Dezvoltarea Agriculturii Rurale

UNIVERSITATEA DE STIINTE AGRONOMICE SI MEDICINA
VETERINARA BUCURESTI

FACULTATEA DE MANAGEMENT, INGINERIE ECONOMICA
IN AGRICULTURA SI DEZVOLTARE RURALA

LUCRARI STIINTIFICE

SERIA MANAGEMENT, INGINERIE
ECONOMICA IN AGRICULTURA SI
DEZVOLTARE RURALA
Volumul 8/2008

Editura DOMINOR , BUCURESTI, 2008
UNIVERSITY OF AGRICULTURAL SCIENCES AND VETERINARY
MEDICINE BUCHAREST ROMANIA

UNIVERSITATEA DE STIINTE AGRONOMICE SI MEDICINA
VETERINARA BUCURESTI ROMANIA

FACULTY OF MANAGEMENT, ECONOMIC ENGINERING IN
AGRICULTURE AND RURAL DEVELOPMENT

FACULTATEA DE MANAGEMENT, INGINERIE ECONOMICA IN
AGRICULTURA SI DEZVOLTARE RURALA

INTERNATIONAL SCIENTIFIC
SYMPOSIUM

SIMPOZIONUL STIINTIFIC
INTERNATIONAL

PROSPECTS OF AGRICULTURE AND
RURAL AREAS DEVELOPMENT

PERSPECTIVE ALE DEZVOLTARII
AGRICULTURII SI ZONELOR
RURALE

BUCURESTI, 2008
SCIENTIFIC EDITORS
REFERENTI STIINTIFICI :

1. Prof.Dr. Ioan Nicolae ALECU University of Agricultural Sciences and
Veterinary Medicine , Bucharest , Romania
2. Prof.Dr. Manea DRAGHICI - University of Agricultural Sciences and
Veterinary Medicine , Research and Development Institute for
Agricultural Economy and Rural Development , Bucharest, Romania
3. Prof. Dr. Agatha POPESCU - University of Agricultural Sciences and
Veterinary Medicine , Bucharest , Romania
4. Senior Lecturer Dr. Toma Adrian DINU- University of Agricultural
Sciences and Veterinary Medicine , Bucharest , Romania
5. Prof. dr. H.C. Miguel Moreno MILLAN University of Cordoba, Spain
6. Prof. Dr. Svend RASMUSSEN University of Copenhagen, Denmark
7. Prof. Dr. Rang NARAYANAN - University of Reno, Nevada , S.U.A.
8. Acad. Prof. Dr. Habilitat Pavel MOVILEANU - State Agrarian University
of Moldova, Chisinau Republic of Moldova
9. Prof. Dr. Drago CVIJANOVIC - Institute of Agricultural Economics ,
Beograd, Serbia
10. Prof. Dr. Emilian MERCE - University of Agricultural Sciences and
Veterinary Medicine, Cluj Napoca , Romania
11. Prof. Dr. Gheorghe MURESAN - University of Agricultural Sciences and
Veterinary Medicine, Cluj Napoca , Romania
12. Senior Lecturer Dr. Mariana Doga - MIRZAC - Moldova State
University , Republic of Moldova
13. Dr. Patrick ANGEL - U.S. Department of The Interior, Appalachian
Regional Office of Surface Mining, Kentucky, U.S.A.
14. Dr. Adrian TUREK - Research and Development Institute for Agricultural
Economy and Rural Development , Bucharest, Romania

Tehnoredactare computerizata :

Dr. Mariana Burcea
Ing.Teodora Popescu

Copyright2008.Dominor Publishing House , Bucharest, 2008.
All rights reserved.

Printed by DOMINOR Publishing House , Bucharest , 2008

INTERNATIONAL SCIENTIFIC SYMPOSIUM

SIMPOZIONUL STIINTIFIC INTERNATIONAL

PROSPECTS OF AGRICULTURE AND
RURAL AREAS DEVELOPMENT

PERSPECTIVE ALE DEZVOLTARII
AGRICULTURII SI ZONELOR RURALE

BUCURESTI, May 5- 6 , 2008

Organizing Institutions :

University of Agricultural Sciences and Veterinary Medicine,
Bucharest, Romania

in collaboration with

Research and Development Institute for Agricultural
Economy and Rural Development, Bucharest, Romania

Institute for Agricultural Economics, Beograd, Serbia
7
CONTENT/CUPRINS

SESSION 1/ SESIUNE I
GENERAL TOPIC - TEMA GENERALA

ELEMENTS FOR A SUSTAINABLE RURAL DEVELOPMENT IN ROMANIA AS A MEMBER STATE
OF EUROPEAN UNION
ELEMENTE PENTRU O DEZVOLTARE RURALA DURABILA IN ROMANIA CA STAT MEMBRU AL
UNIUNII EUROPENE
ALECU I.I., TUDOR VALENTINA, TEMOCICO GEORGETA.................................................................

DAIRY INDUSTRY IN PAKISTAN
INDUSTRIA LAPTELUI N PAKISTAN
AZIZ HAIDER SYED, S.L. Dr. BUZATU (STURZU) CRISTIANA SILVIA ...............................................

RURAL WORKFORCE IN PAKISTAN
FORA DE MUNC DIN ZONA RURAL N PAKISTAN
AZIZ SYED HAIDER.................................................................................................................................

EVOLUTION AND STRUCTURE OF INPUT AT LEVEL OF VEGETAL FARMS
EVOLUIA I STRUCTURA INPUTURILOR LA NIVELUL EXPLOATAIILOR AGRICOLE
VEGETALE
BDULESCU ADINA GABRIELA............................................................................................................

SOME ASPECTS REGARDING THE MANAGEMENT OF COMPACTITY CONTROL ON THE SOILS
IN BURNAS PLAIN, RELATED TO WHEAT CROP
ASPECTE PRIVIND MANAGEMENTUL CONTROLULUI COMPACTITII PE SOLURILE DIN
CMPIA BURNASULUI, N RELAIE CU CULTURA GRULUI
BERCA M., BUZATU CRISTIANA............................................................................................................

CONCEPTUAL MODELS FOR PROFESSIONAL CONTINUOUS TRAINING PRACTICABLE IN EU
STATES MEMBERS
MODELE CONCEPTUALE DE FORMARE PROFESIONALA CONTINUA PRACTICATE IN TARILE
U.E.
BEREVOIANU ROZI LILIANA, IVASCU TEODORA...............................................................................

STUDIEREA CONDIIILOR SOCIO-ECONOMICE N LOCALITI DIN BAZINUL DROBOTFOR IN
PERSPECTIVA DEZVOLTRII RURALE LOCALE
THE STUDY OF SOCIO-ECONOMIC CONDITIONS IN LOCALITIES FROM DROBOTFOR AREA IN
LOCAL RURAL DEVELOPMENT PERSPECTIVE
BRAN MARIANA, CONF. DR. DOBRE IULIANA, PROF. DR. VOICU R................................................

THE INTERNATIONAL SITUATION OF GENETICALLY MODIFIED ORGANISMS
SITUAIA INTERNAIONAL A ORGANISMELOR MODIFICATE GENETIC
CIULINARU MARIA- MAGDALENA.........................................................................................................

SITUATIA CULTURII DE SOIA ROUNDUP READY IN ROMANIA
THE SITUATION OF ROUNDUP READY SOYBEAN CROPS IN ROMANIA
CIULINARU MARIA- MAGDALENA.........................................................................................................

QUALITATIVE CHARACTERISTICS OF THE WINE OBTAINED FROM WHITE FETEASCA
GRAPES VARIETY, DERIVED FROM WINE-GROWING CENTRE OSTROV, ALONG THREE
SUCCESSIVE CROPS 2004, 2005 AND 2006
PARTICULARITI CALITATIVE ALE VINULUI OBTINUT DIN SOIUL FETEASCA ALBA, PROVENIT
DIN CENTRUL VITICOL OSTROV, PE PARCURSUL A TREI RECOLTE SUCCESIVE 2004, 2005 SI
2006
CULEA RODICA- ELENA , TAMBA-BEREHOIU RADIANA, POPA N.C. ............................................

INFORMATIC SYSTEM DESIGNED FOR AGRICULTURAL FARMS (S.I.F.A.)
SISTEM INFORMATIC DESTINAT FERMELOR AGRICOLE (S.I.F.A.)
DINU T., SIMION P.L. ..............................................................................................................................

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CHELTUIELILE PENTRU PROTECIA MEDIULUI N SISTEMUL MACROTERITORIAL DIN
ROMNIA
ENVIRONMENT PROTECTION EXPENDITURES IN THE MACROTERRITORIAL SYSTEM IN
ROMANIA
DRAGHICI M. ...........................................................................................................................................

DIMENSIUNEA EXPLOATAIILOR AGRICOLE I NECESITATEA DIVERSIFICRII ACTIVITILOR
ACESTORA
THE SIZE OF AGRICULTURAL BUSINESSES AND THE NEED TO DIVERSIFY THEIR ACTIVITIES
DRGHICI M., MARA F. ..........................................................................................................................

SUPPORTING RURAL COMMUNITIES AND ENVIRONMENT PROTECTION THROUGH LOCAL
PRODUCTS PROMOTING.
SUSTINEREA COMUNITATILOR RURALE SI PROTEJAREA MEDIULUI INCONJURATOR PRIN
PROMOVAREA PRODUSELOR LOCALE.
FINTINERU GINA, FINTINERU A., LOREDANA PREDA........................................................................

OPPORTUNITIES TO DEVELOPMENT OF THE ECOLOGICAL AGRICULTURE IN ROMANIA
OPORTUNITATI IN VEDEREA DEZVOLTARII A AGRICULTURII ECOLOGICE IN ROMANIA
FLORESCU AURELIA VASILICA, GMAN ILEANA CRISTIANA.........................................................

ARBORETUM INFORMATION SYSTEM
SISTEME INFORMATICE DE ARBORETE
GUN MARDIATMOKO, BUZATU (STURZU) CRISTIANA SILVIA .........................................................

FARM MODERN HUMAN RESOURCES MANAGEMENT
MANAGEMENTUL MODERN AL PERSONALULUI DIN EXPLOATATIILE AGRICOLE
ISBASESCU T. .........................................................................................................................................

LAND REGISTER OR PROPERTY REGISTRATION
CARTEA FUNCIAR SAU INTABULAREA PROPRIETILOR
LEU I. N., TUREK A. ...............................................................................................................................

COMMUNICATION IN BUSINESS
COMUNICAREA IN AFACERI
GABRIEL PANAIT, MANEA DRGHICI.................................................................................................

STUDY OF SOME PHYSICAL-MECHANICAL TRAITS OF SILK FIBER IN THE HYBRID
COMBINATIONS OF DIFFERENT ORIGINS TESTED IN ROMANIA
STUDIUL UNOR CARACTERE FIZICO-MECANICE ALE FIBREI DE MATASE IN COMBINATIILE
HIBRIDE DE DIFERITE PROVENIENTE TESTATE IN ROMANIA
MATEI ALEXANDRA, MARGHITAS L. AL., P. TZENOV, D. DEZMIREAN, MAGDA ANDRONE,
CRISTINA BOJAN, M. BENTEA..............................................................................................................

ECONOMICAL DECALAGES NATURAL AND IMPOSED PREMISES
DECALAJE ECONOMICE PREMISE NATURALE I IMPUSE
MERCE E., C. C. MERCE, F. H. ARION, CH. HAKIZIMANA..................................................................

BIOTECHNOLOGY AND RURAL DEVELOPMENT: COMMENTS
MORENO MILLN, M. AND M.J. MORENO MORENO, GREGOR J. MENDEL BUILDING

AVANTAJELE UTILIZRII BIOCOMBUSTIBILILOR I SEMNELE DE NTREBARE CARE SE RIDIC
THE ADVANTAGES OF USING BIOFUELS AND THE QUESTIONS THAT ARE RAISED
OANCEA E. ..............................................................................................................................................

THE INFLUENCING FACTORS OF THE COMPETITIVENESS OF TRADITIONAL PRODUCTS IN
ROMANIAN AGRO-FOOD MARKETS
FACTORI CARE INFLUENEAZ COMPETITIVITATEA PRODUSELOR TRADIIONALE N
CADRUL PIEELOR AGROALIMENTARE ROMNESTI
OLTEANU V. ............................................................................................................................................

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THE ROLE OF CONSUMER IN AGRI-FOOD CHAIN AND MARKET
ROLUL CONSUMATORULUI N CADRUL FILIEREI I PIEEI AGROALIMENTARE
OLTEANU V. ............................................................................................................................................

MANAGERIAL COMMUNICATION AS STRATEGIC BENEFIT
COMUNICAREA MANAGERIAL CA AVANTAJ STRATEGIC
PANAIT D. ................................................................................................................................................

COMMUNICATION AND ENGLISH FOR SPECIFIC PURPOSES
COMUNICAREA SI ENGLEZA PENTRU SCOPURI SPECIFICE
POPESCU LILIANA..................................................................................................................................

HUMAN RESOURCES MANAGEMENT
MANAGEMENTUL RESURSELOR UMANE
SIMA ELISABETA....................................................................................................................................

PERSPECTIVES ON HUMAN RESOURCES MANAGEMENT IN THE CALARASI COUNTY IN THE
EUROPEAN UNION INTEGRATION PROCESS
PERSPECTIVE ASUPRA MANAGEMENTULUI RESURSELOR UMANE DIN JUDEULUI CLRAI
N PROCESUL INTEGRRII N UNIUNEA EUROPEAN
SIMA ELISABETA....................................................................................................................................

THE EUROPEAN PROGRAMMES REGARDING EDUCATION, THE ESSENTIAL MODALITY IN THE
DEVELOPMENT OF RURAL AREA
PROGRAMELE EUROPENE PRIVIND EDUCAIA , MODALITATE ESENIAL N DEZVOLTAREA
SPAIULUI RURAL
STAN GH., NIJLOVEANU D. ...................................................................................................................

PERSPECTIVES ON RURAL DEVELOPMENT IN THE EUROPEAN UNION
PERSPECTIVE ALE DEZVOLTRII RURALE N UNIUNEA EUROPEAN
VASILE MIOARA......................................................................................................................................

SESSION 2 MANAGEMENT, MARKETING, ACCOUNTING, FINANCIAL ANALYSIS, FINANCING
SESIUNEA 2- MANAGEMENT, MARKETING, CONTABILITATE, ANALIZA FINANCIARA,
FINANTARE

THE LIBERALIZATION OF THE COMMERCE WITH SERVICES ON THE EUROPEAN UNIQUE
MARKET
LIBERALIZAREA COMERULUI CU SERVICII PE PIAA UNIC EUROPEAN
ALECU I.I., MRCUT L., CARMEN ANGELESCU......................................................

ASPECTS REGARDING WAYS AND METHODS FOR THE IMPROVEMENT OF INSURANCE
COMPANIES
ASPECTE PRIVIND CILE I METODELE DE MBUNTIRE A MANAGEMENTULUI
COMPANIILOR DE ASIGURRI
ANGELESCU CARMEN, ALECU I.I.........................................................................................................

THE IMPACT OF WORLD` S GROWING GRAINS PRICE ON INTERNAL AGRICULTURAL MARKET
IMPACTUL CRETERII PREURILOR PE PIAA MONDIAL A CEREALELOR ASUPRA PIEEI
AGRICOLE INTERNE
BECIU S....

TECHNICAL AND ECONOMIC INDICATORS CORRELATION IN FRAME OF INFORMATIC
SYSTEM DESIGNED TO AGRICULTURAL FARMS (SIFA)
CORELAREA INDICATORILOR TEHNICO-ECONOMICI IN CADRUL SISTEMULUI INFORMATIC
DESTINAT FERMELOR (SIFA)
BEREVOIANU ROZI LILIANA, IVASCU TEODORA, ISBASESCU T

THE MANAGEMENT OF INFORMATIONS IN ROMANIAN WINE INDUSTRY GESTIONAREA
INFORMATIILOR IN SECTORUL VITIVINICOL ROMANESC
BOBOC D., MANOLE V., ISTUDOR N.............................

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DESIGN OF COMPUTERIZED SYSTEM FOR AGRICULTURAL HOLDINGS MANAGEMENT
PROIECTAREA UNUI SISTEM INFORMATIC DESTINAT MANAGEMENTULUI EXPLOATAIILOR
AGRICOLE
ELENA COFAS,TOMA ELENA, DRAGOMIR V....

REGRESSION AND CORRELATION IN ANALYSIS OF FRUITS PRODUCTION TREND IN
ROMANIA
CORELAIE I REGRESIE N ANALIZA TRENDULUI PRODUCIEI DE FRUCTE DIN ROMNIA
ELENA COFAS

RECOMPENCES SYSTEMS OF THE HUMAN RESOURCES ON THE LABOUR MARKET
SISTEME DE RECOMPENSARE A RESURSELOR UMANE PE PIAA MUNCII
CONDEI RETA, TINDECHE CRISTIANA

IDENTIFICATION AND INVENTORY OF ROMANIAN TRADITIONAL
AGRI-FOOD PRODUCT
IDENTIFICAREA I INVENTARIEREA PRODUSELOR AGROALIMENTARE TRADIIONALE
ROMNETI
CONSTANTIN M., MAGDALENA TUREK, FLORIN FRONE..

MANAGEMENT VERSUS LEADERSHIP
CREU DANIELA, CONSTANTIN DUMITRA, NEAGU CECILIA................

INTEGRATION OF THE QUALITY MANAGEMENT SYSTEM WITH THE SOCIAL ACCOUNTABILITY
MANAGEMENT SYSTEM ACCORDING TO THE REQUIREMENTS OF ISO/DIS 9001:2007 AND SA
8000:2001
INTEGRAREA SISTEMULUI DE MANAGEMENT AL CALITATII CU SISTEMUL DE MANAGEMENT
AL RESPONSABILITATII SOCIALE CONFORM CERINTELOR ISO/DIS 9001:2007 SI SA 8000:2001
DENUNTZIO R.....

FINANCING POLICIES OF ECONOMIC AGENTS FROM AGRICULTURE SECTOR POLITICI DE
FINANARE A AGENILOR ECONOMICI DIN SECTORUL AGRAR
MARIANA DOGA-MRZAC

ELEMENT ANALYSIS OF THE BREAD GRAINS CHANNEL
FRONE F., CONSTANTIN M., CHIHAIA ANIOARA, PANAIT R., FRONE SIMONA...

STRATEGIES OF DEVELOPMENT AND PROMOTION OF THE REPUBLIC OF MOLDOVA IMAGE
STRATEGII DE DEZVOLTARE I PROMOVARE A IMAGINII REPUBLICII MOLDOVA
GANGAN SVETLANA........

ATTITUDES TOWARDS SMOKING, DRINKING, AND DRUG USE IN FIRST-YEAR STUDENTS AT
THE FACULTY OF MANAGEMENT, ECONOMIC ENGINEERING, AND RURAL DEVELOPMENT IN
USAMV UNIVERSITY
ATITUDINILE FATA DE FUMAT, EXCESUL DE ALCOOL SI CONSUMUL DE DROGURI
CERCETARE ASUPRA STUDENTILOR DIN ANUL I, FACULTATEA DE MANAGEMENT, INGINERIE
ECONOMICA IN AGRICULTURA SI DEZVOLTARE RURALA, USAMV BUCURESTI
ADINA IORGA, TAPU C....

WORLD POTENTIALS TO SUSTAINABLE AGRICULTURE
POTENTIALITATI ALE AGRICULTURII DURABILE LA NIVEL MONDIAL
ISBASESCU T.

ESTIMATES OF PRODUCTION COSTS FOR MILKING COW FARMS FOR 2008 AND A
COMPARATIVE ANALYSIS WITH 2007
ESTIMRI PRIVIND COSTURILE DE PRODUCIE LA EXPLOATAIILE DE VACI DE LAPTE
PENTRU 2008 I ANALIZA COMPARATIV CU 2007
IURCHEVICI LIDIA

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TECHNICAL - ECONOMIC AND COMPARATIVE ANALYSIS OF PRODUCTION COSTS AND
SELLING PRICES OF YOUNG CATTLE BEEF
ANALIZA TEHNICO - ECONOMIC I COMPARATIV A COSTULUI DE PRODUCIE I A
PREULUI DE VALORIFICARE LA CARNEA DE TINERET TAURIN
LEPDATU CLAUDIA....

DIAGNOSTIC ANALYSIS OF COMPANIES OPERATING IN THE FIELD OF MERCHANDISE
DELIVERY
ANALIZA DIAGNOSTIC A SOCIETTILOR DIN DOMENIUL EXPEDITIILOR DE MARFURI
VICTORIA MANEA, ALINA MRCUT , MRCUT L. STOIAN ELENA...

ACCOUNTING METHODS AND POLICIES REGARDING THE CONSOLIDATION OF ACCOUNTS
AT THE GROUP SOCIETIES
METODE SI POLITICI CONTABILE PRIVIND CONSOLIDAREA CONTURILOR LA SOCIETATILE DE
TIP GRUP
MRCUT ALINA...

ACCOUNTING INSTRUMENTS AND STATEMENTS UTILIZED IN ACCOUNTING ANALYSIS AND
DECISION-MAKING PROCESS
INSTRUMENTE SI RAPOARTE CONTABILE UTILIZATE N ANALIZA SI DECIZIILE MANAGERIALE
MRCUT ALINA...

WAYS FOR IMPROVEMENT THE LOGISTIC MANAGEMENT IN PUBLIC INSTITUTIONS
CI DE MBUNTTIRE A MANAGEMENTULUI LOGISTICII N INSTITUTIILE PUBLICE
MRCUT L.

RESEARCHES CONCERNING THE UNREEABLE COCOONS PROCESSING IN HANDICRAFTS
A WAY TO INCREASE PROFITABILITY IN SERICICULTURAL FARMS
CERCETARI PRIVIND PROCESAREA GOGOSILOR NEFILABILE IN PRODUSE ARTIZANALE -
O CALE DE CRESTERE A PROFITABILITATII IN FERMELE SERICICOLE
MATEI ALEXANDRA, POPESCU AGATHA, SLADESCU VIORICA.........

THE IMPLEMENTATION OF THE NATIONAL PROGRAM MOLDAVIAN VILLAGE IN THE RURAL
SPACE
MOVILEANU P....

NECESSARY AND THE FUTURE OF AGRICULTURAL EXTENSION IN ROMANIAN COUNTRY
CONSULTANA AGRICOL: NECESITATEA I PERSPECTIVELE ACESTEIA N ROMNIA
PAULA PETRIC, VALENTINA TUDOR....

APPROACH OF MANAGEMENT ACCOUNTING IN COST CONTROL IN AGRICULTURAL
COMPANIES
ABORDAREA CONTABILITATII MANAGERIALE IN CONTROLUL COSTURILOR IN SOCIETATILE
AGRICOLE
PIRVUTOIU I., POPESCU AGATHA, GRIGORAS M.A. ............

CONSIDERATIONS UPON THE APPLICATION OF RATIO ANALYSIS IN FINANCIAL
MANAGEMENT
CONSIDERATII ASUPRA APLICARII ANALIZEI RATELOR IN MANAGEMENTUL FINANCIAR
POPESCU AGATHA...

STUDY UPON THE ROLE OF CAH FLOW ANALYSIS IN FINANCIAL MANAGEMENT
STUDIU PRIVIND ROLUL FLUXULUI DE NUMERAR IN MANAGEMENTUL FINANCIAR
POPESCU AGATHA ..

CLEANING AND MAKING THE WATER BEING DRINKABLE, IN BUCHAREST
EPURAREA SI POTABILIZAREA APEI IN MUNICIPIUL BUCURESTI
SALCIANU MARIANA, ROXANA FLORENTINA IONESCU..

INVESTMENTS, DEVELOPMENT PRIORITIES AND INVESTMENTS
SUBI JONEL, VLADANA HAMOVI, DRAGO CVIJANOVI...............................................................

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THE BASIC ACCOUNTING RECORDER IN THE SERICULTURE REPRODUCTION FARMS
EVIDENA CONTABIL PRIMAR IN FERMELE SERICICOLE DE REPRODUCIE
TANASE DOINA, GLAVAN CORNELIA, UNGUREANU C...................

SURVEY CONCERNING THE EU HORTICULTURAL FRESH PRODUCE SUPPLY CHAIN
STUDIU PRIVIND LANUL DE APROVIZIONARE CU PRODUSE HORTICOLE PROASPETE N
UNIUNEA EUROPEAN
TEMOCICO GEORGETA, TUDOR VALENTINA, ALECU EUGENIA, ASANIC
CRISTINA.........

EFICIENA ECONOMIC A PRODUCIEI AGRICOLE N CONDIIILE ECONOMIEI
CONCURENIALE ALE REGIUNILOR DE DEZVOLTARE DIN REPUBLICA MOLDOVA
ECONOMIC EFFICIENCY OF AGRICULTURAL PRODUCTION IN CONDITIONS OF COMPETITIVE
ECONOMY OF REGIONAL DEVELOPMENT FROM REPUBLIC OF MOLDOVA
TIMOFTI ELENA..

WAYS FOR INCREASING ECONOMIC EFFICIENCY AT THE AGROTOURISME COMPANIES
CI DE CRETERE A EFICIENEI ECONOMICE LA NIVELUL UNITILOR AGROTURISTICE
TINDECHE CRISTIANA, CONDEI RETA, GOGU C.I........................

INFORMATIC SYSTEM DESTINED TO FARMS (SIFA) AN OPPORTUNITY FOR ROMANIAN
AGRICULTURAL MANAGEMENT
SISTEM INFORMATIC DESTINAT FERMELOR AGRICOLE (SIFA) - O OPORTUNITATE PENTRU
MANAGEMENTUL AGRICOL ROMNESC
TOMA ELENA, ELENA COFAS, DRAGOMIR V., VLAD MIHAELA CRISTINA, BEREVOIANU
ROZI........................

ELEMENTS OF IMPROVEMENT OF THE MANAGEMENT CHAINS FROM STRAWBERRY
CULTURES TECHNOLOGY, HAVING THE PURPOSE TO DIMISHING THE INPUTS, WITH THE
PURPOSE OF INCREASE THE ECONOMY EFFICIENCY
ELEMENTE DE OPTIMIZARE A MANAGEMENTULUI VERIGILOR DIN TEHNOLOGIILE DE
CULTUR A CAPUNULUI, ORIENTATE CTRE REDUCEREA INTRRILOR DIN EXTERIOR, N
SCOPUL CRETERII EFICIENEI ECONOMICE
TUDOR VALENTINA,TEMOCICO GEORGETA, PETRICA PAULA, BURCEA
MARIANA.........................................

SEQUENTIAL IMPROVEMENT OF PRODUCTION TECHNOLOGIES BASED ON SCHEDULED
CHEMIFICATION AND FERTILIZATION MEASURES
OPTIMIZAREA SECVENIAL A TEHNOLOGIILOR DE PRODUCIE PE BAZA PROGRAMRII
MSURILOR DE CHIMIZARE I FERTILIZARE
TUREK A., DINU TOMA, PETRUA TUREK

PROTECTION OF THE TRADITIONAL CHARACTER OF FOOD PRODUCTS ROMANIAN
TRADEMARKS ON EUROPEAN MARKETS
PROTEJAREA TRADIIONALITII PRODUSELOR ALIMENTARE MRCI ROMNETI PE
PIEELE EUROPENE
MAGDALENA TUREK CONSTANTIN MARIAN, SILVIU BECIU, ANIOARA CHIHAIA.

PROMOTION OF TRADITIONAL ROMANIAN PRODUCTS INVENTORY AND OPPORTUNITIES
FOR PROMOTION ON NEW MARKETS
PROMOVAREA PRODUSELOR TRADIIONALE ROMNETI - INVENTARIERE I
OPORTUNITI DE PROMOVARE PE NOI PIEE
MAGDALENA TUREK, PETRUA TUREK

40. STRUCTURE AND SIZE OF ROMANIAN TRADITIONAL PRODUCT MARKET
STRUCTURA I DIMENSIUNEA PIEEI PRODUSELOR TRADIIONALE ROMNETI
PETRUA TUREK, MAGDALENA TUREK

ECONOMIC ACTIVITY ANALYSIS - MANAGEMENT INSTRUMENT OF VEGETAL FARMS
ANALIZA ACTIVITII ECONOMICE INSTRUMENT AL MANAGEMENTULUI EXPLOATAIILOR
AGRICOLE VEGETALE
VLAD MIHAELA CRISTINA, OLTEANU V., URSU ANA.

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THE PROCESS AND PRODUCTION PLAN IN VEGETAL FARMS
PROCESUL I PLANUL DE PRODUCIE N EXPLOATAIILE AGRICOLE VEGETALE
VLAD MIHAELA CRISTINA, INARCU G...

MANAGEMENTUL EXPLOATAIILOR AGRICOLE N ECOMOMIA BAZAT PE CUNOTINE
THE MANAGEMENT OF AGRICULTURAL EXPLOITATIONS IN A KNOWLEDGE BASED
ECONOMY
VOICU R., DOBRE IULIANA, BRAN MARIANA.........................

FRESH FRUIT AND VEGETABLE COMMON MARKET ORGANIZATIONS IN EU-27
ORGANIZRILE COMUNE DE PIA A LEGUMELOR I FRUCTELOR PROASPETE N UNIUNEA
EUROPEAN CU 27 STATE MEMBRE
ZAHIU LETIIA , ADRIAN T., ANCA DACHIN. RALUCA ION

SESSION 3 ECONOMY AND AGRICULTURAL POLICIES, RURAL DEVELOPMENT, RURAL
TURISM, RURAL LEGISLATION, AGRICULTURAL EXTENSION
SESIUNEA 3 - ECONOMIE SI POLITICI AGRICOLE, DEZVOLTARE RURALA, TURISM RURAL,
LEGISLATIE RURALA, CONSULTANTA AGRICOLA

STUDY ON THE NEW AGRICULTURAL ADVISORY METHODS
STUDIU ASUPRA NOILOR METODE DE CONSULTAN AGRICOL
ANGELESCU CARMEN, ALINA MRCU, ALECU I.I., ENACHE MITA

DEVELOPMENT PERSPECTIVES IN ROMANIAN RURAL TOURISM 2007-2013
PERSPECTIVELE DEZVOLTARII TURISMULUI RURAL 2007-2013
ARON M...................................................................................................................................

RURAL ECONOMIES AS BASIC UNITS OF WORLD ECONOMY
ECONOMIILE NAIONALE RURALE, UNITI DE BAZ ALE ECONOMIEI MONDIALE- BALTAG
BALTAG GR., V. SNCHETRU.

RURAL DEVELOPMENT IN SOUTH-MUNTENIA REGION AND FUNDING OPPORTUNITIES FROM
EU FONDS
DEZVOLTAREA RURAL IN REGIUNEA SUD-MUNTENIA I OPORTUNITI DE FINANARE DIN
FONDURI EUROPENE
BRAILOIU C.,UNGUREANU C. ..

DEMOGRAPHIC EVOLUTION BAROMETER FOR THE DEVELOPMENT OF RURAL
ENVIRONMENT
CIGHIR E., SNTEAN I.F. ..

DATA ENVELOPMENT ANALYSIS AS THE MEASURE OF EFFICIENCY IN THE AGRICULTURAL
SECTOR OF THE REPUBLIC OF MOLDOVA
METODA ANALIZEI ANVELOPRII DATELOR CRITERIU DE EVALUARE A EFICIENEI
ECONOMICE N SECTORUL AGRAR AL REPUBLICII MOLDOVA
CIMPOIE D., RACUL A....

SOCIO-ECONOMIC IMPACTS OF LAND POLICY: THE CASE OF THE REPUBLIC OF MOLDOVA
IMPACTUL SOCIO ECONOMIC A REFORMEI FUNCIARE: CAZUL REPUBLICII MOLDOVA
CIMPOIE D. ..

SUSTAINABLE DEVELOPMENT OF THE RURAL COMMUNITIES BY PROMOTING THE
AGROTOURIST ACTIVITIES
DEZVOLTAREA DURABIL A COMUNITILOR RURALE, PRIN PROMOVAREA ACTIVITILOR
AGROTURISTICE
CREU DANIELA, NEAGU CECILIA , CONSTANTIN DUMITRA

MONITORING OF AGROTOURIST RESOURCES IN THE CALARASI COUNTY
MONITORINGUL RESURSELOR AGROTURISTICE DIN JUDEUL CLRAI
CREU R.C., ADELAIDA HONU , CREU RALUCA FLORENTINA ..

340

344

349

356

360

364

368

374

380

384

390

396

14

LEGAL ESTABLISHMENT OF CYCLING TOURISM, OPPORTUNITY FOR DEVELOPING THE RURAL
TOURISM IN ROMANIA
ORGANIZAREA LEGAL A CICLOTURISMULUI, OPORTUNITATE PENTRU DEZVOLTAREA
TURISMULUI RURAL N ROMNIA
CREU R.C. .......................

STUDY ON IMPROVEMENT OF EUROPEAN RURAL TOURISM
STUDIU ASUPRA DEZVOLTRII TURISMULUI RURAL EUROPEAN
DARAGUS A......................... .......

AGRICULTURAL POLICIES MECHANISMS IN POST ADHESION PERIOD AT NATIONAL LEVEL
WITH IMPACT ON AGRICULTURAL MARKET
MECANISMELE DE POLITIC AGRICOL N PERIOADA DE POST ADERARE LA NIVEL
NAIONAL CU IMPACT ASUPRA PIEEI AGRICOLE
DRAGOMIR V., SBDEANU V., OLTEANU V., SIMION L.. ...

ECONOMIC AND SOCIAL DIAGNOSIS OF RURAL COMUNITIES FROM ROMANIA S
DEVELOPMENT REGIONS-THE MONTAIN AREAS
DIAGNOSTIC ECONOMICO-SOCIAL AL COMUNITATILOR RURALE DIN REGIUNILE DE
DEZVOLTARE ALE ROMANIEI ZONELE DE MUNTE
DONA I., MIRON CARMEN......................................................................................................................

RURAL DEVELOPMENT WITHIN THE HEALTH CHECK OF THE CAP REFORM
DEZVOLTAREA RURALA IN CONTEXTUL CONTROLULUI DE SANATATE AL REFORMEI PAC
ENESCU CARMEN.

IMPACTUL ASUPRA AGRICULTURII ROMANESTI A ASPECTELOR PRIVIND BILANTUL DE
SANATATE AL PAC SI REFORMA BUGETULUI UE
IMPACT ON THE ROMANIAN AGRICULTURE OF THE KEY ISSUES ON THE DEBATE: REVIEW
OF THE COMMON AGRICULTURAL POLICY AND EU BUDGET REFORM
FINTINERU GINA, FINTINERU A. ..

ASSESSING THE SOCIO-ECONOMIC IMPACTS OF EXTENSIVE VS INTENSIVE FARMING
SYSTEMS TO THE DYNAMICS OF A RURAL REGION IN GREECE: AN INPUT-OUTPUT
APPROACH.
GIANNAKIS ELIAS.

THE SWOT ANALYSIS REGARDING OPPORTUNITY OF FACTORS OF ENVIRONMENT FOR
DEVELOPMENT IN AGROTOURISM IN THE BIOSPHERE RESERVATION OF DANUBE DELTA
ANALIZA SWOT PRIVIND OPORTUNITATEA FACTORILOR DE MEDIU PENTRU
DEZVOLTAREAAGROTURISMULUI IN REZERVATIA BIOSFEREI DELTA DUNARII
HOANTA DANIELA PAULA.....

STUDY AND RESEARCH ON THE CONSERVATION, RENOVATION AND REAHBILITATION OF
BUILDINGS IN HISTORICAL SITES
STUDII I CERCETRI PRIVIND CONSERVAREA RENOVAREA I REABILITAREA CLDIRILOR
N SITURILE ISTORICE
HONU ADELAIDA CRISTINA..............................................................................................................

STUDY AND RESEARCH ON THE DEVELOPMENT AND PROMOTION OF RURAL TOURISM AND
AGROTOURISM IN RNOV
STUDII I CERCETRI PRIVIND DEZVOLTAREA I PROMOVAREA TURISMULUI RURAL I
AGROTURISMULUI N RNOV
HONU ADELAIDA CRISTINA, CREU R.C.................................. ...

MITOC VILLAGE - A SOCIAL-ECONOMICAL ANALISYS
COMUNA MITOC- COORDONATE SOCIO-ECONOMICE
IORGA ADINA............................................ .....................................................

ESTIMATION OF AGRICULTURAL SITUATION IN A TYPICAL MUNICIPALITY OF THE KOLUBARA
DISTRICT, REPUBLIC OF SERBIA
JELONIK M., ARSI SLAVICA, VELIBOR POTREBI............... ...............

400

404

408

413

420

426

432

439

445

450

456

461

15

JURIDICAL AND TECHNICAL STATUTE OF THE QUALITY OF FOOD GOODS IN THE SPACE OF
THE EUROPEAN UNION
STATUTUL JURIDIC SI TEHNIC AL CALITTII MRFURILOR ALIMENTARE N SPATIUL UNIUNII
EUROPENE
LIVIU MRCUT.

SUSTAINABLE TOURIST DEVELOPMENT OF THE NATIONAL PARK FRUKA GORA SERBIA
PREDRAG VUKOVI, NATAA CECI, LANA IVANOVI..................................................................

SELLING POSSIBILITIES OF ORGANIC FOOD ON INTERNATIONAL MARKET
PUSKARIC ANTON, DJURIC IVAN, BOJANA BEKIC

CASE STUDY CONCERNING SUSTAINABLE RURAL DEVELOPMENT IN MALU CU FLORI
DMBOVITA
STUDIU DE CAZ PRIVIND DEZVOLTAREA RURAL DURABIL N ZONA MALU CU FLORI-
DMBOVITA
ROBESCU VALENTINA-OFELIA.

FORMATION OF VEGETABLE COMPETING MARKET IN THE REPUBLIC OF MOLDOVA
FORMAREA PIEEI CONCURENIALE LEGUMICOLE N REPUBLICA MOLDOVA
SNCHETRU VERONICA

THE AGRICULTURAL MARKET, THE COMPETITION AND AGRICULTURAL PRICES
PIAA AGRICOL, CONCURENA I PREURILE AGRICOLE
SNCHETRU VERONICA, MOVILEANU P. ..

SYRIAN AGRICULTURAL POLICY IMPACT ON SOIL
IMPACTUL POLITICILOR AGRICOLE SIRIENE ASUPRA SOLULUI
SHHAIDEH AKRAM....

SYRIAN WHEAT PRODUCTION POLICIES (1997-2005)
POLITICILE AGRICOLE SIRIENE ALE GRULUI (1997-2005)
SHHAIDEH AKRAM............................ ...

THE DEVELOPMENT OF AGROTOURISM AS AN IMPORTANT GUIDENCE OF THE RURAL
DEVELOPMENT
DEZVOLTAREA AGROTURISMULUI CA IMPORTANT DIRECIE A DEZVOLTRII RURALE
SIMION P.L. .

THE NATURE AND THE CHARACTERISTICS OF RURAL TOURISM SERVICES
SNTEAN I.F.,CIGHIR E. ...

RURAL DEVELOPMENT. STUDY ABOUT OPENING AGRO TURISM PENSION
DEZVOLTARE RURALA. STUDIU DE CAZ PRIVIND INFIINTAREA UNEI PENSIUNI
AGROTURISTICE
STEFAN MARCELA

THE IMPORTANCE OF THE MULTILINGUALISM IN AGROTOURISM AND RURAL DEVELOPMENT
IMPORTANA MULTILINGVISMULUI N AGROTURISM I DEZVOLTARE RURAL
TIA V.......

CALL FOR EVALUATING AGRICULTURAL CUNSULTANCY
NECESITATEA EVALUARII CONSULTANEI AGRICOLE
VASILE MIOARA.......

467

469

474

478

482

488

494

501

507

511

515

521

525

16

SESSION 1 /SESIUNEA 1

GENERAL TOPIC

TEMA GENERALA

17
ELEMENTS FOR A SUSTAINABLE RURAL DEVELOPMENT IN ROMANIA
AS A MEMBER STATE OF EUROPEAN UNION

ELEMENTE PENTRU O DEZVOLTARE RURALA DURABILA IN ROMANIA
CA STAT MEMBRU AL UNIUNII EUROPENE

ALECU I.I., TUDOR VALENTINA, TEMOCICO GEORGETA

University of Agronomic Sciences and Veterinary Medicine, Bucharest

Abstract

The latest European Union enlarge represents a challenge for all member states. One of the biggest
challenge in our country is to reduce the discrepancies between urban and rural areas. Half of our population
lives in rural area and almost 90% of them have farms that consist in less then 4 hectares. After integration
in EU we have more chances then before to create better condition of living in villages. Imperative of some
regions development is represent, besides raising number of local population life standard quality, with
adequate capacity, modern and reliable transportation and telecommunication infrastructure, educational
system and new places for work.
The goal of this presentation is to point on importance of these elements as a measure which has to
stimulate a sustainable development of rural areas in Romania.

Key words: European Union enlarge, discrepancies

INTRODUCTION

One of the most important challenges for Romania is to be declared member state in
European Union. Since then one of the most important goals for our country is to create a
sustainable rural development in conformity with directory lines of sustainable rural
development of EU.
The understanding of the rural concept is based upon the physical, economic, social and
cultural differences between this and the urban area. A multi-disciplinary approach to the
rural area (economic, sociologic, geographical) represents a natural and at the same times
a necessary approach, if we consider the complexity of this concept. The sustainable rural
development is one of the most complex processes in Romania as well as in European
Union. Rural development it is not only in the specific interest of rural areas, but
constitutes an overall policy concern.

MATERIAL AND METHODS

The study is based on the information collected from the agreements established between
Romania and the European Union Commission, the common acquis.

RESULT AND DISCUSSIONS

In rural areas in Romania lives 45.1% of total population (according to the National
definition). If the standard OECD definition is used, to allow comparison with other member
states, Romania is seen to have a significantly higher rural population than average.
The agricultural sector is more important than in most other member states, with 32% of
the population employed in agriculture and forestry, contributing 12.1% to GDP in 2006.
However, productivity is very low (as indicated by the labor to land ratio of 63
AWU/100ha), and the negative trade balance in agro-food products continues to widen
(1.3 billion in 2005).
18
This brings further clarity and consistency to the efforts of defining the rural area, having in
view the identification of multidisciplinary features that lie at its basis:
a) From the perspective of economic sciences:
The approach to the rural area is thought the intermediary of the rural economy;
this was generally identified with the agricultural economics, as there is no obvious trend of
separating the rural area from the agricultural space.
The sustainable rural economy development took place together with the progress
of agriculture, mainly using the labor force released from agriculture to develop other
economic sectors;
The occupations specific to the rural economy (besides farming) are both traditional
occupations and new occupations generated by the penetration of urban civilization
targeting the development of industry, services and infrastructure;
The rural economy focuses upon the achievement of rural functions: environment
protection, harmonious development of both on-farm and off-farm activities, preservation
and valorization of the socio-cultural traditions of the rural areas.
b) From the perspective of sociology:
the rural community represents a group of people interacting trough common
relations and obligations, on the rural territory where they live; the village is in the context,
a socio-economic community consisting of a non-homogenous set of individual
households and a specific network of agricultural activities, inter-human relationships and
a certain political, moral and cultural life;
the human and cultural diversity of the rural area raised the specialists interest which
considers: rural area as the matrix of the modern society - the village is in insufficiently
developed and thus it must get in line with the level of urban structures.
c) From the perspective of geographical sciences:
The term rural area, characterized by a less numerous population, relatively isolated from
the influence of large urban localities.
The EU measures for rural development refer to:
investments in agriculture
competitively agricultural and forestry sector
land management
quality of life improvement
activities diversification
courses for farmers
courses for advisors
settlement of young people in rural areas
agro-environment
early retirement
setting up groups of producers
improving integration in the food chain
high quality products
adaptation to new EU standards
support for semi-subsistence farms

The Romanian measures must refer to:
investments in agricultural exploitations
courses for farmers
protection of environment
creation of group producers
relation between advisors and farmers
setting up farm management, farm relief and advisory system
19
developing business skills
improving and developing of infrastructure
national disasters and prevention measures

The rural economy, as a part of national economy, began a complex restructuring process
after 1990, with the main objective economic efficiency increase and adaptation to the
market economy requirements. This process has had a different economic and social
impact upon the rural localities from different zones of the country. Romanias accession
Partnership contains a series of clauses and commitments with regard to the design and
implementation of a rural development policy. In order to solve up this problem we
appreciate the action of identification of certain main directions of action, which should
contribute to the rural development mechanisms operation in order to reduce the territorial
disparities.
Main directions of action in the field of human resources. For solving up of the
demographic problems signaled out, a set of measures and specific solving up modalities
are needed, targeting the following aspects: populations information on the local, zonal
and national development perspectives in the conditions of the opportunities provided by
the EU for the candidate countries; creation of the framework for populations consultation
and participation to the design and execution of rural development projects; legislative
support and encouragement for the establishment and development of organizations
addressed to the less favored social groups;
Main directions of action in the field of labor. The development of human resources
so as to face the new challenges of accession should envisage the following directions of
action: professional activities of young people to necessary activities in the rural area;
elaboration of special support programs to stimulate young people in initiating self-
employed on-farm and off-farm activities; ensuring the necessary conditions for
qualification re-qualification of labor in order to develop new on-farm and off-farm
activities depending on the local specify; organization of vocational training modules in
activities for which local demand exists; organization of technical assistance and
consultancy on project development for the people who initiate self-employed activities
(economic information, management agrarian legislation, asking for services fro
specialized institutions); increase of the rural populations employment level; encouraging
the practice of traditional economic activities in the areas with tourism potential; designing
special programs on the farm management transfer from elderly people(over 65 years) to
young people by the creation of a life annuity system, etc.
The main directions of action in agriculture have in view the following: development
of land market and of its operation mechanisms; creating a viable financial support system
in the rural areas; a more efficient quality and sanitary control, by encouraging private
initiative in this field; training level improvement for a more efficient agricultural
management; financial and legal support for infrastructure development in the upstream
and downstream sectors; encouraging the development of performing agricultural
production units; promoting agricultural production methods targeting environment
protection; practicing diversification of agricultural production activities at farm level;
encouraging the agro-processing activities in rural areas; development of agricultural
extension services;
Main directions of action in the industrial sector. The development of this sector,
which is in a difficult situation at present, might be achieved trough: stimulating the
establishment of small and medium-sized enterprises in the rural area that use the local
human and material resources; facilities for using the existing production and
telecommunication infrastructure in the rural areas; providing facilities to the entrepreneurs
who meet the local demand on a priority basis; providing financial support for training the
20
staff for the local labor supply; application of efficient measures for monitoring the
monopoly operations, etc.
Main directions of action in the tourism sector. The use of the tourism potential
specific to each region might be achieved trough: support to physical entities, to family
associations and commercial companies in the creation of tourism and agro-tourism
boarding houses in the rural localities benefiting from natural factors or highly attractive
historical and architectural monuments; technical assistance from the part of governmental
and non-governmental bodies; spa and resort network of national or local interest;
diversification of tourism supply; publishing tourism promotion materials; education and
development of the rural populations activities meant to improve the tourism
attractiveness;
Main directions of action in the field of infrastructure. The optimum utilization of the
economic and social potential specific to each locality targets a series of directions of
action in the field of infrastructure, namely: ensuring, under optimum conditions, of rural
populations access to the national rail and road infrastructure, by the modernization of
county and communal roads; telephone network enlargement by using advanced
technologies; ensuring water supply under centralized system; continuation and
completion of the execution of water supply networks; building up water treatment stations;
enlargement of the electric power supply network in the partially electrified villages;
enlargement of the gas supply network in the rural areas that are crossed by main gas
pipes etc. Romania should have own vision, with specific national roots and trajectories,
from our historical matrix; at the same time, the experience and the laws of European
Union should be also taken into consideration.

