“When EU funds for reconversion first became available ten years ago, they were 100% absorbed, many found themselves winegrowers, planted a crop, took the money and were required to keep it going for ten years,” said Victor Ciuperca, CEO of Crama Liliac winery and vice-chairman of Romania’s Wine Exporters and Producers Association (APEV).
“It was a very alluring sector in 2006-2008. But this ten-year period is coming to an end and many are starting to give up their crops.”
The wine industry is the only industry that can boast about having fully absorbed the EU funds made available until 2014.
Winegrowers got EUR42.1 million a year in 2009-2013.
Romania’s wine production peaked at more than 5 million hectoliters in 2013 and has since stayed at fewer than 4 million hectoliters, according to the Agriculture Ministry data. The institution has not published last year’s data, however.
Many small entrepreneurs got EUR14,000 per hectare in EU funds and made EUR2,000 to EUR3,000 profit per hectare or EUR200,000 to EUR300,000 per 100 hectare, Victor Ciuperca says. Many of them are now giving up after having seen the difficulties in the sector and only those who actually want to be in this business stay on the market.
Victor Ciuperca is not the only one to have seen this, wine market expert Catalin Paduraru did, too.
“When faced with the realities of the market, some wineries are unable to find the pace needed for optimal operation. There are also many companies that completed investments in wineries and are looking at deals on the market. Some companies would even like an exit. And this is a good time [to do it], as even foreign funds will make their presence felt in Romania,” Catalin Paduraru said.
(English version by Loredana Fratila-Cristescu)