The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.

The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.
The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia, Lithuania.

Wednesday, 24 July 2013

The Agricultural Equipment and Farm Machinery Market in CEE, SEE and Eastern Europe: Romania



From our soon-to-be-released DEMO report: 


The Agricultural Equipment and Farm Machinery Market in CEE, SEE and Eastern Europe: Romania, Ukraine, Russia, Turkey, Bulgaria - A DEMO report outlining some of the specifics of the market, main companies active in the agri-business sector in the Black Sea region, trade data and insights, main trade fairs in the region



Romania is the 2nd largest grain producer in the region and the 5th in the European Union.

According to the FRD Center research based on official data, the wheat production in Romania recorded approximately 5.2 million tonnes in 2012 on a surface of 1.98 million hectares. The wheat yield recorded approximately 2.63 kg / ha in 2012.

According to the National Institute of Statistics, Romania occupied in 2012 the 5th place among the EU Member States taking into account both the wheat cultivated area and the wheat production.

In 2012, the area cultivated with wheat represented 36.7% of the total area cultivated with cereals for grains in Romania.

According to the European Commission, the wheat production in 2013 in Romania is expected to reach 5.8 million tonnes. This represents an increase of approximately 11% compared to 2012.

Our research revealed that, according to official data, the maize grains production in Romania recorded 5.92 million tonnes in 2012 on a surface of 2.73 million hectares. The maize yield registered 2.17 kg / ha in 2012.

According to the National Institute of Statistics, Romania occupied in 2012 the 1st place in the European Union in terms of the area cultivated with maize and the 3rd place in terms of the maize production.

In 2012, the area cultivated with maize grains represented 50.4% of the total area cultivated with cereals for grains in Romania.


According to the provisional data of the National Institute of Statistics, the crop production in Romania in 2012 was as follows:
  • wheat: 5,215 thousand tonnes
  • barley and two-row barley: 968 thousand tonnes
  • oat: 336 thousand tonnes
  • maize grains: 5,922 thousand tonnes
  • sunflower: 1,389 thousand tonnes
  • rape: 159 thousand tonnes
  • soy: 102 thousand tonnes
  • sugar beet: 739 thousand tonnes
  • potatoes: 2,464 thousand tonnes
  • vegetables (tomatoes, cabbage, cucumbers, carrots, onion, green peppers, water melons and melons): 3,457 thousand tonnes

Our research revealed that some of the largest independent producers of cereals in Romania are: TCE 3 Brazi, Interagro Group, Racova Group, Agro Chirnogi, Cerealcom Dolj, Agrofam Holding etc.

TCE 3 Brazi exploits a surface of over 55,000 hectares in Insula Mare a Brailei, this representing the biggest agricultural farm in Europe, and approximately 3,200 hectares in Neamt. The company estimates for 2013 a crop of 117,000 tonnes of wheat (17.5 million EUR) on the land in Insula Mare a Brailei. In the last years, TCE 3 Brazi made investments of 32 million EUR in the irrigation systems.

Interagro Group exploits approximately 55,000 hectares of agricultural land, located in the southern area of the country.

Racova Group exploits approximately 54,000 hectares in the north-eastern region of the country (Moldova region). For the next years, the Group intends to continue the acquiring of agricultural land and to expand the silo capacity to 350,000 tonnes.

Agro Chirnogi exploits approximately 35,000 hectares of agricultural land. The land is located in the Giurgiu, Calarasi and Timis regions.

In 2012, Cerealcom Dolj cultivated 13,000 hectares of wheat and some 10,000 hectares of maize and sunflower. The company recorded in 2012 the average wheat production of 5.5 tonnes / hectare. Cerealcom Dolj has silos with the storage capacity of 450,000 tonnes.

Agrofam Holding exploits approximately 17,000 hectares of agricultural land. The company has silos with the storage capacity of some 100,000 tonnes and it plans to invest approximately two million EUR in order to expand its storage capacity.