CONCLUSIONS

Romania will respect and apply the provisions of the common acquis which will ensure the
efficiency, human resources, consumers safety, historic and cultural traditions,
environmental protection.

BIBLIOGRAPHY

1. Nicoleta Mateoc-Srb - Dezvoltare Rural i Regional n Romnia, Editura Augusta, Timioara 2004;
2. Otiman P.I., - Dezvoltare rural n Romnia, Editura Agroprint, Timioara 1997;
3. Dinu G.,Violeta, F. - Economia rurala din Romania, Editura Terra Nostra, Bucharest 2007

21
DAIRY INDUSTRY IN PAKISTAN

INDUSTRIA LAPTELUI N PAKISTAN

Drd. AZIZ HAIDER SYED, S.L. Dr. BUZATU (STURZU) CRISTIANA SILVIA

University of Agronomical Sciences and Veterinary Medicine-Bucharest

Abstract

Pakistan ranks 4
th
among milk producing countries, with an estimated 40 billion liters of milk
produced annually with surplus milk production. Although this level of milk production is more than adequate
on a per capita basis for today's population, lack of processing and poor distribution system in a long hot
weather (milk has a shelf life of only four hours under moderate temperatures) keeps it from reaching
consumers in areas that are either deficient in milk production, particularly the urban centers, or those that
are difficult to access. Livestock plays an important role in the socio-economic life of any country. There is
great potential in dairy industry of Pakistan, by using modern technology for the production and preservation
of milk, to contribute its role in the enhancement of socio-economic life of the rural zones as well as
economic growth of the country by increasing export of dairy products to the world.

Key Words: Milk Production, Livestock, Socio-economic, Productivity, Economic Growth.

INTRODUCTION

Pakistans dairy sector performance appears impressive in terms of livestock
population and total milk production but extremely poor in terms of productivity in the
global context. The main reasons for low yields are inadequate availability of feeds and
fodder in all seasons, non-availability of timely and good animal health care and breeding
services, and lack of credit. Over two third of the milk is produced by buffaloes. Average
annual milk production per animal is far below the world average.

Table 1: Milk Giving Animal Population between 1986-1996 & 1996-
2006
Livestock Population (in Million) % Change Between
Type of Animal
1986 1996 2006 1986 & 1996
1996 &
2006
Cows 17.540 20.424 29.559 16 45
Buffaloes 15.705 20.273 27.335 29 35
Total 33.245 40.697 56.894 22 40
Goats 29.945 41.169 53.787 37 31
Source: Statistical Division (Agricultural Census Organization), Govt. of Pakistan.
* Population figures are actual figures of Livestock Census 20006.

At hand Pakistans milk product amounting to 7 per cent of the total world milk
production. Pakistan reached a milk production volume of 38.37 million tons slightly higher
than that of Germany. Pakistan has over three times as many dairy animals as Germany,
the vast majority (over 80 per cent) being kept in herds of one to three animals.
Comparison of average milk yields across various countries shows that one New
Zealand dairy animal produces as much milk as three dairy animals in Pakistan; while one
American cow produces as much as seven Pakistani cows. This striking difference in
productivity is due to a variety of factors (genetics, management, technology, etc.)
Fortunately, many of these factors are known, which means that there is great potential for
the development of the local dairy sector. It has been estimated that in the year 2004-05
the milk economy contributed US$8.6 billion to the national economy and in view of the
22
fact that milk production despite its lowest yield, is even today far ahead of the major cash
crops such as wheat, cotton, rice and sugarcane.
Only 40 per cent of the milk surplus left from calves suckling, home consumption
and indigenous home processing finds its way to the urban markets. Up to 20 per cent milk
is being wasted due to non-availability of proper cooling and storage mechanism. It is
estimated that only about 3 per cent of the milk in urban markets flows through formal
processing channels white the remaining 97 per cent is consumed as raw milk and
informality marketed through local milkmen whereas in Germany in 2005, 96 per cent of
the total milk production was delivered to dairies and only 4 per cent was used by
producers.

Table 2: Milk Production Per Annum between 1986-1996 & 1996-
2006
Gross Annual Production * (Billion
Liters)
% Change
Between
Type of Animal
1986 1996 2006
1986 &
1996
1996 &
2006
Cows 7.07 9.36 13.33 32.4 42.4
Buffaloes 14.82 18.90 25.04 27.5 32.5
Total 21.89 28.26 38.37 29.1 35.6
Goats - - 0.32 - -
Source: Statistical Division (Agricultural Census Organization), Govt. of Pakistan.
* Worked out by using average annual lactation length of 250,305 and 50 days for cows, buffaloes
and goats, respectively.

Pakistans Milk production showed a significant increase of 35.6 per cent during
1996 & 2006. This increase in production was mainly achieved by a growth in the number
of dairy animals (40 per cent for the same time period) with only slight gains in milk yield
per animal with the use of artificial insemination techniques for breed improvement.
Considering that most of the increase in inventory and milk production stems from small-
scale farms, there should be a great opportunity to improve the livelihoods of these
producers by providing enabling favourable working conditions.
Successful white revolution requires the ability and capacity on the part of planners
to make correct decisions. To improve the management of resources and to achieve the
desired level of the white revolution, the dimensions such as formulating goals or
objectives for development, recognizing the problem and opportunity for development,
obtaining of information about possible threats by constraints, specifying and analyzing the
alternatives, successful implementation and evaluation of the programme are more
important and plays the decisive role.
Lack of relevant materials or information about the development potentials,
opportunity for diversification, systems inability to understand the developmental process
and possible alternatives for development severely constraints the decision making
process. Therefore, the relevant information about strengths, weaknesses, opportunities
and threats that are associated with the white revolution in the country are of paramount
importance. Despite the importance of dairying in the Pakistan economy, especially for the
livelihoods of resource-poor farmers and landless labourers, government policy toward this
sector has suffered from the lack of a clear and strong thrust and focus. Although the dairy
sector occupies a pivotal position and its contribution to the agricultural sector is the
highest, the plan investment made so far does not appear commensurate with its
contribution and future potential for growth and development. However, reaching scale and
providing palpable indent in poverty through white revolution needs much more concerted
efforts. There is no information on the economic and social cost benefit of projects.
Consequences in terms of output, employment, consumption, savings, income distribution
23
and other tangible benefits are to be estimated. The consequences brought out must be
evaluated from all the dimensions, which is essential for making sound development
policy.
Managing human resources is a fundamental aspect in the dairy development
programmes. The white revolution is achieved through new knowledge and technologies
produced by people which is implemented through people and adopted by people.
Therefore, one of the most important tasks of achieving excellence in dairy development
programme is to develop well trained personnel of the proper size, mix and educational
level with adequate training to motivate them for an outstanding job performance.
On examining critically the programme evolution aspects of the white revolution in
the country it is apparent that the objectives and strategies followed time to time has
suffered with major weaknesses and inconsistencies. One of the major lacunae is the
relative neglect of buffaloes and failure to exercise the control over the implementation of
breeding policy evolved which has led to the creation of crossbred with varying inheritance
level and performance. Pakistan has seen a slight increase in milk yields, both in buffaloes
and cows.
This is due to limited impact of breading schemes through selection and artificial
insemination, etc. Little attention has been paid to the impermanent of local cattle, except
for their use as a genetic resource pool for cross breeding with exotic dairy breeds for the
supply of crossed cows. A local cattle breed of Sahiwal, Cholistan and Red Sindhi has
practically disappeared in their pure form, which were quite adoptable to the local
conditions. Sahiwal Cows have produced upto 5000 kg of milk in on lactation.
Crossbreeding is not a permanent solution to increasing milk yield in the country as, if the
exotic blood exceeds the level of 50 per cent, then it starts declining in terms of
productivity and greater susceptibility to disease and adaptability to climatic stress of heat
and humidity.
Despite its being the 4
th
largest milk producer in the world, Pakistan's per capita
availability of milk is around 150 liters per year which is lowest in the world, although it is
high by developing country standards. However, it is still below the world average of 285
gm per day and the minimum nutritional requirement of 280 gm per day as recommended.
There are also wide variations in per capita availability of milk in the country. The average
per capita consumption of milk and dairy products is lower in rural areas than in urban
areas, even though milk is produced in rural areas. Milk production is considered a
livestock enterprise, in which small scale producers which currently from the backbone of
the dairy sector can successfully engage to improve their livelihood and obtain a relatively
constraint stream of income. Given its high income elasticity, the demand for milk and
dairy products is expected to grow rapidly. Further increases in per capita income and
changing consumption patterns would lead to acceleration in demand for milk and other
livestock products in Pakistan and thus would give a boost to this sector. The white
revolution shares in the national efforts to address poverty and malnutrition and ensures a
better quality of life for Pakistan. The war against malnutrition and poverty goes on victory
can be a reality through the white revolution.

CONCLUSION

The White Revolution is anchored on four development strategies: (i) Increasing the
volume of local milk production will hinge principally on the quantity and quality of dairy
animals. This can be achieved through the development and implementation of a unified
system of dairy herd upgrading, embryo transfer, gene pool, contract breeding and
importation. (ii) Processing is the central component of dairy development. The required
post-production infrastructure must be in place, capable of absorbing the local production
within a specified time frame. Public investment in providing milk plants, milk collection
24
centres and packaging equipment will be needed (iii) Milk feeding shall be institutionalized
with a corresponding funding support. This will result in significant gains in efforts aimed at
raising the nutritional well-being of millions of Pakistani children. It will also create a stable
market for local milk producers. Corollary to this, commercial market niches for locally
manufactured dairy products will be established. (iv) Human Resource Development shall
empower farmer-co-operators, local government units, non-government organizations,
government personnel and other entities involved in propelling dairy industry development.
A program of trainings, technology transfer and immersion, as well as local and foreign
exchanges shall be integrated into all activities of the Program.

BIBLIOGRAPHY

1. Pakistan Economic Survey 2006-07, Government of Pakistan, Economic Advisor's Wing, Ministry of
Finance, Islamabad, http://www.finance,gov.pk.
2. Pakistan Social and Living Standards Measurement Survey 2005-06, Government of Pakistan,
Statistics Division, Federal Bureau of Statistics, Islamabad. www.statpak.gov.pk.
3. Ten Year Perspective Development Plan 2001-11 and Three Year Development Programme 2001-04,
Government of Pakistan, Planning commission, Islamabad. www.planningcommission.gov.pk.

25
RURAL WORKFORCE IN PAKISTAN

FORA DE MUNC DIN ZONA RURAL N PAKISTAN

Drd. AZIZ SYED HAIDER


Abstract

The paper discuses the aspects of rural workforce in Pakistan. The major population of Pakistan
lives in rural area and its economy largely dependent upon agriculture. Agricultural and allied industry with
43% of the total employed labour force in 2003-04 is the major contributor towards poverty alleviation.
Currently Pakistan has the largest population of young people in its history, with approximately 25 million
people between the ages of 15 and 24. This group will play a crucial role in the social, political, and
economic development and stability of the country. The favorable end of the demographic transition provides
an opportunity for raising economic growth and increasing prosperity. Country needs to capitalize on age
group 5-16 by giving them quality education, both general and technical to meet demands of ever-changing
labour market following the onslaught of new technologies. Technically well-equipped and energetic
workforce can only be beneficial if congenial and competitive working environment exist in all sectors of the
economy.

Key words: Workforce, Agriculture, Poverty Alleviation, Economic Growth.

INTRODUCTION

Pakistans economy mainly relies on the agricultural activities. Agriculture is the
major industry that contributes about 25 percent to the GDP. Wheat, cotton, rice,
sugarcane and tobacco are the main cash crops. The manufacturing and service sector
contribute about 17 and 50 percent to the GDP, respectively. The textile industry is the
biggest earner of foreign exchange followed by oil refining, metal processing, cement and
fertilizer production. Information Technology is another emerging field with great future
potential.
According to the recent survey, out of an approximately 46 million working age labor
force, nearly 43 million people are working in various sectors of the economy. Agriculture,
the main industry, employs about 44 percent of the workforce. The remaining 56 percent
of the workforce is employed in the service and industrial sector. The manufacturing,
construction and transport sector employs about 13, 6 and 6 percent of the labor force,
respectively. Women comprise 14 percent of the total labor force, and most of them work
in the labor-intensive agriculture sector.
Population
During the last 60 years, Pakistans population has increased from 33 million to
153.45 million in 2005. Pakistan becomes the 6th most populous country in the world.
Pakistans population has grown at an average rate of 3 percent per annum since 1951
and until mid 1980s.
The population growth rate has already declined from 3.06 per cent in 1981 to 2.0
percent in 2002 and further to 1.9 percent in 2005.
Although the current population growth rate slowed to 1.9 percent per annum,
overall population has increased by 2.76 million people as compared to last year; this is
still considerably high compared to the average of 0.9 percent for the developed countries
and 1.7 percent for the developing countries.

26
Population by Sex and Rural/ Urban Areas (in million)
Mid Year
(End June)
All Areas Male Female Rural Urban
1 2 3 4 5 6
1981 85.09 44.67 40.42 61.01 24.08
1991 112.61 58.82 53.79 77.95 34.66
1992 115.54 60.31 55.23 79.6 35.79
1993 118.5 61.83 56.67 81.45 37.05
1994 121.48 63.35 58.13 93.19 28.29
1995 124.49 64.88 59.61 94.95 29.54
1996 127.51 66.42 61.09 86.69 40.82
1997 130.56 67.98 62.58 88.44 42.12
1998 133.48 69.45 64.03 89.98 43.52
1999 136.69 71.09 65.6 91.91 44.78
2000 139.96 72.65 67.11 93.63 46.13
2001 142.86 74.23 68.63 95.36 47.5
2002 146.75 75.79 70.17 97.06 48.89
2003 149.65 77.38 71.65 99.12 49.91
2004 152.53 78.64 73.89 101.55 50.98
2005 153.96 79.59 74.62 102.44 51.52
e: Population Census Organization, Federal Bureau of Statistics, Government ofPakistan
Rural Labour Market
Two-third of Pakistans population lives in rural areas (102.75 million out of 156.77
million, in 2006). Pakistan has working age population of about 109.76 out of which 70.79
belongs to rural areas.

Percentage Distribution of Rural Population and that of 10 Years Age and
Over by Age, Sex, & Nature of Activities 2005-06
AGE GROUP
TOTAL
POPULATION
CIVILIAN LABOUR
FORCE
OUT OF LABOUR
FORCE
(YEARS) T M F T M F T M F
1 2 3 4 5 6 7 8 9 10
TOTAL (ALL
AGES)
100.0
0
50.82 49.18 33.36 25.42 7.93 66.64 25.39 41.25
TOTAL (10
YEARS AND
OVER)
100.0
0
50.54 49.46 49.16 37.47 11.69 50.84 13.08 37.77
10-14 19.10 10.13 8.97 3.72 2.62 1.10 15.37 7.51 7.86
15-19 15.99 8.33 7.65 7.35 5.69 1.66 8.64 2.65 5.99
20-24 12.07 5.67 6.40 6.77 5.22 1.55 5.30 .45 4.85
25-29 9.42 4.37 5.05 5.48 4.21 1.27 3.94 .15 3.78
30-34 7.84 3.56 4.28 4.74 3.47 1.27 3.10 .10 3.01
35-39 7.72 3.66 4.05 4.84 3.58 1.26 2.88 .09 2.79
40-44 6.32 3.20 3.12 4.06 3.11 .94 2.26 .08 2.18
45-49 5.58 2.83 2.75 3.70 2.77 .93 1.89 .07 1.82
50-54 4.20 2.16 2.04 2.68 2.08 .60 1.52 .08 1.44
55-59 3.50 1.85 1.65 2.20 1.71 .49 1.30 .14 1.16
60-64 2.96 1.63 1.33 1.66 1.34 .32 1.30 .29 1.01
65 & OVER 5.30 3.15 2.16 1.96 1.66 .29 3.35 1.48 1.87
Source: Labour Force Survey 2005, Federal Bureau of Statistics, Government of Pakistan
27
Out of overall 50.50 million of labour force about 34.63 million of labour force
belongs to rural population. Of this total, 31.65 million (30.9 percent) participated in the
labor force in work other than household work. Counting only population age 10 and
above, the labor force participation rate is about 50 percent.

Rural Labour Force Participation Ratio
Rural labor markets for male labor generally function well, though there is
substantial rural underemployment. Lack of access to land limits self-employment
opportunities for small farmers and landless households, while subsidized formal sector
credit encourages labor-displacing mechanization. Informal labor markets account for
essentially all employment in rural areas, but agricultural labor demand remains highly
seasonal. Rural non-farm employment is mainly self-employment, and returns to labor are
constrained in part by lack of skills and physical capital. Female labor force participation is
low: in rural areas only 32 percent, even when 14 household labor activities are included.
Because of the strong linkages across rural factor markets in Pakistan,
inefficiencies in one market can adversely affect the performance of other markets,
magnifying the efficiency losses and consequences for income distribution. The
agricultural sector is at the heart of Pakistans rural economy, accounting for 70 percent of
rural household incomes and about 25 percent of national GDP.

Percentage Distribution of Rural Civilian Labour Force 10 Years of Age and
Over by Age, Sex & Nature of Activities 2005-06
AGE GROUP
TOTAL LABOUR
FORCE
EMPLOYED UN-EMPLOYED
(YEARS) T M F T M F T M F
1 2 3 4 5 6 7 8 9 10
TOTAL (10
YEARS AND
OVER)
100.0
0
76.22 23.78 94.46 72.63 21.83 5.54 3.59 1.95
10-14 7.58 5.33 2.24 7.15 5.02 2.14 0.42 0.32 0.11
15-19 14.95 11.57 3.38 13.74 10.65 3.09 1.21 0.91 0.29
20-24 13.77 10.63 3.14 12.90 10.01 2.89 0.87 0.62 0.25
25-29 11.16 8.57 2.58 10.67 8.26 2.41 0.49 0.32 0.17
30-34 9.64 7.05 2.59 9.39 6.89 2.50 0.25 0.16 0.09
35-39 9.85 7.28 2.57 9.61 7.14 2.46 0.24 0.13 0.11
40-44 8.26 6.34 1.92 8.04 6.21 1.83 0.22 0.13 0.09
45-49 7.52 5.63 1.90 7.34 5.53 1.81 0.19 0.10 0.09
50-54 5.44 4.23 1.21 5.13 4.06 1.07 0.31 0.17 0.15
55-59 4.47 3.48 0.99 4.11 3.28 0.83 0.36 0.20 0.16
60-64 3.38 2.73 0.65 2.99 2.55 0.43 0.39 0.18 0.21
65 & OVER 3.98 3.39 0.60 3.40 3.03 0.37 0.58 0.36 0.22
Level of Education
Education levels of the rural labor force are low, but have improved over time. In the
late 1960s, 75 percent of employed people in Pakistan were illiterate. By 2001-02 this
percentage had declined to 53 percent overall, and 62 percent in rural areas [HIES (2001-
02)]. Econometric analysis indicates that an education is positively correlated with the
probability of rural-urban migration, labor productivity in the non-farm sector, and female
labor force participation. Higher education is also positively correlated with unemployment,
as skilled workers who cannot find jobs in their fields often choose to remain unemployed
rather than take unskilled labor positions. For example, in 1999-00, among total
28
unemployed in rural areas, 61 percent were literate. Moreover, higher education is
correlated with increased rural household incomes.

Percentage Distribution of Rural Population of 10 Years of Age and Over
by Level of Education, Sex, and Nature of Activities 2005-2006
POPULATION
CIVILIAN
LABOUR
FORCE
EMPLOYED
UN-
EMPLOYED
Level of
Educatio
n
T M F T M F T M F T M F
1 2 3 4 5 6 7 8 9 10 11 12 13
Total
100.0
0
50.5
4
49.4
6
49.1
6
37.4
7
11.6
9
46.4
3
35.7
0
10.7
3
2.72 1.77 0.96
Illiterate 56.45
21.3
1
35.1
4
27.1
2
17.8
5
9.27
25.7
0
17.1
3
8.57 1.41 0.72 0.69
Literate 43.55
29.2
3
14.3
2
22.0
4
19.6
2
2.42
20.7
3
18.5
7
2.16 1.31 1.05 0.26
No
formal
educatio
n
0.26 0.17 0.09 0.17 0.15 0.03 0.16 0.14 0.02 0.01 0.01 -
Pre-
Matric
32.67
21.4
7
11.2
0
14.8
4
13.2
4
1.60
14.0
8
12.6
1
1.47 0.76 0.63 0.14
Matric 6.92 4.98 1.94 4.53 4.10 0.43 4.22 3.84 0.37 0.31 0.26 0.06
Inter 2.20 1.55 0.65 1.36 1.19 0.17 1.24 1.10 0.14 0.12 0.09 0.03
Degree 1.50 1.07 0.43 1.14 0.95 0.19 1.04 0.88 0.16 0.10 0.07 0.03
Post-
Graduate

Ph.D.

CONCLUSION

Pakistans employment promotional and skill development policies like (i) The
Public Sector Development Programme (PSDP) (ii) Skill Development Councils (iii)
Technical & Vocational Training Authorities (TEVTA) (iv) Ten Year Perceptive
Development Plan (v) Small and Medium Enterprises (SME) (vi) The Housing and
Construction Sector and (vii) Pakistan Poverty Alleviation fund (PPAF) are helpful in
improving the literacy, employment and empowering the women economically.
Literacy rate improves from 50% in 2001-02 to 52% in 2003-04. Improvement in
females literacy is relatively more pronounced as compared to that of males, particularly,
in urban areas. However, females are yet to catch up with the historical lead of males.
Participation rate reflects marginal increase from 29.6% of 2001-02 to 30.4% in 2003-
04. The improvement is chiefly rural based. Among the provinces, Punjab has the highest
participation rate.
An analysis of the structure of employment by industry shows rise in the share of
agriculture sector from 42% in 2001-02 to 43% in 2003-04. Male employment loses a bit
while that of female scales more than 2% up. Non-agriculture sector such as
manufacturing, services, transport and construction descend a bit during 2003-04.
The employment status indicates that the categories of employees, self-employed and
unpaid family helper constitute, in the same order, 99% of the total employment. The
foremost is down a bit from 40% in 2001-02 to 38% in 2003-04, steeper for females (37 Vs
31%) than males (40 Vs 39%). The middle one also comes down, though not for women,
29
from 39 to 37% during the same period. The lattermost, home to over one-half of women,
scales up (21 Vs 24%) steeper for females (47 Vs 53%) vis--vis males (16 Vs 18%)
during the comparative periods. The situation obliquely points out to increasing expanse of
informal activities.
Working hours of the employed persons show that more than 80% worked beyond the
watershed 35 hours a week.
The data shows that overall unemployment rate has decreased from 8.3% in 2001-02 to
7.7% in 2003-04, due, mainly, to steeper decline in womens unemployment (16.5 Vs
12.8%) vis--vis that of men (6.7 Vs 6.6.%).
Informal sector during 2003-04 accounts for 70% of the employment in main jobs
outside agriculture sector, higher (73%) in rural area than that of urban areas (67%).
Formal sector activities are more concentrated in urban areas (33%) as compared to rural
areas (27%). Male workers are relatively more concentrated in informal sector both in rural
and urban areas of the country. Informal sectors employment has surged by five
percentage points from 65% in 2001-02 to 70% in 2003-04, across the area & gender
evenly.
According to classification of the informal sector employment by major industry
divisions, the largest slice (35%) goes to wholesale and retail trade followed by
manufacturing sector (21%), community, social and personal services (19%), construction
(13%) and transport (11%). The other categories including mining & quarrying; electricity,
gas & water and finance, insurance, real estate & business services account for less than
two percent. Comparative Labour Force Surveys indicate relative decline in all categories
except wholesale and retail trade and others grouping. Both groups reflect relative rise
in the male employment.

REFERENCES

4. ALI, M. and D. BYERLEE, (2000). Productivity Growth and Resource Degradation in Pakistans Punjab:
A Decomposition Analysis, World Bank Policy Research Working Paper No 2480. , (2002). Productivity
Growth Differential in Punjab, Pakistan: A District-Level Analysis, The Pakistan Development Review, Vol.
40, No. 1 (1-25). www.worldbank.org.
5. CHAUDHRY, M. GHAFFAR AND ZUBEDA KHAN (1987). Female Labor Force Participation Rates in
Rural Pakistan: Some Fundamental Explanations and Policy Implications, The Pakistan Development
Review. Vol. XXVI, No. 4, Part 11.
6. Government of Pakistan (various issues), Labor Force Survey and Household Income and Expenditure
Survey. Federal Bureau of Statistics. Statistics Division. Islamabad. www.statpak.gov.pk.
7. Government of Pakistan, (various issues), Pakistan Economic Survey. Economic Advisor's Wing,
Ministry o f Finance, Islamabad, http://www.finance,gov.pk.

30
EVOLUTION AND STRUCTURE OF INPUT AT LEVEL OF VEGETAL
FARMS

EVOLUIA I STRUCTURA INPUTURILOR LA NIVELUL
EXPLOATAIILOR AGRICOLE VEGETALE

BDULESCU ADINA GABRIELA

The Research Institute for Agrarian Economics and Rural Development

Abstract

Agricultural production, require, both agricultural farmers and manager, to informed about the
general problems, to exist a permanently wave about transfer with new knowledge.
Agricultural producers should be have the information about the modern technology about develop of plant
and new input: agricultural machinery, chemical fertilizers and pesticide, irrigation method of cultures.

Key words: agriculture, input, vegetal production, chemical and natural fertilizers, agricultural
machinery;

INTRODUCTION

The inputs actually represent the inputs in the system as resources, respectively as
production factors. The inputs as services are linked to the mechanization of agriculture
(performing the agricultural works, repairs etc), services linked to using chemicals
(acquisitioning chemical fertilizers, performing plant-health treatments etc), and irrigations.
The agricultural exploitations have difficulties in acquiring performance agricultural
equipments (especially in individual exploitations), due to the financial discomforts,
following the high prices of agricultural equipment.
That is why the endowment with tractors, combines, drills, ploughs, harrows,
irrigation and installations is precarious in the conditions where Romanias agriculture must
face the European requirements. Good quality works will be reflected into production,
respectively to hectare outputs of crops.
Part of the data presented in this article has been included in the CEEX 732 project.

RESULTS AND DISCUSSIONS

The actual technical endowment does not respond to the requests of a modern
agriculture under a qualitative, quantitative and structural aspect.
On the types of agricultural exploitations, the tractors with over 81 HP power
represent 10,11 % in agricultural units with juridical personality and 3,32 % in individual
agricultural exploitations.
The evolution of the tractor influenced directly via volition of the agricultural
machinery fleet which they worked with in aggregate.
Following the Agricultural structural enquiry in 2005, (table 1), a total of 48521
tractors of under 54 HP out of witch 80 % were all the lower than ten years were used.
The existent tractors only cover 48% of the necessary to execute works in optimum
periods, and this deficiency is emphasized by their physical and moral tearing.
The number of combines for cereals has dropped if and if the share of cereals continues
to be predominant in the structure of agricultural crops, the average load being the
approximately 105 hectares of our arable surface/combine.

31

Table 1
The structure of agricultural exploitations which used tractors
by their ownership mode
-%-
Tractors
Total Older than ten years
Total 178569 100,0 143355 100,0
Up to 54HP 48521 27,17 38465 0,27
Between 55 HP-80HP 122285 0,68 99802 0,70
Between 81HP-134HP 5172 0,03 3600 0,02
Over 135 HCP 2591 0,01 1488 0,01
Source: Agricultural structural enquiry-2005 INS, Bucharest and own calculations

The quantity of chemical fertilizers use in Romania compares to the EU countries is
seven to eight times smaller.
The input of chemical fertilizers had a negative influence on the fertility of the soil
due to uncontrolled application before 1990, which reflected in the later fertility of the soils,
through the reduction of the nutrients content and finally to reducing the crops outputs. In
2005 were used 461 thousand tons of chemical fertilizers, out of which in the private sector
were used 96,5%, natural fertilizers 16315 thousand tones. The pesticides consumption
also dropped in the last years due to their high prices.
The agricultural exploitations which used chemical and organic fertilizers, by
classes of size of the agricultural service used and theyre juridical status are presented in
table 2.
Table 2
Agricultural exploitations which used only chemical fertilizers, by classes of size of the
agricultural surface used and their juridical status
(number)
The class of size of the agricultural service used (hectares) Juridical
status <1 1-2 2-5 5-10 10-50 50-100 >100 Total
Individual
agricultural
exploitations
325476 295648 356636 96082 25284 1435 1008 1101569
Juridical
personality
units
192 172 572 694 671 410 2943 5654
Total
agricultural
exploitations
325668 295820 357208 96776 25955 1845 3951 1107223
Source: Agricultural structural enquiry-2005, INS, Bucharest

Of the total individual agricultural exploitations which used only chemical fertilizers
the ones in the size class between 2 5 hectares have used the largest quantity (32,4 %
of the total of exploitations), as compared to individual agricultural exploitations which have
used only organic fertilizers, the largest quantity being used by agricultural exploitations
under one hectare (35,9 %).
The juridical personality units which have used a large number of chemical
fertilizers are those over 100 hectares (52 % of the total exploitations).
From figure 1, we observe that in the total of agricultural exploitations which used
chemical and organic fertilizers the agricultural units with juridical personality used 79,48%
only chemical fertilizers and 8,04 % only organic fertilizers.
32
Figure 1
The structure of agricultural exploitations which have used fertilizers
on size classes following the juridical status of the exploitations
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Exploataii agricole
individuale
Uniti cu personalitate
juridic
Total exploataii agricole
Total exploataii agricole care au utilizat numai ngrminte organice
Total exploataii agricole care au utilizat numai ngrminte chimice

In the actual climate conditions it is necessary the use of irrigation systems. The
individual agricultural exploitations dispose of an average irrigated surface of 1 hectare
and the agricultural exploitations with juridical personality of 191 hectares. The over
dimensioning of the irrigation systems before 1990 had as an effect the impossibility of
efficient exploitation of surfaces prepared for irrigation.
Due to the ownership structure of the surfaces prepared for irrigation, private sector
holds the largest share 95% of the agricultural prepared surface and 96 % of the arable
one. In 2005 the agricultural service prepared for irrigation was of only 15% of the total
agricultural surface, and the surface effectively irrigated was much smaller due to high
maintenance and functioning costs of the irrigation systems.
From tables 3 and 4 one can observe that in the juridical personality units a number
of 167 exploitations of over 100 hectares dispose of an irrigated surface of 56432
hectares. Of the total agricultural exploitations those with over 100 hectares Have the
largest surface prepared for irrigation (59100 ha).
From this would draw the conclusion that individual agricultural exploitations, due to
small surfaces of terrain can not use efficiently the irrigation systems and that is why by
associating and creating some large exploitation irrigations can be efficiently used.
Table 3
Agricultural exploitations and the surface prepared for irrigation, by size classes of the
irrigated surface, following the juridical status of exploitations

Agricultural exploitations -Number-
The size class of the agricultural service used (hectares) Juridical status
<1 1-2 2-5 5-10 10-50 50-100 >100 Total
Individual
agricultural
exploitations
7577 8800 14176 3098 1213 151 56 35071
Juridical
personality units
3 11 15 16 56 37 167 305
Total agricultural
exploitations
7580 8811 14191 3114 1269 188 223 35376
Source: Agricultural structural enquiry-2005, INS, Bucharest

33

Table 4
Agricultural exploitations and the irrigated surface, by size classes of the irrigated surface,
following the juridical status of exploitations

Irrigated surface - hectares-
The five class of the agricultural surface used (ha) Juridical
status <1 1-2 2-5 5-10 10-50 50-100 > 100 Total
Individual
agricultural
expectations
2129,48 4704,0 12850,4 6565,4 4260,63 1897,16 2668 35075
Juridical
personality
units
0,62 11,2 31,2 67,7 677,2 898,9 56432 58119
Total
agricultural
exploitations
2130,1 4715,3 12881,7 6633 4937,9 2796,1 59100 93194
Source: agricultural structural enquiry-2005 , INS, Bucharest and own calculations.

CONCLUSIONS

The inputs linked to agricultural machinery must be adapted to the actual techniques:
large capacity, high productivity and efficiency for the agricultural production.
The insufficient endowment with agricultural equipments and machinery and
obtaining relatively low outputs has determined an incomplete the use of the workforce.
At present in Romanian agricultural expectations the share of costs with pesticides in
the total production costs is an average of approximately 24%. It is expected that in the near
future this share with grow because Romanian farmers will have to use performant
chemical products and these will have a higher cost
The efficient use of such inputs assumes respecting the consumption norms as well
as using them in optimum moments.
The system entrances (inputs) must be managed in the production processes so as
to take into account the particularity is of the soil and the assembly of natural and
biological factors, and also by the specific of using the work force.
The plants-health products represent strictly necessary inputs for an agriculture
which calls itself performant. It is imposed a good organization and applying chemical
fertilizers and other substances in the process of agricultural production.
The organic fertilizers are used in a small amount, incompletely insufficient
quantities. Reducing in half the animal effectives especially of the species where a large
amounts of muck can be obtained (horses, cattle), the lack of means of transportation are
other causes which made organic fertilizing almost non existent.
Chemical fertilizers are used especially in primary cultures (wheat, corn, sunflower).
The drought in the last years contributed to extracting from the soil of the last reserves of
nutrient substances, and the low productions showed the degree of extensiveness of the
crops.
Irrigation systems must be adapted to the new forms of agricultural exploitations,
being constructed following modern technologies.

BIBLIOGRAPHY

1. BERCA, M. Cercetri privind realizarea i dezvoltarea reelelor de distribuie a inputurilor necesare
agriculturii n zona de S-E a Romniei, Editura Ceres, Bucureti, 1993
2. *** Ancheta Structural n Agricultur - 2005 , I.N.S., Bucureti
3. GAVRILESCU D.,VIOLETA FLORIAN Economia rural din Romnia, Editura Terra Nostra,
Bucureti, 2007
34
SOME ASPECTS REGARDING THE MANAGEMENT OF COMPACTITY
CONTROL ON THE SOILS IN BURNAS PLAIN, RELATED TO WHEAT
CROP

ASPECTE PRIVIND MANAGEMENTUL CONTROLULUI COMPACTITII
PE SOLURILE DIN CMPIA BURNASULUI, N RELAIE CU CULTURA
GRULUI

BERCA M., BUZATU CRISTIANA

University of Agricultural Sciences and Veterinary Medicine Bucharest

Abstract

Because of soil tillage with plough at the same depth, estimated by us at aproximately 5 millions ha,
a compact layer is being formed at different depths, very settled at depths of 25-45 cm and 10-15 cm width.
Those soils have endurance to compacter penetration of 30-50 kgf/cm
2
during the normal years regarding
rain-falls, but can reach even 130 kgf/cm
2
during the very drought-afflicted years as the year 2007 was. The
presence of the compact layer is creating big troubles to water circulation in the soil, and significantly
reduces the biological activity of soil (up to 90%). Soil becomes impracticable for agriculture, water from
rain-falls does not penetrate profoundly and the roots remain too in the superficial layer. On the flat areas
the water from rain-falls evaporates quickly and on the sloping lands it is displaced horizontally, producing
serious erosion phenomena. Following researches made in field it came out that the single method to
destroy the hardpan during the dry year 2007 was the scarification at over 55 cm, achieved with a prototype
scarificator with ten arms, dragged by a 400 HP tractor, and a land preparing work for wheat sowing with a
complex cultivator type Tiger.

Key words: compactity, soil, compactometer, ecology.

INTRODUCTION

In the compacted soils situated eastward and southward from Alexandria, belonging
to Burnas Plain, very ofen water leakages were recorded, at relatively small rains up to 60
mm. In the autumn of 2007, after a very persistent summer drought, the rains mobilized
big quantities of soil in the water toward Alexandria town, producing muddy floods. Two
years ago the same happened. We correlated this local phenomenon with others, similar
in the country, and then we tried to find out its causes. The cause was indentified in the
ecological condition of soils. Generally, the agricultural soils within Romania, and those in
Burnas Plain specifically, are extremely depreciated due to anthropogenic phenomena and
activities, and especially due to the agricultural technology not suitable for the
conservation of the soil resource itself. An ecological soil accepted for the areas of the
Romanian agriculture should be according to the conditions stipulated in figure 1.
Or, these parameters were not found during the investigations done and consequently:
Figure 1
Ideal ratio between components
Stones, sand, mud and clay
mineral stuff
Air - free spaces
water specific spaces
humus, roots, animals
organic matter
35
- A high capacity for holding the water and to permit it to penetrate deeply was missing,
and also the capacity to store the water and then to yield it to the plants.
- The biological capacity proved to be reduced with over 90% compared to the normal,
the activity of the associative bacteria being almost inexistent.
- The physical properties, especially the soil structure were deteriorated. Decrease of
granulation with over 80% was found out.

The objective of research constists in identifying a method for tillage able to
activate the phenomenon of restoration of the ratio water/air from soil and to permit, in a
natural way, following healthy agricultural technology, the restoration of the ecological
parameters of soils.

MATERIAL AND METHOD

Studying directly in the field we met a series of correlations which requires
explanations, i.e.:
- The level of wheat production correlated negatively with the increase of soil compactity.
- The biological activity correlated negatively with the increase of soil compactity. The
accumulation and the disponibility of water in soil correlated also negatively with the soil
compactity. The same could be said about the disponibility of nutrients.
Soil compactity means its resistance as far as necessary works are concerned, as
well as the deep penetration of roots. The agricultural specialist must be aware that the
outcomes of a crop are first of all, and in a greater extent, dependent on the in depth
development of the root mass than on a temporary development of biomass at surface.
Soil compactity was determined in the field with a Dickey John land penetrometer
(see figures below), able to test the soil resistance up to 70 cm.

Without getting into details, according to USDA (United States Department for Agriculture),
soils are, regarding their compactity:

a) Soils well and very well compacted up to 200 psi* 7-14 kgf/cm
2

b) Soils moderately compacted 200 300 psi 4- 24 kgf/cm
2

c) Compacted soils, unappropriate for crop 300 400 psi 22 29 kgf/cm
2

d) Improper soils, exccessively compacted
(type asphalt)
> 400 psi > 29 kgf/cm
2

* psi = pounds per square inch 1 psi = 0,07 kgf/cm
2

The field data were processed and correlated by analysing the variant and correlation in
2D.


The determinations in Burnas Plain evidenced the following results at the end of
2007 summer after the cereal harvest and at 10 days after a 4 days rain of 93 mm (table1).

36
Table 1
Soil resistance at penetration Alexandria 2007

Variants Depth
Soil
resistance
kgf/cm
2

Average
050 cm depth
in kgf/cm
2

Observations
10 cm 14
20 cm 22
30 cm 35
Without tillage,
determinations
on wheat
stubblefield
> 30 cm 35
28,2
Compacted soil,
unappropriate for wheat
crop
10 cm 14
20 cm 14
30 cm 22
40 cm 27
Scarification at
35 40 cm after
rape stubble,
precursory to
wheat
> 40 cm 29
21,2
Improvement of soil
physics with 25% but
insufficient because it
exceeds with over 50%
the limits of a good soil for
wheat culture which will
be planted.
10 cm 14
20 cm 14
30 cm 18
40 cm 32
After sunflower
scarificated 2006
35-40 cm,
harrowed 2007
next comes rape
> 40 cm 40
23,6
Soil insufficiently
physically prepared in
order to get an optimum
crop for rape.
10 8
20 8
30 16
40 16
Scarification with
Austrian
scarificator at
55 cm after
wheat stubble
50 16
14,4
The single variant for
tillage which brought the
soil at the depth of 50 cm
in a very good ecological
condition.

According to the data in the table:
Due to tillage in the sector of small producers at constant depths of 15-20 cm, the
ploughs sole was being formed beginning this depth. The bigger farms, up to 4000 ha
(10004000 ha) made deeper ploughing up to 25 cm, this time the ploughs sole was
formed beginning this depth.
37

Subsoiling works were no more done in the area during the last 30 years, and
because of that the land settled on the depth of 30-45 cm, generating a layer whose
compactity is 30-50 kgf/cm
2
, completely impermeable to water and roots. As a result, all
the activity of the soil takes place within the depth of 35 cm, the deeper area being
practically infertile. The main indicator of soil ecology, the earthwarms do not exist at all.
Soil compactity was worsened also by water stagnation, by too frequent passages
of cars over the soil and, of course, by the abandonment as fallow ground with many
weeds of important land surfaces (figure 3). Taking in consideration these things we insist
on a very important economic aspect related to compactity:
Relation soil-water. Considering the deep profile of chernozem soils in Burnas Plain
(up to 3 m) of which up to 2 m the cereal roots can easily penetrate if the soil permits this,
we can calculate as follows:
- For an ecological soil, a surface of 1 m
2
soil can access 0,5 m
3
water, of which
0,250 m
3
, i.e. 2500 m
3
/ha represents useful, conservable water. Taking into account that
the water under the withering coefficient cannot be used by plants, we still have available
for plants a potential of almost 2000 m
3
/ha. It doubles if the water can penetrate on the
depth of the profile up to 2 m.
- In the case of a non-ecological soil, non-permeable, in which water and roots do
not penetrate more than 30 - 40 cm, the quantity of water accessible to soil reduces at
0,35 m x 0,5 = 0,175 m
3
water, of which only half, i.e. 0,078 m
3
/m
2
= 780 m
3
/ha 234 (co)
= 546 m
3
/ha could remain for a short time available to plants. For a short time because in
the surface layer the evaporation is very big and the daily losses in summer come to
almost 100 m
3
/day/ha. This simple thing explain some unexplored paradoxes in Romania.
Only in this way we can explain why, after a prolonged drought as we had this year on
Alexandria plateau, a 93 mm rain fell in 4 days flooded the town in August and transported
with the water a huge quantity of soil.

Figure 2 Soil sequency in
the settled soil.

Penetrometry resistance

50 kgf/cm
2
.

Attempts to penetrate
the soil

(points 1 and 2)

were made with a pointed screwdriver
- unsuccessfully.
38
Figure 3. Compactity phenomenon seriously damage the soil.
In the first 35 cm of broken-up soil, the water surplus abt. 15 mm = 150 m
3
/ha, i.e. 78 mm,
created lateral water movements toward the natural emissaries, transporting with them
abt. 0,2 kg soil/1 liter of water = 200 kg soil/1000 liters of water = 30 to/ha soil carried
toward Alexandria from a surface of over 20.000 ha of the plateau. We mention that the
rains continued afterwards, aggravating the situation.

Figure 4
Destruction of hardpan increases the
access of roots and water in depth,
resulting in crops 3-4 times bigger,
especially in drought.

There are solutions, as the one
presented in figure 4. The destruction of
the ploughs sole through subsoiling to at
least 55-60 cm is compulsory in Burnas
Plain for the restoration of the balance
water/air in soil. If this is correctly done,
water penetrates in depth and the plants roots will do the same. As the roots penetrate
deeply, microorganisms (bacteria, fungi) penetrate too and gels and bacteria and
mycellium excretions come out, and this mass of roots and organic secretion will
remaining
stationary
by tillage
by non/tillage
(abandonment)
compacted
soil
penetrometer
measures soil
compactity
15 kgf/cm
2
(non
compacted)
50 kgf/cm
2
(compacted)
disc
depth
furrow
depth
furrow
prepa-
ration
subsoiler
depth
24 kgf/cm
2

less
compacted
Abnormal
development of root
Roots cannot
penetrate
Humidity is
cought
above and
underneath
Cultivated
area
Hardpan
area
39
contribute to the restoration on the profile of the soil structure, and on the surface an active
and sustainable biomass will develop. Profound subsoiling will create also deep furrows
(figure 5) on the hard soil block through wich the roots and the water will penetrate in
depth. In this way the whole soil profile
is pierced by roots, mycorrhiza and
other organisms, will preserve the water
and will open the way to an ecological
soil, the basis of the sustainability of
agroecosystems and natural
ecosystems.
Figure 5
Through deep subsoiling, massive hard
soil blocks will be furrowed, opening in
depth the way for water, roots and other
life forms penetration. Soil vitality is
restored.
And what happens to the production? The year 2007 was extremely dry, especially
in the southern part of the country. In spite of this, based on our researhes, we can state
that this year was unfavourable only to those farmers who did not respect the main rules
presented above regarding the reception of water from rains, its transfer and conservation
in the soil and its rational consumption by complying to the other rules of the agricultural
management. Our studies in twenty locations in the southern part of the country,
correlating the soil compactity and the level of the crop within a statistical calculation in 2D,
led to the results in figure 6.

Figure 6

The farmers who maintained a good ecological condition of soil where its
compactity situated between 8-14 kgf/cm
2
soil got more than 3500 kg/ha in all cases (see
cases in Rmnicelu and Modelu, both in Clrai county). The increase in soil compactity
up to 25 kgf/cm
2
led to reduction to one half of the harvest, and if the compactity exceeded
35 kgf/cm
2
, the production was insignificant in the economic equation of the farm, despite
the high price of this year.
CONCLUSIONS

Correlation between soil compactity (kgf/cm
2
) and the level of wheat harvest (Dt/ha) in the dry year 2007 South of Romania
Soil compactity (kgf/cm
2
)
L
e
v
e
l

o
f

p
r
o
d
u
c
t
i
o
n

D
t
/
h
a

L
e
v
e
l

o
f

p
r
o
d
u
c
t
i
o
n

D
t
/
h
a

40
1. The compactity phenomenon, which leads to ecological degradation of soil and finally
to the total loss of its fertility and thus to economic value of the land, can be reduced and
the soil restored through special measures in its tillage, scarification at depth of 10-20 cm
under the ploughs sole being the most important. The work can be completed with
chemical fertilizers, green fertilizers and mulch.
2. Monitoring of soil compactity is done with penetrometers, very simple and efficient
tools.
3. By bringing the soil compactity to its normal limits the structural architecture of soil is
restored in its whole profile, and as a result plants get normally water and nutrients.
4. The activbiological restoration of soil and the increase of biodiversity are notable
elements which show that soil reverts to a good and sustainable ecological condition.

