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Productivity and organization: what explains the structural difference between East and West

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2026 February 24

A key differentiating factor between Eastern European and Western European agriculture is productivity per farm and economic organization. According to European Commission data for 2024–2025, Western European farms have, on average, a higher level of technological integration and functional cooperation.

In Romania, the agricultural structure is dual: large commercial farms coexist with a high number of small holdings. According to INS and Eurostat data, fragmentation limits access to investment and to effective commercial negotiation.

In France and other Western states, agricultural cooperatives play a central role in marketing, processing, and access to financing. This form of organization reduces income volatility and increases investment capacity.

For 2026, the structural difference between East and West is no longer merely a historical matter, but one of economic organization. Productivity and integration determine the resilience of the agricultural sector in the face of external shocks.

(Photo: Freepik)

 

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