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Agricultural products - Cereals

(Synthesis of the study drawn up by the Romanian Trade Promotion Centre)

Romania on the European Cereals Market

According to the statistical data provided by Food and Agriculture Organization of the United Nations (FAO), in 2004, Romania had an important position among the other European countries, concerning the cultivated area with cereals:

· the seventh position regarding wheat, behind Russian Federation, Ukraine, France, Germany, Poland and Italy

· the twelfth position regarding barley, behind Russian Federation, Ukraine, Spain, Germany, France, Poland, United Kingdom, Belarus, Denmark, Finland and Czech Republic

· the seventh position regarding oats, behind Russian Federation, Ukraine, Poland, Spain, Finland and Belarus

· the first position regarding maize.

Concerning the level of cereal production, Romania was ranked on:

· the eighth position regarding wheat, behind Russian Federation, France, Germany, Ukraine, United Kingdom, Poland and Italy

· the thirteenth position regarding barley, behind Russian Federation, Germany, Ukraine, France, Spain, United Kingdom, Denmark, Poland, Czech Republic, Belarus, Finland and Sweden

· the eleventh position regarding oats, behind Russian Federation, Poland, Finland, Germany, Sweden, Spain, Ukraine, Belarus, United Kingdom and France

· the second position regarding maize, behind France.

Characteristics of Natural Resources

Romania has an advantageous structure of land fund. By use, in 2004 the agricultural area accounted for a share of 61.6% of land fund.

Between 2000 and 2004, the arable area slightly fluctuated, accounting for a share of 63.1% of agricultural area in 2000 and a share of 63.4% of agricultural area in 2004. Cultivated area amounted to 8255.7 thousand hectares in 2004, with a share of 88.7% of the arable area, the rest being the area not sown. In the surveyed period, the area cultivated with cereals for grains fluctuated and reached 5830.4 thousand hectares, in 2004. The largest part of it cultivated with maize followed a similar evolution.

Cultivated Area, by Main Crops, 2000 - 2004

thousand hectares

	2000	2001	2002	2003	2004
Cultivated area, of which:	8499.8	8905.0	9001.6	8880.6	8255.7
Cereals for grains, of which:	5655.2	6294.9	6038.1	5541.8	5830.4
Wheat and rye	1954.3	2558.6	2309.8	1748.0	1884.6
Barley	411.9	528.8	578.8	329.6	357.5
Oats	232.3	219.4	239.4	242.3	279.7
Maize	3049.4	2974.0	2894.5	3199.6	3286.6
Grain sorghum	1.6	6.2	2.8	6.9	…
Rice	1.4	1.2	0.5	0.1	…

Source: National Institute of Statistics - Romanian Statistical Yearbook 2000-2004

The prevalent area cultivated with cereals was private ownership. Over 98.0% of the area cultivated with cereals for grains was private ownership

Romanian Supply of Cereals

Although Romania has an important agricultural potential, during the survey period, the agricultural production had a different evolution, due to the climatic conditions (drought and floods) and to the manner in which specific agricultural works were carried out.

Production of Cereals and Preparations of Cereals, 2000 - 2004

thousand tonnes

	2000	2001	2002	2003	2004
Cereals for grains, of which:	10477.5	18870.9	14356.5	12964.4	24403.0
Wheat and rye	4456.2	7763.8	4441.1	2496.4	7812.4
Barley	867.0	1580.0	1160.4	540.8	1406.0
Oats	243.8	382.4	327.4	323.1	447.1
Maize	4897.6	9119.2	8399.8	9577.0	14541.6
Grain sorghum	1.5	5.6	2.6	5.0	…
Rice	3.6	1.5	0.6	0.3	…
Preparations of cereals
Wheat and rye flour	2275	1382	1297	1603	3200
Bread	…	…	1568	853	501

Source: National Institute of Statistics - Romanian Statistical Yearbook 2000-2004

In 2004, the production of cereals increased by 132.9 % compared with 2000, due to the favorable climatic conditions. During the same year, the cereal productions recorded 7812.4 thousand tones of wheat and rye, 1406.0 thousand tones of barley, 14541.6 thousand tones of maize. In 2004, the production of preparations of cereals recorded 3200 thousand tones of wheat and rye flour and 501 thousand tones of bread.