BIBLIOGRAPHY

BERCA MIHAI, 2006 Planificarea de mediu i gestiunea resurselor naturale. Editura Ceres 2006.
BERCA MIHAI, 2007
Compactitatea, o problem naional a solurilor din Romnia. Agricultorul
romn nr. 11, 2007.
DUMITRU MIHAI, 2003.
Calitatea solurilor n Romnia, factor decisiv n elaborarea strategiei de
dezvoltare durabil a agriculturii: Caietele sesiunilor de dezbatere a strategiei
de dezvoltare durabil a Romniei Orizont 2025 vol. IV Strategii
sectoriale Agricultura protecia vegetal.
ODUM E.P., 1980 Grundlage der Oekologie (2 vol.). Georg Thieme Verlag, Stuttgart, New York
ODUM E.P., 1980 Bodenoecologie
SCHWESTMAN U., VOGL
W., KEINZ M., 1990
Bodenabtrag durch Wasser. Vorhersage des Abtrags und Bewertung von
Gegenmassnahmen 2 Aufl, 665, Stuttgart.

41
CONCEPTUAL MODELS FOR PROFESSIONAL CONTINUOUS TRAINING
PRACTICABLE IN EU STATES MEMBERS

MODELE CONCEPTUALE DE FORMARE PROFESIONALA CONTINUA
PRACTICATE IN TARILE U.E.

BEREVOIANU ROZI LILIANA, IVASCU TEODORA

Research Institute for Agricultural Economy and Rural Development

Abstract

Conceptual models professional training in EU states members assume creation of a flexible system
regarding the validation of competent units, mutual recognition of training modules, giving priority to
agreements between professional training institutions and economic sector. Also its wanted the elimination
of, differences between initial professional training and continuous professional training, differences between
formal and non formal leaning, between general learning and professional training.
The system created in Europe based on partnership between government institutions and local and regional
consortium with the implication of private sector and communities allow the position improvement on labor
market of different persons and category labor, in order to rise the productivity and competitive of economy
at European level.

Key words Initial professional training, continuous professional training, conceptual model of
continuous professional training

INTRODUCTION

The continuous professional training contributes to increasing occupation,
adaptability and the mobility of the workforce according to the qualification requirements of
the market economy. As such accumulating knowledge allows the improving of the quality
of the workforce on the work market by increasing its adaptability for anticipating
economical changes and their rational management.
New education and continuous training strategies are the pillars which sustain the
transition towards an economy based on knowledge, putting them into practice becoming
a priority in the European Union programs for improving the degree of occupation of the
workforce. One of the major preoccupations of the European Union members in the last
decades is the identification of most efficient common options to lead to perfecting the
educational systems, ensuring their stability and continuity on a long-term. Conceiving a
common development system of the member states assumes identifying some methods to
allow structuring the training fields, the necessary competences and the validation systems
and acknowledging qualifications.


In the field of education and professional training the following documents are
essential in emphasizing the efforts to create an educational offer adequate for the
requirements of the actual work force market:
The Lisbon strategy frame for the development of educational systems and for
forming a European work market. The strategic objective of it consists that by 2010 the
economy of the European Union would become the most competitive and dynamic
economy in the world, based on knowledge, able to obtain a durable economic increase,
more and better jobs.
The European Council in Stockholm has identified new fields for common actions
at European level to acquire the objectives set by the European council of Lisbon. These
42
fields are based on improving the quality and effectiveness of the educational and
professional training systems in the European Union and their accessibility towards a
broader world.
The Bologna Process specific frame for the development of superior education in
Europe;
The Maastricht and Copenhagen Declarations branches for the continuous
professional training; the EQF and EQA elements of stability in superior education;
The European Qualifications Frame (EQF) EQF was proposed for the
qualifications correspondent to the learning process of the entire life, which consists of
general education as well as professional one. The EQF is an integrated European
instrument to correlate the frames and systems of qualifications at a national level and a
sector one and an EQF neuter reference element based on the results of studying. The
EQF facilitates and promotes the transparency, the transfer and recognition of
qualifications and competences at a European level.
European commission identified five general objectives for the purpose of
implementing practical actions in the field of education and professional training:
1. Encourage in the acquisition of new knowledge by conceiving a comparison and
dissemination system of the methods and practices regarding essential competences;
2. Bringing the school closer to the economical sector by cooperation between
schools and economic agents for the adaptability to the characteristics and tendencies of
the market economy;
3. Fighting social exclusion through a series of measures based on increasing the
number of schemes of professional training, work reintegration;
4. Developing the communicating eight competences in three common language is
assumes the availability of a high level education, using materials, equipments and
modern methods adapted to the requests of different groups involved;
5. Treating equally the capital investments and the those of professional training by
introducing accords through which economic agents have contributed to the professional
training and thus could present some of the costs as investments in their financial balance.
The European Union does not intend to implement a common policy in the field of
continuous professional training but a promotion of the cooperation through actions at a
European level by financing projects dedicated to improving the education and
professional training systems and by using some common action programs.
The cooperation between the EU members led to formulating some policies based on
knowledge (innovation, research, education and professional training) and still raising the
level of knowledge and abilities to a two by the work force. As such:
Belgium performing the education and professional training programs of
the adults is of the regional organizations competency. The initial training and a permanent
training of the employees is ensured by the private sector with support from public funds
which ensure professors and endowments for the education destined to adults and
unemployed people.
Denmark the professional training colleges and local committees for
training workforce have established at a national and zonal level the general frame for the
field of professional training of adults and respond for the planning and training. Their role
is institutionalized at a national, zonal, local and even firms level and they are implicated
in planning, quality, the practical content of training and the examinations in qualification.
The initial training and the permanent one in alternating system are insured by the private
sector for employees, young people and unemployed people.
France the state, along with the regional councils finances the public
training programs which vary from one region to another according to necessities. As
such, private training organisms, public authorities and managers are involved in
developing the policy of professional training at a national, regional and firms level
43
contributing to making decisions regarding planning, financing and managing the training
at different levels. The private sector ensures Training facilities for young people who
participate to the initial training systems and for employees..
Germany organizing the professional training is based on a dual training
system: the lands which are responsible for schools and the Federal law which governs
the initial training in professional schools and enterprises. The social partners realize a
common frame of regulations for each sector, establishing the content and the
competencies of professional training. These activities are performed in close collaboration
with the Federal government and with that of the lands according to the necessities of the
work market and are respecting the existent legislative frame. The role of social partners in
the professional training policy is institutionalized at a Federal, land and regional level
through enterprising committees and into firms through collective zonal accords. Also,
certain professional associations and syndicates are implicated directly in professional
training. Professional training with permanent character is performed in opened systems,
with many suppliers (enterprises, associations, schools). The private sector ensures the
initial training for young people through alternate dual system. The minimum implication of
the state, especially in supervising the training process, ensures a balance between the
interests of the different participants.
Greece the professional training policy is established at the national level.
The public national authorities, education institutions and private companies which
participate to the national consultative counseling regarding the policy of professional
training and are part of the attesting committees. When training activities are innovative
and the participants implicated have a financial contribution it is mandatory the
collaboration at a national or transnational level, the social partners being implicated in
setting and putting into practice the training and guiding programs. The training in the
private sector (which participates to research activities and pilot projects) can be supported
from public funds and ensured training for young people in the alternative dual system
through initial training.
Ireland the national authorities respond of the professional training policy
and applying it to occupy the work force and to train mostly in the fields of two were in
some and agriculture. As such the social partners participate establishing the strategy of
the training policy and have representatives in the councils of national authorities for
occupying workforce and training, and into committees of industrial training which directs
the national policy to an industrial sector level. The private sector ensures Initial training
through the system of alternative training for young employees and permanent training for
employees.
Italy at a national level are set the principles and orientated fields specific
to the training and professional training policies. Promoting and financing the training
actions for employees and unemployed people is performed at a regions level. Involving
social partners in elaborating the policy regarding the quality and relevance of training in
satisfying the needs of various economical factors is institutionalized by participating in
committees to establish policies at a national and regional level. The private sector
finances and promotes the activities of professional training and forming for own
employees.
Luxemburg the frame of the initial and permanent professional training
policy is established by the Ministry of Education. The Ministry of Education authorizes the
professional chambers, the municipalities and private organizations in training and
professional training programs. In the same time, channel chambers participate to
changing and applying the training and professional training policy. The private sector
participates to the professional training of young people and employees through the initial
alternative training system.
44
Great Britain the professional training policy is established as a national
level through the councils of training and entrepreneurs (TEC) in England and Wales, and
through the local entrepreneurs councils (LEC) in Scotland. The professional training
takes place on a free market being offered by public or private suppliers. The state has the
main role to orient and finance and institutional frame and intervenes in developing the
professional training. The private sector is the main source of training for young people,
employees and unemployed people, contributing to applying the policy of training at a local
and zonal level.

CONCLUSIONS

An assembly analysis on some European Union member states shows the progress
registered in harmonizing the organization, functioning and preparation systems in the
professional training of adults. As such:
The professional training policy is established at a national level, performing the
Training being done by the national public authorities, education institutions and private
companies.
The state has the main role in orienting and financing an institutional frame where
decisions can be made regarding the professional training; it can intervene in the
developing of the professional training by creating a coherent professional qualifications
frame and by constructing educational and professional competitive training standards.
The role of social partners in the professional training policy is institutionalized at a
Federal, regional, zonal and firms level. Their functions consist of setting the objectives,
planning the financing, fulfilling and following the training or qualification policies.
Certain professional associations and syndicates are implicated directly in
professional training.
The private sector contributes to applying the policy of professional training being
the main source of training for young people, employees and unemployed people. Through
an alternative training scheme and through programs organized from public funds are
ensured the qualifications based on competency in order to satisfy the standards required
by a changing work market.

BIBLIOGRAPHY

MINISTERUL MUNCII, FAMILIEI I EGALITII DE ANSE DIRECIA PROGRAME I STRATEGII
FOR DE MUNC Reglementri europene n domeniul ocuprii forei de munc i formrii profesionale-
Raport 2007
GHINRARU, CTLIN (coord.), Formarea profesional a adulilor n Romnia - studiu explorativ
CNFPA, 2001
COMISIA EUROPEAN, Realizarea unei arii europene a educaiei permanente, Comunicat, noiembrie 2001
COMMISSION OF THE EUROPEAN COMMUNITIES - Communication from the commission to the council
and the european parliament, Brussels, 20.7.2005, COM(2005) 330 final

45
STUDIEREA CONDIIILOR SOCIO-ECONOMICE N LOCALITI DIN
BAZINUL DROBOTFOR IN PERSPECTIVA DEZVOLTRII RURALE
LOCALE

THE STUDY OF SOCIO-ECONOMIC CONDITIONS IN LOCALITIES FROM
DROBOTFOR AREA IN LOCAL RURAL DEVELOPMENT PERSPECTIVE

PROF. DR. BRAN MARIANA, CONF. DR. DOBRE IULIANA, PROF. DR. VOICU R.

Faculty of Agro-food and Environmental Economics, Bucharest Academy of Economic
Studies

Abstract

The integration of some rural localities in the socio-economic development structures is a real
problem wich its solution must be in managers atention. The hydrographic area Drobotfor is relevant for this
case, so that bring to the teritorial analise in two localities.
The ours proposals to allow economic development Drobotfor area from a standard of living.

Key-words: long-lasting development, rural space, vegetal exploitations, crops structures, crop
rotation.

INTRODUCTION

The specificity of rural activities requests environmental study, as a result of the
implications which it has on the equilibrium thereof.
The main factors that directly and indirectly influence the functionality and
effectiveness of one or more activities are the ecological and economic ones.
The ecological factors (soil, climate, relief, hydrology) represent the concrete and
necessary frame wherein the rural activities take place.

CHARACTERISTICS OF THE STUDY AREA

In Stnieti and Motoeni localities, situated in the Pojorta Sub-basin, the arable
land represents 67% and 70%, respectively. Unlike other environmental components,
which are exhausted by being used, the soil, by being used in a rational manner, can
increase its fertility. Thus it is absolutely necessary to manage the soils in a correct
manner, including the preservation of said soils and applying science and modern
technologies in agriculture.
In Stnieti, taking into account the lithologic characteristics and the types of soil
there can be cultivated almost all vegetal categories specific to Romania. In Motoseni,
there are grouped the best soils (mollisols, about 12% and clayey-sols, about 52%),
practically, for all kind of use and agricultural crops: field crops (cereals, technical plants,
fodder crops), vegetables, grape-vine and trees.
For the Pojorta Sub-basin, there are specific slopes having under 15 inclination,
present mostly on the right mountainside of the valley, and also in the middle and superior
sector of said Sub-basin. Values ranging between 15 and 25 are registered for the left
mountainside of the valley, as well as along the ridge heads in the south-east of said sub-
basin, where the highest values also occur (>30). The exposure of mountainsides
presents great implications in the repartition of vegetal associations, namely in the
repartition of crops.
At the same time, there must be taken into account the fulfilling of the landlords
necessities when about some products, the phasing of crops, the necessity of a better use
46
for the technical means and the labor force that the farmers possess, together with the
possibilities of work mechanization.
ORGANIZATION OF CROP ROTATION IN VEGETAL EXPLOITATIONS ON
SLOPE FIELDS
By supporting the good practice, on fields having a 5-8% slope, we suggest two
crop rotations (with skipping field and mixt):

wheat
corn
vetch
sunflower
fodder beet

wheat+rye
vetch
corn
peas
rapeseed

rapeseed
wheat
red clover
corn
fodder beet
vegetables
corn
rapeseed
lollium
sunflower
pea

For fields having an average slope ranging between 8 and 12%, taking into
consideration the same criteria of good agricultural practice, we suggest crop rotations
wherein 40% of the arable soil is not ploughed after the preliminary crop is harvested,
except for the surfaces destined to autumn sowings:

clover
lollium
corn
peas
vetch
fodder beet

corn
wheat
alfalfa
vetch

47
corn
sunflower
wheat
alfalfa
peas
corn
rapeseed
lolium
wheat

On fields having a 12 - 20% slope, there is recommended the following crops
structure: graminaceae 40%; weeding crops 30%; multi-annual weed 10%; vegetables and
fedder crops 20%. On the fields having a slope higher than 20%, there are not allowed
weeding crops. The recommended crops should be soil preserving when about erosion:
perennial graminaceae (Lolium and Dactylis species), perennial vegetables (alfalfa, clover
etc.), annual graminaceae (autumn wheat, barley, Sudan weed etc.).
The present dimensions of peasants exploitations are on an average of 2.50 ha,
family associations of about 115 ha, and agricultural societies of 450 ha, being quite far
form those considered as satisfactory when about the requirements of a modern and
effective agriculture.
In case of increasing the surface of agricultural exploitations, of increasing the
degree of specialization thereof, the crop rotation will condition production on a long time
period. This will allow to organize the arable soil in fields destined to different agricultural
crops, the repartition and rotation of plants in time and space, together with a
corresponding system of soil operations, disease and pest control etc.
By said crop rotation, the cultivated species will provide the supply with products for
consumers throughout the entire agricultural year. Therefore there will be taken into
consideration to establish the crop structure given destination, according to the present
and potential supply and demand, ensuring the optimum combining of breeds and hybrids,
the rational use of labor and mechanization, the phased harvesting of crops avoiding work
peaks.
The decision regarding the elaboration of crop structure in order to carry out an
effective crop rotation hints at determining a number of main crops, in accordance with the
occupation of the exploitation arable surface, based on dimension, production expenses,
labor restrictions etc., by using economic and mathematical methods being established the
weight of each crop in the total cultivated surface, based on the criteria of optimum
selected variant.
By organizing crop rotations, when this is possible, there are created premises for a
rational development of the exploitation activity, favoring the use of production factors and
applying adequate technologies, which are also to be found in the production and
economic results.
Therefore, the use of crop rotation is in direct connection with developing
agricultural exploitations, taking into account its long-term implications. At the same time, it
is connected with long-lasting agriculture development, as crop rotation creates conditions
for a natural fertilization of soil, preserving the environment, which is also reflected in the
quality of products and, finally, in the health of population.
The role of crop rotation is very important and irreplaceable, by what it provides:
- the increase and preservation of fields productive capacity;
- the improvement of low productive soils;
- preventing processes of soil degradation;
- eliminating the negative effect of different limitative production factors;
48
- the introduction and diversification of crop rotation;
- the increase of efficiency per ha, without further consuming of production factors;
- controlling soil erosion on arable slope fields;
- attenuation of secondary negative effects of soil work, in the conditions of intensive
irrigation and mechanization (settlement, compaction etc.).

CONCLUSIONS

1. By driving natural resources into the production process must be carried out in
such a manner as to value in a superior degree the entire potential that an economic
organization or an area in the rural environment possesses.
2. The technical and technological advantages present effects that are spread in the
economic domain of exploitation, their influence being obvious in the level of certain
expenses, such as those for: the mechanized carrying out of certain works, disease and
pest controlling, the re-building of the soil productive capacity, the protection of the
ecologic environment etc.
3. On the slope fields, the organizing and systematization of territory should take
into account the necessity of realizing lots allowing to apply the complex of anti-erosion
works, wherein the performing of works for preparing the fields, the maintenance of crops
and harvesting thereof should be compulsorily carried out on the general direction of the
level curves starting from a 3 % inclination of mountain-sides.

BIBLIOGRAPHY

1. BRAN, MARIANA, 2005 Vegetal Exploitation Eco-technique, Ed. Printech, Bucharest.
2. BRAN, MARIANA, 2007 Technical report for the research contract CEEX no. 64/2006. Research
within a small hydrographic basin for as superior use of slope fields and preventing formation of streams and
floods.
3. NIU, I., and collab, 2000 Agro-pedo-improvemental Studies, AGRIS Agricultural Reviews
Publishing House, Bucharest.
4. VOICU, R., DOBRE, IULIANA, 2003 Organizing and strategy of agricultural units development,
Ed. AES, Bucharest.

49
THE INTERNATIONAL SITUATION OF GENETICALLY MODIFIED
ORGANISMS

SITUAIA INTERNAIONAL A ORGANISMELOR MODIFICATE
GENETIC

CIULINARU MARIA- MAGDALENA


Abstract

The debate about genetically modified organisms (GMOs) is vocal and passionate. This is probably
the consequence of the diverging views among people and Governments of the actual or potential risks and
benefits that GMOs and products there of can bring about. The proliferation of domestic biosafety schemes
is likely to further complicate international trade in agro -biotechnology products and to indirectly affect
international trade in conventional agricultural products. For developing countries agro-biotechnology is a
particularly challenging phenomenon. They could be the main beneficiaries of it, if indeed agro-biotechnology
keeps its promises. But they could also be the main losers if agro-biotechnology negatively affects
biodiversity or if downgrading biotechnology makes access to seeds more difficult or changes the structure
of food production systems. At the multilateral trade level, rules on transboundary movement of GMOs have
been agreed upon in a specific legal instrument, the Cartagena Protocol on Biosafety, which recently entered
into force.

Key word: genetically modified organisms, biotechnology agricole

MATERIAL AND METHOD
The method used are the investigation method in specialized literature national and
international.
INTRODUCTION

Biotechnology is a revolutionary technology.It offers humanity the power to change
the characteristics of living organisms by transferring the genetic information from one
organism, across species boundaries, into another organism.
These solutions continue the tradition of selection and improvement of cultivated
crops and livestock developed over the centuries. However, modern biotechnology
identifies desirable traits more quickly and accurately than conventional plant and livestock
breeding and allows gene transfers across species, genera and families, impossible with
traditional breeding.
The use of biotechnology in sectors such as agriculture and medicine has produced
a growing number of genetically modified organisms (GMOs) and products derived from
them. While there is not at present a multilaterally agreed definition of GMOs, the EC has
defined a genetically modified organism as follows: an organism, with the exception of
human beings, in which the genetic material has been altered in a way that does not occur
naturally by mating and/or natural recombination.


According to figures from the International Service for the Acquisition of Agri-biotech
Applications (ISAAA), the global area of GM crop plantation has grown 40-fold since 1996,
and the estimated global GM crop area in 2003 was around 67.7 million hectares,
cultivated by seven million farmers in 18 countries. Herbicide-tolerant soybean was the
dominant transgenic crop, followed by Bt maize and herbicide-tolerant canola. Six
countries accounted for 99 per cent of the global transgenic crop area (United States, 63
50
per cent of global total; Argentina, 21 per cent; Canada, 6 per cent; Brazil and China, 4 per
cent each; and South Africa, 1 per cent).
Minor plantings were found in Australia, India, Uruguay, Romania, Mexico,
Honduras, Bulgaria, Spain, Germany, Indonesia, the Philippines and Colombia. Almost
one-third of the global transgenic crop area in 2003 was in developing countries. In the
same year, the global market value of GM crops was estimated to be between US$ 4.5 to
US$ 4.75 billion. The market value is based on the sale price of transgenic seed plus any
technology fees that apply.
Tabelul 1
The genetically modified crops planted acreages (in milions of hectares)
Country/year 1996 1997 1998 1999 2000 2001 2002
SUA 1,5 8,1 20,5 28,7 30,3 35,7 39
Argentina 0,1 1,4 4,3 6,7 10 11,8 13,5
Canada 0,1 1,3 2,8 4 3 3,2 3,5
China 0 0 0,1 0,3 0,5 1,5 2,1
Africade sud 0 0 0,1 0,1 0,2 0,2 0,3
Australia <0,1 0,1 0,1 0,1 0,1 0,2 0,2
Romania 0 0 0 <0,1 <0,1 <0,1 <0,1
Mexic <0,1 <0,1 0,1 <0,1 <0,1 <0,1 <0,1
Bulgaria 0 0 0 0 <0,1 <0,1 <0,1
Spania 0 0 <0,1 <0,1 <0,1 <0,1 <0,1
Germania 0 0 0 0 <0,1 <0,1 <0,1
France 0 0 <0,1 <0,1 <0,1 - -
Uruguay 0 0 0 0 <0,1 <0,1 <0,1
Indonezia 0 0 0 0 - <0,1 <0,1
Ucraina - - 0 <0,1 - - -
Portugalia - - 0 <0,1 - - -
Columbia - - - - - <0,1 <0,1
Honduras - - - - - - <0,1
Total 1,7 11 27,8 39,9 44,2 52,6 58,7
Although continuously expanding, GM crop plantings are still confined to a rather
small number of countries. Apart from suspected or scientifically proven health or
environmental hazards, the reason for the restricted global uptake of GM crops may find
its rationale in fear of export loss due to the political and regulatory environment in many
countries outside the Americas that oppose GMOs.
GMO regulations are based on an assessment of the actual or potential risks that
those products may engender. Such an assessment can be a conventional risk
assessment or a risk assessment based on the precautionary approach. The former is
about relevant scientific evidence, which means that there will be sufficient scientific
evidence for the perceived risks underlying the measure.
Conversely, the precautionary approach to risk assessment is concerned with
scientific uncertainty,where there is no adequate theoretical or empirical basis for
assigning possibilities to a possible set of outcomes.
Three basic conditions may thus trigger application of protective
measures:uncertainty, risk, and lack of proof of direct causal link. With respect to GMOs,
the problem of defining the relationship between science and policy in risk regulation is by
and large a matter of regulatory culture deeply embedded in underlying socio-economic
settings. The meat hormones dispute between the EC and the United States/Canada
which shares similarities with the present GMO dispute well illustrates diverging
approaches to regulation under uncertainty.
The international policy conflict over GMOs is fragmenting international
markets, thereby decreasing economies of scale; producers of GMOs, however, depend
on economies of scale to recoup the considerable R&D costs they incur. Moreover, the
rate of technological advance in biotechnology is likely to be very rapid, meaning that the
commercial life of any new GMO is likely to be short. This means that easy and quick
access to foreign markets is a critical determinant for profitability.
51
Relevant WTO rules concerning international trade in GMOs and products thereof
can be found in the Agreement on the Application of Sanitary and Phytosanitary
Measures (SPS Agreement), the Agreement on Technical Barriers to Trade (TBT
Agreement) and the General Agreement on Tariffs and Trade (GATT) 1994.
Disciplines regarding transboundary movement of GMOs, however, have also
emerged from the Cartagena Protocol on Biosafety. Though most of the rules included in
the different legal instruments are consistent with each other, there are a few areas where
somediscrepancies may be found.
CONCLUSIONS

Lacking conclusive scientific evidence on the actual or potential impact of
agriculturalbiotechnology on health and on the environment, the GMO debate continues to
be vocal and emotional, and countries continue to hold rather diverging views about the
risks and opportunities that agro-biotechnology may bring about.
Those views are reflected in domestic regulations onGMOs and GM products that
vary substantially from one country to another. Diverging rules are hampering international
trade in those products and might have indirect negative implications for the transboundary
movement of conventional agricultural products.
Countries' attitudes on agro-biotechnology depend on many factors, but their
positions could be classified into three main categories:
1) the position of those countries that consider transgenic products by and large as
equivalent to conventional products, have authorized them for production and
consumption, and strive to have easy and reliable access to foreign markets;
2) the position of those countries that have mainly adopted the precautionary
approach and are imposing strict rules on approval and marketing of GMOs and GM
products; and finally;
3) the position of those countries that are still in the first phase of evaluating the risks
and benefits that agro-biotechnology may imply for them, that are striving to develop
comprehensive regulatory frameworks on the issue, and whose main trade-related
preoccupation at present is to prevent GM regulations and concerns having negative
repercussions on their agriculture and food exports, including those of conventional
products.
While developed countries have established their national frameworks to deal with
agro-biotechnology and biosafety focusing primarily on domestic priorities and strategies,
mostdeveloping countries are doing so under less flexible circumstances. Instead of
enjoying the freedom to assess risks and benefits that agro-biotechnology may bring about
and act accordingly, developing countries seem to be increasingly expected to set up their
national regulatory schemes based on the requests and expectations of their main trade
partners.
BIBLIOGRAPHY

1. Marceau G.,2000-"Conflicts of Norms and Conflicts of Jurisdiction, The relationship between the WTO
Agreement and MEAs and other Treaties".
2. Isaac G.E., 2003- "The WTO and the Cartagena Protocol: International Policy Coordination or Conflict?",
Current, November 4/2003, pg.116-123. The WTO Versus the Biosafety Protocol for Trade in Genetically
Modified Organisms", Journal of World Trade, 34(4), 2000.
3. MacKenzie, D.J. and M.A. McLean, 2004-"Agricultural Biotechnology- Primer for Policymakers", in
Agriculture and the WTO Creating a Trading System for Development, World Bank.
***http: // www.isaaa.org
*** http://www.isnar.cgiar.org/ibs/biosafety/regulatory.cfm.
*** http://www.ictsd.org/biores

52
SITUATIA CULTURII DE SOIA ROUNDUP READY IN ROMANIA

THE SITUATION OF ROUNDUP READY SOYBEAN CROPS IN ROMANIA

CIULINARU MARIA- MAGDALENA


Abstract

Romania has the third highest soybean area in Europe (75,000 ha in 2003) behind Italy and
Serbia/Montenegro, and roughly equal to the area in France. Within the country the main soybean growing
regions can be found in the southern third of the country.Roundup Ready (RR) soybeans have been grown
commercially since 1999. The share of total soybeans planted to RR seed has increased to 55%-60%
(inclusive of farm-saved seed) by 2003. Weeds are a major problem in Romanian agriculture causing
significant loss of yield and downgrading of harvest quality. The weed problems largely reflect a combination
of climate/soils and limited use of herbicides since 1990. As a result of the limited use of herbicides, there
has been a significant build up in the weed seed bank. In addition, there are some problem weeds, once
established are extremely difficult to control with most herbicides.

Key word: genetically modified organisms,soybean Rouandup Ready.

INTRODUCTION

The commercial planting of genetically modified, herbicide tolerant (Roundup
Ready) soybeanshas been permitted in Romania since 1999.
This paper examines the farm level impact of use of Roundup Ready soybeans in
Romania overthe period 1999-2003 and draws comparisons with reported impact of the
same technology in North and South America (USA, Canada and Argentina) where the
main plantings of herbicide tolerant soybeans have been to date.
The research undertaken for this paper used a combination of desk
research/analysis and field research in Romania. Interviews were undertaken with
agricultural input distributors, scientists,academics and farmers. In particular, farmers in
two of the main soybean growing counties ofRomania were interviewed (Calarasi and
Ialomita). In total, the farmers interviewed accounted for about 13% and 24% respectively
of total soybean plantings and Roundup Ready (RR) soybean plantings in 2003.

MATERIAL AND METHOD

The method used are the investigation method in specialized literature national and
international.
In 2002-20003, Romania harvested about 66,000 hectares and produced about
106,000 tonnes ofsoybeans (Table 1). In the global context, Romania is a minor producer
of soybeans relative to the three main producers of the USA, Brazil and Argentina, which
respectively planted 29, 18 and 12.5 million hectares in 2002/03. In a European context,
Romania is an important soybean producer, growing roughly the same area as France, but
less than Italy and Serbia/Montenegro, the main European producers (Table 1).

53
Table 1
European soybean areas 2002-2003: some of the main producing countries area (hectares)

Countries Area (hectares)
Romania 66.000 (75.000 n 2003)
France 76.000
Italy 129.000
Croatia 42.000
Turkey 20.000
Hungary 24.000
Serbia/Montenegro 100.000
Surce: Oil Word

In recent years the areas planted and harvested to soybeans in Romania has
fluctuated considerably (Figure 1). At the beginning of the 1990s, and immediately,
soybean plantings were about 190,000 hectares. This area declined until the mid/late
1990s since when there has been significant annual fluctuation in plantings and harvested
areas. This initial decline in plantings and subsequent fluctuation in plantings reflects a
number ofinfluences.
Soybeans tend to be a crop grown more by commercial, rather than subsistence
farmers and is highly reliant on reasonable levels of rainfall or access to irrigation water
and equipment in order to obtain reasonable yields (relative to sunflower which is more
tolerant of dryconditions).
Consequently access to irrigation is currently considered to be one of the limiting
factors affecting plantings. Prior to the breakdown in the communist regime, there were
estimated to be about 2.5 million hectares of land in Romania that had access to irrigation.
This area of potential irrigated land is now estimated to have fallen to about 0.5
million hectares in 2003 due to breakdowns, dis-repair and failure of some of the irrigation
network.
Figure 1
Soybean areas in Romania 1990-2003 (hectares)

Coupled with years of drought (notably 2000), this has resulted in poor returns
having been obtained on crops planted on land that does not have access to irrigation in
some years and hence contributed to annual fluctuations in plantings (eg, the sharp
decline in plantings and production in 2001 following drought in 2000).
Soybean yields have also varied in recent years. Average yields in 2001 and 2002
were reported to be about 1.6-1.7 tonnes/ha, although in the last five years the average
yield has been within a range of 0.77 tonnes/ha (2000) and 1.92 tonnes/ha in 1997. Where
irrigation is used average yields tend to be in the range of 2 to 3 tonnes/ha.
Herbicide tolerant soybeans (tolerant to the active ingredient glyphosate and in
particular the Monsanto brand of Roundup), is currently the only genetically modified crop
currently being commercially grown in Romania.
Five varieties of soybean containing the trait have been registered for commercial
use, of which four are currently available. Two varieties are from groupzero in terms of
maturity (early maturity) and two are later (group two) maturing varieties.
54
Approval for commercial use in Romania was first given for crops planted in 1999.
In the first year of adoption (1999), the area planted to Roundup Ready soybeans was
about 15,500 (16% ofthe plantings). Since then the area planted to certified seed has
increased to about 35-36,000 hectares. In terms of the share of total soybean plantings the
share of Roundup Ready soybeans increased to about 40% in 2000 and has risen further
to an estimated 48% in 2003.

CONCLUSIONS

Examination of the impact of RR soybeans on the use of herbicides on arable crops
like soybeans in Romania is difficult because of the limited availability of consistent data
on herbicide use and the impact of recent/continued economic transition to a market
economy on the structure and practices in agriculture.
In particular, over the last 12-13 years, there has been limited use of conventional
weed control practices (ie, use of herbicides) because of low levels of profitability,limited
access to financial resources, re-structuring in the input supply and distribution chain and
the break-up of state farms which has resulted in an increase in land being either left idle
or farmed on a subsistence basis. In addition, the area planted to soybeans has fluctuated
significantly over the last five years which means that data relating to areas sprayed and
kilo-grammes of herbicide product used has also varied.
The available information on soybean herbicide use in Romania since 1996 (Table
10) shows few clear trends apart from the increase in the use of
glyphosate from zero use in 1996 to being the main product used on soybean crops in
2002.
Thus, some positive environmental benefit may have accrued through the
displacement of someherbicides that are more persistent and residual in the soil than
glyphosate (see also the comparisons with the impact of using RR soybeans in the USA
and Argentina below.
BIBLIOGRAPHY

1. Graham Brookes (2003) The farm level impact of using Roundup Ready in Romania;
2. BADEA M.E., 2003 Modified plants in culture, Fundation Biotech, Bucharest
3. BADEA M.E.Sandulescu,2003- Biotechnology vegetales, Fundation Biotech, Bucharest;
*** http:/www.bioetica.ro
*** http://www.bioresurse.ro/omg.html
*** http:// www.isaaa.org.
*** http:// www.europa.eu.int//com//agriculture
*** http://www.monsanto.com
*** http://www.ngo.ro/omg/presa.shtml

55
QUALITATIVE CHARACTERISTICS OF THE WINE OBTAINED FROM
WHITE FETEASCA GRAPES VARIETY, DERIVED FROM WINE-
GROWING CENTRE OSTROV, ALONG THREE SUCCESSIVE
CROPS 2004, 2005 AND 2006

PARTICULARITI CALITATIVE ALE VINULUI OBTINUT DIN SOIUL
FETEASCA ALBA, PROVENIT DIN CENTRUL VITICOL OSTROV, PE
PARCURSUL A TREI RECOLTE SUCCESIVE 2004, 2005 SI 2006

CULEA RODICA- ELENA *, TAMBA-BEREHOIU RADIANA*, POPA N.C.**

*University of Agronomic Sciences and Veterinary Medicine of Bucharest
**Center of Microbial Biotechnology BIOTEHGEN - Bucharest

Abstract

There have been analysed the physical and chemical characteristics (d
20
, alcohol % vol., total dry
extract mg/l, free sugar g/l, unreducing extract g/l, total acidity g/l C
4
H
6
O
6
, free SO
2
mg/l, total SO
2
mg/l)
definitive for the wine quality made from the White Feteasca grapesvariety, in three successive years:
2004,2005 and 2006. The climatic peculiarities of the forenamed years, determined the appearance of some
quality statistic differences, as follows: d
20
20

diminished significantly in 2006 comparative to the precedents
years, the quantity of alcohol increased distinctly significant in 2006 comparative to 2004 and 2005, the total
dry extract and unreducing extract diminished distinctly significant in 2005 against 2004, total acidity
diminished very significantly in 2006 against 2004, respective 2005 and the total SO
2
content was
significantly and very significantly lower in 2006 against 2004, respective 2005. There have been observed
no differences between the annual crops, concerning the parameters: free sugar and free SO
2.
Conclusevely,
the wine from 2006 was stronger, more dry and less sulfiteted, comparative with wines from 2004 and 2005.

Key words: White Feteasca, quality, physical and chemical characteristics, statistic differences

INTRODUCTION

The commercial company S.C. OSTROVIT S.A. belongs to the wine-growing centre
Ostrov from Ostrov Vineyard, placed in the region of the Danube Terrace. The type of the
soil from Ostrov Vineyard is the chernozem, with argillaceous sandy fibber, the soils
reaction being alkaline. The temporal character of the precipitations determined the
droughty specific of the zone, affecting the productive potential of the wine grapes
cultivated here. The years 2004 and 2005 were exceptions, because the precipitations
amount was more over the annual average registered so far (the wine obtained having a
less content of sugars and a higher acidity). Instead, 2006 was less rainy.
This study recommends a comparative characterization of the dry wines quality,
obtained from the White Feteasca grapesvariety, made by S.C. OSTROVIT S.A., in the
production years: 2004, 2005 and 2006. The physical and chemical analysis emphasis the
wines peculiayties, in the preceding stage of bottling and commercialization. The White
Feteasca wine is characterized through harmony and complex flavour, having the alcohol
content between 11,0 and 12,6 % and being registered in the category of superior wines
[1,5,6].

MATERIAL AND METHOD

There have been taken for analysis samples of unbottled wine, from the White
Feteasca grapesvariety, three successive years, as follows: 10 repetitions in 2004, 13
repetitions in 2005 and 10 repetitions in 2006. There have been analysed the following
56
quality parameters of the wine: d
20
20

(picnometric method STAS 6182/8-71), alcohol %
vol. (picnometric method STAS 6182/6-70), total dry extract mg/l (densimetric method
STAS 6182/9-80), free sugar g/l (iodometric method STAS 6182/18-81), unreducing
extract g/l, total acidity g/l C
4
H
6
O
6
(titrimetric method STAS 6182/1-79), free SO
2
mg/l
(iodometric method STAS 6182/13-72) and total SO
2
mg/l (iodometric method STAS
6182/13-72) [2,3,4,7]. The obtained results were statistical processed using the
professional program COHORT.

RESULTS AND DISCUSSION

The first table distinguished the quality parameters values of the White Feteasca dry
wine, concerning 2004 year. We also noticed the normal values, of all analysed
parameters, mentioned in the scientific literature.
Table 1
The variability estimates of the physical-chemical parameters,
according to 2004 crop (n =10)

The majority of the values are placed in normal limits. The total dry extract gets a bit
over the limit of 24 g/l, while the free sugar situates to the middlle of the admitted value for
the dry wines, circumstance which determines the slightly increase of the unreducing
extract. The sulphitation degree did not overstep the admitted limits.
There are noticeable, in the second table, the averagesvalues of the wines quality
parameters, obtained from the 2005 year crop.
Table 2
Parameter X s
x

s CV %
d
20
20
(g/ml)

0.994 0.001 1.0442E-06 0.102
Alcohol (vol %) 11.115 0.182 0.033 1.637
Total dry extract (g/l) 22.123 2.244 5.037 10.143
Free sugar (g/l) 2.431 0.844 0.714 34.718
Unreducing extract (g/l) 19.738 1.815 3.294 9.195
Total acidity (g/l C
4
H
6
O
6
) 5.351 0.410 0.168 7.662
Free SO
2
(mg/l) 40.000 0.000 0.000 0.000
Total SO
2
(mg/l) 136.846 17.296 299.141 12.638

In 2005, all the quality parameters showed values situated into admitted limits,
without exceptions. The behavior of the quality parameters of the wine, for 2006, are
presented in the table 3.
Parameter Normal limits X s
x

s CV %
d
20
20
(g/ml) 0.983-1.003 0.994 0.00046 2.1655E-07 0.046
Alcohol (vol %) 10.5-12.5 11.140 0.206 0.042 1.849
Total dry extract (g/l) 18-24 24.340 1.040 1.082 4.274
Free sugar (g/l) Maximum 4 g/l 2.170 0.177 0.031 8.110
Unreducing extract
(g/l)
Dry extract -
Free sugar
22.170 0.980 0.962 4.420
Total acidity
(g/l C
4
H
6
O
6
)
4.5-9 5.846 0.254 0.064 4.000
Free SO
2
(mg/l) Maximum 50 40.000 0.000 0.000 0.000
Total SO
2
(mg/l) Maximum 200 133.000 14.621 213.777 10.933
57

Table 3
Parameter X s
x

s CV %
d
20
20
(g/ml)

0.9930 0.001 1.384E-06 0.110
Alcohol (vol %) 11.910 0.536 0.288 4.500
Total dry extract (g/l) 22.841 2.348 5.514 10.279
Free sugar (g/l) 1.880 0.907 0.823 48.244
Unreducing extract (g/l) 20.150 3.299 10.887 16.372
Total acidity (g/l C
4
H
6
O
6
) 5.319 0.202 0.041 3.797
Free SO
2
(mg/l) 35.700 6.848 46.900 19.182
Total SO
2
(mg/l) 115.700 14.221 202.233 12.290

All the quality parameters values were situated in normal limits, which have been
described in scientific literature, however we noticed a notable diminution of the free sugar
content, probably due to prolongation of the fermentation and transformation of the sugar
in alcohol. Otherwise, the wine obtained in 2006 is stronger (alcohol vol % ) than the wine
obtained from the crops of the 2004 and 2005 years.
The meaning of averages differences (test t) emphasis the impact of the climatic
factors from successive years (2004, 2005, 2006), over the quality of the dry wine White
Feteasca (table 4).
Table 4
The meaning of averages differences (t test) for all the
quality parameters, between the annual crops
Parameter Pears Average (a) Average (b) t
2004 (a) 2005 (b) 0.9940 0.9940 0.000
2004 (a) 2006 (b) 0.9940 0.9930 2.886* d
20
20
(g/ml)
2005 (a) 2006 (b) 0.9940 0.9930 2.377*
2004 (a) 2005 (b) 11.140 11.115 0.309
2004 (a) 2006 (b) 11.140 11.910 4.238**
Alcohol (vol %)
2005 (a) 2006 (b) 11.115 11.910 4.491**
2004 (a) 2005 (b) 24.340 22.123 3.149**
2004 (a) 2006 (b) 24.340 22.841 1.846
Total dry extract
(g/l)
2005 (a) 2006 (b) 22.123 22.841 0.745
2004 (a) 2005 (b) 2.170 2.431 1.083
2004 (a) 2006 (b) 2.170 1.880 0.992
Free sugar (g/l)
2005 (a) 2006 (b) 2.431 1.880 1.501
2004 (a) 2005 (b) 22.170 19.738 3.817**
2004 (a) 2006 (b) 22.170 20.150 1.855
Unreducing extract
(g/l)
2005 (a) 2006 (b) 19.738 20.150 0.382
2004 (a) 2005 (b) 5.846 5.351 3.349**
2004 (a) 2006 (b) 5.846 5.319 5.143***
Total acidity (g/l
C
4
H
6
O
6
)
2005 (a) 2006 (b) 5.351 5.319 0.245
2004 (a) 2005 (b) 40.000 40.000 0.000
2004 (a) 2006 (b) 40.000 35.700 1.698
Free SO
2
(mg/l)
2005 (a) 2006 (b) 40.000 35.700 1.698
2004 (a) 2005 (b) 133.000 136.846 0.564
2004 (a) 2006 (b) 133.000 115.700 2.682*
Total SO
2
(mg/l)
2005 (a) 2006 (b) 136.846 115.700 3.132***

58
The density of the wine (figure 1) was meaningful smaller in 2006 against 2004
(2.886*) and 2005 (2.377*).

0.994 0.994
0.993
0.9924
0.9926
0.9928
0.993
0.9932
0.9934
0.9936
0.9938
0.994
D
e
n
s
i
t
y

(
m
g
/
m
l
)
2004 2005 2006

Figure 1. The meaning of averages differences (t test)
for wines density d
20
20

The percent of alcohol (in vol %) was distinctly meaningful increased in 2006,
comparative to 2004 (4.238**) and 2005 (4.491**). However, the content in free sugar did
not differ meaningful between the three studied crops, being even little reduced in 2006,
but probable fermented a pretty long while (figure 2).

11.91
11.14 11.115
10.6
10.8
11
11.2
11.4
11.6
11.8
12
2004 2005 2006
A
l
c
o
h
o
l

(
v
o
l

%
)

for wines content in alcohol

The unreducing extract (figure 3) was distinctly meaningful increased in 2004
comparative to 2005 (3.817**), which explains the distinctly meaningful increase of the
total dry extract in 2004 against 2005 (3.149**).
0
5
10
15
20
25
30
Unreducing
sugar (g/l)
Total dry
extract (g/l)
2004
2005
2006

for wines unreducing extract and total dry extract

59
The total acidity (figure 4) was distinctly meaningful increased in 2004 comparative to
2005 (3.349**) and very meaningful increased in 2004 against the crop 2006 (5.143***).
The wine of the crop 2004 was a dry wine and sourish at the same time. The acidity did
not differ meaningful between the wine of the crops 2005 and 2006.

5.846
5.351
5.319
5
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
T
o
t
a
l

a
c
i
d
i
t
y

(
g
/
l

C
4
H
6
O
6
)
2004 2005 2006

for wines total acidity

The quantity of free SO
2
(figure 5) did not present meaningful differences between
the samples of wine derived from the three forenamed years. On the other hand, the
quantity of total SO
2
was distinctly meaningful increased in 2004 comparative to 2006
(2.682*) and very meaningful increased in 2004 comparative to 2006 (3.132***). The
explanation dues to the abundant sulphitation of wine, coming from 2004 and 2005 (rainy
years), with the intention of breaking the intense growth of the mouldes developed in the
ingatherings crop period.

133
136.846
115.7
105
110
115
120
125
130
135
140
T
o
t
a
l

S
O
2

(
m
g
/
l
)
2004 2005 2006

for wines total SO
2

CONCLUSIONS

The tehnological processes of wine preparation were guided so that, no matter the
processing year, all the parameters were framed between the limits established by the
quality standards.
The wine of the year 2004 was the most acid, having in consequence a pronounced
sourish taste and an enough increased total dry extract (a little more above the superior
limit of the range).

60
The wine of the year 2005 had the most sweet taste, comparative to the wines from
2004 and 2006 (yet ranging among the category dry wine), the other parameters having
intermediary values compared to 2004 and 2005.
The wine of the year 2006 was the strongest (content in alcohol) and the most dry (small
content of sugar).
The total sulphitation, having increased values in the rainy years (2004 and 2005), did
not affect the dry wines quality, but maintained in optimum limits the fermentation floras
concentration.
The commercial company S.C. OSTROVIT S.A. produces dry wines of superior
quality, due to the systematic control over the production tehnological proceedings. In this
sense, the climatic differences, to which the crops coming from forenamed years had been
submitted, did not introduce fundamental changes in the wines quality, even if they
manifest peculiar to the level of the certain physical-chemical parameters.

BIBLIOGRAPHY

1. ALVAREZ, I., ALEIXANDRE, J.,L., GARCA

,M., CASP, A., ZNICA
,
L. 2003, Geographical
differentiation of white wines from three subzones of the designation of origin Valencia, European Food
Research and Technology, Vol. 217, nr.2, pg. 173-179.
2. COTEA, V., 2005, Modernizarea laboratorului de enologie prin completarea bazei materiale de cercetare
n vederea asigurrii performanei la nivelul standardelor internaionale Raport de cercetare, Revista de
Politica tiinei i Scientometrie.
3. DIAZ ROMERO C.

, TORT S.

, DIAZ, E.

