Whereas a few years ago, organic food was a rare occurrence in stores, that is no longer the case. However, the bulk of farms' organic production is exported. Including imports, organic food does not exceed 1% of the market, reports BUSINESS Magazin.
However, one example is Dumitru Argeseanu, the owner of a farm with 4,000 hens, which lay one million organic eggs each year. He started to build the farm in 2002 in partnership with the World Bank, and according to Argeseanu: "the first organic egg left the farm in 2004".
The farm's 1,000 square-metre unit, as well as the 16,000 square-metre grazing area, cost the manager of Cortina Bioprod around 150,000-200,000 euros, according to his statements.
In a conventional farm, such an area would allow for 30,000 hens to be reared, which would be kept in battery cages, but "organic farming entails a horizontal development, not a vertical one," explains Argeseanu.
Since demand generates supply, the Valcea county-based farmer has acquired a taste for business with organic products and intends to expand.
"The land I have acquired will allow me to rear up to 15,000 hens two years from now," he says. Even so, the farm's production will not be able to meet market demand.
"In order to satisfy the Romanian market, I should have around 30,000 hens," estimates the farmer. Starting this year, he wants the farm to produce 80% of the poultry grain. In addition, he has rented 100 hectares of land that he hopes to cultivate.
"The grain must not contain synthetic chemical substances, proteic substances of animal origin, preservatives, colorants, or genetically modified organisms," explains Argeseanu, specifying that the food destined to the 4,000 hens he rears costs almost 60,000 euros a year.
The organic eggs produced at the farm in Dragasani can only be found on the domestic market in Carrefour, Selgros, Artima and Gima, "as production is still too low to export."
Argeseanu is convinced that he will triple his business in two years' time, from the current annual sales level of 120,000 euros.
However, although organic products on the Romanian market have posted a 15-20% increase year-on-year, they account for a very small volume in comparison to Germany, Hungary, and Poland.
"Organic products account for around 3% of the overall German food market. At present, they account for around 1% of the Romanian market," estimates Radu Panait, manager of Natura Land, distributor and importer of organic products.
The Romanian market fares well in terms of production, and badly in terms of consumption, because the industry primarily produces for other European markets and less for the domestic market, which also sees a large number of organic products imported.
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