Agriculture in Romania
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Romania is one of the European major agricultural producers. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with only 5% of the labor force.[citation needed] It contributes around 2% of GDP. The Bărăgan is characterized by large wheat farms. Dairy products, pork, poultry, and apple production are concentrated in the western region. Beef production is located in central Romania, while the production of fruits, vegetables, and wine ranges from central to southern Romania. Romania is a large producer of many agricultural products and is currently expanding its forestry and fishery industries. The implementation of the reforms and the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) have resulted in reforms in the agricultural sector of the economy.
Romania is the world's eleventh-largest agricultural producer and the sixth-largest agricultural exporter.[citation needed] Romania is a major producer of grain, sugar, meat and milk products. However, the destination of 75% of its exports are other EU member states. Wheat, beef, pork, poultry, and dairy products are the principal exports. U.S. agricultural exports to Romania, totaling some US$200 million annually, consist primarily of soybeans and products, feeds and fodders, seafood, and consumer oriented products, especially snack foods and nuts. Romania exports to the United States are mainly cheese, processed products and wine. They amount to more than US$150 million annually.
The Romanian agricultural sector is heavily dependent upon subsidies from the European Union, which account for US$1 billion. Specific government policies, such as the infamous reclassification of French wine as a 'health food' to avoid VAT, also goes a long way to create a thriving domestic sector.
As with all other developed nations the proportion of the population and GDP devoted to agriculture fell dramatically over the 20th century, but still accounts to around 30%.
Unlike the agricultural industries of many developed nations, Romanian farmers have to compete internationally without large subsidies. The Romanian Government does subsidize farmers with aid in times of disaster, but does not usually give farmers "base" support. Dairy and poultry farmers are distributed across the country, but most of the production in the agricultural industry are found in central Romania. Farmers earn their living from market sales only, and they focus mainly on the Romanian market; because they lack government subsidies, farmers rely on tariffs to limit the amount of agricultural imports.
The northern part of Romania produces primarily grains, rice, corn, sugarbeets, soybeans, meat, fruits and dairy products, while the south specializes in producing fruits, vegetables, olive oil and durum wheat. Romania is the second producer of wine in the Europe and one of the leading in fruits (apples, pears, apricots, peaches, cherries), flowers and horticulture vegetables.
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