, PEREZ-TRUJILLO, J. P., 2003, Chemical characterization of
bottled sweet wines from the Canary Islands (Spain), Acta Alimentara, Vol. 32, nr. 3, pg.247-256.
4. DOUGLAS, D., CLIFF, M., REYNOLDS, A., 2001, Characterization of Riesling wines from the Niagara
Peninsula, Journal Food research international, Vol.34, nr.7, pg. 559-563.
5. POMOHACI, N.,NMOLOANU, I., NMOLOANU, A., 2000, Producerea i ngrijirea vinurilor, Editura
Ceres, Bucureti, pg. 27-31.
6. POMOHACI, N., SRGHI,C.., STOIAN, V., COTEA, V.,NMOLOANU, I., 2000, Oenologie, Editura
Ceres, Bucureti, pg 132.
7. **** Culegere de Standarde Romne comentate / Metode de analiz, I.R.S. Institutul Romn de
standardizare, Bucureti, 1997.

61
INFORMATIC SYSTEM DESIGNED FOR AGRICULTURAL FARMS
(S.I.F.A.)

SISTEM INFORMATIC DESTINAT FERMELOR AGRICOLE (S.I.F.A.)

DINU T.*, SIMION P.L.**

* University of Agricultural Sciences and Veterinary Medicine Bucharest
** Institute of Research in Agrarian Economics and Rural Development

Abstarct

SIFA program is an informatic system realized to be used in analyzing the productive activities
from the Romanian farms, based on physicals and economical indicators which, parallel with other
bookkeeping programs, allows the farmer to keep track of the expenses and the incomes and, through
out his results it is possible to realize an efficient and accurate production plan.
This program was realized as part of the CEEX project, and was called Informatic system
destined to an economical and financial analyze of the economical performances of the agricultural farms
and to use efficiently the production elements . His purpose is to stimulate farmers in using the IT
applications at the level of farms, for evaluating the production activities.

The SIFA program was realized in order to permit the analyze of farm activity, by
identification and generation of the following categories:
- Fixed and variable expenses
- Production costs
- Profit rate per product/products etc.
All these are realized with the purpose of administration of a very high volume of
dates on a long period of time, in order to obtain reports and situations.
The start page is called Identification dates and here the farmer can write: name,
address and telephone number, but also some other characteristics, like farm type and
profile (figure 1).
Figure 1

In the next step the farmer can choose between one of the modules: production
projection, production realization and generation of comparative reports between
estimated and realized production (figure 2).
Figure 2

62

By first module selection, the windows that its opened will give the farmer the
possibility to insert the next variables: owned and rented surface and crop/crops selection
with afferent surface for each (figure 3).
Figure 3

The next step will be the crop sheet completion. This window its splited in some
sections like: tariffs (mechanical and manual work, etc.); materials prices (here the farmer
has the possibility to update the materials prices); the prices for principal and secondary
production and subsidies; provide expenses; labor expenses; other expenses categories
(figure 4).

63
Figure 4

From this window, the farmer has the possibility to generate the production
technology and incomes and expenses budget.
The second module of the program is production realization. In this module the user
will pass to the real dates input.
In this way, in the sheets window will appear more variables, like: balance
identification, production structure and three others buttons, each one of them linked to:
Figura 5

F1 Incomes and expenses collecting sheet. Here, the farmer will insert the incomes
and payments with some identification attributes, like: date, number, name, quantity, price,
total value etc (figure 6).
64
Figure 6

F2 - Incomes and expenses administration sheet. In this window, the farmer will have
the possibility to view the inserted receipts with all the afferent attributes, the quantity
balance and to erase or add others receipts or bills, with the assessment of these for one
or more crops (figure 7).
Figure 7

F3 Reports generation. In this sheet the program will generate:
- General reports cash report
- Specific consumption reports: expenses with fuels and agricultural
equipments, chemical and organic fertilizer expenses, other materials etc.
- Complex reports for each crop: production technology and crop budget.
65
Also, the farmer can choose the time period for these reports (figure 8).
Figure 8

CONCLUSIONS

In the final, we must underline some conclusions, like:
- The informatic system its structured in two modules: estimation and realization,
with the two profiles: crop and animal.
- For the realization of estimation module, we used the crop technologies and
incomes and expenses budgets, as base elements for administration and evidence for all
the technico-economic elements meet in the farm activity. For crop profile has been
created 120 technologies and for animal 54 technologies, for 27 crops and 24 animal
species.
- the estimation module allow the projection of crop production for one year and for
the animal production can be choose the months necessary for projection.
- In order to establish the way that the production was accomplished, there has
been selected a series of expenses categories correlated with the structure of the income-
expenses budget and of the technologies, respecting also the bookkeeping typology.
- Every created module vegetal/animal, projecting/realization, was created
separately and its necessitating into the next level separate testing before the program is
being validated, because of the problems that can appear like: there is no in order to
establish the way that the production was accomplished, there has been selected a series
of expenses categories bookkeeping on farm level that can allow the use of the program,
more categories of expenses in farm, product, animal level that the one proposed, the
need to detail more some categories of expenses etc.

66
BIBLIOGRAFY

1. BDU MIRCEA Informatica pentru manageri ,Editura Teora, Bucureti,1999.
2. BENCHIMOL G.,LEVINE P.,POMEROL J.Ch.-Sisteme expert n ntreprindere ,Editura
tehnic,Bucureti,1993.
3. CRECAN CORNEL Rentabilitatea ntreprinderilor mici i mijlocii, Editura Economic, Bucureti, 2000.
4. COJOCARU C.CONSTANTIN Analiza economico financiar a exploataiilor agricole i silvice, ediia a
II-a,Editura Economic, Bucureti,2000.
5. IACOB,C., Sistemul informaional contabil la nivelul firmei,Editura Tribuna Economic, Bucureti,2000
6. LUNGU ION .a. Sisteme informatice.Analiz,proiectare i implementare, Editura Economic, Bucureti,
2003.

67
CHELTUIELILE PENTRU PROTECIA MEDIULUI N SISTEMUL
MACROTERITORIAL DIN ROMNIA

ENVIRONMENT PROTECTION EXPENDITURES IN THE
MACROTERRITORIAL SYSTEM IN ROMANIA

DRAGHICI M.

University of Agronomic Sciences and Veterinary Medicine Bucharest

Abstract

Environment protection expenditures represent an economic measure of the efforts made by society
in order to respond to the problems generated by the state of the environment and which refer to the
following activities: the protection of air quality an climate, the protection of water quality, waste
management, soil and subterranean water protection, the reduction in noise and vibrations, the protection of
natural resources and the conservation of biodiversity, the protection against radiations, research and
development, the general management of the environment, education, training, information, other specific
activities. It is necessary to know the National Strategies, the national, regional and local plans, and other
operative types of action in the field of environment protection. The elaboration and update thereof can
provide a coherent vision on the environment policy in Romania and on the way in which it can be reflected
in practice.

Key words: expenditures, environment protection, biodiversity, conservation, policy

INTRODUCTION

For a long period of time, the threats to environment quality have been perceived as
an unreasonable concern, which, at present constitutes one of the most urgent global
problems of mankind. This is so because it is no longer only about preserving the natural
environment, but the very survival of mankind is questioned.

MATERIAL AND METHOD

1- ENVIRONMENT PROTECTION EXPENDITURES AND SPECIFIC
INVESTIGATION METHODOLOGIES
Public environment protection expenditures reflect the ecological policy of the state,
and for this it is necessary to maintain the ecological parameters in the context of the
negative effects which the economic development might have on the environment. For the
years 2005 and 2006 we researched the level of these expenditures in the structure of the
development regions in Romania. We took into account specific indicators which
emphasise general problems, but also analytic-structural ones regarding both the business
and the investments.
Environment protection expenditures represent an economic measure of the
efforts made by society in order to respond to the problems generated by the state of the
environment and which refer to the following activities: the protection of air quality an
climate, the protection of water quality, waste management, soil and subterranean water
protection, the reduction in noise and vibrations, the protection of natural resources and
the conservation of biodiversity, the protection against radiations, research and
development, the general management of the environment, education, training,
information, other specific activities.
The total environment protection expenditures at national level (CTPM), which
are determined by adding the following elements:
68
- total investments (TI) which include the investments made by the unspecialised
manufacturers in industrial activities, the specialised manufacturers and those made by the
local public administration;
- total current internal expenditures (TCIE) obtained by adding current internal expenditures
incurred by the unspecialised manufacturers, the specialised manufacturers and those
made by the local public administration.
The environment costs represent the costs related to the actual or potential
degradation of the natural assets due to economic activities. In order to be able to
determine the effectiveness of the agricultural activity the environment costs must be
calculated and incurred by certain economic agents or even by farmers if they contribute
directly to polluting the environment. In order to emphasise as real a profit as possible, the
sustainable agricultural business must quantify all the costs, including the ecological ones.
The operation expenditures include those expenditures which belong to
sustainability issues such as:
1. Sustainability or conservation expenditures. They appear if the owners want to
preserve their highly degraded lands, because the operation cost is too high, and on the
long term it is even higher, then, in a direct way, the owner will incur the expenditures and
so will do the buyer, indirectly, because this environment cost can be introduced in the
price.
2. The expenditures on neutralising the polluting action of various factors of
production reflects the material, human and financial effort related to the operation of
polluting residue purification stations, especially the refuse resulting from raising livestock.
These expenditures include the costs for transporting and storing the residues. These
costs will be borne by the agricultural producer.
3. The expenditures on neutralising the polluting action of various industrial
activities. These expenditures are necessary for the introduction of agricultural land into
the agricultural circuit. These will be borne entirely by the polluting economic agent
according to the principle the polluting agent pays.
4. The expenditures related to measuring and controlling the level of pollution in the
area. Usually, these expenditures are high because costly equipment and last but not least
consultancy are necessary. These expenditures should be borne both by the producer and
by the state (through subsidies).
5. The expenditures regarding the fees for exceeding the permitted pollution level.
These will obligatorily be introduced and borne entirely by the polluting agent, respectively
the agricultural producer and will be controlled so as not to be introduced in the production
cost, so they will not be reflected in the price.
6. The expenditures on investigations regarding the agricultural products degree of
toxicity for peoples health. These expenditures are obligatory and they are borne both by
the producer and by the state through the Consumers Protection Bodies.
7. The expenditures on health if because of the agricultural business peoples
health was affected. The expenditures related to health will be borne directly by the
agricultural producer (the polluting agent), but also under the form of fines which will be
directed to a joint account for public health. There also must be a rigorous control for these
expenditures not to be introduced in the production cost and be borne by the buyers.
The current operation expenditures include factors such as: total environment
expenditures, environment investments, the expenditures distribution, etc.
For this reason, in financing these actions, the principle the polluting agent pays
takes precedence. The financial sources for such expenses are: funds resulting from /
spent by the economic agents (penalties for damages to the environment, investments in
protecting the environment / fighting pollution, taxes / duties / fees for the consumption of
environment factors), budget funds, special funds for the protection of the
environment/fighting pollution, credits/support from international bodies.
69

2 - THE STRUCTURE OF THE ENVIRONMENT PROTECTION EXPENDITURES IN THE
REGIONS IN ROMANIA
The level of expenditure categories, investments and current ones, analysed for the
years 2005 and 2006 emphasise structural elements which are differentiated at national
and regional level. In Table 1 these indicators are presented and according to them we
can deduce the following:
The structure of the main environment protection expenditures according to
development regions in Romania (%/thousand lei)
- the total environment protection expenditures at national level for the year 2006 is
increasing by 54.16% as compared to 2005 (if in 2005 the amount of total expenditures
was of 6.315.660 thousand lei, in 2006 the level of the same expenditures was of
9.736.713 thousand lei);
Table 1
The structure of the main environment protection expenditures according to
development regions in Romania
Of which:
Territorial structure

Total
expenditures
Total
investments
Total current
expenditures
Other
expenditures
(subsidies
granted)
YEAR 2005
Country total, d.c.: 6.315.660 1.557.602 4.700.460 57.398
North-East 5.23 6.14 4,98 1,43
South-East 22.01 16.25 24,17 1,07
South-Muntenia 12.33 10.20 13,18 0,04
South-West
Oltenia
9.46 7.47 10,23 0,26
West 4.70 5.87 4,38 0,02
North-East 8.03 8.00 7,83 24,96
Centre 12.08 14.57 11,39 0,45
Bucharest-Ilfov 26.16 31.50 23,84 71,77
YEAR 2006
Country total, d.c.: 9.736.713 2.370.262 7.249.241 116.810
North-East 7.58 8.37 7,43 0,9
South-East 20.15 12.31 22,99 2,77
South-Muntenia 8.81 9.76 8,63 0,36
South-West
Oltenia
13.27 10.74 14,30 0,41
West 5.23 5.50 5,20 1,99
North-East 8.45 13.75 6,84 0,89
Centre 9.02 10.43 8,70 0,63
Bucharest-Ilfov 27.49 29.14 25,91 92,06
Source: Our own data processing from Environment protection expenditures in 2005,
2006, NIS, Statistical Information, 2006, 2007
- in the structure of the same total expenditures the total current expenditures are
dominant. The ratio of these current expenditures in the total expenditures is of 74.42% in
2005 and 74.45% in 2006. The difference from the total expenditures, which represent
other expenditures, are represented by amounts allocated by the public administration,
subsidies, etc., these accounting for a level of about 26.6%;
70
- in the structure of the development regions we notice a delimitation of the regions
regarding the total amounts allocated. In 2005 the North-East, South-Muntenia, Centre
and Bucharest-Ilfov regions record the highest levels of environment protection
expenditures, respectively between 12.08% and 26.16%. For the same year, the other
development regions are placed between 4.70% and 9.46%. In 2006, there appear
changes in the sense that the regions with maximum levels are the North-East, South-East
and Bucharest-Ilfov ones;
- the total investments and current expenditures record maximum levels in the same
regions nominated for the total amounts.
The environment protection expenditures in 2005 represented about 2% of the
gross domestic product. Regarding the local public administration sector, the investments
represented about 41% of the total expenditures, recorded mainly within the waste
management and disposal activities.
Within the investigations into this problem at micro-territorial level, this paper
analysed these expenditures in the structure for each region. In Table 2 these levels are
presented in relative figures resulting in the following:
Table 2
The environment protection expenditures in the territorial structure of the
development regions in Romania
Of which: Territorial
structure
Total
expenditur
es
Total
investmen
ts
Current
expenditur
es
Internal
current
expenditur
es
External
current
expenditur
es
Other
expenditur
es
(subsidies
granted)
YEAR 2005
Country
total,
d.c.:
6.316.360 24.66 74.43 (37.93) (36.50) 0.91
North-
East
130.423 28.94 70.81 (37.17) (33.64) 0.25
South-
East
1.389.847 18.22 81.74 (40.20) (51.54) 0.04
South-
Muntenia
778.633 20.41 79.58 (41.12) (38.36) 0.01
South-
West
Oltenia
597.557 19.48 80.49 (38.37) (42.12) 0.03
West 297.185 30.73 69.26 (32.21) (37.05) 0.01
North-
East
506.904 24.58 72.59 (38.86) (33.73) 2.83
Centre 762.781 29.76 70.21 (38.31) 31.90) 0.03
Buchares
t-Ilfov
1.652.130 29.69 67.81 (35.00) (32.81) 2.49
YEAR 2006
Country
total,
d.c.:
9.737.013 24..34 74.46 (36.03) (38.43) 1.20
North-
East
737.858 26.89 76.97 (38.78) (34.19) 0.14
South-
East
1.961.414 14.88 84.95 (41.98) (42.97) 0.17
71
South-
Muntenia
857.554 26.99 72.96 (38.47) (34.49) 0.05
South-
West
Oltenia
1.291.934 19.70 80.26 (42.36) (37.90) 0.04
West 509.210 25.59 73.95 (37.61) (36.34) 0.46
North-
East
822.643 39.61 60.26 (32.13) (28.13) 0.13
Centre 878.916 28.12 71.79 (38.63) 33.16) 0.09
Buchares
t-Ilfov
2.676.784 25.80 70.18 (24.37) (45.81) 4.02
Source: Our own data processing from Environment protection expenditures in 2005,
2006, NIS, Statistical Information, 2006,2007
- the 8 regions the investments maintain levels between 18.22% and 29.69% in
2005 and between 4.88% and 39.61% in 2006;
- in the case of the current expenditures, even if the differentiations in terms of the
total vary, they are above 60%. The structure of these expenditures as internal and
external is differentiated, though. In the two years, the internal expenditures are dominant
in regions such as the North-East, South-Muntenia, North-East, Centre and Bucharest-
Ilfov ones, but at the same time in the other regions the ratio is smaller;
- other expenditures granted by the public administration and through subsidies are
significant only in certain regions such as the North-East and Bucharest-Ilfov ones (the
ratios in the total ranging from 2.49% to 4.02%).
At the level of the categories of producers of services for the protection of the
environment we can identify the expenditures for specialised and unspecialised producers
for the environment protection the ratio belonging to the unspecialised ones. The
specialised producers represent those companies that have as main concern the
environment protection activity, and the unspecialised ones are those companies that
mainly deal with other activities that those directed to protecting the environment, but have
in the background activities related to protecting the environment. The local public
administration sector includes all the public administration units whose competences
regard only the administrative-territorial form for which they were created.
A problem that is always discussed in the structure of the protection
expenditures is the economic-financial instrument represented by the environment fund.
Specific and typical of the transition period, its role is to reconstruct the environment
degrade by the irrational use in the communist period and by the partial exemption of the
economic development from the high costs of recovering the natural capital. The
environment fund the body that has to finance these investments so that at national level
we can follow the sustainable development rhythms and initiate the creation of a new
model of economy, the ecological one. In 2006 8 projects were financed from the
environment fund and their objective was to inform and educate the public about the need
for the importance of the environment
1
. The results obtained illustrated the awareness of
the young generation related to the importance of preserving the natural values.

CONCLUSIONS

We can identify ideas regarding the main coordinates of the forms and structures of
the environment protection expenditures.
- the environment protection expenditure growth rhythms record significant annual
growths at national level. In the structure of these expenditures the highest ratio is

1
Environment protection expenditures, Internet.
72
allocated to current expenditures. The difference from the total expenditures, which
represent Other expenditures, is represented by the amounts granted by the public
administration, subsidies, etc., these delimiting an inferior level to the investment and
current ones.
- in the development regions structure we notice a delimitation of the regions
regarding the amount allocated to the environment protection expenditures. In 2005 the
North-East, South-Muntenia, Centre and Bucharest-Ilfov regions record the highest levels
of environment protection expenditures (between 12.08% and 26.16%), for which in 2006
there appear changes in the sense that the regions with the maximum levels are North-
East, South-East and Bucharest-Ilfov
- the total investments and current expenditures record maximum levels in the same
regions nominated for the total amounts.
- the environment protection expenditures in 2005 represented about 2% of the
gross domestic product. Regarding the local public administration sector, the investments
represented about 41% of the total expenditures, recorded mainly within the waste
management and disposal activities.
- stimulating the interest of the local authorities, economic operators, NGOs and
educational institutes in elaborating environment priority projects, by accessing the funds
from the Environment Fund;
- the need to know the National strategies, national, regional and local plans, the
operative forms of action in the field of Environment protection from an applied point of
view as well. The elaboration or update thereof can provide a coherent vision on the
environment policy in Romania and on the way in which it can be put into practice.

BIBLIOGRAPHY

* Report on the state of the environment. Administration policy, Internet.
** Environment protection expenditures, Internet.
*** Environment protection expenditures in 2005, 2006, NIS, Statistical information, 2006, 2007.

73
DIMENSIUNEA EXPLOATAIILOR AGRICOLE I NECESITATEA
DIVERSIFICRII ACTIVITILOR ACESTORA

THE SIZE OF AGRICULTURAL BUSINESSES AND THE NEED TO
DIVERSIFY THEIR ACTIVITIES

Drghici M., Mara F.

University of Agricultural Sciences and Veterinary Medicine Bucharest

Abstract

The analysis of quantifying the forms of diversifying the activities at local level is made, according to
the European Union methodology, using the percentage of main, secondary and complementary activities
within the standard gross margin (SGM). The structural diversification of the business through horizontal
diversification is analyzed, which consists in amplifying the production and processing/consumption area
without introducing essential changes into the functionality of the production processes; through vertical
diversification, which is made by means of introducing new production systems downstream and upstream
the agricultural production process and through collateral diversification, which implies adopting certain new
activities, respectively by including in the production process certain raw materials considered secondary in
other sectors.

Key words: agricultural business, standard gross margin, agricultural production, diversification:

INTRODUCTION

The analysis of quantifying the current forms of diversifying the activities at territorial
level requires knowledge not only of the general economic situation, but also of the
territorial disparities of the quantitative structural activities. For this reason, in this paper we
tried to determine and know the forms of differences complementarity for the main
economic resources at territorial level compared to the national set.

MATERIAL AND METHOD

1.- CHARACTERISTICS REGARDING THE AGRICULTURAL ACTIVITIES
DIVERSIFICATION UNDE THE CONDITIONS OF ECONOMIC GLOBALISATION
In the structure of using agricultural lands and raising livestock, we notice that
these are basic a=elements in defining the rural primary economic potential, but it is
necessary to take into account the secondary and complementary activities as well. The
way of correlating the territorial disparities of the three categories of rural production
activities, namely main, secondary and complementary, define the territorial profile, based
on which we can make an analysis of diversification. Through the variations of the
territorial development levels, they fall into the specificity of regional types, which are the
result of a diversification impact.
The current types of agricultural business are analysed through specific structure
methodologies and start from knowing the area and/or the region in which the agricultural
business is located, the dominant type of relief and the homogeneity of the terrain in terms
of the physical-environmental variables and the production potential, the ownership over
the land and the other means it uses, etc., and it is continued with an increase in the
analysis by synthesising certain elements which regard successively the typological
structure given in the destination of agricultural products, all these being included in the
74
subsistence forms and the technico-economic profile. The specialised literature
2
indicates
a structure of the agricultural businesses in Romania, according to a community
methodology, for the technico-economic profile. It is based on structuring the businesses
according to the domain profile, vegetal crops, animal species and non-agricultural
activities, all these being based on the European size unit (ESU).
As working tools, in this paper we used the indicators often used in economics
together with specific methodologies to quantify the influence factors (elasticity
coefficients).
This was the reason for which it was necessary to know analytically the degree of
complexity of the agricultural business functionality under the market conditions.


2.- THE FUNCTIONALITY AND SIZE STRUCTURE OF THE AGRICULTURAL
BUSINESSE IN ROMANIA
The number of businesses and the covered area were regarded firstly in terms of
their commercial functionality. In Table 1, in a synthetic form, the destination of agricultural
products is presented in the structure of the business types. We can emphasise the
following aspects:
Table 1
Agricultural businesses and their area according to the destination of the
agricultural products obtained in Romania
Own consumption larger
than 50 %
Direct sales larger than 50
%
Legal status of the business
No.ha % No.ha %
Agricultural businesses (number)
TOTAL, d.c. 3.448.590 100,00 703.442 100,00
- individual agricultural
businesses
3.444.757 99,9 693.917 98,6
- legal entities 3.833 0,1 9.525 1,4
Total area (hectares)
TOTAL, d.c. 7.133.535,23 100,00 6.380.699,55 100,00
businesses
6.454.003,68 90,5 3.127.807,21 49,0
- legal entities 679.531,55 9,5 3.252.892,34 51,0
Used agricultural area (hectares)
TOTAL, d.c. 6.391.713,25 100,0 5.892.133,14 100,0
businesses
5.835.565,15 91,3 2.964.101,12 50,3
- legal entities 556.148,10 8,7 2.928.032,02 49,7
Source: Our own data processing from the Structural Survey in Agriculture 2005, INS,
2006
- of the total number of agricultural businesses, here 99.9% are the individual ones, and
the majority thereof record own consumptions larger than 50%;
- the same indicators reported to the total area emphasise similar trends, in the sense that
direct sales with levels over 50% are those where the total area is larger;
- by determining the consumptions as compared to the used area, with reference to all the
types of individual businesses, the structural determinations indicate that direct sales are
larger than 50% for large areas;

2
Structure des exploitations agricoles, Roumanie 2002, Statistique en bref, Eurostat, Internet:
www.europa.eu.int/comm/eurostat/
75
- for all the situations most legal entities record mostly direct sales in more than 50% of the
production.
Table 2
Elasticity manifest in the production agricultural GDP (x) through total GDP (y) in
Romania
The influence of the total agricultural
production (x) on the total GDP (y)
The influence of the agricultural GDP
(x) on the total GDP (y) Years
E E E E E E
1991 0 0 1,00 0 0 2,56
1992 0,96 0,96 1,00 -4,39 -4,39 1,58
1993 0,91 0,92 1,00 2700,0 3,53 2,55
1994 1,02 1,18 1,01 350,74 25,42 2,78
1995 1,04 1,06 1,01 218,83 5,71 3,22
1996 1,03 0,98 1,02 335,55 -838,40 3,17
1997 1,09 1,10 1,04 607,68 35,26 3,26
1998 1,30 1,95 1,03 1243,33 -10,99 2,76
1999 1,46 1,52 1,01 -4286,99 -2,70 1,83
2000 1,70 1,79 0,94 -6165,97 -306,00 1,58
2001 1,42 0,61 1,05 1988,65 1,31 2,31
2002 1,63 2,21 0,80 4080,96 -3,84 1,34
2003 1,66 1,08 0,73 3162,47 3,08 0,91
2004 1,51 0,66 0 1751,49 0,89 0
2005 2,10 -1,04 -1,04 1751,49 -1,89 -1,89
2006 2,22 1,69 -4,03 .. ..
lack of data
*) the year 2004 recorded the highest value of the Agricultural production and agricultural
GDP (it was taken as a reference under the E form)
Agricultural GDP expressed in ECU/EURO
Our own data processing from the database in the Statistical Yearbook of Romania, 2002-
2007, INS
Table 3
Elasticity manifest by the agricultural GDP (x) on the agricultural GDP reported to a
person employed in the rural environment (x) in Romania
The influence of the agricultural GDP (x) on the agricultural GDP
reported for a person employed in the rural environment (y) Years
E E E
1997 0 0 1,66
1998 0,81 0,81 1,55
1999 1,00 1,04 1,34
2000 1,03 6,30 1,34
2001 0,98 1,03 1,85
2002 -12,87 -1,71 1,20
2003 4,26 1,16 1,24
2004 2,21 1,33 0
*) the year 2004 recorded the highest value of the Agricultural production and agricultural
GDP (it was taken as a reference under the E form)
Our own data processing form the database in the Statistical Yearbook of Romania, 2002-
2007, INS
From this there appeared the need to continue the analysis in terms of the structure
of the agricultural businesses which are based on the subsistence levels, at the same time
with the number, area and average size of the business. In table 2 the structure of the
76
businesses is presented, together with the agricultural land used and the average size
thereof, from which we can deduce the following:
- the subsistence businesses, amounting to 3.4 million, represent 76.3% of the number of
agricultural businesses. The agricultural area used in these types of subsistence
businesses is of 28.8% of the total agricultural areas used, and the average size of a
business is of only 1.17 ha;
- the businesses included in the semi-subsistence category are represented by a number
of 974484, representing 21.1% of the total. The used agricultural area is of 22.4% of the
total, and the average size of this business is of 3.30 ha;
- the commercial agricultural businesses which represent only 2.0% of the total number,
respectively a number of 92648. This type of business uses only 4.1% of the agricultural
area, and the average size is of 6.17 ha;
- the agricultural joint stock companies represent the smallest number, of 22672, which is
0.5% of the total number of agricultural businesses in Romania. What is significant is the
fact that the ratio of used agricultural area is of 44.7% of the total, and the average size of
this type of business is of 274.0 ha.
From the elements of the structure of the analysed business types it results that
there is a need to know the changes that took place in Romanias agriculture in the interval
1990-2003. Reference is made to the progress to private ownership of more than 96% of
the agricultural land, which led to the creation of small and medium-sized farms. Thus, the
main type of business uses, on average, 1.8 hectares of agricultural land, which
represents 53% of the total agricultural area used. The large businesses have on average
282 hectares, which represents 43% of the agricultural surface. Of the total number of
4.462.221 individual businesses with an area of agricultural land of 7.71 ha, 52.4% have
an area smaller than 1 ha and 42.1% have agricultural land between1-5 ha, representing
the subsistence and semi-subsistence farms
3
. The still very small number of associative
types is to be noted: only 7.02% of the total agricultural area, as well as the associative
forms for marketing agricultural products, where the groups of producers
4
can be included.
But at this stage, sustainable rural development becomes a vector of the
desirable social objectives through elements such as those of equitable increase and
distribution of incomes though a rational production structure. Only in this way can we
ensure an economic efficiency and competitiveness of the agricultural business at micro-
territorial level, and at macro-territorial level a consolidation of the rural space as economic
location.
The permanent knowledge and implementation of the technico-economic strategy
includes and brings into discussion the economic sizes of operative actions, problems
which are related to the production structures of the agricultural business.
- the annual crops are dominant in the businesses included in the size classes
between 4 ESU to over 100 ESU. The number of businesses that cultivate cereals, oil
plants and vegetables is dominant, between 42.0% and 52.8%, in the size classes over 40
ESU;
- horticultural crops are dominant in the businesses over 2 ESU;
- policulture is signalled as a dominant form for the size classes 0-8 ESU. In these size
classes the agricultural business quantum, given in relative figures, is between 21.4% and
34.9%.
In the current economic context, the technico-economic unction analysed through
production, consumption, investments and economy is characterised by disfunctionality.

3
SOURCE:, NIS, The General Agricultural Census 2002, national level, cited in the National Strategic Plan for Rural
Development, 2007-2013, Government of Romania, MPADR, Internet, PSN_octombrie_2006_ro.pdf
4
NIS, The General Agricultural Census 2002, national level, cited in the National Strategic Plan, 2007-2013INS,
June 2006, Internet PLANUL_ NATIONAL- STRATEGIC.pdf.
77
This is why at this stage and especially in the future it is necessary, in the Romania areas
as well, to adopt the technical, economic and financial parameters which must e a
reference basis for the perspectives of diversifying the activities in each area.
3.- INTERCONDITIONING THE AGRICULTURAL PODUCTION AND THE GROSS
DOMESTIC PRODUCT
The synthesis of the problems that are analysed requires knowledge of the set of
diversification forms of husbandry activities. Reference can be made to identifying it in the
entire Romanian agricultural are, for the production capacity and in the context of the
economy of obtaining products/services and the profitability of the peasant husbandry in
which the activities are integrated. Related to his there appears the function of husbandry
consumption which, when correlated with the level of incomes, identifies reference to:
orientation of the products obtained in the domestic production, the excessive delimitation
of husbandry expenditures on food and house maintenance etc.
A three-fold problem still appears about the evolution of the agricultural GDP,
namely: the influence of the total agricultural production on the GDP at national level; the
influence of the agricultural GDP on the total GDP, the influence of the agricultural GDP on
rural demographics. Through adequate forms of elasticity for the dynamics of the interval
1991-2006 tables 2 and 3 present the variational influence levels.
a).- Regarding the influence of the total agricultural production (x) on the GDP
at national level (y), the level of elasticity coefficients obtained there result differentiations
according to the comparison basis. For a fixed basis in 1990 (E), we notice the existence
of a elasticity given in a supra-unit level (therefore, the more the agricultural production
increases, he larger the GDP, so that in 2006 a coefficient of 2.22 is reached). For the
chain comparison basis the levels oscillation includes all three forms of interpretation.
Namely: for 9 years there is a direct correlative influence, for 5 years there is no form of
influence and for 2005 there is a reverse elasticity. Elasticity in 2004 considered referential
includes 2 meanings according to the years dynamics. For the interval 1991-2003, the
lack of elasticity form is dominant and the coefficient level vary between 1.05 and 0.73,
after which in the interval 2005-2006 the correlative form of negative elasticity means a
reverse correlation direction for the two indicators.
b).- The influence of the agricultural GDP (x) on the total GDP (y), for the fixed
basis (E) and the chain basis (E), correlative elasticity forms and reverse elasticity forms
are signalled. Thus, for the fixed basis the intervals 1993-1998 and 2005-2006, the
agricultural GDP influenced the national GDP directly, the coefficients recording very high
growth rhythms (from 218.83 to 4080.96). For the same fixed basic form the years 1992,
1999 and 2000, the negative levels of the coefficients indicate a reverse correlation.
Regarding the chain basis (E), the supra-unit and negative levels are maintained but the
rhythms are much slower. Te supra-unit values of 1993-1995, 1997, 2001 and 2003 signify
a dependence of the total GDP on the agricultural GDP in the previous year. In the other
years in the analysed period, in which E<0 indicates a reverse elasticity (the agricultural
GDP has a reverse influence on the total GDP). The elasticity in 2004 is considered
referential (E), in it the agricultural GDP recorded a maximum level, there is a decreasing
level which in 1991 is of 2.56 and in 2003 it reaches 0.91. So, the correlative influence
exists for most of the years E>1, but with a decrease in the succession of the years in the
analysed dynamics.
c).- The influence of the agricultural GDP (x) on the GDP per employed person
in the rural environment (y), is considered a resultative effect of socio-economic level on
the rural population. For the fixed basis (E) and chain basis (E), the elasticity coefficient
levels signify direct correlative forms(E>1 and E'>1) for the years 1999, 2000, 2003-2004,
and for 2002 a reverse elasticity form (E<0, E'<0). The reporting basis for 2004 (E), year
in which there is the maximum level of agricultural GDP, identifies only the supra-unitary
levels for the elasticity coefficient (E>1). This situation means that the agricultural GDP in
78
1997-2004 influences directly the GDP per capita in the rural environment, but it has a
decreasing tendency (from a coefficient level in 1997 of 1.66 we reach a level of 1.24 in
2003).
From all these it results that it is important to know the agricultural GDP in its
evolution and by comparison, because the significances at macro-territorial level are
generated by the economic policy factors, but with direct effects on the size, structure and
functionality of the agricultural business.

CONCLUSIONS

- According to those presented above, we can conclude the elements with validity in
the prospective orientation forms of diversification included structurally in the technico-
economic profile of the business which can be achieved in various ways:
- horizontal diversification, which consists in amplifying the area of production and
processing/consumption without introducing essential changes in the production
processes functionality, or of another type in order to make improvements;
- vertical diversification, which is achieved by introducing new production systems
downstream and upstream to the production agricultural process. This form of vertical
diversification for the agricultural business can be achieved in two ways: the first refers to
the improvements made to the already existing activities, which has the advantage that in
the business there is a certain experience necessary in implementing them, and the
second way implies the introduction of new activities in the agricultural business;
- collateral diversification, which implies adopting new activities by including in the
production process new raw materials considered secondary in other sectors.
- in substantiating the level of prospective orientations of diversification forms in
agricultural business it is necessary to take into account the possibilities and intensity
levels of the main factors. Interpretation is necessary to be made by comparison in a depth
of knowledge down to primary factors, through de-multiplication forms thereof in
quantitative and qualitative terms.
- the survey made of the main parameters indicates the need to diminish the
qualitative food crisis in the rural space. This situation can now be quantified also through
the GDP per capita ratio, which is determined by the still low food consumption of the rural
population in Romania. Therefore, the main coordinates of the food policy in the current
integration into the EU must take into account the ways for the state to intervene in order
to increase the income per capita in the rural environment by attracting the most adequate
forms of diversifying the activities.
BIBLIOGRAPHY

* The Statistical Yearbook of Romania, 2002-2007, NIS, Bucharest.
** General Agricultural Census 2002,
*** National Strategic Plan for Rural Development, 2007-2013, Government of Romania, MPADR,
Internet, PSN_octombrie_2006_ro.pdf
**** Structure des exploitations agricoles, Roumanie 2002, Statistique en bref, Eurostat, Internet:
www.europa.eu.int/comm/eurostat/
***** The Classification of Activities in the National Economy (CAEN Rev.1., SERV TS/5, 7), approved
by GD no. 656 of 6 October 1997, with the subsequent amendments and additions, Presidents Order NIS
no. 601/26.11.2002.

79
SUPPORTING RURAL COMMUNITIES AND ENVIRONMENT
PROTECTION THROUGH LOCAL PRODUCTS PROMOTING.

SUSTINEREA COMUNITATILOR RURALE SI PROTEJAREA MEDIULUI
INCONJURATOR PRIN PROMOVAREA PRODUSELOR LOCALE.

FINTINERU GINA, FINTINERU A., LOREDANA PREDA

University of Agronomical Sciences and Veterinary Medicine Bucharest U.S.A.M.V.

Abstract

The growing concerns of the consumer regarding the agricultural product quality, environment
protection, traceability, good organization and vitality of the rural communities represent the basis for re-
launching the concept of local products. Farther, the consumer is becoming more and more aware of the
distance that a product has to cover in order to reach the market (food miles). These consumer trends
represent real opportunities for the agricultural producers to get as high value added as possible. The article
intends to identify what are the success features in promoting local products applying the PEST analysis
(Political, Economic, Social and Technological).

Key words: local food system, farmers market, farm shop, specialty retailer

INTRODUCTION

The notion of local foods is not exactly a new principle in terms of the marketing of
food and drink, as most food products start their life produced for local sale. The revival of
interest in buying food from closer to home is stimulated by desire for quality, originality, a
concern for the environment and a will to invest in our own communities.
There has been a recent resurgence in interest in buying locally for a number of
reasons. We have seen growing concern for the environment, and the transport required
to bring food to market. At the same time, the purchase of local food represents a
consumer response to the perceived chaos of the industrial food system.
This is coupled with nostalgia for the kind of relationship that goes hand in hand
with the selling of local food. Also, links to tourism have meant that people exploring rural
cultures also take an interest in the local fare, whether they are visitors from other
countries or other areas.
On the other hand, the loss of guaranteed markets under CAP reform created
problems for many farmers, often managing small traditional family farms, that were
unable to compete against agribusiness in the free market economy and were prompted to
reconsider production and marketing strategy. One option that has grown in importance
has been to build links to retails outlets in the farm vicinity or region.

MATERIAL AND METHOD

The objectives of the research aim to improve the understanding of the market
dynamics of marketing local food. We attempt to do it by giving an explanation of what is
meant by the term local food, by presenting the various routes to marketing local
produce, by identifying external factors influencing the development of local business and
by identifying potential barriers and opportunities for a localized food system. While many
of the routes may be well known, we give some consideration to those areas which have
not been investigated, as there are numerous ways to get started in local produce. The
structure of influencing factors and emerging tendencies are realized using the STEP
analyze.
80


There are as many definitions for local food systems as there are examples of them
around the world. Generally speaking, local food system refers to new, consciously
formed systems, which are characterized by a close producer-consumer relationship
(Vergunst 2001). Local food systems support long-term connections; meet economic,
social, health and environmental needs; link producers and markets via locally-focused
infrastructure; promote environmental health; and provide competitive advantage to local
food businesses (Regional Food Systems Working Group 2006).
The potential benefits of such a system are numerous. The local economy is
bolstered as less money is diverted to national or transnational corporations based outside
of the region and local businesses satisfy unmet demands or create new or more efficient
systems for the production and movement of foods (Regional Food Systems Working
Group 2006). These opportunities help to strengthen the local economy by growing the
agricultural sector, creating jobs, providing more choices for consumers, contributing to the
local tax base, and reinvesting local money exchanged for food back into local farms and
businesses (Che et al. 2005; Regional Food Systems Working Group 2006).
Through a viable local food system, producers and consumers are linked via
efficient infrastructures, which can provide a competitive advantage for local farmers,
processors, distributors, retailers, and consumers alike (Regional Food Systems Working
Group 2006). Farmers receive a greater return for their produce when there are fewer
intermediaries. For example, direct marketing to consumers (e.g., farmers markets, farm
stands, and Community Supported Agriculture) increases returns to farmers, often
decreases prices for consumers, and may promote more environmentally-sound farming
practices.
A strong local food system can also result in positive effects on community
development and revitalization (Regional Food Systems Working Group 2006).
Consumers receive fresher, healthier food and the opportunity to develop a relationship
with the farmers and a connection to the origins of their nourishment (Regional Food
Systems Working Group 2006). This, in turn, helps to support the viability of small and
medium-sized family farms and foster a sense of place, culture, history, and ecology within
a region (Che et al. 2005; Regional Food Systems Working Group 2006). Similarly, a
strong local food system and informed land use policy and local decision-making can help
create healthier communities.
Environmental benefits are also numerous; paramount among them is the
decreased energy and fuel consumption with fewer miles needed for shipping, depending
on the mode of transportation and volume of goods transported per load (The Economist
2006). Local farmers that have a direct connection to the consumer through farmers
markets and other networks are also more likely to take greater care to grow fresh and
healthy foods.
Consequently, farmers that market their products locally do not typically engage in
the types of harmful practices common in conventional agriculture. When foods are grown
and consumed locally, harmful chemicals are not required to preserve the foods for longer
periods of time (David Suzuki Foundation 2004).
Since local foods are harvested and then processed or sold to the consumer within
a matter of hours or days instead of weeks or months, foods are fresher and often have a
greater nutritional value when purchased because they can mature fully before being
harvested and consumed (Tufts Food Awareness Project 1994; David Suzuki Foundation
2004). Thus, local food systems can help to meet the economic, social, health, and
environmental needs of communities and residents within a region (Palan 2005).
81
European regulations are a common political tool that creates a logical frame for
reflections about local food in Europe, and the most common reference in this special
issue has been the EU regulations about Protected Designations of origin for foods.
Nevertheless local food is a complex concept that is far from just regulated by law and
rules. These regulations contribute to the diversification of agricultural production, which is
also an objective of rural development policy. In the EU three categories of denomination
exists: Protected Designation of Origin PDO; Protected Geographical Indication PGI;
Traditional Speciality Guaranteed TSG
Conditions for PDO products are the following:
o All the steps of the production, processing, preparation, including raw materials must be
performed in the defined geographical area whose name the product bears; and
o The quality characteristics of the product must essentially or exclusively originate from a
particular geographical area.

PGI is a more flexible category. The conditions for PDI products are as follows:
o At least one phase of production, processing or preparation has to take place in the
defined area.
o The product has to possess a specific quality, reputation or other characteristics
attributable to its geographical origin. The product denomination contains the geographical
name and the product name.

Central to the concept of local food is the producer/seller part of the relationship. Most
consumers expect local foods to be produced within a short distance (often undefined) of
the market/retail outlet from which they are buying them, and that there is either a single
stage relationship or middle stage relationship between the producer and the consumer
as follows:
Farmers Market - Direct relationship between producer and consumer
Farm Shop Relationship between producer and consumer, possibly other goods
from producers known to the seller/consumer
Speciality Retailer Relationship between seller and consumer, with strong identification
or recognition of the producer.
A number of external factors will always affect the performance of a business
activity, however successful. Whilst these factors are out of the total control, understanding
them as opportunities can offer the business distinct advantages. One simple way of
ensuring the taking of all types of change into account is to use a PEST (Political,
Economic, Social and Technological) analysis of the market environment. The identified
factors affecting the local food system over a given period of time are presented below:
Political & Legal: Consumer legislation; Health legislation; Environmental laws;
Workforce legislation; Privatisation legislation; Political shifts; Pressure group actions; EU
influences etc.
Economic& demographic: Growth in national and global economy ; Interest rates;
Tax rates; Inflation rate; Exchange rates; Consumer spending; Income and distribution
changes; Demographic changes; Market concentration; Retailer power & role; Growth of
foodservice Ease of global travel etc.
Social & Cultural: Consumer preferences; Social values; Lifestyle changes;
Education; Consumer concerns - health scares; Growth in local food demand
Environmental messagesGrowth in food tourism .et
Technological: New production methods; New products; New ways of selling;
Information systems; Patents; Internet growth & information availability; Growth in
communication via e-mail & mobile phone etc.

CONCLUSIONS
82

Meeting the demand for a more localized food system in the region require creative,
collaborative action to turn the barriers into opportunities. In order to strengthen the local
food system, it is critical to address the following barriers identified in the European
experience by several key stakeholders.
Among producers, the key barriers to selling more products locally includ the lack of
local processing facilities, the time it takes to sell locally and the lack of distribution system
for local products.
The barriers articulated by consumers to purchasing local foods revolved around
availability, convenience and information.
A number of interesting barriers are identified by the intermediate sectors of the
food system revealing a strong need for improved communication among sectors. For
processors, barriers to increasing the proportion of local foods they process include price,
communicating with local producers, and insufficient demand from distributors.
Among distributors, communicating with local producers, the amount of time it takes
to accommodate local foods and the perceived lack of consumer and retailer demand for
local products are the top reasons against distributing more local foods.
Retailers report insufficient supply/seasonality, price, and connecting with producers
as the largest key barriers to strengthen local food system.

BIBLIOGRAPHY

FONTE, M., 2002, Food systems, consumption models and risk perception in late modernity. International
Journal of Sociology of Agriculture and Food
HOLT G., P. GREY, P. JONES, R. TRANTER, 2003, Marketing trends in the UK organic sector:
Perspectives on marketing products from the second year of conversion, Marketing Trends for Organic
Food in the Advent of the 21st Century (Ed. G. Baourakis). World Scientific Publishing Co. Pte Ltd.
Regional Food Systems Working Group (2006). Developing a Vibrant and Sustainable Regional Food
System.
Scottish Agricultural Council, 2005, The local food marketing guide

83
OPPORTUNITIES TO DEVELOPMENT OF THE ECOLOGICAL
AGRICULTURE IN ROMANIA

OPORTUNITATI IN VEDEREA DEZVOLTARII A AGRICULTURII
ECOLOGICE IN ROMANIA

FLORESCU AURELIA VASILICA, GMAN ILEANA CRISTIANA

The University of Agricultural Sciences and Veterinary Medicine of Bucharest

Abstract

The agriculture, as specialized human activity, assures the food of the population and important
amounts of prime matters for the food and non-food industry. The protection of the agriculture environment
doesn't mean not utilizing the modern middles of production, leaving everything more on expense of the
nature. The system of agricultural reconcilable with production exigently protective average and of the
sceneries is a complex whose system aims is represented by the procurement foods to "maximum quality".
This system appeals to a series of techniques of modern production, which carry and improves in the same
time the fertility of the soil.
The ecological agriculture must be understood as a composite system of durable agriculture.
In this moment, to farmers to estimate themselves as much the effect of present activities about the
future agriculture, quotient the way how is involved in the preservation environment. As a direct
consequence, the farmers, the consumers and the people who sketch the politics showed a large interest for
protection of the environment of the agriculture.
Agricultura, ca activitate uman specializat, asigur hrana populaiei i importante cantiti de
materii prime pentru industria alimentar i nealimentar. A ecologiza agricultura nu nseamn a nu utiliza
mijloacele moderne de producie, lsnd totul mai mult pe seama naturii. Sistemul de producie agricol
compatibil cu exigenele de protecie a mediului i a peisajelor este un sistem complex al crui scop este
reprezentat de obinerea unor alimente de "maxim calitate". Acest sistem face apel la o serie de tehnici de
producie moderne, care conserv i mbuntete n acelai timp fertilitatea solului.
Agricultura ecologic trebuie neleas ca parte component a unui sistem de agricultur durabil.
In acest moment, mai mult de o sut de mii de ferme, din statele membre, au fost convertite la acest
sistem, crescnd contientizarea consumatorului asupra problemelor de siguran alimentar i de protecie
a mediului, precum i cererea de produse obinute n condiii ecologice.

