Competitiveness for meat sector, the Competitiveness for meat sector, the milestone for the food industry in Romania. milestone for the food industry in Romania.

The EU financing impactThe EU financing impact

The Paying Agency for Rural Development and Fisheries (P.A.R.D.F.), under the subordination of the Ministry of

Agriculture and Rural Development was set up from February 27th, 2006, by re-organizing the SAPARD Agency.

The Paying Agency for Rural Development and Fisheries provides for the technical and financial implementation

of the European Agriculture Fund for Rural Development (EAFRD) and has entirely taken over the unrolling and

monitoring of the SAPARD Programme.

2000 – 2006 – SAPARD Programme: 1,521,449,565 Euro2000 – 2006 – SAPARD Programme: 1,521,449,565 EuroEffective absorption: 1.34 billion Euro – 88.60%Effective absorption: 1.34 billion Euro – 88.60%

2007 – 2013 – EAFRD and NPRD: 10 billion Euro2007 – 2013 – EAFRD and NPRD: 10 billion EuroUp to date absorption: 5.2 billion Euro – over 50%Up to date absorption: 5.2 billion Euro – over 50%

Funds available through for Romania 2000 – 2013 Funds available through for Romania 2000 – 2013 Agriculture & Rural DevelopmentAgriculture & Rural Development

SAPARD ProgrammeSAPARD Programme

-“Investments in agricultural holdings” – 259 million Euro;

-“Improvement of the transformation and marketing of the agricultural and fishery products” – 379 million Euro;

The EU financing in the meat sectorThe EU financing in the meat sector

“Investments in agricultural holdings” (Animal farming)

The EU financing in the meat sector - SAPARDThe EU financing in the meat sector - SAPARD

SUBMEASURE Allocation 2000-2006 (euro)

No. contracted projects Value (euro)

Cows and buffalos 36,270,159 230 31,063,456 Raise and fattening cattle 36,270,159 15 3,247,705 Goats and sheeps 7,772,177 28 3,927,495 Fattening lambs 7,772,177 10 2,122,949 Pigs 25,907,256 87 30,175,156 Poultry 12,953,628 81 26,494,632 Other types of animal farms 10,362,903 18 2,892,330

“Investments in agricultural holdings” (Animal farming) -77% of holdings had an increase of the gross income, after the SAPARD financing.-at national level, the investments increased in food and beverages industry between 2002 - 2008 almost by 300%.-22% of the beneficiaries commercialize products with quality labels, these labels insuring also the fulfillment of EU quality standards.

The EU financing in the meat sectorThe EU financing in the meat sector

“Improvement of the transformation and marketing of the agricultural and fishery products” (Meat and eggs processing)

The EU financing in the meat sector - SAPARDThe EU financing in the meat sector - SAPARD

SUBMEASURE Allocation 2000-2006 (Euro)

No. of contracted projects

Value of contracted projects (Euro)

Meat 87,288,054 197 174,703,218

“Improvement of the transformation and marketing of the agricultural and fishery products” (Meat and eggs processing) - The investments done with this Measure had positive effects on maintaining and creating new jobs. More detailed, the investment determined the employment of personnel (67%) and contributed to maintaining jobs in better conditions (23%).-70% of the beneficiaries - increase of productivity.- 60% of the beneficiaries could create scale economies in their companies.

The EU financing in the meat sector - SAPARDThe EU financing in the meat sector - SAPARD

SAPARD lessons: -A special attention should be paid to communication with the public and stakeholders.-The need to provide the beneficiaries with co-financing facilities.-The need of structuring the information and the existence of a coherent approach at the country level.-Taking over the risk through financial engineering operations.-Better regulations on tenders.

The EU financing in the meat sector - SAPARDThe EU financing in the meat sector - SAPARD

The EU financing in the meat sectorThe EU financing in the meat sector

EAFRD & NPDR (meat sector)EAFRD & NPDR (meat sector)

-“Young farmers” – 331 million Euro (9,414 contracted projects – 208 million Euros);

-“Modernization of agricultural holdings” – 1.04 billion Euro (2,024 contracted projects – 774 million Euro) ;

-“Increasing the added value of agricultural and forestry products” – 1.08 billion Euro (1,026 contracted projects – 796 million Euro).

The EU financing in the meat sector – EAFRD & NPDRThe EU financing in the meat sector – EAFRD & NPDR

- “Modernization of agricultural holdings” – 1.04 billion Euro (2,023 contracted projects – 774 million Euro) ;

AgrisectorNo.

contracts

Type of production

eco standardHerbivorous animals (except

dairy)32

4 28Field crops 1179 170 1009

Permanent plants 91 46 45Horticulture 165 52 113

Milk and dairy products 139 23 116Mixt farms (vegetal & animal) 66 12 54

Poultry 155 10 145Pigs 190 16 174

Vinery & Wine 6 1 5Total 2023 334 1689

The EU financing in the meat sector – EAFRD & NPDRThe EU financing in the meat sector – EAFRD & NPDR

- “Increasing the added value of agricultural and forestry products” – 1.08 billion Euro (1,026 contracted projects – 796 million Euro).

Production sectorNo. of approved

projects

Reference unit for approved projectsMeasure Unit Measure Unit

Capacities – new investments Capacities - modernizations

Ths. t/year Ths. hl/year Ths. m³/year Ths. pieces Ths. t/year Ths.hl/year Ths. m³/year Ths. pieces

Meat and meat products 83 2.528,067 0,000 0,000 0,000 867,369 0,000 0,000 0,000Milk and dairy 55 150,665 529,802 0,000 0,000 4,192 2.183,643 0,000 0,000Fructe, legume si cartofi 48 512,314 16,825 0,000 0,000 24,859 210,115 0,000 0,000Wine 44 0,000 268,934 0,000 0,000 0,000 374,327 0,000 0,000Seminte oleaginoase 7 163,911 0,000 0,000 0,000 66,528 0,000 0,000 0,000Bakery and pastry 292 597,112 0,000 0,000 23.950,000 1.140,846 0,000 0,000 472.596,000Dulciuri si produse zaharoase 2 0,560 0,000 0,000 0,000 2,340 0,000 0,000 0,000Honey 6 2,902 0,000 0,000 0,000 0,000 0,000 0,000 0,000Cereale si nutreturi combinate 332 3.161,603 0,000 0,000 0,000 1.579,112 0,000 0,000 0,000Dietary 1 0,000 0,000 0,000 0,000 0,236 0,000 0,000 0,000Other foods 11 102,178 0,000 0,000 0,000 10,551 0,000 0,000 0,000Wood products 135 11,808 0,000 1.449,932 0,000 2,066 0,000 859,879 0,000Production of biofuel 6 122,778 0,000 0,000 0,000 0,000 0,000 0,000 0,000Biogas production 1 0,000 0,000 2,012 0,000 0,000 0,000 0,000 0,000Eggs 3 2,000 0,000 0,000 201.245.169,000 0,000 0,000 0,000 0,000

TOTAL 1026 7.355,899 815,561 1.451,944 201.269.119,000 3.698,098 2.768,084 859,879 472.596,000

The EU financing in the meat sector – EAFRD & NPDRThe EU financing in the meat sector – EAFRD & NPDR

EAFRD & NPDR – mid-term lessons:EAFRD & NPDR – mid-term lessons:

-Close surveillance of the project execution;

-Encouraging the associations and producers’ groups;

-Facilitate the access of land;

-Tenders surveillance.

THANK YOUTHANK YOU

YOUR ATTENTION!YOUR ATTENTION!FORFOR