Study on the assessment of the economic, social, and environmental impact of the pig farming sector in Romania Mihai Dinu coordinator Raluca-Mihaela Dracea Raluca Ignat Raluca-Georgiana Lădaru Roxana Simona Patrlăgeanu Irina Elena Petrescu Radu-Gheorghe Antohe Bogdan-Cristian Chiripuci Marius Constantin lonut-Laurentiu Petre Bianca-Eugenia Leoveanu-Soare Elena-Mădălina Deaconu Ina Nimerenco
In the year 2020, PENNY set an ambitious goal—TripluRO (3RO)—aiming for 60% of the products sold in PENNY stores to have their main ingredient sourced from Romania (meaning it is grown, raised, extracted, or produced in the country) and to be processed and packaged in Romania. An ambitious goal, as its achievement requires close, long-term collaboration between the business environment and the authorities, with the common objective of developing local production in order to balance the trade deficit and support the local economy. In this context, in 2022 PENNY Romania launched “100 Business Ideas for Romania” – an ambitious and unique initiative for the local business environment. Together with the Bucharest University of Economic Studies, 100 development opportunities for local businesses were analyzed across industries such as agriculture, packaging, and cosmetics, in order to identify solutions that could soon provide Romanians with 100% Romanian products aligned with the TripluRO (3RO) objective. Compiled in an informative guide, the “100 Business Ideas for Romania” represent a starting point for Romanian producers who aim to grow their businesses sustainably. The guide summarizes 100 essential business ideas needed to increase the number of local products on store shelves in Romania. These ideas also laid the foundation for organizing a series of seven roundtable discussions, attended by relevant authorities and local producers, where practical solutions were discussed to support the development of new business concepts or lines in Romania’s local manufacturing industry. TripleRO (3RO) A PENNY initiative Over the long term, the guide aims to inspire and generate a broader movement: an understanding of the need to develop Romania’s vertical production—from the main ingredient to the finished product on the shelf— in order to meet consumer needs and generate added value within the country. One year later, in 2023, PENNY continued the conversation around developing local production by launching the study “Strategies for Balancing Romania’s Trade Deficit by Stimulating and Supporting National Production,” in collaboration with the Bucharest University of Economic Studies. The goal was to identify effective solutions for boosting the production of 3RO goods—those with Romanian-sourced ingredients, processed and packaged locally—with the ultimate aim of supporting the Romanian economy. The study analyzed sectors such as agriculture, the bakery industry, the meat and dairy industries, alcoholic beverages, and cosmetic and home care products. It revealed valuable insights, including the fact that, starting in 2015, the value of agri-food imports has surpassed that of exports, leading to a trade deficit. According to the ASE study, the ranking of the most imported products has remained unchanged over the past 10 years but differs significantly from that of exported goods. The main imports are from the Food, Beverages, and Tobacco category (41.7% of total agrifood imports in 2022), followed by Plant Products (33%), and Live Animals and Animal Products (21.75%). The conclusions related to the import of food products, including live animals and animal products, also served as the basis for the study on the assessment of the econo-
mic, social, and environmental impact of the pig farming sector in Romania, launched in 2024 by PENNY, in collaboration with the Academy of Economic Studies, PENNY, and Cris-Tim. The objective of the study was to analyze the pig farming sector, focusing on the challenges and opportunities at the level of Romania. We invite you to read the main conclusions and recommendations from the study in the following pages. Currently, over 800 3RO products are available in PENNY stores across the country, and we continue our efforts to increase this number and reach the target of 60% 3RO products on the shelves of PENNY stores. 3RO is a project through which PENNY, together with consumers and partners, aims to contribute to a society that is three times better for all Romanians and future generations. The pig farming industry in Romania has been severely affected in recent years by African Swine Fever (ASF), leading to a decline in domestic production and increased dependence on imports. As a result, the closure of farms has had a negative impact on rural communities, where job opportunities are limited. Study on the assessment of the economic, social, and environmental impact of the pig farming sector in Romania. The study on the evaluation of the economic, social, and environmental impact of the pig farming sector in Romania analyzes the economic, social, and environmental effects of the sector, as well as the budgetary impact and the perception of industry experts. Between 2010 and 2023, the contribution of the pig farming sector to the agricultural production value decreased, despite the increase in total agricultural production value. The number of pig farms decreased, and most of them are small-scale operations without legal personality. The economic and financial analysis of the top 20 companies in the pig farming sector shows a decline in profitability between 2018 and 2022, influenced by African Swine Fever and other factors. To support this sector, it is recommended to implement appropriate policies and invest in technology and biosecurity. The Economic Impact of the Pig Farming Sector in Romania 1
