Horia Culcescu, godson of Gigi Becali, owner of Steaua footballteam, and one of the biggest vegetables and fruit farmers on theRomanian market, says production will halve next year, and farmers'businesses will see a drastic decline amid a lack of statesubsidies and of loans dedicated to farmers, which will no longerbe available as of January 2010.
Romania has had three years of transition after joining theEuropean Union, during which time Romanian farmers benefited bothfrom state subsidies, and from state incentives for taking outloans. Despite the subsidies, most farmers could not developprojects using structural funds from the European Union, becausethey could only be accessed sporadically and very low amounts wereavailable.
"The state cannot extend these subsidies with funds from the statebudget, and the problem is Romanian farmers are not prepared toproduce without these subsidies yet," said Horia Culcescu, 39,owner of Leader International, one of the leading producers oftinned vegetables and fruit on the Romanian market.
According to Prodcom Vegetable and Fruit Producers' Association,Romanians' consumption of vegetables and fruit amounts to aroundone million tonnes of vegetable and fruit per year, of which250,000 tonnes are dedicated to industrial production.
Culcescu says in the absence of the subsidies received up untilnow, vegetable and fruit production will fall dramatically in 2010,which will prompt a rise in imports and a price increase, as wellas causing many producers to go bankrupt.
"Farmers' turnovers will see a drastic decline next year, when thetransition period is over. We expect the overall vegetables andfruit production to fall by around 50% next year against this year.Imports, which now account for 70% of domestic consumption, willamount to 80-85% next year," said the businessman, adding that hisbusiness will in turn be affected.
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