliman – General Director 134, 1 Decembrie 1918 Street, Tecuci, Galati county T: 0040 236 82 00 07

SC Conserv Buftea SA Contact person: Mr. Livian Tropoc – General Director Buftea, Ilfov county T: 0040 21 350 49 01 F: 0040 21 350 49 00 47

F: 0040 236 82 03 36 [email protected] www.contec.ro

[email protected] www.conservbuftea.ro

SC Klevek Factory SRL Contact person: N/A 505 Calarasi Street, Fetesti, Ialomita county T: 0040 243 36 12 40 F: 0040 243 36 11 99 www.klevekfactory.com

Mandy – SC Glina SA Contact person: Mr. Virgil Raileanu – General Director 5 Intrarea Albatrosului Street, Ilfov county T: 0040 21 492 00 04 F: 0040 21 492 00 06 [email protected] www.mandycompany.ro

SC MIB Prodcom SRL Contact person: N/A 210 Traian Vuia Street, Cluj-Napoca T: 0040 264 27 41 56 F: 0040 264 27 41 57 [email protected] www.mibprodcom.ro

SC Conserv Fruct SRL Contact person: Mr. Cojocariu Vasile – General Director 189 Florilor Street, Baltatesti, Neamt county T: 0040 233 24 40 85 F: 0040 233 24 40 63 [email protected] www.conservfruct.ro

SC Orkla Foods Romania SA Contact person: Manuela Banu –General Director 14-18 Copilului Street, Sector 1, Bucharest T: 0040 31 805 75 72 F: 0040 31 805 75 71 www.orklafoods.ro

Other companies SC Agral Prod SRL 130/A Gh. Doja Street, Zalau, Salaj county T: 0040 260 61 98 38 F: 0040 260 61 98 38 [email protected]

SC Vitalef SA 12 Chimiei Blvd., Iasi T: 0040 232 13 32 01 F: 0040 232 23 36 35 [email protected]

SC Leader International SA Contact person: Luminita Vlad 20 Sos. Bucuresti-Targoviste, Mogosoaia, Ilfov county T: 0040 21 461 01 07 F: 0040 21 461 01 22 [email protected]

SC Pomicola Batos SRL Contact person: Emil Farago 10/17 Libertatii Street, Reghin, Mures county T: 0040 265 51 14 62 F: 0040 265 51 14 62 [email protected]

SC Megacons SA 64 Mercur Street, Braila T: 0040 239 61 91 56 F: 0040 239 67 38 54 [email protected] www.megacons.ro

SC Vinifruct Copu SA 39 Al. M. Sadoveanu, Iasi T: 0040 232 21 82 69 F: 0040 232 21 82 68

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Frutti Grup Co Contact person: Mr. Amir Bazzaz – General Director 92 Linia de Centura Dreapta Street, Afumati, Ilfov county T: 0040 21 369 09 06 F: 0040 21 369 09 05 [email protected] www.fruttigrup.com Food Industries Research & Engineering Holland BV Contact person: Drs. Ing. Hank van Adel managing director Nude 46, 6702 DM Wageningen, The Netherlands T: 0031 317 410212, F: 0031 317 417467 [email protected]

Adviesburo Hillebrand-van der Heide BV Contact person: Mr. Van der Heide - Specialist in intensive orchard systems, fruit trees and rootstocks. Bloesemlaan 6, 3897 LN, Zeewolde T: 0031 365 22 89 01 F: 0031 365 22 89 66 M: 0031 653 33 30 39 [email protected] www.fruittrees-rootstocks.com

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5

Main Fairs and Exhibitions in the fruits and vegetables sector in Romania, 2010

LOCALITY

DATE

EXHIBITION

Iasi Suceava Deva Bacau Iasi Cluj-Napoca

05.03-08.03 13.03-15.03 23.03-27.03 02.04-05.04 17.04-20.04 05.05-09.05

ExpoAgroAliment AgroExpo Bucovina AgroExpo AlimentExpo National Salon for Agriculture Agraria www.agraria.info.ro

Craiova Sibiu Bucharest Mamaia Timisoara Alexandria Arad Alba Iulia Slobozia Oradea Brasov Botosani Giurgiu Braila Bucharest

09.05-13.05 18.05-22.05 09.06-13.06 10.06-13.06 10.06-13.06 27.08-31.08 09.09-12.09 17.09-19.09 22.09-24.09 24.09-27.09 25.09-28.09 25.09-28.09 02.10-04.10 08.10-11.10 10.11-14.11

Agrotex Agrosib Tibco ExpoAgroUtil Timagralim Agralimex Agroalim Apulum Agraria Agroial-Partener Alimentary Fair Agrifood Tehnagral Zilele Agriculturii Giurgiuvene National Fair for Agriculture Indagra Food + Indagra Farm www.indagra-food.ro www.indagra-farm.ro

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6

Information sources

European Commission Statistics, EUROSTAT Fruit and vegetables: fresh and healthy on European tables, EUROSTAT, 2008 Institute of Soil and Agrochemical Research, Bucharest Ministry of Agriculture, Forestry and Rural Development National Agency for Agricultural Consultancy National Strategy for Operational Programs in the Fruits and Vegetables Sector 2009-2013, MAFRD, 2008 Owners' Association in the Fruit and vegetables Canning Industry Romconserv Paying and Intervention Agency in Agriculture Recovery of the Romanian Agricultural Sector, Agrostar Federation, 2008 Romanian Agency for Foreign Investment - ARIS Romanian Agriculture, MAFRD, 2008 Romanian Chamber of Commerce and Industry Romanian market for fresh and frozen fruits and vegetables, EuropeAid/126810/C/SER/MD Romanian National Institute of Statistics Romanian Trade Register Romexpo Summary results of the EU-27 orchard survey, EUROSTAT, 2009 The Fresh Fruit and Vegetables Market in Romania, CBI Market Information Database, February 2008 The market for canned fruits and vegetables in Romania, USAID, 2008 The market for consumption grapes in Romania, USAID, 2008 The Romanian Food Sector and the Use of EU Funds for Investments, Agricultural Office, Embassy of the Kingdom of the Netherlands, August 2009 Local specialized media sources (fields: agriculture, financial, marketing, business, etc.) Direct interviews with main stakeholders and market players

http://epp.eurostat.ec.europa.eu /portal/page/portal/eurostat/home/ http://epp.eurostat.ec.europa.eu /portal/page/portal/eurostat/home/ http://www.icpa.ro www.madr.ro http://www.consultantaagricola.ro www.madr.ro http://www.legume-fructe.com http://www.apia.org.ro http://federatiaagrostar.ro www.arisinvest.ro www.madr.ro www.ccir.ro

www.insse.ro www.onrc.ro www.romexpo.org http://epp.eurostat.ec.europa.eu /portal/page/portal/eurostat/home/ www.cbi.eu www.usaid.gov www.usaid.gov

http://www.olanda.ro

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