Turnover of business enterprises in agriculture sector registers in 2021 highest growth in last 10 years

The turnover of business enterprises in the agriculture sector registered in 2021 the highest growth in the last 10 years, of over 30%, reaching the historical maximum of 58.1 billion RON in 2021, by 35% more than the value of 2017, according to a study carried out by KeysFin analysts.

For 2022, KeysFin estimates the consolidation of the sector close to or even exceeding the record level reached in 2021, of 58 billion RON, on account of the inflationary pressures and subsidies granted by the authorities, factors that will counterbalance the 12% drop in grain production forecast by the European Commission in July 2022, being the second largest annual decline among Member States, at 26 million tonnes.

As regards the top of the largest companies with an agricultural profile, the National Forestry Authority - Romsilva occupied the leading position in 2021, after a 25% annual increase in turnover. On the 2nd and 3rd places, by turnover, were Promat Comimpex SRL with 1.2 billion RON and Plantagro-ComSRL with 672 million RON in 2021.

The highest increase in the top 20 was recorded by Comcereal SA, which after an annual advance of 182% in turnover, came in on the last position in the top 20 in 2021.

According to Keysfin specialists, the number of companies that reported their financial results in 2021 remained very close to that of the previous year, namely 26,500 companies (based on data extracted in September 2022).

As a direct effect of the post-pandemic recovery, the net result increased by 267% compared to 2020 and was 81% above that of 2017, at the record level of over 8 billion RON in 2021. Among the 26,500 companies that reported financial results, about 17,000 made a profit (64%), while 6,500 recorded a loss (24.7%) and the rest recorded a zero result in 2021, the cited study shows.

Romania had the second largest increase in the value of vegetable production in the European Union, of 40.2%, and climbed to the 6th place in the EU, with 6.3% of the total.

In the ranking of wheat production at the EU level, Romania climbed 2 places, reaching 4th, with 7.5% of the total and a harvest of 10.4 million tonnes in 2021. Romania still occupied the first place in terms of the cultivated area of corn among the member states of the European Union, and in the post-pandemic year the realized production was 14.8 million tonnes, becoming again a leader in the European hierarchy.

In addition, Romania managed to remain the largest sunflower producer in the EU, with a harvest of 2.8 million tonnes in 2021.

The "Agricultural Sector in Romania" study includes all companies that reported their annual results to the Ministry of Finance. The data were extracted in September 2022 and may undergo changes until the end of the year, say the authors of the study.

The information was gathered from the barometer on the state of Romanian business, a project developed by KeysFin through the analysis of financial data on active commercial companies in Romania.