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Financing Romanian Agricultural Cooperatives’ Investments for the 2023–2027 Horizon

Author

Listed:
  • Monica Laura Zlati

    (Department of Business Administration, Dunarea de Jos University of Galati, 800008 Galați, Romania)

  • Andrei Mirel Florea

    (Department of Materials and Environmental Engineering, Dunarea de Jos University of Galati, 800008 Galați, Romania)

  • Valentin Marian Antohi

    (Department of Business Administration, Dunarea de Jos University of Galati, 800008 Galați, Romania
    Departament of Finance, Accounting and Economic Theory, Transylvania University of Brasov, 500036 Brașov, Romania)

  • Marius Sorin Dinca

    (Departament of Finance, Accounting and Economic Theory, Transylvania University of Brasov, 500036 Brașov, Romania)

  • Florentin Bercu

    (Union of the National Branch of Crop Sector Cooperatives, 020491 Bucharest, Romania)

  • Costinela Fortea

    (Department of Business Administration, Dunarea de Jos University of Galati, 800008 Galați, Romania)

  • Stanciu Silvius

    (Department of Food Science, Food Engineering, Biotechnology and Aquaculture, Dunarea de Jos University of Galati, 800008 Galați, Romania)

Abstract

Agriculture represents an important sector of the Romanian economy, with certain vulnerabilities under the current geo-political context and pedoclimatic changes with a direct impact upon food security at national and European levels. This paper analyzes the possibilities for revitalizing the Romanian agricultural sector, which was affected by the excessive inflation (especially via the price increases of fertilizers and fuels) and drought, both generating significant cereal and agricultural production losses. The current research highlights the main investment options for the managers of 219 Romanian agricultural cooperative companies, including the available financing alternatives. In our view, the investments realized within the agricultural cooperative companies support the creation and increase in value added and reduce specific risks, consolidating the role and status of agricultural producers within the food chain. The research evaluates the Romanian agricultural investment typologies and establishes a model of assessing these investments by correlating the information obtained from the questionnaire distributed. The research methods include analyzing the reference literature, building the database, collecting and processing the questionnaires’ observations, transforming the qualitative data into quantitative ones and modeling them with econometric instruments. The results obtained using the econometric model reveal the main investment directions to be integrating the production chains through economic association forms, including constructing and modernizing the warehouses, processing the primary products and obtaining higher value-added products, identifying various distribution channels, making the most of all available resources and focusing on digitalization, efficiency, circular economy and short supply chains. The study is of interest for the investors and managers of agricultural cooperative companies from Romania and Europe in view of securing sustainable development, enhancing the role of agricultural producers within the food chain and increasing efficiency of the agricultural activity, with a direct impact upon European food security.

Suggested Citation

  • Monica Laura Zlati & Andrei Mirel Florea & Valentin Marian Antohi & Marius Sorin Dinca & Florentin Bercu & Costinela Fortea & Stanciu Silvius, 2023. "Financing Romanian Agricultural Cooperatives’ Investments for the 2023–2027 Horizon," Sustainability, MDPI, vol. 15(3), pages 1-28, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2306-:d:1047843
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    References listed on IDEAS

    as
    1. Oana Daniela Lupoae & Riana Iren Radu & Mihaela-Carmen Muntean, 2022. "Capturing Entrepreneurial Opportunities in the Romanian Equine Sector: an Fs-Qca Approach," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 455-472, March.
    2. Andrei-Mirel Florea & Florentin Bercu & Riana Iren Radu & Silvius Stanciu, 2019. "A Fuzzy Set Qualitative Comparative Analysis (fsQCA) of the Agricultural Cooperatives from South East Region of Romania," Sustainability, MDPI, vol. 11(21), pages 1-18, October.
    3. Sadowski, Arkadiusz & Wojcieszak-Zbierska, Monika Małgorzata & Beba, Patrycja, 2021. "Territorial differences in agricultural investments co-financed by the European Union in Poland," Land Use Policy, Elsevier, vol. 100(C).
    4. Khanal, Aditya R. & Omobitan, Omobolaji, 2020. "Rural Finance, Capital Constrained Small Farms, and Financial Performance: Findings from a Primary Survey," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(2), pages 288-307, May.
    5. Zelong Yi & Yulan Wang & Ying‐Ju Chen, 2021. "Financing an Agricultural Supply Chain with a Capital‐Constrained Smallholder Farmer in Developing Economies," Production and Operations Management, Production and Operations Management Society, vol. 30(7), pages 2102-2121, July.
    6. Tanja Havemann & Christine Negra & Fred Werneck, 2020. "Blended finance for agriculture: exploring the constraints and possibilities of combining financial instruments for sustainable transitions," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(4), pages 1281-1292, December.
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    Cited by:

    1. Paraskevi Boufounou & Nikolaos Lathiras & Kanellos Toudas & Chrisovalantis Malesios, 2024. "Value-Chain Finance in Greek Agriculture," Sustainability, MDPI, vol. 16(7), pages 1-20, March.
    2. Ionuț-Adrian Drăguleasa & Amalia Niță & Mirela Mazilu & Gheorghe Curcan, 2023. "Spatio-Temporal Distribution and Trends of Major Agricultural Crops in Romania Using Interactive Geographic Information System Mapping," Sustainability, MDPI, vol. 15(20), pages 1-25, October.
    3. Jasper Grashuis & Florentin Bercu & Andrei‐Mirel Florea & Riana Iren Radu, 2024. "The commercial growth of farmer cooperatives in Romania: A double‐hurdle model analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(1), pages 113-127, March.

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