New employers' organisation established in agriculture

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On 22 March 2005, some 60 major private producers of agricultural commodities in Romania, holding in exploitation agricultural land in excess of 1,000 hectares, set up the Major Agricultural Producers’ Organisation in Romania, PMPA. Although small-scale farmers prevail in Romanian agriculture, the organisation hopes to have its say in the near future, with the resumption of the arable land concentration process and the development of large-scale, market-oriented farms.

Several major agricultural producers in Romania holding over 1,000 hectares of agricultural surfaces, met in Bucharest on 22 March 2005. The purpose of the meeting was to establish an employers’ organisation representative at sector level to advocate the interests of agri-food producers.

The more than 60 large-scale agricultural producers in Romania established the Major Agricultural Producers’ Organisation in Romania Patronatul Marilor Producători Agricoli din România (PMPA) 'an association that will sustain and defend the economic, technical and juridical interests of its members in view of EU accession'.

The overall agricultural land held by current PMPA members, accounts for 350,000 hectares and the organisation remains open to other members holding or exploiting agricultural land in excess of 1,000 ha.

In accordance with the provisions in the statute of the organisation, membership is accessible to any commercial company on Romanian territory holding or exploiting large agricultural surfaces, utilizing farming machinery and equipment and whose end-products are destined for market processing and trade.

The recently established employers’ organisation intends to monitor the correct application of Law no. 190/2004 on subsidies granted to producers of grain and technical crops.

The new organisation also intends to promote Romanian agri-food products, especially wheat and technical plants on the European and global markets.

Romanian agricultural areas cover 14 million hectares; the average farm area is only 2.5 hectares while the vast majority of farms are solely of the subsistence and self-consumption kind, i.e. non-commercial.

The division of agricultural land began in 1990, following the restoration of ownership rights and the dismantling of 2,500 state and cooperative farms and over 500 state machinery stations. The sector is now facing an extremely complex and difficult process of re-concentration of agricultural areas with a view to increasing the average farm size and enhancing commercial agricultural exploitation.

The promulgation of Law no. 41/2001, triggered the emergence of a veritable medley of inter-professional organisations in recent years. As a rule, the above-mentioned organisations are product-range focused: grain and derivative products, barley-beer, sugar, grapes-wine, tobacco, hop, flowers, beef, pork, mutton, milk-dairy, etc. Currently the number of organisations exceeds 1,000; their role in industrial relations in agriculture is minimal however. As the members’ economic power begins to grow so will its impact on agricultural policy and negotiation strategies.

Although it is aimed at large-scale producers in a country dominated by small-scale farms, the recently set up organisation may well have a promising future.

This information is made available through the European Industrial Relations Observatory (EIRO), as a service to users of the EIROnline database. EIRO is a project of the European Foundation for the Improvement of Living and Working Conditions. However, this information has been neither edited nor approved by the Foundation, which means that it is not responsible for its content and accuracy. This is the responsibility of the EIRO national centre that originated/provided the information. For details see the "About this record" information in this record.

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