The production of sunflowers in 2007 will drop by half due to drought and excessive heat, forcing Romania to import some 1 million tons of sunflower seed from Argentina, according to Adrian Porumboiu, President of Racova Com Agro Pan, one of the largest agricultural producers in Romania.
"Romania, similar to the rest of Europe, is facing a severe raw material crisis. The country needs an annual two million tons of sunflowers to ensure its edible oil supply. In 2007, total production will drop below one million euros," Adrian Porumboiu told Business Standard. He estimates that this will result in a 10 percent rise in edible oil prices this fall.
Porumboiu has opened the largest biodiesel factory in Romania this week in Vaslui, an investment amounting to some €18 million, part of which are his own funds, and the remainder a loan granted by Banca Comerciala Romana (BCR).
According to Porumboiu, one liter of biodiesel will cost some RON 2.3 at the pump. He added that in a few years, agriculture will no longer be perceived merely as a source of food, but also as a main fuel supplier.