Key words: ecological agriculture, productig agricultural, field camp, soil conservation

INTRODUCTION

The ecological agriculture is a relative new activity field in Romania. The romanians
concern for the ecological agriculture its not a fashion or a fad, but it is a an opportunity in
business for the enterprising persons which develop activities in the agroalimentary
production field. In the same time, this agroalimentary production systems
acknowledgement and application represents one of other imposed elements in the
frame(work) of our countrys integration in the European Union agreement.
The integration in the comunitary agriculture structures means for Romania the
opening of a vast agroalimentary market characterized trough: great absorption potential,
raised purchasing power and prices stability. In the same time, for the agrarian producers
it means the confrontation with the exponents of a very competitive agriculture from the
point of view of the dotation with production factors, from the point of view of the
resources allocation and utilization, of the productivity and of functionality, the competition
in what concerns the offers price and quality being rough both in Romania and in the
European Unions member countries.

MATERIAL AND METHOD

84
The work to entitle Appearances concerning the current state of ecologic agriculture
in Romania, is conceived on the strength of researches and the analysis of the
components of systems and the statistical calculi.


The ecological agriculture constitutes a segment for which Romania has great
development possibilities, being an important instrument in the natures conservation and
rural spaces revitalization. Having in view the opportunities which Romania has in the
development of the ecological agriculture system, the Agriculture, Forest and Rural
Development Ministry has adopted the legislative and base institutional cadre, harmonized
with the European Unions regulations, destined to create in our country an ecological
agriculture system similar to that from the European Union Member States.
In Romania, the ecological agriculture is a dynamic sector. Conform to the test
made by the Movements for the Ecological Agriculture Global Federation(IFOAM), after
the cultivated surface, Romania has occupied in 2005 the 33 place in the world from 105
countries where this agriculture system has been practiced.
To pass to an ecological agriculture (it) means first of all an adjustment of the social
and economical marks which supposes the redefinition of the way in which the farmer
occupation and the farms running is conceived. Concerning this matter, in Romania are
established :
the legislative and institutional cadre harmonized with that existent in the European
Union;
the authority responsible for the ecological agriculture; the ecological productions
rules and general principles;
the products list which can be used in the ecological agriculture, as well as the
ingredients and processing methods list which can be used at the ecological aliments
preparation.
the conversion periods lasting in the vegetal, animal and apiculture production is
of::
- 2 years for the annual field cultures;
- 3 years for the perennial cultures and plantations;
- 2 years for grass lands and fodder cultures;
- 12 months for cattle for meat;
- 6 months for small ruminates and pigs;
- 6 month for milk animals;
- 10 weeks for poultry for the meat production, bought at the age of 3 days
- 6 weeks for poultry for egg production;
- 1 year for bees, if the family has been bought from the conventional apiaries.
o the ecological agroalimentary products ticketing;
o the inspection and certification system; the sanctions which are applying to
those which are straying from this rules etc.
The opportunities which the ecological agriculture finds in our country:
- the fact that it hasnt still arrived to the occidental agriculture intensive
degree allows an easier identification of the perimeters which arent ecological polluted.
- the manual workings are still frequent in the farming cultures maintenance
practice;
- there is a tradition in the ,, peasant agriculture, it is simply necessary of an
education in the ecological techniques and imposed restrictions spirit.
- The financial investments are relatively low. The main ,, investment is that of
physical and intelligent work.

85

Technical restrictions and obligations in the ecological agriculture:
- a specific crop- rotation organization and his respecting with strictness;
- the soils base working it is preferably made without furrows turning over,
with the plough without mouldboard or with the soil digging machine;
- the soils organic reforming it is made only by farm compost obtained from
vegetal trash and rother soil or by manures use;
- the vegetal trash are incorporated only after surface drying(-out) and
composting; fresh vegetal material is never incorporated, not even in the case of the
manures;
- the weeds control is made only mechanical(extirpated, milled),
manually(manual extirpations, weeds clearing) or trough physical means(flame, coldness);
- the diseases control it is made only by means of cupric substances(Bordelez
juice, Cu hydroxide, Cu chloride), with native sulphate(which can be soakaged or
micrometered) or by means of other means wich arent chimical(plant extracts);
- the pest insects control it is made only by physical, biological means, with
plant extracts or with other natural products;

CONCLUSIONS

1. By giving up to the synthesis chemical products, the ecological agriculture
excludes the soils, ground waters and generally the environments pollution;
2. The farm practices measures complex adopted by the ecological agriculture
contributes at the recuperation and at the physical, chemical and especially microbiological
soils qualities improvement;
3. It reduces the dependence that the agriculture has upon the conventional
energetical sources(fossil combustibles, electricity, etc.);
4. It assures to the producer an effectuated works corresponding reward, a
decent life standard and creates a work environment which isnt pollutant, good for the
development of an intense but a reassuring activity.
5. It answers the over and over higher solicitations for the fresh or treated
ecological agricultural products.
6. The external market for the bio products is autonomous and without
competition especially for some vegetables and fruits (bullweed, melons, peppers,
apricots, peaches, plums etc.) which in our country find optimal conditions for the
ecological culture.
86
7. The bio products arent the industrial processes result and for this reason
the consumer doesnt make his choice after physical-geometrical criteria(size, symmetry,
the colours uniformity, etc.) as it happens nowadays with the conventional products most
majority.

BIBLIOGRAPHY

1. Berca Mihai, 2006- Environment palnning and the natural resources management, Ceres
Publishing House, Bucharest.
2. Hansen Jacob, 2001-Organic farming is a small but dynamic activity in EU, Organic
Farming-Statistics in focus nr. 5, Eurtostat
3. The Agriculture, Forest and Rural Development Ministry- The ecological agriculture in
Romania
4. The commissions Regulation CEE no. 2092/1991
5. Sima Elena, 2004- The ecological agriculturals chance in Romania, coord. Belli N. SI Franc
V.I., the Romania Academmy, CIDE, Bucharest
6. agrinews@agrinews.ro
7. http://www.agricultura-ecologic.ro
8. http://www.fermierul.ro
9. http://www.mapam.ro

87
ARBORETUM INFORMATION SYSTEM

SISTEME INFORMATICE DE ARBORETE

GUN MARDIATMOKO *, BUZATU (STURZU) CRISTIANA SILVIA **

*Faculty of Agriculture, Padjadjaran University Indonesia
**Faculty of Management USAMV

Abstract

GIS application is useful for multiple resource inventory and monitoring of forests, agriculture,
fisheries, geology, climate and using geographical information in business, etc. including for building the
arboretum information system. The objective of the study was to make an Arboretum Information System of
Padjadjaran University with some activities such as: vegetation inventory, landscape mapping and
topographic mapping, etc. The integration of some digital maps can be done by using GIS software: the
Integrated Land and Water Information System (ILWIS) for Windows and supported by Calcomp digitizer.
Tree distribution map, slope map and superimposed between tree distribution, slope map and digital
elevation models can be done easier and not too long for spatial data updating by using ILWIS software.

Keywords: GIS, tree distribution map, slope map, digital elevation models, arboretum

INTRODUCTION
In this day and age of information technology, there is a felt need in practically every
sector of human activity for current and well-documented data which are used to better
plan and manage our natural resources. Presently, attempts have been made to use GIS
(Geographical Information System) technology for a wide range of applications, for
examples: GIS application for multiple resource inventory and monitoring of forests,
agriculture, fisheries, geology, climate and using geographical information in business, etc.
In Indonesia, GIS is now being developed in the company to serve the Indonesian
Association of Forest Concession Holders, Forest Concessionaire Companies and also
the Ministry of Forestry. The Association and the Ministry of Forestry implement the
information for strategic policy and forest management purposes, while Forest
Concessionaire Companies need the information for operational and forest management
in their companies (Hidayat, 1994). In Romania, National Forestry Administration-
ROMSILVA, through ICAS have one of the best methods to create GIS database (time
reducing for data acquisition, GIS database standardization etc.) for management
planning, being always keep in step with the last hardware and software products of today.
This increase the productivity for GIS database release and the necessary time for making
GIS project will be shorter than before and maps are easy to use by forestry districts (Niu
et al., 2005).
Arboretum Information System is GIS application for arboretum management with
many activities such as training and education of biology, ecology, ex situ conservation of
biodiversity, sources of seed of trees, plant propagation etc.

MATERIAL AND METHOD
The method of the study is survey method. Surveyor go to the field equipped with
survey equipment such as maps, hand compass, at times GPS (Global Positioning
System), altimeter, clinometer, hagameter, diameter tape, tally sheet, plastic bags etc. The
objective of the study was to make an Arboretum Information System of Padjadjaran
University with some activities such as: vegetation inventory, landscape mapping and
topographic mapping, etc. The integration of some digital maps can be done by using GIS
software: the Integrated Land and Water Information System (ILWIS) for Windows and
88
supported by Calcomp digitizer. In this case, digital map of trees distribution stacked on
top topographic digital map and link it with trees distribution data i.e. height, diameter and
trees position in arboretum area. The various kinds of basic information which were
computerized in GIS were thematic digital maps: trees distribution, slope classification,
spatial analysis and its integration with tabular data (figure 1.)

Figure 1. The various kinds of basic information which were computerized in GIS

Arboretum area of Padjadjaran University lies near of Faculty of Agriculture and
Faculty of Medicine Padjadjaran University at District of Jatinangor, 21 km from Bandung
City (the capital of West Java Province, Indonesia) with total area 3.5 ha.
OUTPUTS
Statistic
al data
of
number
of trees
species
INPUTS
Ground survey for trees
data collection
Ground survey for
collection of land
Tabular data:
Trees
species
Height of
trees
Diameter of
trees

Map
digitizing:
Trees
distribution
Tabular data:
Slope (%)
Elevation
( )

Map
digitizing:
Topographi
c
PROCESSING:
Arboretum Information System
based GIS
Superimposed (over lay
techniques) between
trees distribution and
topographic or class of
slope and its integration
with their tabular data
Pictures,
graphics,
statistical
data of
trees in
arboretum
Study
reports,
progress
reports,
monitoring
and
89
Based on ground survey for trees data and land information collection, the result showed
that area of Arboretum of Padjajaran University lay to left and right of little river with total
amount of trees was 470 units in 63 species. The composition of vegetation as follows:
flamboyan (Delonix regia) 65 trees (14%), mahoni (Swietenia mahagoni) 23 trees (5%)
and kupu-kupu merah (Bauhinia alba) 22 trees (5 %) and the others (Toona sureni,
Gmelina arborea, Eugenia aquea, Pterocarpus indica, Tamarindus indica etc) each
species less than 5%. The biggest average diameter and height of trees were angsana
(Pterocarpus indica) 27.9 cm in diameter and 14.6 m in height.
Based on trees position in the field and after digitizing processing into point map and
by using pattern analysis from ILWIS software, the result showed that distribution of all
trees were random pattern but special for Swietenia mahagoni and Bauhinia alba were
cluster pattern. Data in a point map represent the spatial occurrence of a particular
phenomenon. The spatial distribution of the points in the map, can be examined to acquire
more knowledge about the phenomenon and the responsible process. Point pattern
analysis is a technique that is used to examine arrangement of point data in space and to
obtain information about the phenomenon. In case of complete spatial randomness, no
correlation exists between locations of points. In a clustered pattern, subgroups of points
tend to be significantly closer to each other than to other subgroups of points. In a regular
pattern, individual points items tend to repel each other and distances between adjacent
points tend to be further apart than for complete spatial randomness (Anonymous, 1997).
Based on land characteristic in the field and after digitizing contour lines into slope
map, the result showed that class of slope: 0 -10 % = 30.5 % at the center of arboretum
area, 10-20% = 26.8% at the center and margin, 20-30% = 22.1% at the left margin and
30-40% = 20.6% at the right margin.
By using ILWIS, tree distribution map (point map) and slope map (raster map) of
arboretum area which have same scale and map referencing can be superimposed each
other and can display 3D with digital elevation model. Digital elevation models are digital
representations of altitude and are made via photogrammetrical techniques, point
interpolation techniques and interpolation of contour lines (Anonymous, 1997). By
displaying 3D, the figures of arboretum area are more attractive and the trees distributions
at elevation differences or class of slope are clear.

CONCLUSIONS
1. GIS application is useful for multiple resource inventory and monitoring of forests,
agriculture, fisheries, geology, climate and using geographical information in business, etc.
including for building the arboretum information system.
2. Tree distribution map, slope map and superimposed between tree distribution, slope
map and digital elevation models can be done easier and not too long for spatial data
updating by using ILWIS software.

BIBLIOGRAPHY
ANONYMOUS, 1997. The Integrated Land and Water Information System (ILWIS) for Windows: Users
Guide. Ilwis Department, International Institute for Aerospace Survey & Earth Sciences,Enschede, The
Netherlands, p. 377 and 419.
HIDAYAT, H., 1994. Forest Inventory and Monitoring over Production Forest Areas in Indonesia. Multiple
Resource Inventory and Monitoring of Tropical Forests. Asean Institute of Forest Management.Kuala Lumpur
Malaysia p. 193.
NIU M.D., M. DUMITRU., I. BUDIC. 2005. GIS Techniques for Forest Management Planning Elaboration.
Silvologie vol. IV B. Amenajarea Pdurilor la nceputul Mileniului al III-lea. Editura Academiei Romne.
Bucureti. Romnia. p. 348.

90
FARM MODERN HUMAN RESOURCES MANAGEMENT

MANAGEMENTUL MODERN AL PERSONALULUI DIN EXPLOATATIILE
AGRICOLE

ISBASESCU T.

THE RESEARCH INSTITUTE FOR AGRARIAN ECONOMICS AND RURAL
DEVELOPMENT

Abstract

Peoplehuman capitalare an important resource in making a farm or ranch business more
competitive in todays business environment. With participatory management there are opportunities to
realize the potential of human capital. This publication summarizes ideas about modern personnel
management that illustrate ways to attain a farms or ranchs business goals through its people.

Key words: human capital, management, partcipatory management, improvement, farm

Peoplehuman capitalare an important resource in making a farm or ranch
business more competitive in todays business environment. With participatory
management there are opportunities to realize the potential of human capital. This
publication summarizes ideas about modern personnel management that illustrate ways to
attain a farms or ranchs business goals through its people.
Management Styles
The old command-and-control management style is fading and is being replaced by
a participatory management approach that involves everyone in defining objectives,
making decisions and being accountable. Better trained personnel, performance
measurement, improved information systems, and two-way communication are critical if all
personnel are to be involved and responsible. Owners and managers need to take the
responsibility for fostering employee participation rather than simply giving orders and then
checking to see if the job was done. Walk-around management and two-way
communication show respect for the ideas of all employees and are part of successful
personnel management. Implementing participatory management also requires the sharing
of written goals, strategies, financial data, and production performance information. Tying
reward systems to strategies and improved performance is part of the participatory
management style. Reducing the levels and number of commanders may also reduce
costs and improve employee satisfaction.
A change in management style requires a major change in philosophy. New skills
must be developed or a change in the people at the top of the organization may be
required. Communication and performance evaluation systems must be developed to
achieve a change in personnel management philosophy.
Management by objectives and rewarding performance is much more achievable if
everyone participates in defining goals and objectives and being accountable for both their
own and collective efforts. All efforts toward participatory personnel management begin
with all employees knowing their job responsibilities, the goals and objectives of the
business, and how to work as a team.
Changing Management Style
Production agriculture has been and is still dominated by the command-and-control
management style. Many employees find this style convenient. If things go wrong its the
managers fault. They would rather not be accountable for their actions. On the other
hand, as the ranch managers responsibilities
91
broaden, employees must be expected to do their own thinking. It does not make sense for
managers to try to be everywhere and to make all decisions. The leadership role is more
important. Communication, participation, and performance analysis must replace the
command-and-control style. Most people want to make a difference and performance
needs to be quantified and measured when it happens.
Owners must initiate a change in management style. They must motivate
participation. They must begin to identify and employ workers who respond to the
participatory style. Again, the communication of goals and sharing of financial and
performance objectives becomes the motivation. In many situations the current
commander must be replaced or retrained. A change in management style often must be
facilitated by an outside professional who can train and motivate employees and who does
not have a vested interest in changing working relationships.
Modifying the reward system, enhancing communication, and providing support with
an effective management information system can facilitate the management style
transition. The sooner an organization makes the commitment to change, the sooner the
benefits can be achieved.
Job Description
Employee participation is enhanced by developing written job descriptions that
clearly define responsibilities, the basis for measuring performance and the reward system
that recognizes varying levels of achievement. A commitment toward continued training
and sharing of training costs needs to be spelled out to all personnel as part of their job
descriptions. Expectations that employees will work toward being good team members
also should be spelled out in job descriptions. This reinforces the philosophy that there is a
mutual dependence required to accomplish individual job and overall business objectives.
Job descriptions are also helpful in identifying and hiring employees, especially
when developed through a participatory effort and closely tied to business strategies.
Team Efforts
Although most farms and ranches have too few employees to justify forming several
teams, they can benefit from owners, managers and employees working as a team. In the
words of Katzenbach and Smith the reason to use a team or group approach is that
teams outperform individuals acting alone especially when performance requires multiple
skills, judgement and experience. The key to successful team efforts summarized from
Katzenbach and Smith are the following:
1. There is group agreement on a common purposeestablished urgency and
direction.
2. Measurable performance goals are established.
3. A defined working approach to accomplish tasks is followed.
4. Holding each employee mutually accountable for results benefits all involved.
There must be measurable performance goals for employees. Participants need to
be rewarded for achievements through the efforts of the team. The team leader is a
facilitator and is not expected to have all the answers. The purpose of the team is to be
more effective than an individual. Even small teams in a farm/ranch environment can
practice participatory decision making and motivate participants to a higher level of
achievement.
Taking Care of Employees
In todays farm/ranch management environment, it is challenging to be the
operations manager and be responsible for working through employees to see that
everything is done correctly and effectively, while also completing other objectives. Too
many times managers spend time doing the jobs that someone can be hired to do at the
minimum wage rate and letting critical marketing and financial management decisions go
undone.
92
Employees cannot be neglected. Successful management begins with employee
considerations. The best trained and most motivated personnel often do not stay in
agriculture. This makes participatory management even more valuable. Continued training,
employee reward systems, benefit packages and living conditions that make a ranch job
as favorable as possible will pay off in employee retention. The total employee family
must be part of the package. Often its the spouse and children and their education that
have to be part of the total package. The high cost of maintaining employees means they
have to be efficient and effective in their jobs. Training and reward systems cannot be
neglected.
Temporary Service
The high cost of permanent employees has encouraged hiring specialized help by
outsourcing specific jobs. Day labor is common for peak seasonal activities such as
custom pesticide and fertilizer application and custom hay harvest. When evaluating the
benefit of out-sourcing these services, the cost of full-time employees and the associated
personnel management cost have to be of primary concern.
One of the advantages of temporary employees and services is that its easier to
get out of the arrangement if the job is not done correctly. Just as in the service and
manufacturing business, expect temporary service or out-sourcing to be increasingly
important in meeting personnel needs.
Employee Training
To ensure that employees have and maintain the necessary skills to perform their
duties, continuing education and training have to be an ongoing part of the employee
management and maintenance package. Employees should be rewarded for a job well
done and encouraged to explore and learn new and more efficient ways of performing their
jobs. Greater access to education and information through computer systems will have to
become part of the new rural working environment.
Selecting and Terminating Employees
Two of the most difficult tasks of personnel management are selecting and
terminating employees. Too often ranchers keep employees who do not meet the job
requirements because the task of letting them go and hiring and training new employees
seems too difficult. The cost of keeping an incompetent employee is not only the cash
outlay but also the cost of opportunities lost or the recurring cost of correcting problems
because the job is not being done correctly.
The whole hiring and dismissal process is more effectively accomplished if the job
description, performance evaluation, and mission and objectives are clearly
communicated. Employees need feedback to know how they are doing and what needs to
be changed. Both managers and employees need objectively measured performance
results. Documented underachievement can make it clear when termination is required.
This information also helps in the selection of replacements.
The job description and performance analysis should communicate the expectations
that ongoing training is the responsibility of all employees. Many farm/ranch owners and
managers could join together to encourage private and public offerings of continuing
education and training opportunities. Managers, professionals and other top employees of
the farm/ranch must stimulate and encourage continuing education and training efforts. It
is hard to expect high performance and continued improvements if the human capital is
not growing in capability and expectations.
Leadership
No area of personnel management is more important than the leadership ability of
the farm/ranch owner(s) or top manager. Few operations can justify having a specialized
chief executive officer (CEO) whose primary responsibility is business leadership. The
normal owner-manager or manager must be both a leader and an operations manager.
Leaders make sure that employees are doing the right thing. Leadership is about
93
effectiveness and results. Managers make sure that things are done right. Management is
about efficiency.
The business leader must provide vision, face reality, and communicate reality and
direction to the business participants. Leaders identify with the customers needs,
ensuring that the farm or ranch is customer focused.
Important functions of leaders in personnel management are impressing upon
employees that they are capable, and empowering them to maximize their capabilities.
This cannot be accomplished with the command-and-control management philosophy.
Leaders must generate and sustain trust to gain employees following. Business leaders
must develop employees who can identify problems and assist them in finding solutions.
Leaders must motivate employees to achieve excellence in everything they do. Leaders
also need to be decisive and timely in decision making when dealing with employees.
Loyalty that is built among employees will carry through to customers. For successful
business leaders, experience, competency, and a commitment to lifelong learning have
never been more important.
CommunicationsUsing Outside Professionals
It is common in any business for problems to arise between employees and
management. Bringing in an outside professional who understands farm/ranch personnel
management and general ranch production, marketing and financial issues can facilitate
better communications by identifying opportunities for improvement. Experienced
outsiders, without a vested interest, can identify employee-manager situations that require
change. They can listen to employees frustrations and communicate alternatives for
improvement in a manner that is objective and that protects employees. An outside
professional can communicate reality without worrying about job security, as might be the
case if an employee were to communicate the same information. Another advantage in
using experienced outsiders is that they can communicate findings and solutions from
other businesses that will help the business being evaluated. This information is often
difficult to acquire, as owners and managers tend to protect the type of information that
might reflect their shortcomings.
Business Plan and Execution
Personnel management must center on a welldeveloped business plan that clearly
defines management philosophy, goals, and performance analysis procedures that
monitor accountability and achievements. The focus must be on execution. All must
understand that it is not the strategy that makes for success, it is the execution getting it
done, getting it done right and getting it done on time. Leader tenacity is a virtue that is
most important in achieving desired results.

CONCLUSION

For a farm or ranch to be competitive, there is no more important activity than
personnel management. Modern management style focuses on the participatory
involvement of all employees and helps them reach their full potential. The participatory
management style can lead the business to greater competitiveness through its people
the most valuable resource for the lasting success of the business.

BIBLIOGRAPHY

BENNIS W. and B. NANAS. Leaders: Strategies for Taking Charge. 2nd edition. Harper Business, New
York.2007.
HESSELBEIN, F., M. GOLDSMITH and R. BECKHARD. The Leader of the Future. The Ducker Foundation,
Jossey Boss Publishers, San Francisco. 2006.
http://ec.europa.eu/agriculture/rurdev/index_en.htm
Project No. 91-057/2007, Fourth Direction, Partnerships, Project Director URSU ANA, ICEADR
94
LAND REGISTER OR PROPERTY REGISTRATION

CARTEA FUNCIAR SAU INTABULAREA PROPRIETILOR

LEU I. N.*, TUREK A.**

*University of Agricultural Sciences and Veterinary Medicine Bucharest
**Institute of Research in Agrarian Economics and Rural Development

Abstract

Land register is the procedure of entering a property in the cadastral registers based on a cadastral
number file and real property documents.
The paper presents the contents of each part of the Land Register, and in the end it details the terms in part
II and III, with the social significance and implications in the relations with the living.

Key words: Land Register, real property, property registration, cadastral register

INTRODUCTION

Systems of evidence and real advertising used on Romanian territory
One of the priorities of Romania in the new conditions of the market economy is the
development of a free market for real properties.
The state was interested in knowing the situation of real properties (a lot with or
without constructions) for whose transmission or owning taxes and duties are levied.
Up until becoming effective the Law no. 7/1996 of the Cadastre and Real
Advertising in Romania there were two systems for real properties registration (1, 2).
A. The system of advertising transcriptions and inscriptions registries also called the
system of personal advertising in Muntenia ,Moldavia, Oltenia and Dobrogea;
B. The system of the Land register, also called the system of real advertising
applied in Transylvania, Banat and Bucovina.

MATERIAL AND METHOD

The system of transcriptions and inscriptions represents a way to organize the
advertising of the real property rights, assuming the emphasizing of juridical acts
performed linked to the real properties, with the purpose of making those acts of oposable
to third parties.
This system is composed of:
a) the transcriptions registry which includes the following:
- property transfer acts between the living four of constitutive acts of
other real property rights;
- adjudgment orders;
- expropriation acts for the cases of public utility;
- renowned stations of real transcribed rights;
- court decisions which ascertain the existence of a real property right;
- the assignment of incomes on a field larger than two years;
- the contracts of real location for more than three years;
b) the inscription registry which includes the following:
- the mortgages and real privileges except the privilege of the real seller
which is transcribed in the transcriptions registry.
95
The transcriptions and inscriptions system is a personal advertising system
because the evidence is kept on the name of the beneficiaries of transcriptions and
inscriptions.
This advertising system presents the following key inconvenience:
a) ensuring only a partial advertising, because the transcription registry
does not emphasize it:
- transmissions for death cases;
- court decisions which declare the evolution of a juridical act;
- sharing an indivisible good, when the real property is in the lot of a
sharer.
b) the transcription or inscription has as an effect only if the announcement
of third parties regarding a right, but it is not sufficient evidence of the existence of that
right nor a warranty of its validness.
c) the third party who gains can not know the exact situation of the real
property and is exposed, for 30 years, to be evicted from the obtained real property, either
because of vices of the gaining acts previous to his title or due to tasks heat couldnt have
known;
d) the public notary is not obliged to verify the legality and validity of the
registered act, which can create doubts about the validity of the act;
e) due to the personal character of the advertising developing from the fact
that the registration is done on the name of the owner not on name of the real property
researching the registries was very uncomfortable. Determining the true owner of the real
property, based on the registries, is extremely difficult.
The effect of transcription is that the juridical property transfer act becomes
opposable to third parties (Art.1802 Civil Code), but is necessary in the following
conditions:
- the third party to have obtained himself the real right to the same autur ,
regarding the same real property;
- the real right to have been subjected to transcription or inscription;
- the formality of the inscription or transcription to have been performed by
the one opposing the act of the sub-gainer (third party).
If the last second issuance are not fulfilled by that person, invoking the non
opposability of the act by another gainer (third party) cannot be done, because of the fact
that the act was not transcribed.
In the advertising system of the registry of transcriptions and inscriptions is
thus applied to the principle according to which the right of those transcribing first is
stronger than the right of other gainers, even if his act was ended a long time ago.
By becoming effective the Law 7/1996 of the Cadastre and Real Advertising it
was renounced the system of Transcriptions and Inscriptions and passed over to the Land
Register system in the entire Romania.
Unlike the Transcriptions and Inscriptions system, the Land Register of force
the advantage of a complete and exact evidence of the real property in every cadastral
perimeter (commune, town, city, county, country).


The Land Register
The real advertising based on the system of evidence of the General Cadastre is
meant to inscribe in the Land Register the juridical acts and facts referring to the real
properties in the same locality.
96
The real advertising is done in the entire country through the Land Register and is
based on the general mandatory system of technical, economical and juridical evidence of
the General Cadastre ( 1 ).
The Land Register consists that juridical integrated and exact evidence of real
properties, the properties of natural and artificial persons in the same locality, as territorial
administrative unit commune, town, city, county.
By REAL PROPERTY is understood a parcel of land, or without constructions and
vegetation, precisely determined, whose identification is made in the locality where is
situated through a cadastral number (topographic number) and a number of the Land
Register it was inscribed in.
One or more real properties on the territory of a locality belonging to the same
owner form the BODY of REAL PROPERTY which is inscribed in the Land Register.
More bodies of real property on the territory of the same locality belonging to the
same owner form its CADASTRAL PARTY which is inscribed in the same Land Register.
The Land Registers made up and numbered on the administrative territory of every
locality make the Land Register of Real Advertising of that territory. This is kept by the
Bureau of Land Register and Real Advertising from the territorial Courts Which are
subordinated to the County Office or to the City of Bucharest Cadastre and Real
Advertising, where its territory range of activity is situated.
That Land Register and Real Advertising is made whole by:
- a special entrance registry;
- the plan of identification of the real property;
- the repertoire of the real property where the cadastral number of the
parcel and the order number of the Land Register are written;
- alphabetical index of properties;
- an envelope file where the requests for registering are kept along with a
copy of the ascertaining writings of the juridical acts and facts on the registering.
The Land Register consists of:
-The TITLE which indicates the number of the land register and the name of the
locality the real property is situated in.
-Part one referring to the description of the real property:
a) the order number and the cadastral number of each real property;
b) the surface of the terrain, the constructions, if there are any, The
category of use of the terrain and the constructions;
c) the placement and neighbors;
d) taxing value.

-Part two referring to the inscriptions regarding the right of ownership:
a) the name of the owner;
b) the juridical act or fact which gives the titular the right of ownership, as
well as mentioning the inscription this right is based on;
c) the movements of the property;
d) the constructed utilities to serve as real property;
e) the juridical facts, personal rights or other juridical reports as well as the
actions regarding the property;
f) any modifications, making true or inscriptions one might perform on the
title in the first or second part of the Land Register regarding performed inscriptions.
Part three referring to the instructions regarding dismembering the right of ownership
and tasks:
a) the rights of ownership, usufruct, usage, use, inhabitance, servitude in
the task of the served fund, the mortgage and the real privileges, as well as the location
and the cession on incomes for more than three years;
97
b) the juridical facts, that person rights or other juridical reports as well as
the actions regarding the real rights inscribed in this part;
c) the distrait, following the real property or its incomes;
d) any modifications, making true or inscriptions which would be performed
regarding the inscriptions in this part.
The data of the Land Register can be archived on microfilms and on supports
accessible to equipments of automatic data processing. These have the same juridical
effects and proving force equivalent to the inscriptions based on which they were made.

In the second and the third part of the Land Register are specified a series of
terms which we would like to explain for better use and understanding (1,2).
- THE OWNERSHIP RIGHT is the right one has to enjoy and dispose of a
thing exclusively and absolutely, is the right on a real property (body of property, cadastral
party) belonging to a sole owner (titular) and only this one can be inscribed in the Land
Register.
In the case of common real properties or indivisible ones they can be inscribed
in the same Land Register with all their owners, specifying the shares of ownership of
each of the titular, even if they have equal shares.
-THE SUPERFICIE RIGHT is the main real right, dismembering the ownership
right of a person, called superficies, regarding the constructions, the plantations or other
things on a field owned by another, field on which the superficies has rights of use.
The superficie right is the juridical practice creation, starting from the
presumption of article 492 Civil code which states that every construction raise on a
certain field are of the owner of the field, made by himself and on his expense. This
presumption is relative and there is a contrary to it. This contrary is made by another
person other than the owner of the field and is the base of the superficie right of this
person.
The superficie right can be worn from the convention of the parts, in which
case it has to be recorded through an authentic act in front of the notary and can be
registered in the Land Register.
-THE USAGE RIGHT is a real main right derived by dismembering the
ownership rights which gives the titular (called the user) a possession right and the use of
a real property owned by another. This right is temporary and can last at best until the
death of the person and can not be given to somebody else.
The juridical content of the ownership right is formed by its three attributes:
UZUS, FRUCTUS and ABUSUS.
The user has of the tree attributes the first two: uzus and fructus.
The owner has the third attribute - abusus, the user being unable to ever
dispose of it, sell or destroy it.

- THE USE AND HABITATION RIGHT are varieties of the usage right, but are
narrower, as the user can rent the real property he has the usage right over; the use and
habitation rights can not be used by anyone other than the titular and his family to satisfy
the needs for living and using.
-THE HABITATION RIGHT is a real USE right, applied to the living house. Part
of the house can be rented but not all of it. The habitation right is subjected to the
procedure of notary transcription.
-THE SERVITUTE RIGHT is a real main right derived from the ownership
right, perpetual and indivisible, build on a real property named served fund, for the use and
utility of another dominant real property. The two real properties belong to different
owners.
98
Ex.: if two real properties have such a topographical position that to get to the
first real property it is necessary to pass over a second real property the owner of the first
real property will have servitude right of passage over the second real property which is
owned by another. The first real property is they dominating fund and the second one is
the serving or dominated fund.

-THE MORTGAGE RIGHT is a real accessory right which has as an object the
real property of the debtor or another person, without dispossession which conferred the
creditable of the mortgage the right to follow that real property no matter who owns it and
to pay it before others.
So, the owner of the mortgaged good continues to exert all his prerogatives
given to him by the ownership right, including those of constructing other successive
mortgages or even to sell the real property, but in this case the mortgage will continue to
strike him even if somebody else becomes the owner.
The mortgage can be alienated separately in the favor of another person or by
renouncing.
The mortgage can be formed in the following situations:
-conventional - through the accord of the creditable and the owner of the
real property, by ensuring a determined or determinable demand through a juridical
contract. In the written act the parties involved must determine exactly, using data from the
Land Register the real property which will be strike of mortgage.
-legally, meaning it is formed under legal regulations. The Civil code
(art.1722) foresees the cases where legal mortgage is formed, as well as its privileges.
The privileges are warranties which give the creditable the right of preference
for cashing book debits, related to all the other creditable, even those with mortgages.
As one can notice, in the Land Register all the privileges burrow the character
of mortgages and will be paid for in the order they were inscribed in, meaning according to
the status obtained by inscription.
- THE BOOK DEBIT is the right of a person, called creditable, to pretend from
another person called debtor to give, to make or not to make debts.
- USUCAPION OF THE REAL RIGHT OR THE ACQUISITIONING
PRESCRIPTION is the birth of a real right over a real property by possessing it by a
person in the conditions and the terms of the law.
Gaining the real right by people which possess the real property is first of all a
sanction against the initial titular of the real right which manifests indifference to worse the
situation of the real property, this remaining in the property of another person.
On the other hand, the usucapion comes to clarify certain juridical uncertain
situations transforming the appearance in a certain ownership right.
The civil code regulates two kinds of usucapion:
- usucapion of 30 years, to obtained a real ride by possessing for over 30
years, and it has to be a certain possession, unharmed and exerted without interruptions,
regardless if the owner is of good or bad faith;
- usucapion of 10 to 20 years, different from the 30 years one through the
conditions of the article 1897 civil code which states: in the case of short term usucapion
a good faith possession is required to make up on a just title, meaning on a property
transfer act, for which the owner is considered proprietor, but which is not valid because it
isnt the real owners.
It will be a ten years usucapion in the case when the owner lives in the county
where the real property is situated in and a twenty years one if he lives in another county.
If he lives for a period of time in the county where the real property owned by somebody
else is and another period of time in another county, to the time he lived where the real
99
property was will be added double of the time he lived in another county. That is why it is a
ten to twenty years usucapion.
Usucapion is a state the facts and the owner can not obtained a real right over
the real property unless addressing to the courts which will emit a court order according to
the real rights.
Attention should be paid when soliciting confirmations of the usucapion rights,
as one should remember to solicit a topographic judiciary expert which will perform the
garniture but the real property (even if you have to pay for it yourself). Also one should
remember to solicit when getting the definitive and irrevocable court order the situation
plan of the real property garniture performed by the expert.
- THE CATEGORY OF USE OF TERRAINS results from the classification
system of terrains according to their correct and the necessities of the technical,
economical and juridical cadastre to register in an orderly fashion and to determine as
correct as possible the real values of the terrains according to their value assessment.
The following categories the following categories of use of terrains are
determined:
- terrains of agricultural use: arable, pastures, hey pastures, wine yards and
hop, orchards;
- terrains of forestry use: forests, protection curtains, underwoods and
bramblers, wickeries, forestry nurseries;
- terrains with water and reeds;
- terrains destined for communication: vehicles, trains, ships, airplanes;
- terrains, with constructions and other uses;
- not productive terrains.
- THE OWNERS OF TERRAINS are the titular of the ownership rights, of other
real rights on the terrains, those who according to the civil code have the quality of
precarious.

BIBLIOGRAPHY

1. Ion Nelu LEU si colab. , Ghid practic de Masuratori Terestre ,Ed.Pheonix , 2002,Brasov;
2. Ion Nelu LEU si colab..Topigrafie si Cadastru ,Ed Universul ,2003,Bucuresti
3. Ion Nelu LEU ,Topografie Inginereasca sau Aplicata ,Ed Ceres,2005, Bucuresti

100
COMMUNICATION IN BUSINESS
(for the example of agricultural exploitations in Prahova county)

COMUNICAREA IN AFACERI
(pe exemplul exploataiilor agricole din judeul Prahova)

GABRIEL PANAIT, MANEA DRGHICI

USAMV Bucharest Faculty of Management Bucharest

Abstract

To communicate means to put something in common, to put in relation. People communicate their
significations and meanings. Between people, to communicate means to put in common sensations, affects,
emotions, ideas, opinions, feelings and facts. This means more than to make known, to know, to inform, to
acknowledge, to say or to talk to, to get in touch with, to be related to.
To communicate means to emit and receipt messages, to sent stimuli and to collect answers. Once
emitted and received, the message will belong commonly both to that who gave and that who received.

Key-words: managerial communication, questionnaire, agricultural exploitation, manager, ethics
in management, managerial style.

INTRODUCTION

All the managerial functions are achieved with the communication help, as a process
of understanding between people with the help of transfer of information.
The managerial communication, as form of inter-human communication has certain
particularities imposed not only by its aim, objectives and role, but by the organisational
framework and the structure of the organisation.
With the help of this questionnaire the communication inside the agricultural
exploitation was envisaged, if the decisions related to the exploitation are made in group,
but also the knowledge in the agriculture field, the way in which they manage their
exploitation, the way of information, the attitude as regards certain innovations, etc.

MATERIAL AND METHOD

The research presented in this material presents the importance of the managerial
communication within the agricultural exploitations, based on a questionnaire with 55
questions with fixed and mixed answer variants, by which a more efficient communication
with the interviewed persons was followed. The questionnaire applied in more communes
in Prahova county, but about 60% of the number of questionnaires applied in Varbilau
commune, by interviewing a number of 30 farmers, workers and agricultural exploitation
chiefs, etc.
In the processing phase, data standardisation and codification procedures was followed,
and their processing and analysis were made on computer. For these, we appealed to the
facilities offered by excel program Microsoft Excel.
The sample was determined by the stratified sampling method. This is a method of
aleatory sampling in which initially the stratification variables were established:
Type interviewed : worker, agricultural exploitation chief, manager;
Groups of age (<30 years, 30 50 years, 50 65 years, over 65 years).=> an average
of 53 years;
Family members (<3 pers.; 3 6pers.; >6 pers.). => an average of 4,5 persons;
101
Surface possessed (<3 ha; 3 5ha; 5 10ha; 10 40ha ; over 40ha). => an average
of 6,7 ha
Animals in the farm (<15 heads; 15 30cap.; 30 -60cap; 60 100cap.; >100cap). => an
average of 51 heads.


From administrative point of view, the commune territory is within Prahova county, at
33 km North-North East from Ploieti city, 6 km. South from Slnic and 9 km. West from
Vlenii de Munte. Until 1845 it was part of Sacuieni county, but during the years it was
integrated in other administrative units such as: Region Ploieti, Plasa Vleni, Plasa
Slnic.
In the present stage, the phenomenon of continuous aging of the population,
accompanied also by a easy feminine predominance, following the birth-rate decrease
and the increase of the life hope of the feminine population (70,6 years)comparing with the
masculine population (67,5 years).
The active population on economy branches :
AGRICULTURE: 223 persons ; 7,42%
INDUSTRY 2050 persons ; 68,24%
SERVICES 472 persons; 15,72%
UNEMPLOYMENT 259 persons: 8,62%
Today, there is a number of 291 Roma population (4 %) having the domicile in the two
compacted areas: in Vrbilu village near the football ground and the second and the most
numerous in Poiana Vrbilu village, on igneti hill
The applied questionnaire contained a number of 55 questions with fixed, also
mixed answer variants, from which to result the main objective of this study that is
communication at the level of the agricultural exploitations.
Analysis of the questionnaire
From the identification data it resulted that the interviewed has an exploitation
formed of 4 members, the head of the farm aged 45 years, is the one who gave the
answers in the questionnaire; graduated the economic high school, and works in
agriculture from 20 years;
Has in property 40 ha, and in rent 100 ha.
One of the most relevant questions of this questionnaire is: Are the decisions in
the farm/association made in group? and the answer was firm Yes.
The communication is very important, and by the fact that the interviewer takes into
account also the opinion of the family members in the moment they make a decision
regarding the agricultural exploitation. This is mentioned that it is very important the
opinion of the family and it always takes into account the opinion if it does not coincide with
his opinion.
Have in property agricultural equipment (tractor, plough, combine, sowing machine,
watering equipment, disks, etc.), and from this thy do not appeal to third persons for
mechanical services, but to permanent workers, 3 persons and also the help of their
relatives and of other persons (but also offer their help to the relatives and to other
persons);

Has 140 de ha with the following crops, surfaces, productions:
Crops
Cropped
surface (ha)
Obtained production
(kg/ha)
Sold quantity
(kg)
Wheat 20 4000 65000
Maize 20 5000 90000
102
Barely 30 3000 TOT
Sun flower - TOT
Lucerne - 0
Rape 70 2700 TOT
Bean - TOT

From the following table the number of animals in the farm results:
Species of animals No owned No sold
Bovine 2 0
Porcine 4 0
Poultry 26 0

The manager used and/or invested during the last year raw materials (seeds, berry
fodder, chemical fertilizers, fuel, etc.) but also other agricultural machines and equipments,
trees, storehouse arrangement, garage etc.
Further on the manager was asked several questions to express their importance in
developing the activity:
Questions

Very
important
Important

Not
important
It is important the organisation of the
vegetal production? Very Important
It is important the organisation of the
zootechnic production ? Important
It is important the costs planning? Very important
It is important the legislative
framework? Important
It is important to plan the production
sell? Very important

We can observe a bigger interest for the organisation of the vegetal production, for
the costs planning and for the products sell than for the organisation of zootechnic product
(yet small lots) or the legislative framework.

CONCLUSIONS

*We had difficulties in collecting the data as follows: difficulties related to communication,
ex: some of the interviewed persons became very suspicious to certain questions (even
they were explained the reason of making this questionnaire) and refused the
questionnaire. Another difficulty was from the reason that we applied several
questionnaires inside the town hall and those interviewed tried to avoid some questions,
because of the town hall employees who participated inactively in the interview.
* before the interview, we had discussions with the interviewed, explaining about
what it is about in this questionnaire, to whom it uses it, what does it contain in order to
prepare the interviewer and for him to realize that nothing is official, all is confidential and
uses for the researcher for making the statistical situation.
During the interview, we tried to gain the confidence and collaboration of the interviewed
person, for obtaining the information wanted. .
103
* Regarding the place of interview, we asked, amiably, to be an adequate one fro
the questionnaire filling in. it is very important not to be in a place where the presentation
of the questionnaire to be difficult, for example, standing up, leaned, etc.
Also, we adopted our own language to that used by the interviewer (using even regional
words), mentioning at the same time the scientific accuracy of the expressions.
* for the research success, we considered the following aspects related to the
sampling method: complying with a certain level of representativeness of the data
obtained; obtaining some stable, valuable data and at the same time, obtaining some
information from which to result better the level of communication inn the agricultural
exploitations in the questioned area.
* From the analysis of the 30 questionnaires, it resulted the need of communication
between the members of the different agricultural exploitations in the mentioned area,
highlighting the transmission of the positive experience also lacks identified during the
time, in accordance with the European Union requirements.

BIBLIOGRAPHY

1.Bougnoux D.(2000) Introduction in the communication sciences Polirom Publishing House
2. Cndea, R.M., Cndea, D. managerial communication. Concepts, skills, strategies. Expert Publishing
House, Bucharest, 1996
3. Cuilenberg J.J, Scholten O.(1998) Communication Science Humanitas Publishing House
4. Dancu V.S.(2000) Communication in the institutional management Metro Media Press

104
STUDY OF SOME PHYSICAL-MECHANICAL TRAITS OF SILK FIBER IN
THE HYBRID COMBINATIONS OF DIFFERENT ORIGINS TESTED IN
ROMANIA

STUDIUL UNOR CARACTERE FIZICO-MECANICE ALE FIBREI DE
MATASE IN COMBINATIILE HIBRIDE DE DIFERITE PROVENIENTE
TESTATE IN ROMANIA

MATEI ALEXANDRA
*
, MARGHITAS L. AL.
**
, P. TZENOV***, D. DEZMIREAN
**
,
MAGDA ANDRONE
*
, CRISTINA BOJAN
**
, M. BENTEA
**

*
Commercial Society SERICAROM-Research department, Bucharest
**
University of Agricultural Sciences and Veterinary Medicine, Cluj-Napoca
*** Sericultural Experiment Station Vratza, Bulgaria

Abstract

The improvement of fiber quality represent a prioritary objective of silkworm breeding works. A
comparative study has been done to a number of 15 hybrids F1 Bombyx mori L. sp. produced in Azerbaijan,
Bulgaria, Romania, Turkey, Ukraine, countries situated in Black and Caspian Seas area, comparatively to
hybrids produced in Japan, Italy and Korea, recognized internationally. Hybrids testing was organized by The
Black, Caspian Seas and Central Asia Silk Association (BACSA).
The study was carried out on the biological material reared in Romania at CS SERICAROM-
RESEARCH DEPARTMENT Bucharest and USAMV Cluj-Napoca. The main studied characteristics varied
between the following values: fiber length 1127-1353 m; fiber density of medium length: 1.8-3.38 Dtex,
respectively 1.62-3.04 den; force of tearing: 3.88-7.52 cN; relative elongation at tearing: 17.23-26.93%; fiber
tenacity: 4.05-5.35 cN/Dtex.
Considering the results obtained from this testing we may recommend as silkworm eggs exporters
among the BACSA member countries Romania, Bulgaria, Turkey, Azerbaijan and Ukraine.

