camelia gavrilescu , camelia toma , crina turtoi institute for agricultural economics
DESCRIPTION
INCOME, EXPENDITURES AND AGRIFOOD CONSUMPTION OF THE RURAL POPULATION IN ROMANIA – AN OVERVIEW OF THE LAST TWO DECADES. Camelia Gavrilescu , Camelia Toma , Crina Turtoi Institute for Agricultural Economics Romanian Academy. - PowerPoint PPT PresentationTRANSCRIPT
INCOME, EXPENDITURES AND AGRIFOOD CONSUMPTION OF THE RURAL POPULATION IN
ROMANIA – AN OVERVIEW OF THE LAST TWO DECADES
Camelia Gavrilescu, Camelia Toma, Crina Turtoi
Institute for Agricultural EconomicsRomanian Academy
“20 years of farming and rural transition in Eastern European countries: what have we learned?”
A conference Rural'Est-SFER, 20-21 october 2011, Agrosup Dijon, France
During the last 2 decades ... Romania has made huge efforts to
achieve several goals in its agrifood sector: to transform it from a centrally
planned to a market-driven one; to develop and modernise it; to adapt it to the requirements
imposed by the accession to the European Union
Rural area in Romania means … 45% of the total population
(45.7% in 1990 44.9% in 2009)
Agricultural and industrial employment (‘000 persons)
0500
1000150020002500300035004000450019
9019
9119
9219
9319
9419
9519
9619
9719
9819
9920
0020
0120
0220
0320
0420
0520
0620
0720
0820
0920
10
'000
per
sons
Agriculture, forestry and f ishing Industry
Agricultural and industrial employment (% in total
employment)
0.05.0
10.015.020.025.030.035.040.045.019
9019
9119
9219
9319
9419
9519
9619
9719
9819
9920
0020
0120
0220
0320
0420
0520
0620
0720
0820
0920
10
% o
f tot
al e
mpl
oym
ent
Agriculture, forestry and f ishing Industry
… generated a rather important part of the GDP
0.05.0
10.015.020.025.030.035.040.045.0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
%
Agriculture, forestry and f ishery Industry
Factors influencing that trend… Intrinsic to the agrifood sector:
restructuring of land ownership and use; restructuring of the agrifood chains; Good / bad agricultural year
Extrinsic to the agrifood sector: restructuring in secondary and tertiary
economic sectors increasing urban unemployment lack non-agricultural unemployment Inflation exchange rate etc.
Average real salaries and pensions indices (1990=100)
0
20
40
60
80
100
120
140
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
%
Salaries Pensions
Average and minimum salary in the Romanian economy
(1990=100)
94117
147 142 141
328
417460 444 440
229
296328 320 314
0
50
100
150
200
250
300
350
400
450
500
2006 2007 2008 2009 2010
EU
R/m
onth
Minimum wage Average wage Agriculture, forestry and f ishery
Income in the agricultural sector
Dynamics of household income is a reflection of: economic conditions constraints that have been increasingly
tougher Various types of reactions in the agrifood
sector: Occupational diversification:
Pluriactive households Decrease of full-time agricultural employment
Migration of labor (to urban areas / abroad) Investment and development
Income structure in agricultural households
(average 2002-2009)Salaries
8%Sales of agrifood products
14%
Other activities17%
Social services14%
On-farm agrifood
coonsumption47%
Income structure in agricultural households High share of on-farm consumption
(~50%) Low share of agrifood product
sales (14-20%) Daily income per capita in rural
households: 3-4 EUR Income in farmer households are
only 50-56% of those in urban households
Total income (average per family member – EUR/day)
2005 2006 2007 2008 2009 2010
All households 3.8 4.5 5.8 6.6 6.3 6.0
Rural households 3.1 3.6 4.7 5.3 5.0 5.0
Employees households 4.8 5.7 7.3 8.1 7.7 7.8
Farmers households 2.7 2.9 3.8 4.3 4.1 3.9
Structure of consumption expenditures (average 2002-2009)
Food45%
Non-food30%
Services25%
All households
Food54%
Non-food29%
Services17%
Rural households
Structure of consumption expenditures, by sources
0%
20%
40%
60%
80%
100%
Total households
Rural households
Agricultural households
85.6 74.2 65.1
Money expenditures Selfconsumption eq.
Crop products consumption trend
0
50
100
150
200
250
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
kg/c
apita
/yea
r
Cereals and cereal products (eq. grains) Potatoes
Vegetables and vegetable products (eq. f resh) Fruit and f ruit products (eq. f resh)
Main trends in food consumption (crop products)
high consumption of bread and cereal products, that represent the basic food items for all household types.
cereals provide 45% of calories in population’s diet (48% in the rural area) low food diversification;
increase of consumption in cereals, potatoes and vegetables until 2001-2002;
cereals potatoes fruit and vegetables decline of fruit consumption due to domestic
production decline and price increase
Animal products consumption trend
0
1
2
3
4
5
6
7
8
0
50
100
150
200
250
300
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
kg/capita/year
Milk and dairy products (eq. milk 3.5% fat) Eggs (pieces/capita/year)
Meat and meat products (eq. f resh meat) Fish and f ish products
Main trends in food consumption (animal products)
low consumption of meat and meat products, compared to the European average
pork and chicken = 75-80% of total fresh meat consumption
low preference for beef (<10-13%; 8-10% in rural areas)
very low preference for fish high share of consumption from household own
resources for certain products such as eggs and milk
Main trends in food consumption (animal products) last 8 years (since 2002):
fresh meat - increase of total quantity (~20%)
increase of chicken at expense of beef but mostly of pork
in rural areas, chicken is already half of total fresh meat consumption
increase of milk and dairy products consumption, mainly due to domestic production increase
Beverages consumption trend
0
20
40
60
80
100
120
140
160
180
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
litre
s/ca
pita
/yea
r
Soft-drinks Beer Wine
Daily average food consumption per capita
0
500
1000
1500
2000
2500
3000
3500
4000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2004
2005
2006
2007
2008
2009
Calories - animal origin Calories - non-animal origin
Main trends in food consumption high consumption of bread and cereal
products, that represent the basic food items for all household types
cereals provide 45% of calories in population’s diet (48% in the rural area), which implies a low food diversification
Almost ¾ (72-76%) of the daily ratio is coming from non-animal calories
General conclusions Romania has made huge efforts to develop its
agrifood sector and rural areas Still high agricultural employment Moderate efficiency (GDP per person employed
in agriculture) Lower labor prices as compared to other MS High level of on-farm consumption Food model shows low income and inadequate
nutritional ratios mostly in rural areas
Thank you for your attention!