Drought pushes Romanian feed industry to the brink of crisis

ROMANIA – A persistent drought in Southern Europe has severely impacted Romania’s feed industry, worsening the already troubled livestock sector. 

Romania, Europe’s second-largest grain exporter after France, is facing a significant reduction in its corn and sunflower harvests due to one of the worst droughts in recent decades. 

Nearly 2 million hectares of agricultural land have been affected, plunging the country’s feed supply into crisis.

The drought has devastated Romania’s vegetable production, which is expected to decline by 40% compared to previous years. 

Corn output, a vital component of animal feed, is also forecasted to suffer, raising concerns about Romania’s ability to meet domestic demand and export commitments.

Romania’s Agricultural Minister, Florin Barbu, has announced compensation for farmers affected by the drought, with payouts ranging from €200 to €250 (US$221- 277) per hectare. 

However, the total compensation fund, estimated between €500 million and €600 million (US$554- 664 million), will only partially offset the extensive losses sustained this year.

Cezar Gheorghe, founder of the Romanian consultancy AGRIColumn, noted that the drought has further exacerbated challenges in the feed industry. 

The country is expected to face a significant corn shortage, pushing wholesale prices higher as local feed manufacturers compete with export demands. 

Many small farmers, whose operations are spread across atomised plots, have been particularly hard hit, leaving them scrambling for feed crops in the open market.

The crisis is also intensifying cost pressures along the supply chain, with middlemen marking up prices by as much as 100% to 200%, compounding the difficulties for local producers.

The unfolding feed shortage is threatening the profitability of Romania’s livestock industry. According to local reports, pork production has become economically unsustainable at current cost levels. 

Since 2016, the number of pigs in Romania has dropped from 4.3 million to 2.8 million, and this downward trend is expected to continue. 

Romania currently produces only a fraction of the pork consumed domestically. Estimates suggest that of the 37.5 kilograms of pork consumed annually per person, just 7 kilograms come from local farms. 

Ioan Ladoși, president of the Association of Romanian Pork Producers (APCPR), warned that the share of local pork production could halve to just 10% under certain conditions, further undermining the sector.

As the drought crisis deepens, Romania’s feed and livestock industries face a challenging future with no clear resolution.

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