Romania’s Foreign Trade with Cereals

During 2000 and 2004, exports of “Cereals” (chapter 10, according to the Harmonized System) recorded a share of 0.11-0.59%% of total export of Romania in value terms. Imports of this category of vegetables accounted for a share of 0.17-1.46% of total imports of Romania, during the same period.

· Exports of cereals followed a fluctuating evolution, with the highest value in 2002 (US$ 76.0 million) and the lowest value in 2003 (US$ 19.7 million). Exports of the following groups of products "Maize", “Barley” and "Wheat and meslin" achieved the highest values, in 2004.

· Imports of cereals followed an increasing evolution, between 2000 and 2004, the lowest value being in 2002 (US$30.4 million) and the highest value being in 2003 (US$ 351.1 million). In 2004, the imports recorded US$ 273.6 million. The main imported groups in 2004 were “Wheat and meslin", "Maize" and “Rice”.

· Trade balance of chapter fluctuated during the surveyed period, the highest value being in 2000 (US$ 45.6 million) and the lowest in 2003 (-US$ 331.5 million). In 2004, the highest deficit was recorded at "Wheat and meslin" and "Rice". In 2004, the top five targets of "Wheat and meslin" export were: Lebanon, Germany, Italy, Switzerland and Cyprus, while the imports came mainly from USA, Brazil, Hungary, Canada and France. Moldova, Bahamas, Antigua, Cyprus and Panama were the most important export partners for "Rice", while the imports originated in Egypt 83.1%, China, Spain, Italy, and USA.

Between 2000 and 2004, exports of “Products of the milling industry; malt; starches; inulin; wheat gluten” (chapter 11, according to the Harmonized System) recorded an insignificant share of total Romanian exports in terms of value. The imports of these products accounted for a share of 0.15-0.31% of total Romanian imports, in the same period.

· Exports fluctuated over the review period, the highest value being in 2004 (US$ 2.2 million) with “Cereal grains otherwise worked” on the first position.

· The same evolution was followed by the imports of the products of the milling industry with the lowest value in 2002 (US$ 27.3 million) and the highest value in 2003 (US$ 54.5 million). In 2004 imports reached US$ 54.1 million and the groups of ”Wheat or meslin flour” and “Cereal groats, meal and pellets” achieved the highest values.

· Trade balance of the chapter fluctuated from –US$ 26.5 in 2002 to -US$ 52.6 million in 2003. The highest deficit recorded in 2004 was at "Wheat or meslin flour" and "Cereal grouts, meal and pallets". The top five targets of "Wheat or meslin flour" exports were Moldova 94.5%, Panama, Malta, Italy and Georgia, the imports coming from Hungary 75.5%, Slovenia, Greece, Turkey and Bulgaria. Romania exported "Cereal grouts, meal and pallets" in Moldova 97.0%, Bulgaria and Greece and imported these products from Hungary 85.4%, Spain, Greece, Croatia and Netherlands.

Foreign Trade with Cereals, 2000 - 2004

US$ thousand

HS Code	HS Chapters	Export/ Import	2000	2001	2002	2003	2004
10	Cereals	Export	33796,4	67450,3	75983,6	19651,9	54578,9
		Import	57509,1	115104,7	30370,6	351124,7	273507,7
11	Products of the milling industry; malt; starches; inulin; wheat gluten	Export	1961,7	752,9	760,1	1915,9	2188,0
		Import	39858,7	35177,1	27290,9	54531,2	54134,6
19	Preparations of cereals, flour, starch or milk; pastrycooks' products	Export	5375,2	9839,0	13936,4	22337,8	27593,5
		Import	21919,3	27684,0	32628,1