Bright Future in Romania

for Protected Vegetable

Horticulture
INDAGRA, Bucharest 30 October 2014
Alfred EVERS
in cooperation with WUR Greenhouse Horticulture

Content

1. Statements beforehand
2. Transitions in protected horticulture
3. Dutch experience in POs
4. Lessons from CAP and NRDP
5. Traditional Marketing versus Integrated Value Chain
6. Value chain initiatives in Romania
7. Vision Mission Strategy
8. Closing remarks

1 Statements beforehand

Romania has all ingredients to be a leader in

horticultural produce in Europe

Contrary to NRDP & CAP support (POs) many small

growers sell to local, informal market

Despite good quality of products, relations of small

grower with retail is not smooth

Consumers appetite for Romanian taste has become

reality

Low VAT stimulates local production, formal trade,

creates employment and increases income.

2 Transitions in horticulture (1)

Protected Horticulture: Increase of

production (increasing control of
production factors) (2)

Transition of horticulture (3)

3 Dutch experience in POs

First PO in 1887, long history of cooperation

Reason growers were too small to have s strong
position on the market

1950: 160 POs, 1985: 44 POs, 2014: 14

recognized in the Netherlands

75% of turn over in fresh fruits and vegetables from

POs

Dutch Produce Association (DPA): political lobby,

items of common interest of members, EU, WTO,

food safety, fyto sanitary issues, 12 PO are member

Bench marking agricultural sector, (2)

Romania

inhabitants 25 million
agri land 14 mill Ha
Ha/inhabitant 0.5 Ha
Farmers 30%
POs numbers 4
Phasing out growers ?
POs production ?%

Netherlands
16 million
2 mill Ha
0.125 Ha
2%
14
95%
75%

RO:POs produce small% of the horticulture

sector
NL: POs produce 75% of the horticulture sector

Netherlands trend setter in horticulture (3)

Worlds biggest exporter of fresh vegetables: 4

billon kg and 4 billon Euros

Intelligent greenhouses, floating on water, moving

platforms, LED lightening, water and waste
recycling,

Energy neutral production in greenhouse systems is

not anymore an utopia

Concerning value chain: growing decreased, while

agro logistics and processing increased

POs are dominating structure in the associations

4 Lessons from CAP and NRDP

former Commissioner Dacian Ciolo

Agriculture sector is fragmented

Farmers are isolated in market
CMO requires professionalism
Young farmers professionlize
Many small holders phase out
Set up inter professionnal org
or Producer Organisations
Creating countervailing power
Through value chain fair benefit or the smal holder

How can I manage this story? (3)

No one can manage alone!

Traditional Marketing Systems

Integration value chain

6 Value Chain initiatives in Romania

Organisations & suppliers in value chain to hyper-,
supermarkets and cash and carry with the potential to fulfil the
standards

Programs of Hypermarkets such as Metro and Carrefour,

Auchan, and Cora

To ensure delivery from small and medium sized farms with fresh local taste
products

Producer Groups and Producer Organisations

Groups of growers having collection, grading and storage facilities

Agricover : Integrator between grower and market

Private company selling inputs, crop insurance and buying crops in cereal and
meat sector, since 2013 in vegetables and fruits with brand Dor de Gust

Agricluster: Facilitator between grower and market

Control of pre and post harvest output in a public private partnership

6 Vision Mission Strategy (1)

Vision: from black market

importer to exporter

to regular market, from

Mission:

cooperation is the way to success, create

countervailing power to obtain a fair benefit for the
growers

Strategy: incentives for the setting up of inter

professional organisations and Producer

Organisations under one pre condition lowering VAT

Strategy (2)

Geographically: select 5-10 privileged regions

Small & medium grower: inter ministerial support
of information campaign to be implemented by
National Rural Development Network

Inter-professional organisations:jumelage
between ALCs in RO and NL

Retail: encouraging investment initiatives in

education and agrologistics

Bi- lateral: follow up of letter of intent between

MARD (RO) and Ministry of Economic Affairs(NL)

8 Closing remarks (1)

Small growers (over 90% of farmers and 50% of

production) should join forces to create common
facilities, to produce cheaper, cleaner, more

Medium growers should invest more in associations

and standardization

Limited investments results in exponential surplus

value

Retailers want reliable supply(security), constant

quality (safety) and standardized packaging

Low VAT has proven a pre condition in other

countries, why not in Romania?

Closing remarks (2)

Embed greater cooperation in working practices

across Romania

Tackling joint challenges (VAT, black market)

Pooling expertise (know how, best practises)
Building lasting links between business and

institutions and research in and outside Romania

Letter of Intent between MADR and Netherlands

Ministry of Foreign Affairs, 22.4.2014, offers rich

possibilities in development demonstration farms,
technology transfer, training, PO and cooperation
initiatives between growers.

Multumesc
pentru
rabdarea
si atentia
cu care
m-ati urmarit.

Transition paths to reach the goal (4)