INTRODUCTION

Silk is an animal fiber produced by silkmoth Bombyx mori L. sp.
Natural silk, also called real silk or simple, silk (in our country-floss silk), although
has a small share within the modern textile staple basis, still qualitatively represent a
luxury product owing to its unique qualities. Natural silk was and still is a fiber model whom
many researchers, through the years, strived to reproduce.
Silk is an agricultural product very appreciated, although its total volume is smaller
than 1% from natural textile fibers market. International request of high quality silk has
grown. Proper techniques for cocoon drying and reeling works are vital for good quality silk
production.

The research aim consisted in:
- obtaining of informations about quality of commercial hybrids, produced in countries
afferent to the Black and Caspian Seas area (BACSA Association) comparatively with the
hybrids produced in countries recognized worl-wide as Italy, Korea and Japan;
- recommending possible high quality silkworm eggs producers among BACSA member
countries.

MATERIAL AND METHOD

The experimental material was represented by a number of 15 silkworm hybrid
combinations Bombyx mori sp., having the following origins (sources):
105

Hybrids Country Provider
Silkworm egg
producer
Mayak 2 x Mayak 3 Azerbaijan
Dr. B. Abbasov, Sericulture
Research Institute, Gandja
Sericulture
Research
Institute,
Gandja
Gandja 6 x Yashar Azerbaijan
Dr. B. Abbasov, Sericulture
Research Institute, Gandja
Sericulture
Research
Institute,
Gandja
Super 1 x Hesa 2 Bulgaria
Dr. Y. Vassileva, Sericulture
Experiment Station, Vratza
Sericulture
Experiment
Station, Vratza
Vratza 35 x Merefa
2
Bulgaria
Dr. Y. Vassileva, Sericulture
Experiment Station, Vratza
Sericulture
Experiment
Station, Vratza
(71x70) x (125x121) Italy
Dr. S. Cappelloza, Sericulture
Experiment Station, Padua
Sericulture
Experiment
Station, Padua
Shunrei x Shogetsu Japan
Dr. E. Kosegawa, Laboratory of
Insect Genetics, National
Institute of Agrobiological
Science, Kobuchisawa 6585,
Kitakoma-gun, Yamanashi-hen
Unknown
N 137 X C 146 Japan
Dr. E. Kosegawa, Laboratory of
Insect Genetics, National
Institute of Agrobiological
Science, Kobuchisawa 6585,
Kitakoma-gun, Yamanashi-hen
Unknown
Bacgokjam Korea
Dr. K.S. Ryu and Dr. P. Kang,
Department of Agriculture
Biology, National Institute of
Agricultural Science and
Technology, Rural Development
Administration Suwon
Unknown
Record Romania
Dr. A. Matei, Commercial
Society Sericarom-Research
Department, Bucharest
Commercial
Society
Sericarom-
Research
Department,
Bucharest
Baneasa Super Romania
Commercial
Society
Sericarom-
Research
Department,
Bucharest
Ana 1 Romania
Commercial
Society
Sericarom-
106
Research
Department,
Bucharest
Cislau 2 Romania
Commercial
Society
Sericarom-
Research
Department,
Bucharest
N x M Turkey
Mr. A. Karagozaglu, Sericultural
cooperative Kozabirlik, Bursa
Sericultural
cooperative
Kozabirlik,
Bursa
Ukr 26 x Ukr 18 Ukraine
Dr. O. Galanova, Sericulture
Research Institute, Merefa
Sericulture
Research
Institute,
Merefa
Ukr 27 x Ukr 15 Ukraine
Dr. O. Galanova, Sericulture
Research Institute, Merefa
Sericulture
Research
Institute,
Merefa

For the characters evaluation the following methods were applied:
- relative elongation at tearing, force of tearing and fiber tenacity were determined by
applying the analysis methods scheduled in SR EN ISO 5079-2000, utilized by the
specialised laboratory of the National Institute of Research and Development for Textiles
and Leather Goods-Bucharest;
- fiber density of medium length was rated by the analysis method scheduled in SR EN
ISO 1973/2000.


1. Silk physical characteristics
1.1. Fiber colour
Natural silk has a white colour but can be also yellow, sometimes reddish or even
greenish. The colouring can be found in sericin, therefore after its moving off, by the
operation called degumming, any natural silk is white (Sadov F. et al., 1987).
After degumming, the silk get a specific lustre, being the most glossy natural textile
fiber.
1.2. Fiber density of medium length
Natural silk fineness is an extremely important characteristic, which is reflected by
difilamentary yarn diameter.
Silk fibers diameter varies between 20 and 30 micrometres in the outside part of the
cocoon shell, 30-40 micrometres in the middle part and 17-25 micrometres in the inferior
part.
In Table 1, we present the fiber density of medium length at studied hybrids
expressed in d tex and in denier. In both technologies the values are relatively close.
A generally look on included data in Table 1 reveals a fiber density of length
between 1.80 (1.62) and 3.38 (3.04) d tex (denier).
Variability coefficient presented values between 0.74-1.64%.
Specialized literature presents the following values for filament fineness: 0.9-1.25 d
(Smith A.J., 2007); 2.62-3.12 d (Datta R.K., 1984); 2.84-3.07 d (Matei A., 2002).
107
1.3. Fiber length
Natural silk filament length depends on silkworm specie and cocoon size, varying
between 350 and 3000 m.
Reeling length is smaller, varying according to the hybrid, ranging between 800 and
1600 m.
This character influences silk production output, at the same time correlated with
fiber uniformity and dynamometrical properties.
As resulted from Table 1, fiber length registers between 1127-1353 m, being
distinguished the N 137 x C 146 (1353 m) and N x M (1341 m) hybrids.
Table 1
Force of tearing, fiber length and density of medium length

Force of tearing Density of medium length
Fiber
length (m) Hybrids
cNp Cv% D tex (den) % Cv% XSx
Mayak 2 x
Mayak 3
7.160.31 15.10 2.82 (2.54) 0.65 0.93 119516
Gandja 6 x
Yashar
7.520.34 15.74 3.28 (2.94) 0.91 1.29 120512
Super 1 x
Hesa 2
4.790.44 32.22 2.18 (1.96) 0.85 1.20 122013
Vratza 35 x
Merefa 2
3.880.18 16.74 1.80 (1.62) 0.66 0.93 120410
(71x70) x
(125x121)
5.480.35 22.46 2.26 (2.04) 0.79 1.11 11839
Shunrei x
Shogetsu
5.350.32 21.14 2.62 (2.38) 1.16 1.64 12808
N137 x
C146
4.690.17 12.97 1.90 (1.72) 0.62 0.88 13539
Bacgokjam 7.470.42 19.78 3.38 (3.04) 0.52 0.74 125816
Record 6.650.53 22.94 2.66 (2.40) 0.63 0.89 124110
Baneasa
Super
6.380.38 20.95 2.66 (2.40)0.74 1.05 120212
Ana 1 6.350.42 18.46 2.56 (2.30) 1.12 1.38 12549
Cislau 2 6.210.26 20.36 2.72 (2.42) 0.67 0.78 124811
N x M 5.990.28 16.68 2.24 (2.02) 0.95 1.35 134110
Ukr 26 x
Ukr 18
5.950.38 22.47 2.62 (2.38) 1.13 1.60 112714
Ukr 27 x
Ukr 15
7.010.36 18.20 2.82 (2.54) 0.70 0.99 116512

2. Silk fiber mechanical characteristics
2.1. Fiber tenacity (Table 2)
From mechanical point of view, natural silk is one of the most resistant natural
textile fiber, its peculiar resistance reaching 68 daN/mm
2
.
Fiber tenacity or resistance of the tested hybrids was expressed by two measure
units, respectively cN/d tex and cN/den. As shown in table 2, fiber tenacity is situated
between the following limits: 4.05-5.35 cN/d tex respectively 4.50-5.94 cN/den, with a high
and very high variability coefficient.

108

Table 2
Relative elongation at tearing and fiber tenacity
of the hybrid combinations
Relative elongation at
tearing
Fiber tenacity
Hybrids
% p Cv% Cn/d tex cN/den
Mayak 2 x
Mayak 3
21.341.32 21.38 5.08 5.64
Gandja 6 x
Yashar
21.671.58 25.69 4.58 5.09
Super 1 x
Hesa 2
20.011.62 28.49 4.39 4.88
Vratza 35 x
Merefa 2
17.231.25 25.61 4.31 4.79
(71x70) x
(125x121)
24.601.41 20.18 4.85 5.39
Shunrei x
Shogetsu
20.291.83 31.68 4.05 4.50
N137 x C146 20.101.09 19.04 4.94 5.49
Bacgokjam 22.221.13 17.96 4.42 4.91
Record 19.431.33 24.12 5.0 5.55
Baneasa
Super
24.181.45 21.09 4.80 5.33
Ana 1 26.201.12 20.05 4.75 4.95
Cislau 2 25.311.38 21.06 4.85 5.16
N x M 26.931.79 23.34 5.35 5.94
Ukr 26 x Ukr
18
26.891.45 18.94 4.54 5.04
Ukr 27 x Ukr
15
25.981.46 19.78 4.97 5.52

2.2. Relative elongation at tearing of the fiber in conditioned state (table 2)
Fiber elongation at tearing or elasticity is one of fiber physical-mechanical traits,
taken into consideration in the textile industry without representing a selection criteria in
breeding works.
Concerning the studied hybrids, elongation at tearing was situated between the
following limits: 17.23-26.93%.
Inferior values beside the ones obtained by us are pointed out in the specialty
publications (Titescu E., 1966), the mentioned author presenting a fiber elongation of 11-
12% in optimum conditions of larval rearing, 10% in mediocre conditions and 9.3-9.6% in
inadequates rearing conditions (Preda C., 2002).

2.3. Fiber force of tearing (table 1)
Fiber force of tearing, expressed in cN (centi Newton), presented a high variation
amplitude concerning the studied hybrids, being situated between 3.88-7.52 cN.
The analysed character present, in studied hybrids case, a variability coefficient
situated in wide limits, respectively 15.10-32.22%.

2. Silk other properties
109
Natural silk in dry state has the property to absorb humidity from atmosphere
because its a hygroscopic fiber. As wool, absorb easily humidity, being less hygroscopic
then this one but more hygroscopic than cotton.
Natural silk fiber is insoluble in water and organic solvents used generally as:
benzene, ethylic alcohol, methylic alcohol, sulphuric ether, acetone etc.
Natural silk is nonconducting heat and electricity and has a weak resistance to
solar light.
In Table 3 the physical properties of natural fibers are presented comparatively.
Table 3
Natural fibers physical properties

Properties Cotton Wool Natural Silk
Water absorbtion
(%)
8.5 13.5 11.0
Draping Satisfactory Good Excelent
Light resistance Satisfactory Good Bad
Mould resistance Slaba Good Good
Touch Good Almost excelent Excelent

CONCLUSIONS

1. The study of a number of 15 simple hybrids Bombyx mori L. sp. produced in Azerbaijan,
Bulgaria, Romania, Turkey, Ukraine, countries situated in Black and Caspian Seas area,
comparatively with hybrids produced in Japan, Italy and Korea, recognized world-wide, for
its evaluation based on silk fiber physical and mechanical traits, was continued.
2. Considering the results obtained from this testing we may recommend as silkworm egg
exporters among the BACSA member countries Romania, Bulgaria, Turkey, Azerbaijan
and Ukraine.
BIBLIOGRAPHY

1. DATTA R.K. (1984) Amelioration of silkworm races (Bombyx mori L) in India Sericologia, 24 (3),
p.393
2. MATEI A. et al. (2002) The study of some physical-mechanical and chemical characteristics of silk
fiber of Bombyx mori L. hybrids Buletinul USAMV Cluj-Napoca, Vol. 57, p. 227
3. PREDA C. et al. (2002) Textile Ingineer manual, 1
st
Part, Agir Publishing House, p.177.
4. SADOV F., KORCHAGIN M. and MATESKY A. (1987) Chemical technology and fibrous materials
Mir Publication, Moscow, p.306-307.
5. SMITH A.J. (2007) Microfibers: Functional beauty Ohio State University Extension Fact
SheetTextiles and Clothing, Columbus.
6. TITESCU E. et al. (1966) The physical-mechanical study of the silk yarn produced by some
hybrids from our country SCAS Scientific papers vol. VII - Agricultural Reviews Publishing house,
Bucharest, p. 279-290.
7. YAMAMATO T., ENOKIJIMA M. (1984) On the heritability of the number of eggs laid in F2
population of the silkworm, Bombyx mori L. J. Sericult. Sci. Japan, 53 (1), p. 85.

110
ECONOMICAL DECALAGES NATURAL AND IMPOSED PREMISES

DECALAJE ECONOMICE PREMISE NATURALE I IMPUSE

MERCE E., C. C. MERCE, F. H. ARION, CH. HAKIZIMANA

University of Agricultural Sciences and Veterinary Medicine from Cluj-Napoca

Abstract

The entire humanity evolution seems to be a long march of nations and individuals hierarchised by a
very rigorous and immutable formula. No matter how we evaluate the changes from society, from
contemporaneous world, there cannot be ignored large chronic and extending areas of poverty: countries
and regions living at the edge of misery, people who barely survive, teenagers to whom the horizons are
closed because of the freedom excess. It cannot be ignored what can be named the new pauperization
formed by islands of criminality, of illiteracy, of severe or less severe form of drugs. A realist observer of
historical and contemporaneous realities is rightful to ask himself if it is natural to witness passively the
discriminatorily reproduction of social levels, where the rich people conserve, defend and increase their
wealth while the poor people are doomed to endure the misery. A world, where 90% of its elites have
dynastical origins, can be neither fair nor objective. Even Bill Gates, the richest man on the world, had the
honesty to damn such a social reality.

Keywords: poverty, hierarchy, dynastical structures, development level, level of life

INTRODUCTION

The pyramidal organisation of the world and the normal distribution are natural
premises of economical stratification. The interests just continue and amplify theses
differences based on the principle: La raison de plus fort est toujours la meilleure.
The entire humanity evolution seems to be a long march of nations and individuals
hierarchised by a very rigorous and immutable formula. No matter how we evaluate the
changes from society, from contemporaneous world, there cannot be ignored large chronic
and extending areas of poverty: countries and regions living at the edge of misery, people
who barely survive, teenagers to whom the horizons are closed because of their freedom
excess. It cannot be ignored what can be named the new pauperization formed by islands
of criminality, of illiteracy, of severe or less severe form of drugs.
A realist observer of historical and contemporaneous realities is rightful to ask
himself if it is natural to witness passively the discriminatorily reproduction of social levels,
where the rich people conserve, defend and increase their wealth while the poor people
are doomed to endure the misery.
A world, where 90% of its elites have dynastical origins, can be neither fair nor
objective. Even Bill Gates, the richest man on the world, had the honesty to damn such a
social reality.
Table 1.The main demographical and states indices on group of countries
Country
GNI
$/inhabitant

No. of
children
per
woman
Infantile
mortality
on 1000
leaving
Population
increase
%/year
Tertiary
education
enrolment
%
%
agriculture
in GDP
Average
live
expectation
% import
of
goods
in GDP
With high
revenues 34962 2 5 1 67 2 79 25
With medium
revenues 2636 3 30 1 27 10 69 32
With low
revenues 584 4 75 2 9 22 59 39
Source: World Bank, WDI, February, 2008. Data for year 2005
111

MATERIAL AND METHOD

Relation of causality between the gross national revenue on inhabitant and some
demographical indices, respectively of state, is eloquently illustrated by the correlation
coefficients. So, the number of children for a woman is on inverse determination relation
with the gross national revenue on inhabitant (r = -0.8914).
Also, infantile mortality is on inverse determination relation with the level of
economical development (r = -0.8058).
The level of tertiary education enrolment is on a direct and very intense
determination relation with the level of economical development (r = 0.9677).
Also, the average live expectation is on a direct determination relation with the level
of economical development (r = 0.8914).


The analysis of the annual average increasing rate of the gross domestic product
on inhabitant shows the fact that the decalages among the developed and poor countries
are conserved and accentuated (table 2).

Table 2. Evolution of gross domestic product on groups of countries

high revenues
2001 2002 2003 2004 2005 2006
GDP (000 $) 25487302572 26593536812 29872340230 33167342721 34862653285 36583030580
Population (000) 994643 1001734 1009242 1016633 1023912 1028534
GDP/inhabitant 25625 26548 29599 32624 34048 35568
medium revenues
2001 2002 2003 2004 2005 2006
GDP (000 $) 5263895462 5357367477 6037132978 7169613240 8525412725 10049511650
Population (000) 2954727 2981639 3008389 3034099 3060935 3085943
GDP/inhabitant 1782 1797 2007 2363 2785 3257
with low revenues
2001 2002 2003 2004 2005 2006
GDP (000 $) 865164271 917856046 1054189947 1220633237 1419705403 1611831301
Population (000) 2191869 2234166 2276611 2318960 2361135 2403283
GDP/inhabitant 395 411 463 526 601 671
Source: World Bank, WDI, February, 2008

Figure. 1 Evolution of gross domestic product on inhabitant in high revenues countries

y = 2149.7x + 23145
R
2
= 0.9766
0
5000
10000
15000
20000
25000
30000
35000
40000
2001 2002 2003 2004 2005 2006
G
D
P
/
i
n
h
a
b
i
t
a
n
t

112

Figure. 2 Evolution of gross domestic product on inhabitant in medium revenues
countries

Figure. 3 Evolution of gross domestic product on inhabitant in low revenues countries

The average absolute increases of the gross national revenues on inhabitant
obtained on the basis of linear trends: 2149.7 $ in countries with high revenues; 305.6 $ in
countries with medium revenues and 57.5 $ in countries with low revenues, represent the
most eloquent proof that the decalages among developed and poor countries are
accentuated year by year.
The comparative analysis of the structure of the gross domestic product and of the
population structure on groups of countries shows that around 80% from world riches are
property of nearly 16% of world population. (table 3 and figure 4).

Table 3. Structure of gross domestic product on group of countries
2001
Group of countries GDP % Inhabitants %
With high revenues 25487302573 80.61 994643 16.20
With medium
revenues 5263895462 16.65 2954727 48.11
With low revenues 865164271 2.74 2191869 35.69
31616362306 100.00 6141239 100.00
2006
With high revenues 36583030580 75.83 1028534 15.78
With medium
revenues 10049511650 20.83 3085943 47.35
With low revenues 1611831301 3.34 2403283 36.87
48244373531 100.00 6517760 100.00
y = 305.57x + 1262.3
R
2
= 0.9305
0
500
1000
1500
2000
2500
3000
3500
2001 2002 2003 2004 2005 2006
G
D
P
/
i
n
h
a
b
i
t
a
n
t
y = 57.514x + 309.87
R
2
= 0.9699
0
100
200
300
400
500
600
700
800
2001 2002 2003 2004 2005 2006
G
D
P
/
i
n
h
a
b
i
t
a
n
t
113

Figure. 4 Structure of revenues and of inhabitants on group of countries in 2006

Another alarming factor, which confirms the lack of chances of prosperity launching
in poor countries, is the reduced share of tertiary education enrolment (figure 5).

Figure. 5 - Level of tertiary education enrolment (%), year 2005

Figure. 6 Average live expectation (years), year 2005

0
10
20
30
40
50
60
70
80
High revenues Medium revenues Low revenues
% revenues % no. inhabitants
0
10
20
30
40
50
60
70
80
Countries with high revenues Countries with medium revenues Countries with low revenues
0
10
20
30
40
50
60
70
80
90
Countries with high revenues Countries with medium revenues Countries with low revenues
114
Economical poorness affects all specific life characteristic features, including the
average live expectation (figure 6). In such situations, without a prosperous and qualified
labour force, the existent decalages among the few reach people of the world and the poor
majority will continue and will become deeper.

CONCLUSIONS

Economical decalages among the worlds countries are realities with very deep
historical roots. The differences created, at the beginning, based on natural characteristics,
were accentuated by applying the right of force over the force of right.
The pyramidal organisation of world and the law of normal repartition are natural laws
governing all leaving, economical or social systems. On such background, humanity has
not found yet the altruist solution to an equitable distribution among diverse areas, nations
and groups of the natural reserves and of the created values.

BIBLIOGRAPHY

1. Merce E., Elena Merce (2005) - Performane, decalaje i strategii posibile n producia agricol a
Romniei, Lucrri tiinifice, vol. 14, economie, Chiinu 2005, pag. 195-201
2. Merce E., D. M. Sabu, Elena Merce (2007) - Specific Differences of the Cereals Production within the
Central And Eastern Europe Countries; Proceedings of the 50th International Scientific Conference
Romanian Agriculture in EU - Opportunities and Perspectives of USAMV Iai 18-19 octombrie, vol. 3, pag.
352-357, ISSN 1454-7414

115
BIOTECHNOLOGY AND RURAL DEVELOPMENT: COMMENTS

MORENO MILLN, M*. AND M.J. MORENO MORENO*, GREGOR J. MENDEL
BUILDING**

*Applied and Molecular Animal Cytogenetic Laboratory, Department of Genetics
**University of Cordoba (Spain), Campus of Rabanales

Abstract

The biotechnology science affects very different disciplines like biology, medicine, genetics,
agronomy, engineering, veterinary and even the low and the ethic among others, and it should answers
more and more situations and restlessness that the actual society is outlining. In our global world many
changes, consequence of the problems of the population's increase and the kind of the plant and animal
production carried out during the last years, continuously appear. With the objective and the pretext of
increasing the production without control, many pernicious effects, that should be solved, have appeared and
insofar as possible corrected such as the production of surpluses that they cannot be used; the increase of
the differences among rural territories as a consequence of an unbalanced development; the perception that
environmental damages were taking place and even the risks for the health of population when many
indiscriminate pesticides, antibiotics, hormones, etc. were used. More and more the society demands
agricultural practices compatible with environmental values, producing healthy foods for animals and human
and also guaranteeing the rural sustainable development of the agricultural communities. Biotechnology
comes to be able to solve problems where the traditional technologies cannot solve them. The use of the
resistance to herbicides, plagues and illnesses and the improvement of the organolectic characteristics and
nutritional values of the plants and other characteristics by means of biotechnical methods together with the
improvement of the systems of plant and animal production will allow a correct sustainable rural
development.

Key Words: biotechnology, rural development, genetics, animal, plant, production.

INTRODUCTION

In general the biotechnology can be defined as the technology that allows the use
of organisms or its compounds to obtain different products with high value form human.
The term biotechnology supposes a big list of techniques since those established
ago, obviously well-known and used, until the most modern techniques fundamentally
based on the knowledge of the genetic material and its application, that has allowed the
development of the cellular and molecular biology and the use of microorganisms, plant
and animal cells and even complete organisms to satisfy the human necessities. It is not
necessary to point out that among the first ones we find the processes of bread, beer, wine
or cheese production, the improvement of plant and domestic animals production, etc. and
among the second ones we can find those that directly transform the agriculture or those
that affect to the obtaining products with interest for human like some pharmaceutical
products and process that allow manipulation and/or elimination of residuals.

More and more appear different voices about if biotechnology can open possibilities
of development in the field of the agronomy in its widest sense, because of its impact in
the rural development, in fact, the impact in the agriculture, in the livestock, in the fishing
and in the environment. Thus, environmental and even ethical-moral debates continuously
appear discussing the convenience or not of its use.

BRIEF HISTORY OF THE BIOTECHNOLOGY AND THEIR MAIN DISCOVERIES

In the biotechnology history we can observe different periods in function of its
discoveries. We can indicate the following ones:
116

Until the XX
eth
century: The classic biotechnology was developed as well as some
technical advances that allowed knowing the biology of the live organisms, as the
microscopy, the cytology and the microbiology. Also advances about the paper of the cell,
basic part of one live organism, the discovery of the proteins, the studies on the
inheritance of the characters and even the origin of the species.

In the XX century we can remark different moments in the development of the
biotechnology:
-Up to 1950 the bases of the genetics, the immunology and the molecular biology
are developed. It was discovered the DNA structure. This molecule carries out the genetic
information.
-Among 1950 at 1970 the molecular structure of the DNA is well known; it was
discovered the polymerase enzyme, the genetic code, the restriction enzymes The
green revolution also takes place with the application of new fertilizers and pesticides.
-Among 1970 at 1980 starts recombinant DNA techniques are ready and the
ethical-moral first debates appear in relation to its application. For the first time in the
man's history the man himself realizes and starts to assume that it is not more than a link
in the biological chain, stopping to play the central role in the life of our planet. But he also
realizes the possibilities that this technology can represent. Thus the first recombinant
human proteins, like insulin or growth hormone, were obtained, and the first
biotechnological companies were created.
-Between 1980 and 1990 the animals and transgenic plants were generated for the
first time and also patented; the technique of the polymerase chain reaction (PCR) was
ready and showed its possibilities to use in many fields of the medicine, the veterinary
science, the biology, etc. Some biotechnological medicaments start to be commercialized.
-Between 1990 and 2000 the first protocols of human somatic therapy settle down;
the first foods originated from the transgenic plants were approved; Dolly was born for
nuclear somatic transfer; the first lines of embryonic human stem cells were isolated.
-In our XXI
st
century it was obtained the human genome sequence; the
postgenomic and proteomic era start and the second generation of proteins with interest
fro human start to be obtained too.

APPLICATIONS OF THE BIOTECHNOLOGY

As we have indicated above, the biotechnology contributes substantially to
transform the agriculture, the animal and human health, the industrial supplies, the energy
production, the protection of the environment and, why not, the reduction of the human
poverty in developing countries.

Traditionally the plants have been modified by crossings selected specimens in
those all the genes combine, while by the application of biotechnological techniques the
combinations are made with previously selected genes. The result has been, for example,
the obtaining of plants with specific characteristic as the resistance to certain insects
producing bigger productions in relationship with non modified plants or an increase of the
nutritional value, i.e. the production of some oleaginous seeds that produce oils with a
smaller content in saturated fats.

The applications of the biotechnology are very wide. We can point out the
resistance to herbicides, simplifying the control of the weeds and coordinating the
agricultural activity with the environment; the resistance to different plagues and illnesses
117
with the reduction of the consumption of insecticides and, as a consequence, generating
advantages for the farmer, the consumer and why not the environment; the improvement
of organoleptics characteristic and nutritional values above indicated; the resistance to the
abiotic stress making the vegetables resistant to certain environmental conditions as cold
or heat; the production of biodegradable plastics from modified vegetable by introduction
codificant genes in certain plants; the selection and introduction of genes, in animal
production that represent certain advantages like bigger wildness and adaptation to the
environment or even a bigger efficiency in the transformation of the food and of course the
application of other reproductive biotechnologies that can reduce the calving interval or
increase the number of offspring by generation and the application of artificial insemination
(AI) technique, embryo transfers, criopreservation or nuclear transfer that allow the
production of animals with high value characteristics for farmers.

WHATS THE INCIDENCE OF BIOTECHNOLOGY IN THE RURAL DEVELOPMENT?

To answer this question we could point out, from all above, that the application of
biotechnology can benefit the rural development as soon as that is a technology that
allows to approach many of the human necessities related with the health, the aging, the
feeding, the environment and the sustainable development of the communities. The use of
illness free seeds, resistant to plagues and with smaller necessities of chemical harmfull
products for the health and the environment, with some nutritional and with possibilities to
be applied to generate products for industry, it represents itself a positive impact in the
rural areas. But also new development opportunities for agricultural companies to produce
raw material with high quality and other types of companies different to the primary sector
ones, as the energetic companies. These can take advantage of the agricultural waste by
means of the application of the new technologies of fermentation to generate energy,
which also could represent certain advantages for the environment.

The previous analysis is something simplistic if we don't make mention to the fact
that something fundamental in the rural development it is the employment creation in the
communities. The biotechnology by itself is not able to generate development. It is
necessary qualified people, technicians and experts to apply the technological innovations.
Therefore the formation is fundamental and itself is a limitation because most of the work
positions linked to the biotechnology have requirements of abilities and specific capacities
and they are not covered by people of the rural areas. The negative consequence is that
the most of the added value obtained in the application of the biotechnology leaves
outside.

On the other hand it is necessary to point out that according to FAO for 2030 will
have more than 2000 million inhabitants that will depend at the same time on the
agriculture for their subsistence but the natural resources are more and more fragile.
According to the same sources the biotechnology could help to solve the problem of the
world population's feeding continuously growing although it is not the only solution. In
words of FAO in a communication of May of 2004, 17 "the biotechnology represents a
great promise for the agriculture in developing countries, but until this moment a limited
number of people and nations of the developing world have only harvested their benefits."
In fact the developing countries have a series of limitations to use the current
biotechnology and to obtain its benefits. Among these limitations we can indicate that at
the moment the cultivations are not centred in the basic feeding; that the national
regulations are inadequate; that the markets and the systems of distribution of seeds are
unfunctionals and, why not, that these countries have very poor capability to establish
systems of animal and/or plant breeding genetics.
118

At the present time the international organisms implied in animal and plant
production, as FAO, or different professional associations and supranational organizations
like European Union are even very sensitive on the rural development and the
conservation of animal breeds and plant varieties in order to preserve their character of
genetic resource very important for the future development. Many normative have been
introduced to stimulate the extensive production and environmental systems. For a correct
rural sustainable development, to work in the agriculture and in extensive animal
production, to stimulate the agro-environmental formation, to support the animal
autochthonous breeds and the products with origin denomination, they are different lines
to favour. Also this is the way that will certainly contribute to give solutions at medium
term. Many different development programs for developing countries must be elaborated
and improves by international organisms like FAO, contributing them the necessary
biotechnology in order to allow to their societies and their farmers to remain fixed in their
environment and in their production system assuring dignity and enough rents that allow
them to maintain their ways of life without necessity of looking for other exits, mainly to the
cities, abandoning the rural environment with the consequent loss of biological and cultural
diversity. FAO recognizes that the small farmers of the developing countries where
transgenic cultivations have been introduced have obtained bigger economic benefits than
the other and mainly they have reduced the use of agrochemical products.

As consequence of all mentioned above and absolutely sure that the responsible
ordination for the natural resources is the key to reach the sustainable development, FAO,
which has inside of its main objectives the promotion of the management of natural
resources and the protection of the environment, has considered very important to
strengthen this commitment. Thus in January 1
st
2007 it was created the new Department
of Ordination of Natural Resources and Environment. This new department has inside
among its main functions supporting the environmental services and the ordination and the
sustainable use of the earth, of the water resources and the genetic resources too; to
strengthen the agricultural investigation and the extension systems, the so important
bioenergy for the rural development, the climatic change, the biodiversity regarding
feeding and agriculture and the investigation and extension.

CONCLUSIONS

In 2005 it was celebrated an International Conference by e-mail organized by FAO
between the months of June and July about "THE PAPER OF THE BIOTECHNOLOGY IN
THE CHARACTERIZATION AND CONSERVATION OF GENETIC RESOURCES OF
CROPS, VEGETABLE SPECIES, ANIMALS AND FISH IN COUNTRIES IN VIA OF
DEVELOPMENT." During the Conference it could observe that the main problem in the
developing countries, in relationship with the animal and plant production, was that all their
technologies were focused to the subsistence since the farmers had poor access to the
financing sources, technical and marketing and on the other hand they needed more
development and reduction of the poverty. The animal and plant selection programs are
expensive in time and in money. Thus, the farmers select breeds and make matings that
can produce a quick financial return and the governments can not support the
conservation of genetic resources. It is important dont forget that in the circumstances of
farmers the conservation of the resources is not high-priority. Therefore in conclusion the
application of the biotechnology involves financial contribution, education, equipment and
good infrastructures, very difficult to reach in most developing countries without support of
supranational organizations.

119
More than 70% of people of the world are poor and they live in rural areas in those
their survival depends on the agriculture. The development of these rural areas is
intimately related with the agricultural and livestock investigation and its applications. The
successful combination of the increase animal and plant production, the depreciation of
the costs and the defense of the environment will give clear answer to the necessities of
the human populations in those areas. It is sure that the use of the biotechnologies
produces a benefit at short and long term for the farmers and at long term for the
community but it must be clear that the biotechnology is an instrument to supplement and
not to replace to the agricultural traditional technologies, although it can give solutions
when the previous ones fail.

It is necessary to recognize that the biotechnology also has a big potential impact
because its results and advances affect many sectors of the economic activities and it
facilitates their relationships. In this sense, for example, the use of the new technologies to
recycle the agricultural wastes through fermentations affects to the energy sector, to the
agro industry and produces an additional positive effect in the environment. Also, we
should not forget that the biotechnology, particularly the genetic biotechnology, together
with the archaeology, the language, the knowledge, the history, etc., can give us the keys
of the origin and the evolution of the agriculture and the livestock.

In conclusion:

1-For rural sustainable development and the alimentary security it is necessary to
elaborate, to develop and to introduce the correct decisions and mechanisms in the rural
environment.

2 - The main challenge of the biotechnology in animal and plant productions is to answer
not only the necessities of food of the society but to answer its sensibilities about the
innocuousness of foods and on the protection of the animals and environmental health too
and, of course, the rural sustainable development of the developing and underdeveloped
populations.

BIBLIOGRAPHY

Boyazoglu, J. (1998). Livestock farming as a factor of environmental, social and economic stability with
special reference to research. Livestock Production Science 57:1-14.

Comisin de las Comunidades Europeas (2002). Ciencia de la vida y Biotecnologa Una estrategia para
Europa. Comunicacin de la Comisin al Consejo, al Parlamento Europeo, al Comit Econmico y Social y
al Comit de las Regiones. Bruselas, Enero.

Criado, J.M. (1999). El desarrollo futuro de la biotecnologa en la agricultura. Vida Rural 79:32-33.

FAO (1992). The management of global animal genetic resource. Animal production and Health papers.
Rome (Italy), pp.104.

Rodrguez Estvez, V. y C. Mata Moreno (2002). Libro blanco de la Agricultura y el Desarrollo Rural:
Comunicacin: Ganadera sostenible en Andaluca. Papel de la Dehesa en la nueva PAC. Sevilla.

120
AVANTAJELE UTILIZRII BIOCOMBUSTIBILILOR I SEMNELE DE
NTREBARE CARE SE RIDIC

THE ADVANTAGES OF USING BIOFUELS AND THE QUESTIONS
THAT ARE RAISED

OANCEA E.

University Of Agronomic Sciences and Veterinary Medicine

Abstract

The decrease in the oil reserve and the increase in the consumption thereof have led to the
development of programmes related to using the biofuels resulted from the biomass. Their use has a series
of advantages, but under the conditions of an uncontrolled development phenomena may occur that will
affect food or environment safety.

Key words: biofuels, advantages, disadvantages

INTRODUCTION

The movement from the stage in using non-renewable resources to the energetic
economy resulting from renewable resources has triggered, at world level, extremely
ambitious programmes, the mobilisation of capitals and the concentration of power within
the biofules industry.

MATERIAL AND METHOD

In Europe it is aimed that the production of biofuels will account for 5.75% of the
fuels in 2020. In order to achieve these productions it is appreciated that 70% of its arable
land (15) should be cultivated.
The United States of America aims at producing 35 billion gallons per year, using
the entire crops of corn and soy cultivated to this end.
Indonesia and Malaysia increase their areas cultivated with oil palm-trees, thus
being able to contribute to supplying up to 20% of the European Biodiesel market.
Brazil intends to increase 5 times the area cultivated with sugar cane, thus in 2025
being able to supply 10% of the world petrol consumption.
Huge funds are allocated to research (see the subsidy of half a billion dollars
granted by British Petroleum to the University of California), strong partnership
agreements are signed: Archer Daniels Midland Company and Monsanto, Chevron and
Volkswagen, Du Pont and Toyota, in order to concentrate the research, production,
processing and distribution activities.
These tendencies and processes are based on a set of economic, social,
environmental, political advantages emphasised by those who consider that the transition
to the use of biofules can alleviate the current problems that concern all the countries
mainly related to the exhaustion of non-renewable resources and those regarding the
climate and environment.
The research and calculations made by various institutes, organisations,
international agencies raise questions to each advantage, underlining in fact the need to
study the limits in elaborating the strategies in using bioenergy.

121

1. Do biofuels reduce gas emissions and contribute to improving air quality?
In the working document of the Commission of the European Communities
Brussels 10.01.2007 it is shown that in the case of maintaining the situation in which the
ratio of renewable energy is 12.5% in 2020, the annual reductions would be of 340-600 m
tons of CO
2
.

If the ratio reaches 20% the equivalent figure would be of 600-900 m tons of
CO
2
. (15)
Analysing the impact of biofuels, though, from the beginning to the end, namely
from deforestation to their use in road transport, the limited reductions in greenhouse
gases are cancelled by the counter effects determined by deforestations, fires, draining
wet areas, cultivation technologies and loss of soil carbon.
In Indonesia, oil palm-tree plantations are meant for the production of Biodiesel
called deforestation diesel and represents the main cause for the decrease in woodlands.
Towards 2020, these areas will triple, reaching 16.5 million hectares the area of England
and Wales together -, resulting in a loss of 98% of woodlands. Neighbouring Malaysia, the
first world producer of palm oil, has already lost 87% of its rainforests and continues to cut
them down at a pace of 7% per year. (5)
The irony is that this offensive of biofuels producers sends Indonesia to the top of
the countries with the largest greenhouse gas emissions.
Numerous forest fires have occurred in these areas, which were caused by the
palm-tree farmers.
Each ton of palm oil, though, produces 33 tons of carbon dioxide 10 times more
than oil (6).
Before planting palm-trees, (these expensive trees) it is necessary to cut down and
burn other large trees in the rainforests which could have eliminated a large quantity of
carbon dioxide in the atmosphere.
The ethanol produced from sugar cane cultivated instead of the deforested
rainforests gives out 50% more greenhouse gas than the production and use of an
equivalent quantity of petrol (4).
The crops used in the production of biofuels need large quantities of fertilisers
produced on the basis of oil, whose global consumption currently of 45 m tons per year,
has led to doubling the level of biological nitrogen available on the planet, contributing
strongly to the nitrogen protoxide emissions, a greenhouse gas that ahs a global warming
potential 300 times larger than the one of CO
2
. (4)
The need to have large areas of land for the cultivation of oil plants can lead to the
mono-crop phenomenon (cultivating the same plant on the same area for years) and
implicitly to exhausting the nutrients in the soil (especially in the case of rape cultivation).
According to the International Water Management Institute (IWMI), the water
reserves in China and India are already threatened by the production of biofuels. The two
countries, the most populated on the planet, must diminish this impact by developing new
biofuel technologies. Another solution would be to develop sorghum that only need rain
water.
In order to obtain a litre of ethanol we need three to five litres of water from irrigation
systems and up to 13 litres of waste water are produced. We need the energetic
equivalent of 113 litres of natural gas to treat these waste waters, which increases the
probability that they will be simply disposed of in the environment, thus polluting streams,
rivers, and groundwater. (5)
2. Does the use of renewable energy by reducing gas emissions have a
positive influence on biodiversity in the fact that ecologically degraded terrains will
be used for energy crops?
Based on this idea, the Brazilian government reclassified almost 200 m ha of dry
rainforests, pastures and swamps as degraded terrain and able to be cultivated with suar
122
cane. In fact, these are ecosystems of a large biodiversity in the Mata Atlantica, Cerrado
and Paretanal regions occupied by indigenous populations, peasants and large farms for
the extensive raising of bovines (5).
The introduction of crops aimed as agro-fuels will result in simply pushing these
communities towards the agricultural frontier of the Amazon region, where the types of
destructive deforestation are very well-known. Soy already provides 40% of the agro-fuels
in Brazil and according to the American agency NASA, the highest the soy price is, the
more the destruction of the rainforest of the Amazon is accelerated 325.000 ha per year,
at the current rhythm.
In other countries there is a risk of decreasing the areas for pastures and hay fields,
valuable biodiversity resources.
3. Will the biofuels contribute to the social and economic development of the
rural environment?
The migration of the population is meant to be stopped, by increasing employment,
decreasing the cultivated areas, using the areas near rivers that are cultivated with
willows, increasing incomes, developing other industries.
The ASTRA model estimates that employment would increase by about 0.3%,
approximately 650.000 jobs in the EU, and the ESIM model (input-output) estimates that in
the field of biofuels the number of jobs would increase by 144.000. (15)
But to the south of the tropics, one hundred hectares dedicated to family agriculture
creates thirty-five jobs. Oil palm-trees and sugar cane create ten, eucalyptus two, and soy
only half. Until recently, agro-fuels mainly served local and sub-regional markets. Even in
the United States, the largest part of the ethanol production plants, of relatively modest
size, belonged to farmers. With the current boom, the large industry joins in, creating
economies of gigantic sizes and centralising businesses.
Since NAFTA entered into force, the Mexican agriculture which provided jobs for 1/5
of the population, has lost 1.3 million jobs.
Subsidised and in full growth at the time when the oil production decreases, biofuels
facilitate the concentration in the hands of the most powerful actors in the food and energy
industries.
Oil, cereal and genetically engineered crops groups consolidate their presence
along the entire chain of added value of biofuels. Cargill and ADM control 65% of the world
cereal market; Monsanto and Sygenta dominate the genetically modified products (GMO)
market. For seeds, fertilisers, services, the processing and marketing of their products, the
peasants who will cultivate for the agro-fuel industry will be more and more dependent on
a yoke of strongly organised companies. (19) It is more likely that the small agricultural
producers will be driven out of the market and their lands. Hundreds of thousands have
already been moved to the Soy republic, a region of over 50 m ha which lies in the south
of Brazil, north of Argentina, Paraguay and eastern Bolivia. (5)
4. Will biofuels not cause famine and increase the food products price?
According to the United Nations Organisation for Food and Agriculture, 824 million
people live in poverty and for this reason they continue to suffer from hunger. This period
of transition to the green oil brings into the competition the food production and the fuel
production for the access to land, water and other resources.
On the consumer goods market there are two groups of buyers: one representing
those who process food and one representing the producers of biofuels. Clearly, the role
played by agriculture in the global economy will increase, since the auto fuel market will be
vast and almost unlimited.
But what will be the economic and environmental effects of developing agriculture
as biofuel productions in a world with less oil?
123
If the price of the agricultural products which can be used either as food, or to
obtain biofuel is smaller and the oil price is higher, they will be meant for the fuels
producers.
In this case, there is a question: will the oil crisis be able to generate in the future
the renewable resources crisis and especially that of the agricultural products used as
food? For the countries that depend on the import of cereals to provide food for the
population this phenomenon already raises problems because there is the possibility for
those who buy cereals for bioenergy to bid more than those for cereals necessary as food.
In many regions, the large demand for bioenergy influences both the raw material cost and
the available reserves of food. From 2003 to 2006, in the United States, the total quantity
of maize harvested for biomass increased from 12% to 16%. Recently, the federal
governments have established that, until 2017, a target o 35 m gallons of alternative fuel
will be produced and used annually. Only for half of this quantity more than 40% of the
annual forecast maize production in the USA will be necessary. Thus, it comes as no
surprise that the maize price already increased. And the increase was exponential every
year: from an average of 1.9 dollars per bushel in 2005 to 2.41 dollars in 2006. In the final
part of last year, on certain markets, the maize price reached even 4 dollars per
bushel.(14)
The world statistics indicate that, for some time, the part represented by the
agricultural production underwent an involution because the increasing quantities of
investments (fertilisers, genetic engineering and machinery) on the one hand did not
increase the productivity rate in agriculture, and on the other hand the progress to the
consumption of ecological products is based on a lower production per hectare.
The ever larger demand for biofuel can cause unintentional but serious imbalances
on the food products market. An example is Mexico. Due to redirecting a large part of the
maize production (imported form the USA up to 30%) to the production of ethanol, the
tortilla price (maize bread) increased outrageously. Tortilla was as wanted on the market
as bio-ethanol was.
At planetary scale, the poorest persons already spend between 50 and 80% of their
family income on food. They suffer when fuel crop prices lead to the increase in food
prices. The International Food Policy Research Institute in Washington estimated that the
price of basic foods will increase by 20-33% in 2010 and by 26-135% in 2020. Or, every
time the food price increases by 1% 16 million people are very seriously affected by food
insecurity. If the current trend continues, 1.2 billion inhabitants could suffer chronically from
hunger in 2025. In this case, the international food support will probably not be very useful,
since our agricultural surplus ends up in our petrol tanks.
Faced with the manifest dissatisfaction of a poor population, the government, at the
end of a transnational meeting in the industry and distribution had to limit the price for the
tortilla (basic food in Mexico).
According to the European Energy Commission, replacing fuels with renewable
energy in 2020 is estimated in the Green-x and PRIMEX scenarios by about 234-300
Mtep/year about 200 Mtep/year of which should be ensured from imports. (18)

CONCLUSIONS

5. Can the Second generation of biofuels from cellulose crops be a
complementary source?
In order to reduce the impact first generation biofuels have on food crops, it is
estimated to use cellulose crops such as: fast growing trees, panicum virgatum
(graminacea whose foliage reaches 1.8 metres high), prairie grass, genetically modified
maize, secondary vegetal products (straw, cobs).
124
Knowledge of these crops is not deep enough, yet the wild plants will not leave a
less intense ecological mark because marketing will change their ecology. Also, when
cultivated intensively, they will migrate rapidly from the bush and forested area to arable
lands.
The technologies which will have to be marketed in the next stage must not allow
for negative impacts on the climate, and the ethanol production from cellulose has not
proved yet a reduction in carbon dioxide emissions (5).
6. Biofuels reduce oil imports and increase supply security in the transport and
heating systems sector. The European Commission estimated that in order to produce 13
million tons of biofuel 5.1 million ha of cereals and 0.6 million ha of beet root are
necessary. Therefore, the availability of terrains is limited. On the other hand, the
production of biofuel from renewable resources if it is achieved at a rhythm superior to
their renewal capacity can cause negative phenomena such as: the decrease in pastures,
desertification, the decrease in ocean fishing, the decrease in resources for other products
such as paper, valuable chemical ad pharmaceutical products.
7. The residues from biomass processing are more reduced and do not include
toxic products in their structure and can be used as fertilisers.
8. Based on a sustained policy and on amplifying the research regarding the
production of biofuels there is the possibility to export technologies both for those
already famous but especially for the innovative ones which have to be thoroughly tested.

BIBLIOGRAPHY
1. Brown R. Lester Plan B2.) Rescuing a planet under stress and a civilisation in trouble, Ed.
Tehnic, Bucharest, 2006.
2. Holt Gimenez Eric director general IFDP The five myths of agro-fuel transition, Societatea de
Editur LMD, 2007.
3. Strensen Bent Renewable Energy. Its physics, engineering, use environment impacts, economy
and planning aspects. Third Edition, Elsevier Science, 2004.
4. * * * - Energy Information Administration. Departamentul de Energie al SUA. www.eia.doe.gov.
5. * * * - Documentul de lucru al serviciilor Comisiei Comunitilor Europene. Bruxelles 10.1.2007.
6. * * * - European Commission EUR 21350 Biomass. Green energy for Europa. Luxemburg; Office
for Official Publication of the European Communities, 2005 http:publications.eu.int.