FRD Center research revealed that significant investments in the development of the agricultural equipment have been registered on the Romanian market over the last years. The main factors contributing to this development were:
-          the EU funds available for the farmers
-          the Buy-Back “Rabla” Programme for agricultural machinery
-          the special credits for co-financing
-          the wider using of second-hand equipment
-          the increase of the number of modern and efficient farms with large surfaces and financial capacity

The Measure 121: Modernisation of Agricultural Holdings within the Axis 1: Improving the competitiveness of agricultural and forestry sector of the National Rural Development Programme 2007 - 2013, finances investments for the acquisition of tractors, agricultural machinery and other equipment specific to the vegetal and animal sectors, through public assistance (EU and national) and private co-financing. The Romanian authority in charge with this Programme is the Payment Agency for Rural Development and Fishing, subordinated to the Ministry of Agriculture and Rural Development.

By 27 June 2013, within the Measure 121 in Romania, 2,333 projects with the public value of approximately 966.7 million EUR have been approved. The payments within the Measure 121 recorded approximately 438.8 million EUR by 27 June 2013.

According to the FRD Center research, based on the data provided by the Financial Companies Association - ALB Romania, in the second trimester of 2012, the agricultural equipment represented 6.6% of the Romanian leasing market.

According to BCR Leasing, the leasing market of the agricultural equipment in Romania could reach 130 million EUR in 2013.

The Romanian market of agricultural equipment recorded a growing trend in the last years mainly based on imports. Romania imports agricultural equipment from Germany, Italy, Austria, France, Hungary, Bulgaria, Turkey, China etc.

In 2012, Romania imported 882 combine harvesters worth 96,894,310 USD and 2,096 pieces of harvesting machinery worth 13,651,916 USD.

In regards of equipment for vineyards, vegetable plots and orchards, our research revealed that the Romanian market is dominated by imported machinery. The main users of this equipment are vineyards (such as Murfatlar, Jidvei, Cotnari, Odobesti, Pietroasa, Vincon, Segarcea, Dealu Mare, Tarnave etc), orchards (such as Hortifruct, Kronstadt Fructe, Pombis). The most popular machines in this category used on the Romanian market are: trailed atomisers, lift mounted atomisers, trailed sprayers, lift mounted sprayers and hand sprayers. The products are acquired mainly from importer - distributors on the local market.

According to the FRD Center research, the large vineyards and orchards in Romania use mainly trailed and lift mounted atomisers and sprayers. The smaller vineyards and orchards use mainly hand sprayers. The atomisers and sprayers used on the domestic market are mainly brands from Italy, Germany, Spain, France, Slovenia, Denmark, USA, Japan, China etc. The Romanian users prefer to acquire imported equipment for vineyards, vegetable plots and orchards due to the fact that the domestic production is limited and the foreign offer is very wide and has good quality. The Romanian users prefer to acquire new equipment rather than used machinery for vineyards, vegetable plots and orchards and the decision is made based on price, quality, payments conditions etc.

According to our analysis, y/y increases of the Romanian imports in 2012 were recorded for the following categories of agricultural equipment:
-          Agricultural or horticultural mechanical appliances for projecting, dispersing or spraying liquids or powders: approx. 14%
-          Other agricultural, horticultural, forestry, poultry-keeping or bee-keeping machinery: approx. 4%
-          Self-loading or self-unloading trailers and semi-trailers for agricultural purposes: approx. 5%

Main importers of agricultural equipment and farm machinery in Romania include: IPSO, NHR Agropartners, Agrocomert Holding, MEWI and Agrowest-BMB.

The main agribusiness international trade fair in Romania is Indagra: www.indagra.ro. The 18th edition of the fair takes place in Bucharest during 30 October - 03 November 2013. In 2012, the fair recorded over 55,000 visitors and approximately 400 exhibitors on a total area of over 30,000 square meters. In 2012, approximately 40% of the participants were international companies.

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