Grain price, "at the lowest level in recent years"
Although harvest is expected to be above average, farmers say they can not recover their investment, as the result of price cuts they will not record profit.
Articol de Alex Olaru, 28 Iulie 2013, 12:16
Grain prices reached their lowest level in recent years.
Even if harvest is expected to be above average, farmers say they can not recover their investment and risk bankruptcy.
They expect solutions from the Ministry of Agriculture.
Farmers say they will get harvest above average for wheat, sunflower or colza.
Also, investment were higher in the hope that they will get at least the last year's price, respectively one leu per hectarre, price which brought profit.
Farmers will not record profits, but losses
The lack of involvement of the Ministry in managing the surplus and the agreements made by market players, however, have led to lower cash price at 60 bani per hectare, conditions that can not imply a profit, but rather loss, says Gheorghe Vlad, member of League of Associations of Agricultural Producers of Romania.
"I have spendings of 33 million per hectare, and you do the math at an average of 5 tonnes - 5.5. We, the manufacturers, did our duty, we have produced, we have the harvest, but the high price of grain, at the moment, will pull us back one year, or two", said Gheorghe Vlad.
Agriculture will bring more than 2 percent of GDP this year, calculated the ministry.
There are, indeed, surplus production, but the state can not do anything on a free market, sustains the Secretary of State, Achim Irimescu.
"Once with the entry into the European Union, the mechanisms are no longer at the decision of the Ministry of Agriculture. If there is overproduction, the only regulatory mechanism of the market is paying agency action," said Achim Irimescu.
Translated by Alexandra-Diana Mircea
