Staff a bottleneck
There are many opportunities for agriculture in Romania
Romania is an attractive destination for investors in agricultural land. As a foreigner it is possible to buy land there. The prices are low, which offers perspective. Labor is a major problem in rural areas. Due to an aging population, many farmers stop. This makes it difficult to find good staff.
Together with Bulgaria, Romania is the only Eastern European country where you can buy land as a foreigner. For this you have to set up a Romanian BV, but then you are 100% owner, without needing the support of domestic shareholders. The country is performing well economically. That makes it an interesting destination for Dutch investors.
Ground shredded
Van der Slikke Rentmeesters has been active in Romania for several years now. It accompanies land purchases there. That can take a lot of effort, because the ground is extremely fragmented. Typical of Eastern Europe. In addition, the management of agricultural companies in the country is also arranged for foreign investors. Van der Slikke has its own office in the country. “We guide entrepreneurs and companies through the entire buying process,” explains owner Johan van der Slikke. “Most agricultural land is not recorded in the land register. That is one of the pitfalls of buying land here. It takes a lot of work to get everything done. For example, we are currently working on a project of several hundred hectares. The largest owner has 6 hectares. The smallest 1.200 square meters.”
Buying land pays off
“The land price here is about €4.000 per hectare,” explains Van der Slikke. “Foreign investors buy the land and then lease it for about €120/ha. You are talking about a return of 3-4%. In this way, the investment can be earned back, while in the Netherlands it is much more difficult. The economy is doing well. The country is spinning like a charm.
21,5% fewer employees
The Agriculture Producers Associations League (LAPAR) is sounding the alarm in the Romanian countryside. An aging population is occurring at a rapid pace and it is difficult to bind young people to agriculture. Between 2010 and 2015, the number of employees in the sector decreased from 1,6 to 1,2 million. A drop of 21,5%. That is what the Pro Agro National Federation calculated. In western Romania, only 50% of all jobs in the agricultural sector are filled.
40
schools
40 agricultural schools reopened
One of the problems is the lack of agricultural education. “The Ministry of Agriculture has promised to reopen 40 agricultural schools, but it will take several years to bring in new employees,” said Laurentiu Baciu of Lapar. The problem is particularly acute in western Romania. “In Romanian agriculture we work a lot with people who are close to retirement age,” said Baciu.
Train staff yourself
Van der Slikke agrees with the shortage of good staff: “It is important to bind people to your company. There is a culture here that they switch to another company for a tenner more. You have to train them yourself because skilled workers are scarce. There is still plenty of work to be found close to the big cities. In rural areas it is more difficult. Many young people have moved to Western Europe. It is precisely the skilled people who have emigrated. You hardly come across unemployment. Government support is very limited, so everyone continues to work. The Netherlands is often accused of being too good for the unemployed, but the system here is not always good either. For example, you promote theft.
Asian staff
In order to keep companies running, the Romanians in turn try to attract people from Asia. “We are trying to bring personnel here from Indonesia, Pakistan and the Philippines,” said Baciu. There are Romanian livestock farms that work with Asian staff. There are also farmers who hire staff from other EU countries. They are overqualified, which means that salaries are too high. An alternative is to hire agricultural contractors from Hungary to do all the work.
Niels van der Boom
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