We have a law which regulates the presence of the Romanian agroalimentary products in hypermarkets. Will it encourage or not the development …

The so-called Law of the Hypermarkets was adopted. This is the hasty headline of Wednesday news, on the 8th of June 2016.  For the Romanian agroalimentary sector is a key moment, at least by the controversies it arouses.

The main theme of discussion this law opens is related to the opposition global supply- local supply. The so-called short food supply chains has been enacted: the great retail chains are compelled to source from products obtained at local, regional or national level by a minimum of 51% in terms of goods volume (meat, eggs, fruit, vegetables, dairy products, honey and bakery products). What exactly does it mean that? That at least 51% of certain products on shelves will be Romanian ones.

This does not exactly embody the concept of of short food supply chains! A more detailed analysis you can find in the material The Recovery of Vernacular Traditional Agriculture by Short Agroalimentary Supply Circuits. Case Study: Romania.

It appears that this law will provide the opportunity to the hypermarkets to use the term Short Food Supply Chains to promote some attractive „adds”. We cannot rule out the fact that in the next couple of years we shall witness the the distorting of the concept Short Food Supply Chains as it occurred in the case of Traditional Products.

The 51% percentage is excessive, at least for the moment, and for some product categories, except for the honey, eggs and bakery products.

It is an advantage for all the local producers? Not necessarily. Those who overcame some prejudices and understood correctly the National Program for Rural Development 2014-2020 will benefit from this law, as it is shown in the following “The Romanian farmers, especially the small farmers are still reluctant to the cooperation concept in spite of the mutual advantage of such cooperation. That is why it is necessary to approach this cooperation concept more intensively on sector and local level between farmers, among producers’groups to improve and adjust their production the the market’s demands (including aspects concerning supply, quantity and quality) and to commercialize their products together (including short food supply chains)”.

Although launched a while back, the Sub-measures 16.4 and 16.4 a „Support given for horizontal and vertical cooperation between actors of the supply chain” within PNDR 2014-2020 and generously budgeted (7 million and 3,5 million) until today, the 9th of June 2016, according to AFIR https://online.afir.info/ContorIntegration/DetaliiDisponibil NO PROJECT HAS BEEN SUBMITTED YET on this financing line.

Where is the interest of Romanian agriculturists for horizontal and vertical development? We shall see if the binding nature of this law (51% Romanian products on the shelves) will lead to the boost of small producers!

 

We hope that the Short Food Supply Circuits which started developing in Romania, especially in the west part of the country, will not suffer from the effects of this law.