Higher grain prices to raise business of local producers

Romania’s major producers are expecting a rise in prices in June and July, after the grain harvest, when agricultural prices become more expensive by some 15 percent.

The President of the TCE 3 Brazi agricultural producer, Culita Tarata, estimates growth above 12 percent in 2008. “Last year, we registered business worth RON 400 million (€114 mln), and estimates for this year have risen to RON 450 million (€126.2 mln), due to higher grain prices. We must not overlook the fact that the prices of fertilizers, fuels, and seed have doubled since last year,” Tarata told Business Standard.

The President of one of Europe’s largest producers, Racova Com Agro Pan Vaslui, Adrian Porumboiu, estimates business worth €200 million this year, 20 percent higher than in 2007, due to recent investments and higher global grain prices, which will also impact on Romania. Porumboiu agrees with estimates by U.S. analysts regarding a severe food shortage on the international market in the coming four-five years.

“The future belongs to us, producers. I firmly believe that, in four to five years, agricultural producers will benefit from these international crises,” he told Business Standard.