Romania’s Agricultural Model Remains Fragmented, and the Lack of Vertical Integration Limits Competitiveness

Romania’s agricultural model remains fragmented, and the lack of vertical integration continues to limit competitiveness. According to data from the National Institute of Statistics (INS), over 80% of farms sell their products in raw form, without sorting, packaging, or processing. At the same time, only 12% of producers are members of functional cooperatives, compared to an EU average of 50%, according to Eurostat (2024).

Value chain integration — from production to processing and distribution — is essential for increasing revenues. According to the Agency for Rural Investment Financing (AFIR), integrated farms achieve an average profitability 35–40% higher than non-integrated ones, thanks to greater control over costs and the final value of their products.

To support this model, the Ministry of Agriculture and Rural Development (MADR) introduced in 2024 a new support scheme for partnerships between producers and processors, with a total budget of €250 million. These partnerships aim to create local processing and distribution networks capable of reducing dependence on imports.

In the long term, integration is no longer just an option — it is a condition for survival for small and medium-sized farms. Romania has the necessary resources, but success depends on cooperation, infrastructure, and strategic will.

(Photo: Freepik)