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January 23, 2022
BUSINESS

EC: Romania, most drastic slump in grain production in 2012

World agriculture requires investments, public management policies and predictability, Dacian Ciolos, the European Commissioner for Agriculture and Rural Development said.

Romania is the most affected in what regards the decrease of its grain production compared to 2011, its volume falling by 35.8 per cent in 2012, according to the European Commission forecasts on cereals to EU Member States in the Management Committee of 30 August. The same aspect was also emphasised during the Government meeting that took place on Saturday. PM Victor Ponta said that, according to European forecasts, ‘our country is the most effected by drought of all European countries’, and asking that the Ministry of Agriculture start procedures for supporting farmers. ‘We hope we will have a good year next year, allowing us to make up for the delay’, said PM Ponta.
In the same time, at European level, the report also revealed that despite the drought in certain Member States, current forecasts for agricultural products are at 279 million tonnes of cereals. This is 2 per cent lower than the average over the past five years, but is still 25 million tonnes above figures for 2007/08, which proved to be a particularly bad year. As regards soft wheat, current forecast is at 127 million tonnes, which is a status quo compared to the average over the past five years. As regards maize, current forecast is at 60 million tonnes, which is 2% higher than the average over the past five years. Current balance sheet shows a net exporter situation (around 10 million tonnes), instead of a net importer situation for 2007/08 (around 8 million tonnes).
At world level, due to the drought in the United States, the forecast of world grains production in 2012/13 is reduced compared to last month. Supported by tightening world supplies, maize prices remained close to record highs during August. World carryover stocks are forecast to contract by 33 million tonnes to 338 million tonnes. Commenting these forecasts, Dacian Ciolos, the European Commissioner for Agriculture and Rural development said: “The recent developments on the agricultural and food markets have demonstrated once again the need for a strong CAP. Over the past weeks, the drought in several regions of the world has led to dramatic price increases for certain commodities, mainly maize and soya which risk destabilising certain sectors of the European agriculture.” He also highlighted that this excessive volatility of markets shows clearly that world agriculture requires investments, public management policies and predictability. “In the context of climate change and increasing food demand, it is crucial to valorise in a sustainable way all the diversity of agricultural potential in the EU.”, he concluded.
Government allocates EUR 43 M to support 600,000 farmers affected by drought
The Government allocated on Saturday EUR 42.8 M to help a total number of roughly 600,000 farmers affected by the latest drought, the aid amounting to RON 100/ha for areas between 1 ha and maximum 10 ha, Agriculture Minister Daniel Constantin said, Mediafax reports. The arable land area eligible for the aid totals around 1.9 M hectares. The financial aid is capped at EUR 7.500 per beneficiary.
Constantin also noted that applications for aid were to be submitted no later than October 15 and the money would start being paid out on November 1, 2012. The amounts necessary were partially provided for in this year’s budget. The rest will be allocated from next year’s budget, the agriculture minister explained.

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