125
THE INFLUENCING FACTORS OF THE COMPETITIVENESS OF
TRADITIONAL PRODUCTS IN ROMANIAN AGRO-FOOD MARKETS

FACTORI CARE INFLUENEAZ COMPETITIVITATEA
PRODUSELOR TRADIIONALE N CADRUL
PIEELOR AGROALIMENTARE ROMNESTI

OLTEANU V.

Institute of Research in Agrarian Economics and Rural Development

Abstract

The competitiveness issue has become a hot topic in all economy sectors, including both regional
economy and any organization.
Our days, we can notice an evolution of the competitiveness concept: from the static one, where the
competitiveness advantages were represented by the technical factors, to the dynamic competitiveness, with
the following factors: technical progress, wages increase and modern management methods, which took the
competitiveness advantages beyond economical dimension: country financial power increase, the education,
safety and life quality became components of the concept.

Key words: traditional products, competitiveness, market niche

INTRODUCTION

Competitiveness- methodological and theoretical approach, importance and
factors that influence it.
Defined as the extant to which one nation, under a free and honest market, can
produce goods and services that can pass the test of the international market, succeeding
at the same time to keep and to increase the real income of its citizens, competitiveness is
a challenge.
The competitiveness of one nation is influenced by the level of competitiveness
achieved by each actor of the national economy. Every sector and all the branches of the
national economy, every organization within each branch contribute to achieving the
competitiveness of a nation. Thus, the productive sectors of the national economy
contribute by the increase of their competitiveness to a growth in the national gross
product, of the input value, whilst other branches contribute by their activity to an increase
in the quality of life (health, culture, social services) to forming a qualified workforce
(education), to providing the efficient functioning of justice, protection of the private
property and citizen safety, to decreasing the rate of criminal acts (police), reducing the
risk of political instability, increasing the social cohesion, reducing social disparities
(extreme richness and poverty) and discriminating against women and minority groups.
The level of competitiveness of a nation has an influence, to a certain extant, by its
means available: national plans and policies, especially by the percentage of the national
gross product given for the development of certain branches, such as: education, health,
scientific research, justice, police and military, culture, etc. As for the competitiveness of
an enterprise, it can be defined as facing the competition of other similar enterprises on a
certain market.


An enterprise is competitive on a certain market when it succeeds in achieving
certain economic indicators: business figures, profit, or a market comparable or superior to
those of other enterprises that operate on the same market.
126
Competitiveness is a complex notion, mostly influenced by the capability of
understanding and adjusting to the surrounding environment. It can be seen both globally
and at the level of each component. Thus, the specialists highlighted the fact that the
global competitiveness of a firm is determined by the competitiveness of each of the
following components/categories: global, financial, commercial, human, management,
technical, organizational competitiveness.
The global competitiveness of a firm represents its potential and implies diagnosing
or having a critical inventory of its capacity that is the strengths and weaknesses of all the
firm components, especially referring to its key factors of success and competition. It
depends on the good functioning of all its components.
Financial competitiveness is the capability of the enterprise to achieve a series of
indicators: the size of the profit, self-financing capability, the amount and due-day of loans
potential financial productivity, own capital profitableness, solvency potential: the aptitude
of facing reimbursements.
Commercial competitiveness is highlighted by: the part of the market it holds, the
evolution of the business figures, the profitableness threshold, the position of every
product in the life cycle and the commercial notoriety: the mark image, clients fidelity,
coherence of the array of products, the level of publicity budget, etc.
Human competitiveness is given by the level of qualification, rate of missing, rate of
manning, etc.
Technical competitiveness is given by the nature of the equipment: how old it is, its
performance, technical achievement, the importance of research and development, level
of automation, supplies, relationship with the providers stocks rotation.
Management Competitiveness is given by leaders profile: age, experience,
background formation, leadership capability.
Organizational competitiveness is given by the form of the organizational structure,
the number of hierarchical levels, the nature of delegating decisions, flow of information,
the degree of integration of the individuals and services in the objectives of the firm, the
way control is implemented, the status of social climate.

DISCUSSIONS AND RESULTS

The current character of the competitiveness issue is also highlighted by the fact
that the European Union decided, within the Lisbon Council that took place in 2000, to
become, until 2010, the most competitive and the most dynamic economy in the world able
to provide an annual economic growth of 3%, better jobs and an increased social
cohesion. At a first analysis the low competitiveness of the newcomers made the objective
impossible to be met. As a result, EU 27 needs to update the competitiveness strategy,
meaning that each entity, starting with the continental economy of the EU with 27 member
countries, up to the workplace in every organization, has to solve the problem of
increasing competitiveness and value. In this context, the problem for Romania is under
what circumstances we integrate organically, as a society, in the western values, knowing
that at present Romania is not a world leader on any category of goods or services in the
global competition.
Factors that influence competitiveness
The mutations in approaching the concept of dynamic competitiveness led to
highlighting two main categories of competitiveness factors: classical factors and essential
factors. The classical factors can be grouped into two categories: quantitative factors:
price, quality, the price/quality ratio, the cost, the profit, the cost/profit ratio, sales and
payments and qualitative factors: the scale economy, the technology, the management
and the strategy.
Competitiveness quantitative factors
127
The best known factors of competitiveness are price and quality. Thus, success
might be achieved by offering the same product for a lower price, or by offering higher
quality goods for the same price. In fact, the appreciation is done by reference to both
factors, the main factor of competitiveness being the price/quality ratio. It assumes: a
good, acceptable price that the consumer can pay for a product with a quality no lower
than the accepted rates; bringing on the market products for an acceptable price. At the
same time, the ratio involves the presence of other elements, such as production costs. To
give a representative image, it has to be related to the sales price which, in turn
determines a second ratio. The cost/profit ratio is the second main factor of
competitiveness. Considering the market dynamics, a cost/profit ratio analysis is required.
An enterprise is not competitive if it gets large profit upon large costs, or low profit upon
low costs, the profit needs to be high enough to support the effort of development.
Another main factor of competitiveness is the amount of sales, which characterises,
to a certain extant, the size of the economic unit. At the same time, we should highlight the
presence of a series of factors that control the above mentioned factors. Among these, the
most important are: the amount of production (the scale economy, the technology, the
current management and the strategy).
Essential factors in competitiveness
The essential factors available from nano- to macro- level include: re-using past
work, axiological stability, applied innovation, the degree of harmony, the ability to identify
and promote value.
One of the essential factors in competitiveness is the extant to which it can include
past work and current activity: the fixed capital, the technology, the educated human
capital, trained to create values, etc. The more an activity includes a larger amount of past
work, the more it is capable of producing a new value. At the same time, we should stress
upon the fact that not any past work has the capability to produce value without new
efforts, or to increase the effect of these new efforts. For instance, the most competitive of
two firms that only differ in their applied technologies, is the one that applies the most
evolved technologies, thus taking advantage from more past work included in these
technologies.
Another essential factor in competitiveness at macro economical level is the value
stability of an economic unit. Among these, the most important are: property stability,
legislative stability, contractual discipline, the symmetry of connections between
asymmetrical partners, etc. At the same time, world experience indicated that the applied
innovation is the greatest competitive advantage and it represents the essential factor of
competitiveness. The term innovation refers not only to the technical innovation, but also
to the innovation in management, communication, organization, relationship structure, etc,
being the main advantage of small but extremely dynamic firms.

CONCLUSION

Competitiveness or the increase of competitiveness needs to based on harmonizing
and getting a balance among the parameters that contribute to it, because anytime one
attempts to maximize or minimize a parameter in order to obtain a certain result, it is seen
a reversed reaction, pushing the controlled parameter beyond certain limits, which makes
the result become contrary to what is expected. The solution is not to push parameters to
an extreme, but to get the results by harmonizing those parameters.
The capacity to identify and promote value is the main factor of long term
competitiveness in the society. It involves correctly identifying the fields with performance
prospects, identifying valuable individuals and their fields of excellence, followed by
education and training according to their natural skills, so that their interests should
harmonize with the interests of the society.
128
To conclude, the competitiveness of a society is given by the extant to which it succeeds in
exploiting the human values it is naturally endowed with.

BIBLIOGRAPHY
1
ALEXANDRI CECILIA,
DAVIDOVICI I.,
GAVRILESCU D.
Tratat de Economia agriculturii, Editura Expert, 2003
2
BALAURE V.
(COORDONATOR)
Marketing, Editura Uranus, Bucureti, 2002
3
DAVIDOVICI I,
GAVRILESCU D. I
COLAB.
Economia creterii agroalimentare, Editura Expert, 2002
4
DIACONESCU M. Marketing agroalimentar, Editura Uranus, Bucureti, 2002
5 KOTLER PH. Managementul Marketingului, Editura Teora, Bucureti, 1997
6
ION RALUCA ANDREEA Politica comercial i comerul exterior cu produse agroalimentare,
Agricultura Uniunii Europene sub impactul Politicii Agricole Comune,
Editura CERES, Bucureti, 2006
7 LPUAN A. Structuri agrare, Editura Banea Press, Bucureti, 2002
8 VOICULESCU D. Competiie i competitivitate, Editura Economic, Bucureti, 2001
9
ZAHIU LETIIA, TUREK
MAGDALENA I
COLAB.
Politici i piee agricole -Reform i integrare european, Ed. Ceres,
2005
10 *** www.maap.ro
11 *** www.insse.ro

129
THE ROLE OF CONSUMER IN AGRI-FOOD CHAIN AND MARKET

ROLUL CONSUMATORULUI N CADRUL FILIEREI I PIEEI
AGROALIMENTARE

OLTEANU V.

Institutul de Cercetare pentru Economia Agriculturii si Dezvoltare Rurala

Abstract

In food industry, the budget and the balance for food, it is often implied the self-consumption notion
taking into account our national economy. The matter-of-fact, the self - consumption importance is according
to economical development level, as this type of consumption has always been present, anywhere, no
matter the economy type.

Key words: Food industry, consumption, agricultural chain

INTRODUCTION

In the agrarian traditional economy types the self consumption is more ample, while
in the modern market economies it is reduced. The self consumption is more developed in
the rural environment opposed to the urban one. The reducing of self consumption in the
rural environment depends on the modernization of agricultural activities and of aligning
the needs of farmers with those of citizens. The consumption of economy units from their
own production to produce other goods is not self consumption. Out of the institutional
existence sectors in an economy the households are noticed through their great self
consumption. The services performed by members of households in their life are hard and
to evaluate as a value expression.
One can show that in the transition period can be determined characteristics of the
food consumption of the Romanians of which we can recall: the high level and the
increasing of cereals and cereals based products, bread and cornflower becoming basic
foods in the diet of every consumption types of the population; the reduce consumption of
meat and meat products which is less than half of the European level; the reduced
consumption of vegetables, fruits and derived products, due to the reduction of internal
supply; increasing the consumption of potatoes which along with the cereals gives the
qualitative structural note of defective food consumption in Romania compared to the EU.


From the schematic emphasizing of these factors which reflect the consumption
models synthetically shown in figure 1, one can reached the conclusion that the demands
for agri-food products is less influenced by the incomes of the consumers and more
influenced by the price of these products considered of prime necessity. So, thats part of
the income affected by the expenses destined for food is higher the lower the income.
Continuing to analyze the effective ways of final consumption which influence the
cutter, one can find that the demands of processing and serving food are imposed through
the forms of processing foods, of serving them, of the food consumption. This is the
reason that inside the cutter it is needed to take into consideration the human specific
biological activities of the consumer and the conditions affecting these activities, the
working conditions and personal advantages developing from the work process, the
130
activities of management and living conditions; the spare time the consumer has to create
availability are linked and to the food services of his own household etc.
In the same time an important role has the introduction of new products in the cutter
or even forming a new cutter, new products, situation when the food demand imposes
appreciating new agri-food products by consumers. This form of many fish station is
considered a phenomenon which is considered an accumulation of a number of factors
which give the utility image of the cutter, of satisfying the obtained necessities by:
- social efficiency ( anthe degree of satisfying the demands on nutritive principles,
the degree of degrevating the consumer of operations linked to the acquisition and
processing for use, the state of salubrity of products and services etc.).
- the technical efficiency for consumers (conserving ability, the level of informing the
products or the packaging ensures etc.).
- the economic efficiency (the total and specific cost of the, the possibility to
capitalize packages etc.).
- the ecologic efficiency (referring to the respecting of the ecological production and
distribution forms of food products).

DISCUSSIONS AND RESULTS

Investigating the behavior of the consumer
It is necessary knowing the dimensions which leads to the manifestation of a certain
economical behavior of the consumer which can be delimitated by: the reasons to buy or
not to buy (being linked to the destination of the food product in consumption, the degree
of accessibility to the price of the product, the personality of the consumer etc.), the
preferences of the consumer (meaning the link between man and the merchandise which
satisfies his needs), the intentions to buy, the consumption tradition, the attitude towards
the product, the image of the products and of the producer and the merchandise the
consumer buys etc.
Linked to the acceptability of the price there should be mentioned differentiated
reactions of the consumer such as: if the price is too high the buyer renounces to buy the
product for economical reasons (the product is too expensive compared to the available
resources); vice-versa, if the price of products is below market the buyer also gives up but
for psychological reasons (one can assume that the product is of low quality etc.). But
between the maximum accepted price and the minimum accepted one there is an
acceptability area.

THE VOLUME AND STRUCTURE OF
NECESSITIES
THE POPULATION CONSUMPTION
- VOLUME AND STRUCTURE-
THE ABILITY OF THE ECONOMY TO SATISFY NEEDS

MERCHANDISE SUPPLY
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Fig.1.- The factors which must be taken into account in forming consumption models.
131
This assumes that for every product the consumer has a reference price to
evaluate the price of the product he is offered (by knowing the prices from past periods
and other substitution products etc.).
Determining this acceptability area must be done through inquiries of the
consumers. In these inquiries two questions are essential:
- A superior level of this price. You (the buyer) dont buy this product because you
think it is too expensive?
- An inferior level of this price. You (the buyer) dont buy this product because you
consider it is not a good quality?
But in the area of agro-marketing, the price brings to discussion the buying behavior
of the consumer through the following sides:
- products level of the agri-food products prices and the acquisitioning strategy of
the consumer. Generally the consumer orients a certain strategy of acquisition which
regards the price linked to the permanence of buying close to the commercial unit or the
supplying team and of many such commercial units.
- establishing the level of the price can create different buying behaviors regarding:
quality and prices (the conscience of the stability of buying agri-food products from the
same detailed units); the unique competitive price (which is considered an attractive price
which can incite consumers to buy extra products); the existence and/or appearance of
competitive prices; other forms which dont make sensitive the behavior of consumers (the
spatial closeness of the selling points, the forms of semi-prepared agri-food products, the
personal serving in shops).
- the price/raw material ratio and the price/trademark ratio the price of a agri-food
product in the distribution area (the prices of raw agri-food materials are at a lower level
than the prices of products in the distribution area). The suspect is taken into consideration
especially for the consumer who follows the processing of these products in his own
household.

CONCLUSIONS

The attitude of the consumer towards the problem of the pre-packing form of the
agri-food product
The attitude of consumers towards the problem of the presentation form of the agri-
food product, it is necessary to be investigated and respectively permanently known. For
this are used:
- direct questions asked to the consumer and the selling point;
- discussions with the responsible of the selling departments of agri-food products;
- the information in the press and specialty magazines.
On the other hand is necessary knowing the reactions of the consumers and the
factors which generate these reactions following the existence of the different products
selling forms. As such:
- the largest part of the pre-packed products consumers are part of the real
clientele;
- in the shops of our products are sold without packaging (for example fruits and
vegetables), the buyers dont seem to know (or to agree) with the forms of selling pre
packed products;
- in the shops where there are simultaneously the two forms of sales (pre-packed
and without packaging), one notices in the actual state a transfer of buyers towards the
forms of sales of unpacked products.
Referring to the quality of the pact and marked products one can say that the
consumer appreciates it from its exterior aspect, the date of packaging, the limits of selling
etc.
132
Regarding the price of the products the consumer estimates that the pre-packed
products are more expensive, at the acquisitioning form of the products is more practical.
Referring to this problem the consumer takes into consideration the following: timesaving,
hygiene, easy transportation and introducing in the fridge etc.
The materials used for packaging are a concern in order to attract clientele. The
consumer prefers natural materials opposed to synthetic ones. The nets are unanimously
appreciated and are considered the ideal packaging by many consumers. For example, for
the prepackaged vegetables and fruits is possible to divide them into three categories: the
first category includes the buyers who acquisition regularly prepackaged vegetables and
fruits (they know the advantages and admit certain limits); the second category is
represented by buyers who are reticent or indifferent to the forms of sale of the
prepackaged vegetables and fruits (they are manifested either form preconceived, precise
reasons or the lack of information or motivation); in the third category fit in those
consumers for which the forms of prepackaging dont correspond to their necessities.
As such, the assembly of these factors determines a certain behavior of the
consumer which can be characterized by:
- reasonable attitudes which completes the characteristics links to the value of use,
such as: nutritional value (the content of proteins, vitamins, mineral salts etc.), the level of
the price, accessibility etc.;
- impulsive attitudes which are not satisfied by the symbolical value of the product
through which it is evoked or represented the buyer or consumer (for example one can
symbolize the origin of the same food product by symbolizing the producing form... or "the
farmers product").
In order to reduce unwanted manifestations In buying and maintaining the food
demands outside saturation areas the adopted solution by the industries of food
processing is diversification, associated with a competent marketing, which most of the
times resorts to novelty. These are trained by eight novelty tendency where qualities or
that durability of the product are not so important as its novelty which includes the latest
technical accomplishments.

BIBLIOGRAPHY
Bergeron, Pierre La question moderne: une vision globale et intgre. Gaeton Mordon,
Editeur, 1997

Croitoru C. Marketing. Noiuni de baz, I.A.N.B., 1992
Dayan Armand Marketing en exercices, PUG, 1990
Foglierini Carnciro Organisation et question des entreprises. La conception moderne du
management. Imprimerie Arts Graphiques du Perche, Paris, 1995
Oancea Margareta Tratat de management n unitile agricole. Editura Ceres, Bucureti, 1999
Olaru Marieta Managementul calitii. Editura Economic, Bucureti, 2000
Rusu B. Managementul calitii totale firmele mici i mijlocii. Editura Economic, 2001
Mouchet Ch. Microconomie. Gestion des exploitation agricole. Matre de confrences
ENSA Rennes, Productions animales, ENVA ISPA, 1989
. Sbdeanu P.,
Dragomir V.
(coordonatori)
Managementul calitii pe filiera produselor agricole agroalimentare,
Editura Cartea Universitar, Bucureti, 2006
. Turek Adrian
(coordonator)
Competitivitatea pe filiera cerealelor panificabile, Editura Cartea Universitar,
Bucureti, 2007

133
MANAGERIAL COMMUNICATION AS STRATEGIC BENEFIT

COMUNICAREA MANAGERIAL CA AVANTAJ STRATEGIC

PANAIT G.

USAMV Bucharest Faculty of Management Bucharest

Abstract

The managerial communication implies two partners: the manager and the subordinate or his
collaborator. Both partners can be emissary or receptors and follow equally that by communication to
facilitate the achievement of the established objectives. The manager personality inhibits in many cases the
communication between the two partners. It is important to determine what role each one plays the
communication process, which are the obligations they have.
The method selected for collecting the data was closely correlated to the contents, way of
formulating the questions, their subsequence, complexity and length of the questionnaire. In the research
made, the method of direct administration by the researcher was used, by face to face interview.

Key-words: managerial communication, questionnaire, agricultural exploitation, manager, ethics in
management, managerial style.

INTRODUCTION

The act of communication supposes a process of emission reception of some
messages, under the form of knowledge, feelings, skills and abilities of any kind.
The functions of the managerial communication must be seen and understood in
the unit and their inter-conditionality, the managerial system and the operational system
are closely connected. .
Any discussion about ethic in the managerial communication could be a good start
to put to question and to consider useless by simply finding out that the ethic is a complex
situational concept, so impossible to be contained in norms. Yet, the organisations are
not mere machines to produce money, products or services.
In conclusion, the most powerful determination on the management relations has the
human component of the agricultural exploitation, by which the managerial behaviour
appears. The level of vocational training, the manager personality, the leading style
adopted influence considerably the management relations, especially the communication
within the agricultural exploitation.

MATERIAL AND METHOD

. in order to achieve this mission, the researcher received help from the Director of
Consultancy Office in Prahova, who put him in touch with officials from the commune hall,
facilitating thus the work. The investigation based on the questionnaire developed during
one week.
In the research made, we appealed to the method of direct administration by the
researcher of the questionnaires, by face to face interviewing.
The questionnaire contains 55 questions with fixed variant of answer (YES/NO),
existing also open and/or mixed questions, structured as follows:
General identification data (6 questions)
Data on the exploitation > characterised from material point of view (19
questions)
17 questions related to the psycho-sociologic characterization of the manager
134
13 questions related to the way of developing the communication process
After the data collection, these supported some activities of: editing (verification and
research, where it is needed) followed by the introduction of the data, by computer, all
these in order to analyse and interpret them in an adequate way.

For the research success, we considered the following aspects related to the
sampling method: observing a certain degree of representativeness of the data obtained;
obtaining some stable, valuable data and at the same time obtaining some information
from which to result the communication level in the agricultural exploitation in the
questioned area.


Achieving the objectives in this study supposed the use of the questionnaire as
method of collecting information with questions formulated in a pre-established order,
most of the questions being closed, with fixed variants of answers (YES/NO), existing also
open and/or mixed questions which aim to facilitate the investigation of some aspects of
the objectives envisaged.
The questions were registered, and their relevance will be presented in the
present work..
Several difficulties occurred in collecting the data such as:
- difficulties related to communication ex: some of the interviewed ones became very
suspicious to certain questions (although the reason of this questionnaire was explained to
them) and refused the questionnaire even if they had answered to several questions;
- application of 30 questionnaires was quite difficult, even if the reason of these
questionnaires was clearly explained, people refused to answer certain questions from
reasons (ex: why so many questions about no of ha, of productions?; too many
questions you ask... are you from secret service?; why are you interested in how much I
obtained or I sold? etc.);
- we had difficulties also in a certain question, when the persons interviewed had to say
what they understood by certain terms such as: profit, production structure, gross margin
etc.. some of them became nervous, being frustrated by the fact that they did not
understand exactly the question or they did not know exactly the terms, even if they heard
them before.
From the 30 valid questionnaires, we took as example the questionnaire with
number 14 and will make its analysis.
To the free questions such as : which are the weaknesses of your activity ? he
mentioned the lack of funds and the modernisation of its exploitation, and at the question
which are the strengths of your activity ? answered: the organisation of vegetal
production, technical material equipment and family support.
To these two questions and the answers of the two interviewed were in percent of
6070% similar, all pointed the lack of capital at weaknesses.
what does it mean for you.?:
Profit = more money compared with the production costs;
Productivity = as big as possible;
Production structure = organisation of elements in production;
Production system = production systematisation;
Input = fertilizers, pesticide etc.;
Management = production organisation;
Gross margin = I do not know;
Business plan = investments organisation.
135
It can be remarked where the exploitation chief answered, the terms are not very
well known by this.
This is one of the questions which put in difficulty most of the interviewers, one of
them becoming nervous because of this question, even if they were explained that the
answer must be free, and if they do not know to answer, it is no problem.
The sample was determined by the stratified sampling method. This is a aleatory
sampling method in which there were established initially the stratification methods:
Type interviewed : farmers, agricultural exploitation chef, manager;
Groups of age (<30 years, 30 50 years, 50 65 years, over 65 years).=> an
average of 53 years;
Family members (<3 pers.; 3 6pers.; >6 pers.). => an average of 4,5 persons;
Possessed surface (<3 ha; 3 5ha; 5 10ha; 10 40ha ; over 40ha). => an
average of 6,7 ha
Animals in the farm (<15 heads; 15 30cap.; 30 -60cap; 60 100cap.; >100cap).
=> an average of 51 heads.
For the research success, we considered the following aspects related to the
sampling method: observing a certain level of representativeness of the data obtained,
obtaining some stable, valuable data, and at the same time, obtaining some information
from which to result better the level of communication in the agricultural exploitations in the
questioned area.
In figure 1., the structure of questioned population per group of age is presented
It can be seen that the highest percent belongs to those aged between 50 and 60
years, these representing almost half of those interviewed.
Depending on the age at the question Are the decisions regarding the agricultural
exploitation made in group ? the answers were presented in diagram 2.

Figure 1.
Stuctura populatiei chestionate pe grupe de
varsta
3.30%
30%
50%
16.60%
< 30 ani
30 - 50 ani
50 - 65 ani
> 65 ani

136
Figure 2
Deciziile se iau in grup? (in functie de varsta)
100.00%
70%
61%
60%
30%
39%
40%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%120.00%
< 30 ani
30 - 50 ani
50 - 65 ani
> 65 ani
Nu
Da

CONCLUSIONS
*The general objective of the investigation was: the communication at the level of
the agricultural exploitation. Prior to the application of this questionnaire, we guaranteed
the confidentiality of the information obtained, which will be used exclusively for statistic
purposes, for a better implication of the farmer, who became thus more open for providing
the date and information requested.

*A better information is imposed at local (commune) level on the types of
agricultural exploitations depending on the potential of the land fund, of the existing
material resources and of the technical means to ensure the efficiency of these
exploitations and the insertion of the agricultural products on the competitive market.
* It as demonstrated that, in general, the optimistic persons, who relate easily with
the others, who are organised, communicate excellently, posses intuition and empathy,
prove character force, posses a developed feeling of social communion and who develop
technical competences needed, are clearly advantaged for occupying and achieving
successfully some managerial functions.

BIBLIOGRAPHY

1. Bougnoux D.(2000) Introduction in the communication sciences Polirom Publishing House
2. Cndea, R.M., Cndea, D. managerial communication. Concepts, skills, strategies. Expert Publishing
House, Bucharest, 1996
3. Cuilenberg J.J, Scholten O.(1998) Communication Science Humanitas Publishing House
4. Dancu V.S.(2000) Communication in the institutional management Metro Media Press

137
COMMUNICATION AND ENGLISH FOR SPECIFIC PURPOSES

COMUNICAREA SI ENGLEZA PENTRU SCOPURI SPECIFICE

POPESCU LILIANA

The University of Agronomic Sciences and Veterinary Medicine

Abstract

Studying the communication process is important because it is through this process that one
coaches, coordinates, counsels, evaluates, and supervises. It is the chain of understanding that integrates
the members of a society or organization horizontally and vertically. The purpose of this paper is to present
aspects of communication in English for Specific Purposes (ESP), the need for ESP and the stages in its
development together with what influenced them. One of the main problems when discussing ESP is that of
the types of texts used in order to develop the learners vocabulary and communication skills. The teacher
may use authentic texts, simplified texts or specialised ones in order to teach specific vocabulary items.
Many of the techniques traditionally used in English Language Teaching (ELT) work can be exploited in ESP
vocabulary teaching at all stages.

Key words: communication, English for specific purposes, teacher, learner, vocabulary, language,
skills.

INTRODUCTION

According to researchers, the need for ESP (English for Specific Purposes) was felt
immediately after the Second World War, moment which heralded an age of enormous
and unprecedented expansion in scientific, technical and economic activity on an
international scale. This expansion created a world unified and dominated by two forces
technology and commerce which in their progress soon generated a demand for an
international language. For various reasons, this role fell to English. The words Tell me
what you need English for and I will tell you the English that you need became the guiding
principle of ESP.
From its early beginnings in the 1960s, ESP has undergone several phases of
development at different speeds in different countries. It was also determined by the
general view on language adopted at each and every step. At first, teachers were faced
with learners, often adults, who already had some knowledge of English acquired in a
school situation, and who now, in contrast to their former school learning experience, were
well aware of their purpose in learning the language. Most materials and courses available
were appropriate for those coming to the study of the language for the first time, were
suitable for younger learners and were written as general English courses. A gap in
materials had to be filled for those specific-purpose learners. There was also the need for
a learner-centred approach to teaching.
Another development which greatly influenced ESP programmes was a move
towards a view of language as not only a set of grammatical structures, but also a set of
functions. This view is essentially behavioural, that is, we use language to communicate
with people and to cause things to be done, to describe and explain events, to qualify and
hypothesise. This communicative approach provided learners with an opportunity to use
their grammatical knowledge of the language more productively than ever before.

MATERIAL AND METHOD

138
A number of terms for the various types of ESP are current and it is useful to know
what they mean. They deal with very broad distinctions within ESP. There are two main
divisions which help distinguish ESP situations: English for Occupational Purposes (EOP)
and English for Academic Purposes (EAP).
English for Occupational Purposes is taught in situations in which learners need to
use English as part of their work or profession. Instances of EOP students would be
doctors in casualty or technicians servicing equipment. They need English, in the first
case, to talk and respond to patients and other staff, and, in the second, to read technical
manuals. There will be differences in such courses depending on whether the learners are
learning English before, during or after they are being trained in their job or profession.
English for Academic Purposes is taught generally within educational institutions to
students needing English in their studies. The language taught may be based in particular
disciplines at higher levels of education when the student is specialising (in-study) or
intends to specialise (pre-study). An example would be an overseas student studying for a
higher degree at a British University. In cases such as this, the learning of study skills
(listening, writing, reading and speaking) will probably form a major part of the students
English course.
English for academic purposes (EAP) has traditionally been regarded as a branch
of teaching English as a foreign language. As such, EAP courses have typically focused
on teaching students the correct linguistic forms for representing their knowledge in
English (and assumed that students had appropriate study skills and some prior
knowledge of the discipline they were studying). But over the last forty years EAP
approaches have changed considerably as they have incorporated findings from research
into both academic English usage and methods of teaching English as a foreign language.
From its early beginning in 1960s, EAP has undergone several phases of development. It
should be pointed out that EAP is not a monolithic universal phenomenon. It has
developed at different speeds in different countries. EAP courses were originally
developed for students from the developing world who had to study in English. Most of
these students were studying technical and professional subjects in areas such as
science, agriculture, engineering and technology and so throughout the 1970s and early
1980s both the course content and the teaching methods often focused on the acquisition
of scientific and technical discourse. The needs of such EAP students were therefore seen
as very different from those of native speakers.
Much of the demand for ESP has come from scientists and technologists who need
to learn English for a number of purposes connected to their specialisations. It is natural
therefore that English for Science and Technology (EST) should be an important aspect of
ESP programmes. The term EST presupposes a stock of vocabulary items, grammatical
forms and functions which are common to the study of science and technology.


One of the main problems when discussing ESP is that of the types of texts used in
order to develop the learners vocabulary and communication skills. Texts can be
authentic, that is, they are written for a specific audience (not language learners) and their
purpose is the communication of a subject content rather than language form. By this
definition, an authentic text does not have a high conceptual level: the crucial element is
that it aims to convey information and ideas rather than the use of language.
The ESP teacher may also use simplified texts, but the main problem with those is
that they present the learner with something artificially constructed that is different from the
real texts he will be faced with in his subject area. Texts simplified from original sources
often lose some meaning with the simplification of meaning. Such specially written texts,
139
designed within structural guidelines and word limits, also often lack genuineness, as they
a re written only with the learner of English in mind.
The decision about which approach to adopt depends on the relationship between
the conceptual and linguistic competence of the learner, and also on the role of the English
programme in relation to the subject programme of the learner.
Specialised texts of any sort, whether written or spoken, exhibit various
characteristic lexical features. These can be isolated, analysed and used as subjects for
the exercises given to students. Every subject has its set of highly technical terms which
are an intrinsic part of the learning of the discipline itself. These should arise, in context, in
the specialist classes and are not normally the language teachers responsibility. However,
in a situation where the learner has relatively little knowledge both of his subject discipline
and of English, the language teacher may find a clear division of responsibilities difficult to
maintain, and will have to accept the need for co-operation with the subject teachers and
to be prepared to familiarise himself with the rudiments of the subject concerned.
Sub-technical vocabulary consists of those words which are not specific to a subject
speciality but which occur regularly in scientific and technical texts e.g. reflection,
intense, accumulate, tendency, isolate, dense. Learners often find difficulties in
understanding such words. One estimate puts the occurrence of sub-technical items in
scientific texts almost as high as 80% (Inman 1980). One reason why this vocabulary can
prove a problem to the learner is that words commonly met in general English take on a
specialised meaning within a scientific or technical context.
Many of the techniques traditionally used in ELT (English Language Teaching) work
can be exploited in ESP vocabulary teaching especially at the early stages when both
subject and linguistic content are at an elementary level. Two aspects of vocabulary
teaching are of special importance in ESP: the study of word formation and word
relationships.
The study of word formation can conveniently be divided into two main areas: the
meaning of prefixes and suffixes, the identification of word classes, such as noun, verb,
and modifier. Many items of specialised vocabulary, both technical and semi-technical, are
made up of a root plus a suffix or a prefix deriving from Greek or Latin, such as mono-,
neo-, hyper-, -logy, -meter, -ate. It would be useful for the student to be able to guess at
the meaning of a word by using his knowledge of the meaning of a prefix or suffix. Such
teaching can, of course have its dangers. Exercises on prefixes and suffixes can be
tedious and, to students without a knowledge of Greek and Latin, may not prove as useful
as hoped. There is also the problem of over-generalisation: having learned that pre- =
before, the student may apply the rule to inappropriate examples (predatory, for instance,
may be construed as before this century).
An ability to identify whether a word is a modifier, a noun or a verb can be useful
when deducing the meaning of a text. Suffixes often give clues to the grammatical function
of a word: modifier (-al, -ive, -ful), noun (-age, -er/-or, -ity), verb (-ify/-efy, -ise/-ize); such
suffixes carry a meaning which may help in decoding, thus: simplify = to make simple,
recorder = an instrument which records / somebody who records.
Words do not exist in isolation. A number of complex relations exist between them
which go to make up the semantic structure of any language. Words therefore should be
not taught in isolation but exercises should be devised to try to exploit their relationships
with other words, such as synonymy through multiple-choice examples. A useful exercise
is to write or extract sentences from a text which demonstrates types of relationship and
then delete a word or use a nonsense word, the meaning of which can only be deduced by
understanding the relevant relationships. Odd man out exercises may be attempted by
groups of students working together.
Classification skills are important in the study of science subjects and an exercise in
building up sets of words related to one another not only practices vocabulary skills but
140
also develops the concept of classification. When two or more words frequently occur
together, they make what is known as a collocation. Examples are intense heat,
complex system, to rule out a possibility, etc. multiple-choice exercises or blank filling are
normally used to help students internalise the relationships. All these types of exercises
that focus on the choice of words will eventually help the learner improve his
communication skills and thus attain his goal.

CONCLUSIONS

It is important not to regard ESP as an area of development separate from the rest
of ELT. It is part of the recent move within the ELT sphere towards a more communicative
basis for teaching and learning. Approaches appropriate to ESP may well be applicable to
communicative teaching in other ELT contexts as well.
It is often said that students are the best judges of the curriculum, course structure
and teacher performance. In the globalised context, students, for example those in the
fields of agricultural engineering or agritourism, need a specific set of language skills for
their success in education and career. English for Specific Purposes poses a challenge to
them. The recent processes in the world, such as globalization, have underscored the
need to increase understanding and to improve communication among peoples, as well as
individuals.
The professional profile of a modern qualified engineer should include well-
developed communication skills and high English language proficiency to help him achieve
success in the modern highly competitive global work arena. In the process of educating
future engineers special emphasis on English for Specific Purposes becomes necessary.
It seems logical that contextualizing the students' learning within their domains of
study could create the relevance of the language they are learning to their lives,
particularly academically. Thus, learning will be more relevant to their study and their real
life.

BIBLIOGRAPHY

AUSTIN, J. L, How To Do Things With Words, Oxford University Press, pages 73-80, 1962.
DUDLEY-EVANS, T. & M. J. St. JOHN, Development in English for Specific Purposes: A Multi-Disciplinary
Approach, Cambridge University Press, pages 34-41, 1998
HAMP-LYONS, English for Academic Purposes. The Cambridge Guide to Teaching English for Speakers of
Other Languages, Cambridge University Press, pages 102-105, 2001
HUTCHINSON, T. & WATERS, A., English for Specific Purposes, Cambridge: CUP, pages 25-28, 1987
ROBINSON, P. C., ESP Today, Prentice Hall, pages 80-90, 1991

141
HUMAN RESOURCES MANAGEMENT

MANAGEMENTUL RESURSELOR UMANE

SIMA ELISABETA

The University of Agronomic Sciences and Veterinary Medicine, Bucharest

Abstract

The concept of human resources is considered in the specialized literature from two points of view: a
macroeconomic and a microeconomic one. At the current stage, human resources management is regarded
as a strategic activity which is vital for the success of an enterprise, the role played by human resources
being associated with three variables: the evolution of the institutional environment, technological mutations
and the cultural environment. The process of managing human resources is highly complex and must be
treated as a component of the overall strategy of an enterprise.

Key words: human resources, human resources management, enterprise, personnel, economy

INTRODUCTION

In the economic literature it is widely accepted that, among the economic resources,
the human ones take precedence, because no matter how technical the production
process is, human intervention is still needed to deal with certain unpredictable situations
or to create new states of the productive system which correspond to a new economic and
social context.
If the primordial importance of the human resources is unanimously acknowledged,
the same cannot be said about defining the concept of human resource, which has had
numerous and various approaches. It is important to specify from the very beginning that
the concept of human resources is seen in the literature from two points of view:
macroeconomic and microeconomic, and in both cases the content of the indicator and its
scope will be different
At macroeconomic level, the literature provides several meanings for the concept of
human resources, with no unanimously accepted definition. The explanation would be that,
if 30 years ago the publications regarding human resources were not numerous, in the
past few years the literature has been exposed to an avalanche of papers, so that we have
ended up using different terms with similar meanings to designate the same concept. We
speak about: human capital, human factor, human resources, labour resources, workforce,
human potential.
At microeconomic level, the concept of human resource refers to all the employees
in an organization. In the field of management there even appeared a specific subject
matter: Human resources management or the Management of human resources,
according to which the employees are regarded as individuals, with specific personalities,
needs, behaviours and visions. This approach differentiates the above mentioned subject
matter from the traditional theory of the enterprise, which approaches the personnel as a
global mass of people able to work.


The importance of the human factor in economic units is determined by the
following components: a) it is the only creator of values (labour means and objects); b) it
represents the most dynamic and mobile element, contributing directly to improving the
means of production in capacity as conscientious factor; c) it is the only one that improves
142
its own capacity to work and develop experience; d) it has a decisive influence on the use
of material an financial resources; e) it has an important ratio in the total cost of the
products (up to 25% according to species, crop, breeding system, etc.); f) it raises social
aspects especially in small and medium-sized units where it represents an unpaid fixed
expenditure; g) it constitutes the domain in which quality and structure prevail over quantity
because human behaviours cannot be included in strictly logical and rational plans.
At the current stage, human resource management is considered a strategic activity
which is vital for the success of a business, the role of human resources being associate to
three variables: the evolution of the institutional environment, technological mutations and
the cultural environment.
The institutional environment includes the set of social legislation issued in time
under the influence and pertinence of the union activities. Thus, the decrease in working
time, paid holidays, vocational training, the participation to the profit, collective
conventions, these are examples that show the evolution of the social right evolution and
of the right to work.
The technological mutations impose, on the one hand, efforts for training the
personnel and adapting to the new requirements (new types of equipment, animal raising
systems, etc), and on the other hand these technological mutations lead to new forms of
work organisation.
The cultural environment has also undergone changes. Nowadays, employees are
better informed and trained, targeting in their activity not only good salaries, but also their
personal development.
At the same time, human resources management is also a strategic approach to the
possibilities to attract, train, develop, manage, use an motivate the main resource through
which the organisation can ensure the achievement of its targets. The following are among
the human resources management objectives:
a. to stimulate potentially qualified persons to ask for a job in the company;
b. to employ such a management that will make the best remain in the company;
c. to provide the staff with a motivation;
d. to increase labour productivity;
e. to create the conditions for staff development in the company.

A few of the essential principles of human resources management are the
following:
1. to appreciate the human factor as a vital resource for the organisation;
2. to correlate the personnel policies and the company policies, as an essential
condition in ensuring the success of the activity;
3. to concentrate and direct the individual capacities and efforts into a collective effort
in order to achieve the company objectives;
4. to develop a adequate organisational culture.

To achieve all these objectives and more, human resources management must
have the following concerns:
1. to attract, select, train, develop and motivate the personnel necessary to the
organisation;
2. to identify and define the individual requirements of the employees in order to
create the conditions for their professional and personal development;
3. to promote and perform the companys responsibilities of social and legal nature
that will guarantee the employees equal chances for progress and safe working conditions.
Synthesising, we can identify the following domains where human resources
management is applicable:
143
1. activities to ensure the human resources and anticipate the necessary personnel in
the future;
2. organisational structuring activities, especially aimed at: designing organisational
structures, assessing positions, elaborating the job descriptions, establishing the labour
performance parameters.
3. activities for the qualitative development of human resources;
4. activities to compensate the employees by means of salaries, material and moral
motivation;
5. activities to stimulate the interpersonal and professional cooperation relations
between groups by attracting and encouraging the employees participation to information
and decision-making processes;
6. activities for the special psycho-professional training of the personnel, in order to
implement the changes;
7. social assistance activities regarding labour security and social protection.


. Human resources management includes two essential components, namely the
personnel policy and the company culture, performing the following groups of activities,
according to figure 1. The personnel policy defines the guidelines for the approach to the
companys interests in order to achieve the objectives by means of managing and
administrating the human resources.

Figure 1 Human resources management components

Human Resource Management is based on ideas and techniques developed to
enhance worker motivation, productivity and performance. The HRM model emphasises:
the need to search for new ways of working
the central role of managers in promoting change
the treatment of workers as individuals rather than part of a collective workforce
the encouragement of workers to consider management as 'partners' rather than as
opponents - 'us and us', rather than 'us and them'

Human resources
Labour organisation.
Cooperation and
Ensuring the working
conditions. Social climate
audit
Analysing the efficiency of
using the huan resources
and improving them
Company culture
Human resources
management
Personnel management
144
CONCLUSIONS

Company culture is the complex system of rules, behaviour norms, values and
appraisal criteria considered as essential and at the same time representative for the
organisation, by means of which we define the specific directions of action, the manner in
which objectives are achieved and the way in which performances are assessed.
Company culture synthesises a model of behaviours, attitudes, beliefs and values that
lead to personalising it.
The elements that constitute them are: the multitude of norms and specific criteria,
he hierarchy pf values; the organisational climate and behaviour; the management style;
the specific action procedures; the company structure and the communication system
used by its members.
The human resources management process is highly complex and must be treated as a
component of the overall strategy of a business. It is the function within an organization
that focuses on recruitment of, management of, and providing direction for the people who
work in the organization. It deals with issues related to people such as compensation,
hiring, performance management, organization development, safety, wellness, benefits,
employee motivation, communication, administration, and training.

BIBLIOGRAPHY

1. Oancea, M. - Managementul modern n unitile agricole, Ed Ceres, 2004
2. Manolescu, A. Managementul Resurselor Umane, Ed Economica - 2001
3. Byars, L.L., Rue, L.W. Human Resource Management, Ed Homewood Irwin 1987

145
PERSPECTIVES ON HUMAN RESOURCES MANAGEMENT IN THE
CALARASI COUNTY IN THE EUROPEAN UNION INTEGRATION
PROCESS

PERSPECTIVE ASUPRA MANAGEMENTULUI RESURSELOR UMANE
DIN JUDEULUI CLRAI N PROCESUL INTEGRRII N UNIUNEA
EUROPEAN

SIMA ELISABETA

The University of Agronomic Sciences and Veterinary Medicine, Bucharest

Abstract

European Union integration is a strategic option for Romania. It provides the framework in which we
withstand the impact of globalisation at lower risks and increased benefits. The concept of development is
based on the main competitive potentials of the region: its geopolitical position, the existence of a material
basis, human resources that are professionally very well trained, characteristics generating a real spiritual
openness to novelty. The creation of employment opportunities in the county is a major economic
development direction. It is an advantage only if the county is able to create the employers demand for
trained and flexible workforce that meets their needs. In order to achieve this objective, the County
Development Strategy aims at elaborating and supporting the strengthening of educational reform and the
modernisation of technical and vocational training by means of creating the vocational qualifications
framework.

Key words: human resources, European Union, integration, management, development, labour
market

INTRODUCTION

The European Union enlargement process changes the ways Romania functions
and, from the moment it consolidates its political dimension, it may also change its nature.
As the European Union intervention domains expand, the citizens are right to require that
the decision making structures should be more democratic, more transparent, more
effective and that they should abide by the subsidiarity principle. What the European states
need now is not only economic prosperity, but also political stability and security.
The European Union integration is a strategic option for Romania. It provides the
framework in which we withstand the impact of globalisation at lower risks and increased
benefits. Through its dimension and economic power, the European Union is a much
more adequate vehicle for globalisation than the individual existence as national level
economic system. From a political point of view, the European integration ensures a
positive capitalisation on the existing democratic framework and allows for maintaining,
with no pertinent objections, those national identity elements that have also proven their
viability in the case of the other European Union member states.
In the context of the continuous globalisation process manifested especially in the
economic activity, the human resources management activity is also involved, in this case
applied to the Calarasi county. The technical platform of the globalisation process consists
in consolidating and developing state of the art technologies. In Romanias case, the
European Union integration, a politically accepted task, has significant effects on
employment and implicitly on training and managing the workforce, contributing to the
definition of the place and role Romania has in the European Union structure.