The pig farming sector faces intense competition for labor due to higher wages offered in other EU countries. Consumer preferences for pork are influenced by cultural and economic factors, with higher consumption in urban areas and during holidays. To attract and retain the workforce in this sector, it is recommended to improve working conditions and salary packages. The pig farming sector contributes to greenhouse gas emissions and water and soil pollution, particularly through improper manure management. Romania has made progress in reducing nitrogen and methane emissions, but additional investments in sustainable technologies and agricultural practices are needed. It is recommended to adopt policies that encourage the use of green technologies and sustainable resource management practices. The pig farming sector has a significant impact on the state budget, both through the revenues generated and the expenses related to subsidies. Econometric analysis shows that subsidies for animal welfare have a positive impact on the financial performance of companies in the sector. Continued financial support for the sector is recommended, with a focus on investments in technology and sustainability. The social impact of the pig farming sector in Romania Evaluation of how current practices in the pig farming sector affect air, soil, and water quality. The budgetary impact of pig farming on the Romanian economy. 2 3 4
Interviews with experts in the field confirm the importance of the pig farming sector for the Romanian economy and the need for support measures. The main challenges identified are African Swine Fever, unfair competition, and the lack of skilled labor. It is recommended to implement policies that ensure a fair competitive environment, support investments in technology, and promote education and professional training in the field. Qualitative Forschung zum Schweinezuchtsektor in Rumänien 5 In Romania, the pig farming industry has been significantly impacted by the spread of African Swine Fever, causing adverse effects across the entire value chain. Domestic pork production does not cover local demand, and Romania relies on imports. The pig farming sector has significant potential to contribute to the Romanian economy but faces numerous challenges. A coherent national strategy is needed to ensure a fair competitive environment, support investments in technology and sustainability, and promote education and professional training in the field. Collaboration between authorities, farmers, and researchers is essential to ensure a competitive and sustainable pig farming sector. Conclusions and Recommendations
Testimonials The 3RO project, initiated by PENNY Romania, aligns with Romania’s strategic priorities and contributes to increasing our economic competitiveness and resilience, as well as to the growing demand among Romanians for products made entirely within the country. This study highlights one of the most important industries, pig farming, which in Romania has been significantly impacted by the spread of African Swine Fever, causing adverse effects across the entire value chain. We have analyzed the economic, social, and budgetary impact of the pig farming sector in Romania and Conf. Univ. Dr. Mihai Dinu Academy of Economic Studies Bucharest assessed how current practices in this sector affect air, soil, and water quality. The conclusions presented in the study provide a solid foundation for Romanian authorities and institutions in the agricultural sector, as well as for producers and retailers. The study on the evaluation of the economic, social, and environmental impact of the pig farming sector in Romania highlights, through a multifactorial analysis, the importance of this agricultural branch, which is vital for the country’s economy. Both from an economic, social, and environmental perspective, we can observe the challenges as well as the opportunities that entrepreneurs in this field face, regardless of their position in the agri-food value chain. However, I believe that the most important aspect for the development of the competitiveness of the pig farming sector is the constant application of current measures regarding the surveillance, prevention, and control of African Swine Lect. Univ. Dr. Bogdan Chiripuci Academy of Economic Studies, Bucharest Fever (ASF) – an aspect that forms the basis of predictability for entrepreneurs in the field. I make this statement because even after five years of the presence of this epidemic in our country, we are still talking about new outbreaks that generate operational and functional problems for the economic agents involved. This project exemplifies the collaborative potential between the academic environment and the private sector in generating applied knowledge, with direct relevance for the economy and society. By combining analytical expertise with the practical perspective of industry actors, we managed to develop an integrated approach capable of capturing the real complexity of the pig farming sector. Beyond Prof.univ.dr. Raluca Ignat Academy of Economic Studies, Bucharest its scientific value, this initiative reflects a mature vision of the shared responsibility to build sustainable policies and strategies, grounded in current realities but oriented towards the future.
