Strategies for Romania’s trade balance

| 18 19 | Conclusions and recommendations for balancing Romania's trade balance In six months of analyzing the categories of products that consumers are looking for on the shelf, the team of the Academy of Economic Studies came to the conclusion that a coherent national strategy can lead to the almost complete coverage of the trade deficit caused by processed foods, but also by some categories of consumer goods (for example, cosmetics, detergents, etc.). Pork meat The trade deficit: Recommendations: Pork meat contributes with a deficit of 830 million euros to Romania's deficit. • The introduction of legislative regulations to limit the breeding of pigs in households only for the purpose of self-consumption; • The adoption of much more drastic coercive actions for the sale of pigs in fairs; • A separate shelf with the Made in Romania label and the implementation of a quality - labeling scheme (nationally regulated); • Absorption of European funds for infrastructure, for vertical integration and cost efficiency (especially in energy); • Creating a private - private partnership with large farmers for small households that have 1 - 2 pigs to be supported by support programs - subsidies; • The integration of farmers into the large supply chains of large farmers; • Special credit lines at IMM Invest to ensure working capital in industry. Fish Milk and dairy Main action: The trade deficit: Recommendations: Recommendations: Regarding the fish farming industry, the most important action may be the granting of subsidies per area and proven production capacity, in the form of state aid and national subsidies (on the model of those in Poland, the Czech Republic, Hungary). The milk and cheese industry has a negative contribution of around 400 million euros to the trade deficit. • Improving the land registry procedure by vectorization (simplified for provisional land registry) and increasing the necessary funds; • Access to resources (particularly, water), thus creating a more efficient irrigation system; • Investments in drilling wells for stability and constant access to water resources; • Establishing a cooperative that can lead to high volumes of production and long-term vision. • Supporting some investments by re-technology; • Re-introducing the protein into the finished product; • Covering the milk deficit by increasing the cattle herd by approximately 150,000 heads in re-technologized farms; • Standardizing the systems of the institutions gathering and reporting data on milk production; • Financing the establishment of milk powder factories; • Implementing a financial instrument only for the dairy processing industry; • Streamlining the management of granting subsidies, increasing the value of the subsidy granted per head of cattle, covering not only the processing or growth part, but also the logistics part; • Encouraging the sale of products by small producers directly to retail units; • Improving the collaboration between the processor, farmer and retailer, but also the modernization of storage capacities or investments in new capacities, to achieve the energy efficiency.

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