he completion of the Study on the Assessment of the Economic, Social, and Environmental Impact of the Pig Farming Sector in Romania represented a valuable opportunity to analyze in depth this industry, which is essential for the economy and agriculture of Romania. The qualitative research conducted allowed us to gain detailed insights into the challenges and opportunities faced by pig farmers, as well as to identify solutions for the sustainable development of the sector. Furthermore, the interviews carried out as part of the qualitative research provided the authors from the academic environment with the opportunity to connect with practitioners and exchange experiences with significant synergy for both parties. This study would not have been possible without the financial support provided by PENNY Romania, a dedicated partner in promoting responsible practices in the agrifood industry. Their active involvement demonstrated a genuine concern for the sustainable development of the supply chain and for strengthening a competitive livestock sector at the national level. The research results provide both authorities and industry stakeholders with a solid foundation for making informed decisions, aimed at supporting the modernization and efficiency of the pig farming sector. We appreciate the support provided by the Assoc. Prof. Dr. Simona Roxana Pătărlăgeanu Academy of Economic Studies, Bucharest interviewed producers and PENNY Romania, and we are confident that the study’s findings will contribute to shaping sustainable and effective development strategies for the future. As a member of the research team, I greatly appreciated the opportunity provided through the partnership with PENNY Romania within the 3RO project. This collaboration perfectly illustrates how universities can contribute scientific expertise to solve concrete challenges in the real economy, generating applied research with tangible impact. The funding of this study allowed our team to conduct an in-depth analysis of the pig farming sector, with results that are relevant both for the academic environment and the industry. We had the opportunity to explore the dynamics of this sector in detail, and the pragmatic approach of the partnership significantly enhanced the relevance and applicability of our conclusions. The results obtained confirm the belief that smart investments in the agricultural sector yield multiplied returns for the national economy. Thus, I am confident that our study can contribute to the foundation of strategic decisions aimed at fully harnessing Romania’s potential in this essential field. I sincerely thank the PENNY Romania team for their initiative and the financial support provided to this research project, which makes a valuable contribution to a better understanding of the pig farming sector in Romania. I hope that this collaboration will become an example of good practice for other partnerships between the academic and business sectors. Prof.univ.dr. Raluca Drăcea Academy of Economic Studies, Bucharest
Participating in the project co-financed by PENNY was a valuable professional experience for me and an opportunity to contribute to a relevant scientific endeavor. As a member of the research team, I had the chance to collaborate with dedicated professionals and actively engage in the completion of the study. Collaboration with the research and management team provided me with the opportunity to exchange ideas and perspectives, which significantly enriched my professional experience. I am grateful for the opportunity to be part of this project and for the support provided by PENNY, which facilitated the development of this academic initiative. I believe that the results obtained represent an important milestone in the field, and we are proud of the contribution we made to the study. I would like to thank everyone involved for their professionalism and dedication throughout the entire process! Prof.univ.dr. Raluca Lădaru Academy of Economic Studies, Bucharest My participation in the research team involved in the study on the economic impact of the pig farming sector in Romania was a valuable professional experience. The partnership between the academic and private sectors, realized through collaboration with PENNY Romania, demonstrated how important dialogue between research and industry is in generating applicable and relevant solutions for the real economy. The econometric analysis developed within this project provided a detailed perspective on key economic indicators within the sector, contributing to a deeper understanding of how the activities of companies in pig farming influence public finances and national economic dynamics. I am proud to have had the opportunity to contribute to an initiative that supports strategic decisions and economic policies based on data and rigorous research. I thank the PENNY Romania team for their trust and for the financial support of this project. Our collaboration is an example of good practice between the university and the business sector, with real benefits for both sides, but especially for the sustainable development of Romanian agriculture. Asist. Cercetare drd. Ina Nimerenco Academy of Economic Studies, Bucharest My contribution to this project focused on analyzing the impact of livestock practices on the environment, with an emphasis on greenhouse gas emissions from the pig farming sector. I aimed not only to quantify these effects but also to identify the progress made at the national level in the context of integrating European environmental policies. I believe that the results of the study provide a clear picture Assistant Researcher PhD Candidate Mădălina Deaconu Academy of Economic Studies, Bucharest of Romania’s potential to transform ecological challenges into opportunities for responsible agriculture, adapted to the new sustainability requirements.
I have been eagerly awaiting the results of this study and have carefully reviewed them, as they are an important resource for the development of our 3RO goal of increasing the number of products on the shelf with ingredients from Romania, processed and packaged in our country. In 2023, we sat down with producers and relevant authorities at a roundtable dedicated to meat production in Romania, and the study conducted by the Academy of Economic Studies came as a necessity to Daniel Gross CEO PENNY România analyze in detail the pig farming sector and pork production in our country. This study provides valuable results for the producing industry, but also for authorities and retailers, highlighting the importance of harnessing Romania’s production potential. We are honored to support initiatives that bring to the forefront strategically important economic sectors such as pig farming, and the study conducted within the 3RO project provides a valuable analysis of the challenges and opportunities, highlighting the importance of an integrated approach to strengthen the domestic production chain. For the Cris-Tim Group, the source of meat is the foundation of every product we make. We are dedicated to using only the highest quality meat, and our Clean Label concept reflects this commitment, ensuring traceability and quality at every step of the process. In our industry, we are nearly fully vertically integrated, but not horizontally, meaning that we do not produce enough raw materials locally. Currently, we import over 90% of the raw materials we need. This dependence on imports makes both the industry and the national economy vulnerable, exposing us to external fluctuations. Without strong domestic production, we cannot ensure the predictability necessary for developing a resilient pig farming industry. This is where we have a lot of work to do in the coming years. The meat industry must become a strategic priority for Romania, and this study provides a solid foundation for identifying solutions. The Cris-Tim Group remains an active partner in this endeavor, supporting sustainable development and the creation of a strong local ecosystem that will harness the extraordinary potential of Romanian agriculture and production. Radu Timiș Jr. CEO Grup Cris-Tim
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