146

The concept of development is based on the main competitive potentials of the
region: its geopolitical position, the existence of a material basis, human resources that are
professionally very well trained, characteristics generating a real spiritual openness to
novelty. This aims at modelling the towns and villages in the county as communities
integrated in the national and European economy, capable of providing an environment
which is more and more favourable to life and economic activities. This purpose can be
achieved only in a global economic, social, cultural framework for sustainable
development, with all its aspects the temporal, qualitative and ecological one.
Any economic development policy must have a few basic objectives, namely:
to increase the possibilities to manufacture and distribute on a large scale the goods that
meet the basic needs in life;
to improve the standard of living, including additional high incomes, more jobs, better
education, more attention;
to increase the level of economic and social opportunities which are available to
individuals and communities.
The general objective of the development policy is made up of the main purposes
set at regional level, as well as the main ways to achieve them. In order to meet these
targets, first of all it is necessary to ensure stable economic growth, by creating and/or
developing those domains and sub-domains of the economy in the region, which makes
the most of the existing local potential. The development of the region is based, to a large
extent, on the private entrepreneurs actions.
To this end, it is forecast to increase the activity of the business environment, to
improve the physical (technical) and institutional infrastructure that depends on the local
administrations, to adopt coherent and stable local regulations, in order to attract local and
foreign investors.
Noticing the trends in the development of world economy, it is especially aimed to
facilitate the implementation in the region of competitive industrial activities using
advanced technologies, producing high product added value rates and service activities
at a high qualitative level. Obviously, all the processes involved in transforming the
economic activity have an effect on the labour market. By refurbishing and developing top
industries, the decrease in the number of enterprise personnel will be generated, which
may intensify the increase in unemployment. In order to absorb the workforce resulted
from this possible technical unemployment it is necessary to encourage the
establishment of more mobile and more dynamic small enterprises, as well as the
development of the services domain. In this respect, the new technologies must become
an instrument in the creation of new jobs.
But this sustainable and competitive development ca be achieved only in a socially
stable, cohesive and participative environment. The concept aims at ensuring the
inhabitants participation to an active cultural life, the necessary conditions for the
inhabitants belonging to all ethnic groups to feel at home, living in harmony in the region.
The concept of development gives an adequate importance to providing high quality
health and social assistance services to marginalised persons and groups: the
unemployed, persons with disabilities, institutionalised children, the temporarily homeless,
etc. The economic development of the regions cannot be an end in itself. It will be
achieved in order to improve the inhabitants standard of living, to provide them with a
more contentful and beautiful life.
The major purpose of the development concept is to ensure the prosperity and
quality of the inhabitants life, a universal objective targeted by any local community in its
development. It also aimed at improving the habitat in the region, under European level
ecological conditions, at providing optimum living conditions and quality services to the
citizens. One of the major concerns of the decision-makers in the regions to harmonise
147
the local legislation in their jurisdiction with the community acquis negotiated by Romania
in the agreement on Romanias accession to the European Union.


Regarding the labour market in the county, the social, economic and political
transformation, components which are typical of the transition period and of the progress
to market economy, have caused a series of changes in its structure, with major
consequences both in the social and in the economic field. The fact that the labour market
is a controversial issue, the surface situation hiding the problems that the economy and
social environment must face in the future, requires a careful analysis as well as the
identification of most problems in this field.
In the context of Romanias status as a European Union member state and of the
high level of competitiveness existing at EU level, it is fundamental for the Calarasi county
to strengthen internal cohesion, which means mobilising all its resources and directing
them to the economic, social and environmental objectives.
To a relatively similar extent, it is necessary to develop external links, since in the
new context the county is not defined in terms of geographical location, but in terms of the
way it will be able to align to the European dimensions and requirements. The
development strategy aims at strengthening economic and social cohesion by developing
external links and promoting a development model which will contribute to the
communities and implicitly the countys cohesion.
At the same time, the development strategy aims, based on the local resources
human and otherwise at creating a positive image of the county and at facilitating the
development initiatives based on internal and external cooperation. In a competitive
Europe, strengthening cooperation links and improving the countys image are key factors
which contribute to attracting investments and promoting the local potential. In order to
obtain potential benefits, the county establishes links to neighbouring counties, cross-
border cooperation, national and European partnerships. In this context, the fourth priority
in the development strategy at county level is to develop the human resources and to
effectively use the local labour potential.
The current situation indicates the general need for reform in the educational and
vocational training system to match the market requirements. The dynamic conditions of
the market require the existence of an environment that is favourable to the high quality
training and development of the young workforce. This approach to the field of human
resources will allow it o adapt to economic changes and labour market requirements.
The permanent change in the economic, social and political situation imposes a
new approach to the labour market inclusion process involving various categories of active
population in the county. The workforce needs a continuous improvement in the
qualification level, which entails the reintegration of the qualified and re-qualified
unemployed personnel in the county economy sectors: industry, agriculture, SMEs,
services, tourism. Thus, it results that there is an increase in the level of workforce
adaptability to the current labour market challenges.
It becomes necessary to create the adequate framework for the reintegration of
marginalized categories (in terms of age, health, qualification, gender) into the economic
life by means of sustaining special social programmes. On the other hand, supporting the
marginalized persons that have already entered the labour market can be achieved by
promoting life-long vocational training, which will allow for the increase in the level of
employment and the adaptability of these categories of persons by developing a mixed
social services market that generates jobs.
In the context of a sustained industrial privatization and reorganization rhythm it is
necessary to develop the human resources, justified by the need to approach certain
148
problems that occur on the labour market, among which the poor quality of the services
promoting the employment opportunities, the limited capacity of the vocational education
and training system to match the labour market needs as well as the obvious structural
problems on the labour market.
This implies, on the one hand, improving and adapting the young workforce
qualification and re-qualification level, and on the other hand, professional orientation in
order to encourage and mobilize the young human potential. Its existence leads to
increasing the chances for the employment and sustainable integration of the young and
marginalized persons as well as increasing the creation of new jobs.

CONCLUSIONS

The development of the human resources in Romania implies the existence and
implementation of a strategy, which is based on capital investment in the basic
infrastructures, providing the equipment for the training courses and the trainers training
schemes. This strategy implies the development of institutional structures aimed at
ensuring an efficient management and the consolidation of the regional and local
structures that will elaborate policies to reduce the regional imbalances on the labour
market. The human resources development strategy is based on increasing the workforce
adaptability to the market requirements and the active fight against social exclusion. The
conditions for the success of the strategy are materialized in reconsidering the education
system and stopping its current decline, as well as adapting it to the market requirements.

BIBLIOGRAPHY

1. Oancea Margareta - Tratat de management n unitile agricole - Editura Ceres, Bucuresti, 1999
2. Burloiu P. Managementul resurselor umane, Ed. Lumina Lex, Bucureti 1997.
3. Chiu Viorica Ana i col. Manualul specialistului n resurse umane, Casa de Editur Irecson,
Bucureti 2002
4. Constantinescu Dan i col. Managementul resurselor umane, Colecia Naional, Bucureti
1999.
5. Consiliul Judetean Calarasi, Planul de dezvoltare al judetului Calarasi, 2007-2013

149
THE EUROPEAN PROGRAMMES REGARDING EDUCATION, THE
ESSENTIAL MODALITY IN THE DEVELOPMENT
OF RURAL AREA

PROGRAMELE EUROPENE PRIVIND EDUCAIA , MODALITATE
ESENIAL N DEZVOLTAREA SPAIULUI RURAL

STAN GH., NIJLOVEANU D.

UNIVERSITY OF AGRICULTURAL SCIENCES AND VETERINARY MEDICINE,
BUCHAREST, ROMANIA
FACULTY OF MANAGEMENT, ECONOMIC ENGINEERING IN AGRICULTURE
AND RURAL DEVELOPMENT SLATINA BRANCH

Abstract

This paper emphasizes the importance of European programmes regarding education as an
essential modality in the development of rural area. The Comenius, Erasmus, Leonardo Da Vinci and
Grundtvig programes are included in an ample and voluminous plan named Life-Long Learning which
promotes all types of educational activities during the entire life of a learner.

Keyword: education, training, programmes

INTRODUCTION

The formation and education of the young people represents a national concern
and, in this aspect, the European Union promotes the following

MATERIAL AND METHOD

I. ERASMUS HIGHER EDUCATION INCLUDING ADVANCED VOCATIONAL
EDUCATION AND TRAINING
The European Union identified three cycle system
1) Curricular reform: The three cycle system (Bachelors-Masters-Doctorate),
competence based learning, flexible learning paths, recognition of qualifications and
competences, mobility, in coherence with the Bologna process.
2) Governance reform: Autonomy and accountability of higher education
institutions, strategic partnerships, quality assurance.
3) Funding reform: Diversified income of higher education institutions, tuition fees,
grants and loans, equity and access, targeted EU funding.

Specific and Erasmus objectives
The specific objectives of the Erasmus programme are:
(a) To improve the quality and to increase the volume of student and teaching
staff mobility throughout Europe, so as to contribute to the achievement by 2012 of at least
3 million individual participants in student mobility under the Erasmus programme and its
predecessor programmes;
(b) To improve the quality and to increase the volume of multilateral cooperation
between higher education institutions in Europe;
(c) To increase the degree of transparency and compatibility between higher
education and advanced vocational education qualifications gained in Europe;
150
(d) To improve the quality and to increase the volume of cooperation between
higher education institutions and enterprises;
(e) To facilitate the development of innovative practices in education and training
at tertiary level, and their transfer, including from one participating country to others;
(f) To support the development of innovative ICT-based content, services,
pedagogies and practice for lifelong learning.

Priorities for Erasmus actions
Mobility of students, including student placement in enterprises, and of teaching
and other staff Student and teaching staff mobility play a key role in establishing the
European Higher Education Area. Institutions participating in Erasmus are called upon to
promote a further increase in mobility in order to achieve the objective of 3 million Erasmus
students by 2012.

Erasmus intensive programmes (IP)
Priority will be given to projects which:
focus on subject areas which do not readily lend themselves to extended
periods of study abroad for their students;
are part of integrated programmes of study leading to recognised double or joint
degrees;
present a strong multidisciplinary approach;
respond to demonstrated needs and challenges at European level (including the
needs of enterprises) and contribute to the dissemination of knowledge in rapidly evolving
and new areas;
use ICT tools and services to support the preparation and follow-up of the IP,
thereby contributing to the creation of a sustainable learning community in the subject area
concerned.

Multilateral projects
Curriculum development (CD) projects
CD projects are designed to support the process of innovation and upgrading in
university teaching. They may be proposed in any academic discipline, including in the
fields of creativity and culture. Priority will be given to projects which aim at developing or
revising one or more of the following:
- integrated programmes covering a complete cycle of study (bachelor, master or
doctorate level) and leading to a recognised double or joint degree; and/or:
- curricula and modules for continuing education designed to update knowledge
obtained in the past;
- teaching modules in highly interdisciplinary areas or in areas with a specific
need for strong transnational cooperation in teaching.

Projects supporting the modernisation agenda for higher education
Institutions:
Priority will be given to projects which help higher education institutions to develop
one or more of the following:
- Strategies for modernising curricula and making them more transparent (e.g. by
describing qualifications in terms of learning outcomes), governance and funding, making
institutions more responsive to the needs of the labour market, citizens and society at
large;
- Lifelong learning strategies (linking HE with VET provision and certification) and
become continuing education centres" or "open learning centres for their region;
151
- Measures to enhance the quality of their performance and contribute to their
accountability;

II. LEONARDO DA VINCI INITIAL AND CONTINUING VOCATIONAL
EDUCATION AND TRAINING
The main focus of the process is on enhancing the attractiveness, quality and
performance of VET systems, improving transparency, information and guidance systems,
recognition of competences and qualifications and strengthening the European dimension.
During the period to 2010, specific initiatives to promote the further development, testing
and implementation of the common European tools for vocational education and training
will have an impact on programme activity. These include the development and testing of
the European Credit Transfer System for Vocational Education and Training (ECVET)
system, the implementation of the European Qualifications Framework (EQF), and the
follow-up to the 2004 Council Conclusions on quality assurance in VET. These activities
will be instrumental in strengthening mutual learning, cooperative work and sharing
experience and know-how. Special attention will be given to facilitating the participation of
sectors, social partner organisations and companies, in particular small and medium-sized
enterprises (SMEs), in all Leonardo da Vinci actions.

Specific Leonardo da Vinci objectives
(a) To improve the quality and to increase the volume of mobility throughout
Europe of people involved in initial vocational education and training and in continuing
training, so as to increase placements in enterprises to at least 80 000 per year by the end
of the Lifelong
(b) To improve the quality and to increase the volume of cooperation between
institutions or organisations providing learning opportunities, enterprises, social partners
and other relevant bodies throughout Europe;
(c) To facilitate the development of innovative practices in the field of vocational
education and training other than at tertiary level, and their transfer, including from one
participating country to others;
(d) To improve the transparency and recognition of qualifications and
competences, including those acquired through non-formal and informal learning;
(e) To encourage the learning of modern foreign languages;
pedagogies and practice for lifelong learning.

III. ROGRAMME COMENIUS SCHOOL EDUCATION
The specific objectives of the Comenius programmer are:
(a) To develop knowledge and understanding among young people and
educational staff of the diversity of European cultures and languages and its value;
(b) To help young people acquire the basic life-skills and competences necessary
for their personal development, for future employment and for active European citizenship;
(c) To improve the quality and to increase the volume of mobility involving pupils
and educational staff in different Member States;
(d) To improve the quality and to increase the volume of partnerships between
schools in different Member States, so as to involve at least 3 million pupils in joint
educational activities during the period of the programme;
(e) To encourage the learning of modern foreign languages;
pedagogies and practice for lifelong learning;
(g) To enhance the quality and European dimension of teacher training;
152
(h) To support improvements in pedagogical approaches and school
management.

IV. GRUNDTVIG ADULT EDUCATION
The European Union's over-arching policy objective of raising economic growth,
competitiveness and social inclusion (Lisbon Strategy) provides the framework for the
Grundtvig programme, whose aim is to respond to the double educational challenge of, on
the one hand, the large number of adults who left school early, or, in the case of many
migrants, never had the possibility to receive a school education, and, on the other hand,
an ageing population. Adult education helps to address these challenges by enabling both
categories of individuals to improve their knowledge and competences.
Adult education is a vital component of lifelong learning. But adult participation in
education and training is not only limited but is also unbalanced. Those with the lowest
educational attainments are the least likely to participate in learning.
Compared with the Member States' agreed benchmark for lifelong learning
participation of 12.5% of the adult working-age population by 2010, the average rate in
2005 was 10.8%, with a wide variation among countries that ranged from 1.3% to 35%.

Specific Grundtvig objectives
(a) To respond to the educational challenge of an ageing population in Europe;
(b) To help provide adults with pathways to improving their knowledge and
competences;
(c) To improve the quality and accessibility of mobility throughout Europe of
individuals involved in adult education and to increase its volume so as to support the
mobility of at least 7 000 such individuals per year by 2013;
(d) To improve the quality and to increase the volume of cooperation between
organisations involved in adult education throughout Europe;
(e) to assist people from vulnerable social groups and in marginal social contexts,
in particular older people and those who have left education without basic qualifications, in
order to give them alternative opportunities to access adult education;
(f) To facilitate the development of innovative practices in adult education and
their transfer, including from a participating country to others;
(g) To support the development of innovative ICT-based content, services,
pedagogies and practice for lifelong learning;
(h) To improve pedagogical approaches and the management of adult education
organisations.

Language learning in adult education
Under this priority networks should focus on:
sharing knowledge and disseminating good practice on language learning
opportunities for adults;
identifying present, emerging and future needs for European cooperation on
language learning for adults (including formal, non-formal and informal education);
developing strategies to address gaps in adult language learning, where
provision is currently inadequate;
disseminating schemes and materials for training people teaching languages to
adults.

Improving the quality, attractiveness of and access to adult education
Under this priority projects should focus on:
153
motivating individual learners to commit to learning, including through guidance
services and partnerships with enterprises;
reinforcing digital competences and using ICT to widen access to adult
learning;
improving the identification of learning needs of teachers, trainers and other
staff;
developing joint approaches to improve quality in qualifications of teachers,
tutors and other staff in adult education, and to adapt their training in consequence;
improving the quality assurance of services and institutions, including exploring
how the European Common Quality Assurance Framework for vocational training can be
applied to adult education;
improving the transparency and use of qualifications obtained in adult
education and facilitating access to vocational, general and higher education.


These programmes have been also implemented by the habilitated institutions
and factors which have responsibilities in the educational area in our counties. Thus, the
scholar inspectorate has established its own strategy regarding the foreign language
learning in schools and teachers and pupils exchanges with partners from France, Spain,
Italy and England.
It has become a tradition that different groups of Romanian students and from the
countries mentioned above to live reciprocal in their families. This frame permits the
knowledge of the customs and the young concerns and the establishment of a permanent
communication which it is reflected through the profound grasp of the communication
means, both direct and indirect, and of the internet usage.
The Erasmus programme has created and organized frame through which the
students can find out directly the realities from the European countries. The Erasmus has
created premises that a considerable number of students to perform a training period in
England, Denmark, USA, and other countries, for 3-6 months.
More than 150 students have carried out training periods through which they have
achieved experience as future managers in the market economy.
A part of them managed to accumulate financial capital realizing farms together
with their parents on different domains of activity. Actually, the establishment of some
inter-human relationships between students will realize some economic exchanges and
business visits, or even the reciprocal achievement of the scientific and technical
information from the domains of activity of their economic partners.

CONCLUSIONS

Regarding the fund allocated by the European Union for the 2007-2013, this is
described as follows:
1. Comenius programme 1,047 billion Euro,
2. Erasmus programme 3,114 billion Euro,
3. Leonardo Da Vinci programme - 1,725 billion Euro,
4. Grundtvig programme 0,358 billion Euro,

These programmes propose to achieve the following proficiencies:
- scholar abandonment reduction with 10%;
- increasing the number of licentiates in mathematics, sciences and technologies;
- high-school graduates at least 85% of 22 year old young people;
- participation of 12% of active population in different learning programmes.
154

The Comenius, Erasmus, Leonardo Da Vinci and Grundtvig programmes are
included in an ample programme named Long-Life Learning, which promotes the
following activities:
- the participation of at least 3 million pupils in educational activities by 2013;
- the realization of 80 thousand placements of students and young graduates in
different activity domains
- involving in adult education to reach 7 thousand mobilities per year

BIBLIOGRAPHY

* www.europa.eu
** www.edu.ro
*** www.mie.ro
**** www.infoeuropa.ro

155
PERSPECTIVES ON RURAL DEVELOPMENT IN THE EUROPEAN UNION

PERSPECTIVE ALE DEZVOLTRII RURALE N UNIUNEA EUROPEAN

VASILE MIOARA

TERRITORIAL INSPECTORATE FOR SEEDS QUALITY AND SEEDING MATERIAL
TULCEA

Abstract

Lisbon strategy combines competitiveness with social cohesion and lines out the general frame of
durable development in the rural areas of Europe in the new programming period 2007-2013. The strategy
belongs to Guiding strategic directions for rural development and it takes into account the whole of
strategies related to various fields. Rural development policy of the 2007-2013 period is summarized on
three axes, plus the LEADER AXIS, each of the axes consists of set of special measures destined to carry
into effect the proposed objectives. Elaborating local strategies should be based on combining the three
objectives: competitiveness-environment and life quality-diversification.

Key words: EU-European Union, CAP-Common Agricultural Policy, LEADER-Community Rural
Initiative, FEADR-European Agricultural Fund for Rural Development, NPRD-National Plan for Rural
Development, NSP-National Strategy Plan.

INTRODUCTION

Europe must cope with the challenges generated by globalization, development of
informational society and the aging phenomenon of population. Under these premises,
European Council, summoned at Lisbon in 2002, March, adopted a program having as an
aim revitalizing the increase and durable development in Europe. Leader of European
Union set out the so-called Lisbon strategy, which established a work schedule plan up to
the year 2010.
The strategy regards the revival form economical, social and environmental point of
view, and it is based on a positive vision that combines competitiveness with social
cohesion.
European Union set out a strategic objective, respectively that of becoming the
most competitive and dynamic economy based on knowledge of the world, able to ensure
durable economical growth with more and better places of work and a higher level of social
cohesion.
As far as Romania is concerned, the growth of farmers incomes is vital after
accession. This will not be possible unless there will be implemented numerous
diversification programs of rural economy which should absorb the unemployed labor force
in agriculture.

MATERIAL AND METHOD

Lisbon strategy (2000) set out the general frame of durable development in the rural
zones of Europe in the new programming period 2007-2013, with the aim at using
resources in order to make a more attractive place of Europe for investments and work
places, by promoting knowledge and innovation. Priorities established by the Strategy at
the Community level and key actions for their actual achievement is the bases of
elaborating national strategies. The strategy belongs to Guiding strategic directions for
rural development and it takes into account the whole of strategies related to various
fields, such as:
156
- Action Plan for Organic Agriculture
- Commission Report for Renewable Energy
- Commission Report related to Climate Change
- Commission Report regarding European Union Strategy for Forestulture
- Thematic strategies related to Environment
- Biomass Action plan and action in the field of bio energy and bio fuels for the
acceleration of implementing the European Union Objectives for renewable energy
resources
Rural development policy mainly concentrates on three key directions:
- Agro- Alimentary Economy
- Environment
- Extended rural economy and population
The strategy of rural development at the Community level was elaborated in the
autumn of the year 2005 as the common monitoring and evaluating frame. Based on it,
member states and expectants completed National Strategic Plan which stands for the
base of the National Plan of Rural and Agricultural Development 2007-2013, that is the
base of financing all agricultural policy measures.


Strategy guidelines established at Community level and used in National strategies
helps out in:
- identifying the zones within which the use of community support for rural
development brings the biggest added value at the European Community Level
- establishing connections with the main priorities of the European Union, according
to directions established at Lisbon and Gteborg.
- ensuring coordination between national strategies and other European policies,
especially cohesion and environment policies
- implementing new PAC mechanisms related to market reform and agricultural
restructuring in the older and new member states
The six strategic guidelines are the following:
1. Improving competitiveness in agricultural and silvic sectors
2. Improving environment in rural zones
3. Life Quality and diversification of rural economy
4. Forming local capacity of occupying the force labor and diversification
5. Priorities converting into programs.
6. Ensuring complementarity between community instruments.
Rural development policy of the 2007-2013 period is summarized on three axes,
plus the LEADER AXIS, each of the axes consists of set of special measures destined to
carry into effect the proposed objectives.
Axis 1 - Increase competitiveness of agricultural and forest sectors
The vital center of rural areas is agriculture and forestry, as well as the whole of
agro-alimentary sector. This axis takes into account measures that should ensure a high
competitiveness level on internal and external markets as well, based on promoting quality
products, highly processed in order to increase the added value.
It has as an aim to form a strong and dynamic agro-alimentary sector, based on
innovation throughout the alimentary chain and the priority sectors, in each member state,
through investments that capitalize corporeal and human capital.
Axis 2 - Improving environment in rural areas
Within this axis there are three domains outlined: biodiversity, conservation of
agricultural and forest domains. It is within these fields that objectives related to
environment should be integrated, and to insure implementing Nature 2000 agricultural
157
and forest network, according to Gteborg directions, regarding stopping the biodiversity
decline until 2010 and observing the Main Directions related to Waters and Kyoto protocol
regarding improvement of climate changes.
Axis 3 - Improving life quality in rural areas and diversifying rural economy
Resources allotted to this axis contribute to the creating of opportunities for labor
force occupying, creating of abilities in order to elaborate local programs, promoting
enterprising training, attracting women and youngsters in various activities.
Axis 4 - LEADER
Actions within this axis should contribute to fulfillment of priorities of axes 1-3 and
they should play an important role for improvement of leading activities at local level in
rural areas.
Member states should ensure the synergy between structural, occupying and rural
development policies, ensuring the complementarity and coherence between actions
financed with structural Funds on a given territory and a certain field of activity.
Financial allotments on axes in the period 2007-2013, are changed as compared to
the period 2000-2006, in favor of axis 2, which can disadvantage rural areas in Romania.
For each of the axes there were a minimum financing allotted for the corresponding
programming duration, table 1.

Table 1. Distributing FEADR sums on strategic axes of rural development (2007-2013)

Axes Minimum sum % Number of measures
Axis 1- Increase competitiveness
of agricultural and forest sectors
10 16
Axis 2- Improving environment in
rural areas
25 13
Axis-3 Improving life quality in
rural areas and diversifying rural
economy
10 8
Axis 4 LEADER 2.5 Total of measures 37
Source: Commission Europeenne, DG, Agri, 2006

Implementing PAC in Romania pursuant to its accession has an important aim
ensuring complementarity between the two piers:
Pier 1- market policy, which should be supported even through rural development
measures so that the farmers produce upon request and by this way to ensure the
increase of their incomes.
Pier 2- rural development policy, which ensures restructuring support to agriculture
providing public goods closely related to rural environment and area, which triggers
insuring coherence with instruments and of policies of pier 1. Moreover, it helps durable
management of natural resources, increase of competitiveness in rural areas and in social
and economic cohesion as well.
National Plan of Rural Development, 2007-2013 is based on adopting strategic
community directions and on principles established through Regulation (EC) no.
1698/2005 related to the support granted through FEADR.
National Plan of Rural Development will consist of a financing plan which contains
the annual community and national financial allotments by axes, including technical
assistance. More over, in NPRD there will be distributed public allotments and /or private
for each measure established through NSP.
Community financing of agricultural policy on market and rural development for
Romania, in the period 2007-2013, was evaluated, pursuant to the member stated
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agreement regarding EU budget, at about 12 billion , out of which the sum for rural
development will be significant(more than 7 billion ).

CONCLUSIONS

Projecting rural space of Romania for future decades, the only country in the
configuration of the member states of the European Union enlarged in which peasantry
original traditions of an inestimable value, means a great responsibility that should b \e
taken into account not only by the political decision factors, but by the entire Romanian
intellectual class and by each and every citizen.
Elaborating local strategy should be based on combining the three objectives:
competitiveness-environment and life quality- diversification.
The member states must direct their support toward key actions, such as:
- forming organizing abilities of local partnerships
- promoting-private-public partnerships
- promoting cooperation and innovation
- improving managing the innovating activities through collaboration of agriculture,
forestry and local economy so that it should be ensured the diversification of economic
base and consolidating the socio-economical structure in rural areas.
Priorities provided in the four axes should be developed in programs and projects.

BIBLIOGRAPHY

1. ZAHIU LETITIA, DACHIN ANCA, ION RALUCA, ISTUDOR NICOLAE, MANOLE VICTOR, POPESCU
ADELINA, POENARU STEFAN, 2006, European Union Agriculture under the Impact of Common
Agricultural Policy, Ceres Publishing House, Bucharest, page 40, 131, 318, 326, 329.

159

SESSION 2/SESIUNEA 2

MANAGEMENT, MARKETING, ACCOUNTING, FINANCIAL ANALYSIS,
FINANCING
MANAGEMENT, MARKETING, CONTABILITATE, ANALIZA FINANCIARA,
FINANTARE

160
THE LIBERALIZATION OF THE COMMERCE WITH SERVICES ON THE
EUROPEAN UNIQUE MARKET

LIBERALIZAREA COMERULUI CU SERVICII PE PIAA UNIC
EUROPEAN

ALECU I.I., MRCUT L., CARMEN ANGELESCU

UNIVERSITY OF AGRONOMIC SCIENCES AND VETERINARY MEDICINE

Abstract

The services directive is aim of the free performance of services within the European Community.
The objective of the services directive is to realize a true internal market of services by suppressing all the
juridical and administrative obstacles that inhibit the development of tertiary activities between the member
states. The directive guarantees a greater juridical security to the providers of services in exercising their
fundamental rights guaranteed in the EC Convention.

Key words: directive, services; market; liberalization; growth, European Commnunity

The main instrument in the European Union for the unblocking of the market forces
in the field of services was the project of the services directive presented by the
Commission on January 13th 2004. According to this, a greater fluidity of the intern market
of services would stimulate the productivity of the activities of the firms, the economic
growth and the labor force in a field that uses 70% of the European active population, and
would consolidate the competitivity of other sectors which resort to services as
intermediary inputs.
The services directive aims the application of the principles in the assembly of the
European Union, the jurisdiction having an essential role in spreading this liberty at large
scale. But the jurisdiction of the European Court presents a series of deficiencies from the
point of view of the regulation that manifests on three plans. From the qualitative
viewpoint, it is remarked the failure of the European Court to draw an acquis in the matter
and an asymmetry in imposing its decisions to the member states. The safety of the
regulation is threatened by the incertitude that hangs over the eloquence of the decisions
for situations with different circumstances, and the members holding back from giving their
agreement in those problems that concern the national sovereignty influence its legitimacy.
The objective of the services directive is to realize a true internal market of services
by suppressing all the juridical and administrative obstacles that inhibit the development of
tertiary activities between the member states. The directive guarantees a greater juridical
security to the providers of services in exercising their fundamental rights (the liberty of
establishment and the liberty of performing services) guaranteed in the EC Convention.
The directive stipulates an administrative simplification by setting up unique offices
in each country in order to provide information and to allow the carrying out of the
formalities necessary to the activity of the services providers. Their measures may be
made easier by the use of the electronic medium in order to improve the administrative
procedure.
The consignees of the services may address, in an equal measure, to these unique
points in order to obtain the necessary information.
The state that has the obligation to respect the providers right to supply services
and to guarantee his free access to the activity of services, as well as the free exercising
on his territory may limit the exercising of those freedoms from reasons that depend on the
public order, the social security, the protection of the environment and of the public health,
but with the mention that those restrictions respect three criteria that result from the
161
jurisprudence of the European Court of Justice: the indiscrimination, the proportionality
and the transparency.
The principle of the country of origin was omitted when redacting the directive in the
advantage of the principle of free services providing, but not without a certain redaction
ambiguity that doesnt always allow appreciating the point from which the law of the host
country may be applied.
The directive also simplifies the regimes of authorization so that they do not act as
hidden protective barriers. Certain demands with discriminatory tint have been prohibited,
for example those regarding the nationality or the necessity of registering in the
professional registers of more member states.
The measurements associated to services directive emplacement is: on one side
the measures that are in favor of the political adoption of the directive with no limit to
efficiency, and on the other side the measures that sacrifice some of the benefits. In the
first category we have the measures that refer to the increase of inter- sectorial mobility
with the shape of programmes for professional forming and indemnity.
Another category of measures are those referring to sacrifying some of the benefits.
In this area are included all derogations and dispensations already taken into
account or the ones to come that hint some quality, security, environmental norms or the
politically sensitive sectors. Having the purpose of limiting efficiency losses, these
measures should be adopted only on short term so that the sectors will have time to adjust
or for permanent measures there is a need for a periodical checking system that will justify
their existence.
The services directive will allow Romanian citizens to work in any other EU country,
after its emplacement two years from now on at latest. Free circulation of services on
the internal market will facilitate, for local workers, the establishment of professional
activities inside EU area by eliminating discriminatory bureaucratic restrictions and giving
the possibility to obtain information that will ensure an efficient functionality. There is no
more need to prove their steady residence inside the country they will work temporary but
they will have to comply with the working laws and social legislation of the country he
works in. The employees sent by their employer to work on temporary basis in foreign
countries will have the same rights as their local counterpart (security rights, working
hygiene, working hours and conditions, minimum wage). National suppliers will no longer
have to create their own infrastructure on the host country territory nor to register on any
professional system. More then that they gave up the idea of contractual engagements
between supplier and consumer.
Extremely weak on services chapter, Romanian economic structure has a huge
development potential by its own markets ability of absorption, where can be a large place
for operators from other member states. The unemployed work force resulted from the
restructuring process (especially in agriculture, which absorbs now the most inefficient
segment of the active population) will find its value on an open market, leading to
increasing of profitableness of the economic processes and in the end increase of
Romanians welfare.

Bibliography
*** European Commission proposal for a Directive on services, MEMO/04/3, Brussels, 13th January 2004

162
ASPECTS REGARDING WAYS AND METHODS FOR THE
IMPROVEMENT OF INSURANCE COMPANIES MANAGEMENT

ASPECTE PRIVIND CILE I METODELE DE MBUNTIRE A
MANAGEMENTULUI COMPANIILOR DE ASIGURRI

ANGELESCU CARMEN, ALECU I.I.

UNIVERSITY OF AGRONOMIC SCIENCES AND VETERINARY MEDECINE OF
BUCHAREST

Abstract

Romania is dealing with major fiscal challenges, one of them being the possibility of the
implementation of new taxes for our internal environment, such as the insurance tax. It appears to be a
necessity the analysis of the insurers financial stability, because the insurers bankruptcy could generate
automatically major financial distress for the other companies involved in the insurance contracts. The
bankruptcy of the first one could arouse the insureds bankruptcy, who had to stop the production cycle
because the lack of a machine or raw material. It
'
s important to study the prudential regulations of the
insurance companies - the technical reserves, the solvency margin, and the security fund. For example, the
solvency margin is significantly important for the prudential supervision of the insurance market, both for the
Romanian market and for the other EU member state markets.

Key words: taxes, financial stability, insurance contracts, technical reserves, insurance market

INTRODUCTION

The accession of Romania to the European Union must be contemplated entirely as
a serious matter that must be considered based on the different provisions existent in the
member states. The business environment must improve continuously, and on this the
subsequent development of Romania is based. The insurance industry is also situated on
this trend, which, in the last years, implied a growth especially at the level of subscribed
growth premiums, penetration degree, etc. Any earthquake at the level of one of the
Romanian insurance market actors can weaken what was obtained through consistent
efforts in the last years. Thus, the necessity to analyze the financial stability of the insurers
appears.
MATERIAL AND METHOD

There are several methods to increase the stability of an insurance company, from
increasing the number of insured goods and net premium rate to applying to reinsurance,
but the technical reserves which the insurer is obliged to establish and the solvency
margin which explains the involvement of the insurer in providing a stable balance
between the net assets on the one hand and the profit and loss account on the other hand
are also of great importance. In addition to these elements, it is interesting to notice the
way in which an insurance company is affected by different taxes. The income tax, value
added tax, local taxes, all have a smaller or bigger influence on what it is, after all, the
profitability of the insurer.
The European Union insurance markets are not equally developed, the established
parameters being mostly superior to the Romanian ones. Each European Union country
perceives the fiscality related to insurances based on the specific of the area, customs,
etc. There are differences also within the insurance sector, the perspective of each country
being different. In this regard, Romania has undergone several changes regarding the
163
insurance legislation or the general applicable laws (the last variant being the current
Fiscal Code).
The insurance premium tax is an important element both for the fiscal system of
different member states and for the development of their insurance markets. The possible
implementation in Romania raises a number of questions, the poorly developed market
and also the limited buying power of the Romanians being real obstacles in fulfilling this
action.
In Austria, the insurer is the one who pays this tax. There are two types of taxes:
I. Tax on insurance premiums - the insurance premiums represent the calculation
base; the rates differ as follows: general insurances and some life insurances 11%;
disability insurances 4%; contributions to the pension funds 2.5%; health insurances
1%; the exceptions are represented by the social insurances, export insurances and
reinsurances.
II. Vehicle ownership tax - its calculation is based on the vehicle classification, only
vehicles with a mass higher than 3.5 tons, registered in Austria being taken into
consideration; the exceptions are represented by insurances concluded for police cars, fire
department cars, ambulances, taxis, rented vehicles, vehicles belonging to persons with
disabilities.
Comment: Austria is a developed country, with an elevated standard of living of the
population. Even if the tax rates are elevated, it doesnt mean that it is a harsh fiscal
regime. The used tariff premium rates and the deduction system offered for these
expenses made by natural or legal persons must be taken into consideration. The natural
persons benefit from deduction for life insurance premiums. For the second type, the
exceptions are to be noted, represented not only by police and fire department cars or
those adapted to a physical disability, but especially by taxis and rented cars. The German
spirit of responsibility and business sense are probably those which dictated these
measures. Who would have suffered in case that these exceptions had never existed?
Clients, who often are tourists. Or a large part of the Austrian gross domestic product is a
result of the highly developed tourism.
In Spain, the beneficiaries are the central government and the county councils of
Basque Country and Navarra. The tax is owed by the insurance companies, irrespective of
the fact that they are or not resident in Spain. The most interesting fact is that the tax for
these insurances is transferred, as in the case of the value added tax to the payer of the
insurance premium. The taxation rate is of 6%, applicable to the paid premiums. There are
several exceptions in case of Spain also: life insurance policies, reinsurances, credit
insurances, agricultural insurances, insurances related to the international transport or
export; social insurances, pension plans.
Comment: Spain pays a special attention to agriculture, the insurance premiums for
covering some risks specific to this field being excluded from the calculation of insurance
tax.
From the point of view of the influence on the insurance sector, the insurance
companies are liable, directly, for their own business management and indirectly, for the
effects on the insured persons. In case that the insured risks do not occur, the subscribed
gross premiums lead to a high profit, but in case that these events occur, and the
insurance company is not prepared, this can lead to insolvability. The more solid the
management is, the safer is an insurance company, namely the investments combine
usually the risk and profitability, the net premium rates are correctly substantiated, the
provisions are sufficient because, after all, the technical reserves, which represent such an
element, offer an even higher stability to the insurance company.
CONCLUSIONS
As a final conclusion for this range of insurances, the insurance companies can
continue to act in view of developing the Romanian insurance sector, the fiscality in this
164
field not being an obstacle. The way in which the insurers agree to combine the
contemplated profitability with the risk with which it is related depends exclusively on the
general management, and its actions must be related to the legal regulations within the
field.
BIBLIOGRAPHY

Serbanescu Cosmin, Armonizarea sistemului fiscal din Romania cu sistemele fiscale ale tarilor membre ale
Uniunii Europene, Revista Finante, Banci, Asigurari, Ed. Tribuna Economica, august 2005, pag 11-14
Serbanescu Cosmin, Impozitarea asigurarilor la nivelul Uniunii Europene, Revista Finante, Banci, Asigurari,
Editura Tribuna Economica, Bucuresti, iunie 2005, pag 57-58
www.csa-isc.ro
www.europa.eu.int

165
THE IMPACT OF WORLD` S GROWING GRAINS PRICE ON INTERNAL
AGRICULTURAL MARKET

IMPACTUL CRETERII PREURILOR PE PIAA MONDIAL A
CEREALELOR ASUPRA PIEEI AGRICOLE INTERNE

BECIU S.

University of Agricultural Science and Veterinary Medicine Bucharest

Abstract

The increasing in grains prices as a result of world growing food demand has turned into a major
food crisis, with an important impact on internal agricultural markets.
The consequences on Romanian grains market are estimated to be in good terms for de cereal
crops producers who might sell their products at better prices and in bad terms for consumer who will suffer
all these increase in higher food prices.

Keywords: grains market, food demand, price, crops producers

INTRODUCTION

The food crisis is one of the most important crises that disturb the world economy.
Soaring of food prices is the result of the changing that happened in world food
consumption and on agricultural markets. These events have consequence on Romanian
grains markets, on both crop producers and consumers, in terms of price and level of sells.

MATERIAL AND METHOD

In order to complete this market analyze, I made a complete review of all events
that occurred on grains markets in the last period of time, and a comparative analyze
between different evolutions on crops markets in the last years.


World Crops Market
World cereal production reached in 2007 a record level of around 2 thousands
million tonnes, a rise of 4.8 percent over 2006 levels. But with stocks at their lowest level in
the last twenty years, total supplies almost didnt meet increased demand, boosted by the
fast-developing bio-fuels industry.
Worlds wheat stockpiles have fallen to their lowest level in 30 years. In the United
States stocks have dropped to levels unseen since 1948.
In The European Union, at the start of the 2007/08 marketing year in July, total
stocks were around 13 million tonnes below levels at the same time of the previous year.
This was the result of the modest harvest in 2006/07 and significant withdrawals
from European Union intervention stocks. In 2007, unfavourable weather conditions
reduced the harvest and overall European Union production was estimated at 256 million
tonnes.
Output declined at a time when European Union stocks were already low. As a
result, the European Union needed more imports in 2007-2008 than in 2006-2007.
Traditionally a net exporter, in 2007/08 the European Union has become a net
importer.
166
The latest prospects point to the possibility of a significant increase in world cereal
production in 2008, but international prices of most cereals still remain at record high
levels and some of them might increase.
First forecast for world cereal production in 2008 stands at a record 2 164 million
tonnes, 2.6 percent up from last years crop.
For wheat, production is supposed to reach 647 million tonnes, 6.8 percent up from
2007 and also a new record. In the northern worlds countries, where many crops are
already well developed, significantly larger outputs are forecast in North America and
Europe.
In the United States, winter wheat production is forecast to turn out at about 60
million tonnes, well above last year and the recent average. In Europe, the winter wheat
area has expanded in most major producing countries and crops continue to develop well
throughout the region, pointing to better yields than last years below-average levels,
especially in some eastern parts that were hit by severe drought in 2007 (as in Romania
for example).
Production in the European Union is forecast to reach about 140 million tonnes this
year, 13 percent up from 2007 output. In the eastern countries of Europe, larger wheat
areas in the Russian Federation and Ukraine, and an expected recovery in yields in the
latter country after drought last year, should help to lift the regions wheat output to a
bumper level for 2008 over 70 million tonnes.
In Asia, prospects for the winter wheat crops are generally favourable but
aggregate output in the region looks to decline from last years record level. A large part of
the decline is expected in Kazakhstan where a return to normal yields after bumper highs
last year would result in a smaller harvest. A smaller harvest is also forecast in India, after
a record crop last year.
In China, the largest producer in the region, 2008s wheat output is expected to
remain almost unchanged from last years record level.
In North Africa, wheat crop prospects are good in Egypt, the major wheat producer
from the area
In the southern worlds countries, where most crops are still to be sown, early
indications suggest some reduction in output in South America, but in Oceania, assuming
a return to a normal season after last years drought, output should recover sharply in
Australia.
For the coarse grain output are estimated at 1 075 million tonnes, 0.6 percent up
from last years record level.
In South America, harvesting of the main season crops is underway and output is
expected to increase to a new record level following area increases in Argentina and
Brazil, the largest producers, in response to high international prices.
In southern Africa, despite far from ideal weather conditions throughout the season,
with late planting rains, followed by floods and a subsequent return to excessive dryness in
parts, the overall outlook for the main coarse grain crops is judged to be favourable,
particularly in South Africa affected by drought last year.
In the northern countries, the bulk of the major 2008 coarse grain crops are yet to
be sown in the coming weeks.
In the United States, the maize area is forecast to decline after last years
exceptional plantings but will likely remain at a very high level relative to recent history
reflecting strong demand and high prices.
In Europe, output of coarse grains is forecast to recover somewhat from last years
reduced level, reflecting a combination of increased plantings in parts and expected yield
recoveries in several countries affected by drought last year, such as Hungary and
Romania, two important maize producers.
Consumption and utilization
167
World cereal utilization is expected to growth and reach 2 126 million tonnes, an
expansion of almost 3 percent from the previous season, which is above the average
annual growth rates, of below 2 percent in the past decade.
Food consumption of cereals is forecast to reach 1 006 million tonnes, an increase
of about 1 percent from 2006/07. Most of this anticipated rise is expected in the developing
countries, driven by the increase in population growth.
In these developing countries (such China), wheat consumption declined in favour
of higher intakes of more value-added food.
Feed utilization is forecast to increase by 2 percent in 2007/08, to more than 750
million tones. This expansion mostly reflects higher use of coarse grains for feed which
could reach a record 633 million tonnes, up 2.8 percent from 2006/07. The increase in
feed usage of coarse grains is seen to more than offset a decline in feed use of wheat,
supplies of which have been much tighter, especially in the EU, the region where wheat is
the primary feed grain.
Industrial usage of cereals demonstrates strong growth this season but the
expansion mainly reflects the rapid rise in the use of grains as raw material for production
of bio-fuels, which in 2007/08 is forecast to approach 100 million tonnes, of which maize
accounts for at least 95 million tonnes.
Maize is the main cereal used for the production of ethanol. The United States is
the world leader of the maize-based ethanol sector and it is expected to use this year more
than 81 million tonnes of maize for production of ethanol, 37 percent more than in 2006/07.
Stocks
World cereal stocks by the close of the seasons ending in 2008 are expected to fall
to 400 million tonnes, down 5 percent, from their level at the start of the season and the
smallest in 25 years.
World wheat stocks by the close of seasons in 2008 are forecast at 144 million
tonnes, down 9 percent from their opening level. The
sharp decline is even more notable in major exporting countries, with their combined
wheat reserves falling by as much as 10 million tonnes. Strong demand in domestic and
world markets has contributed to the depletion of stocks in major exporting countries
where production in 2007 suffered from exceptionally poor yields. In the United States
stocks are expected to fall to 8 million tonnes, 4 million tonnes less than the last season
level. Larger exports
are mostly responsible for this reduction in stock in the United States. In the European
Union it might drop to 9.5 million tonnes, more than 3 million tonnes below the previous
seasons low, a reduction that is mainly caused by a sharp production shortfall in 2007.
Several importing
countries are also expected to have their wheat stocks reduced this season, not only due
to a decline in production, as in the case of Morocco, but also because of high prices in
world markets which discourage imports and contributes to larger drawdown of domestic
stocks, as in Bangladesh, Egypt and Kenya. In China, improved
production in 2007 and tighter controls on exports could lead to an increase of 3 million
tonnes in stocks. In India, the rise in production in 2007 coupled with large imports towards
the end of the previous season could contribute to an increase of about 2 million tonnes in
total wheat inventories, also helping to replenish government owned stocks.
World stocks of coarse grains
at the close of seasons in 2008 are forecast to reach 157 million tonnes, 5 million tonnes
less than their opening level. The main factor behind this decline is
demand rising, which in 2007/08 is forecast to exceed total supply in spite of a significant 8
percent growth in world production. Strong domestic demand coupled with robust exports
are likely to result in a relatively small increase in stocks in the United States, the worlds
largest producer, an increase not sufficient to offset the sharp declines elsewhere,
168
particularly among the countries which suffered from production shortfalls in 2007. Much
smaller inventories are forecast, in particular for: Morocco, Nigeria, the Republic of South
Africa, Turkey and Ukraine.
In Brazil, where production is expected to be a record, stocks are not expected to
increase as a result of higher exports, while in China, the worlds largest stock holder of
coarse grains, total reserves are expected to remain stable, given the curb on exports this
season.
Trade
World trade in cereals is forecast to reach some 260 million tonnes in 2007/08,
slightly more than in 2006/07. A sharp increase in imports of coarse grains is expected to
more than offset declines in wheat and rice trade. At the current forecast level, the volume
of cereal imports by the LIFDCs (low-income food-deficit countries) could reach 82 million
tonnes, slightly down from the previous season.
Imports: World trade in wheat is forecast to decline to 106 million tonnes in 2007/08
(July/June), down 7 million tonnes from 2006/07. Smaller imports by India are largely
responsible for this decline but several other countries, including Algeria, Brazil, Kenya,
Indonesia, the Republic of Korea and Nigeria are also anticipated to significantly reduce
their wheat purchases from world markets. In most cases, higher domestic production is
the main reason for the anticipated decline in wheat imports, but soaring international
prices are also discouraging wheat purchases.
In countries with import tariff schemes in place, most have lowered or
suspended their tariffs in order to dampen the impact of high world prices on domestic
consumers. Several countries are expected to increase their imports this season
such as Morocco where a severe drought reduced wheat production last year, or in
Pakistan where, in spite of higher production, large imports are needed due to significant
cross-border exports earlier in the season.
Exports: Among the five major exporters, Australia, Canada and the EU all
have less exportable availabilities this season, while deliveries from Argentina continue to
be restricted as policies to keep domestic prices under control remain in effect. Lower
supplies in these exporters and the weak dollar have resulted in much larger exports from
the United States, the only major exporter that also had an increased wheat harvest last
year.
Among other countries, exports from Ukraine are reduced because of a reduction in
domestic supply which led the government to impose a strict quota system.
Exports from the Russian Federation already exceeded the previous seasons level
prior to recent export restrictions. In China, restrictions put in place recently are likely to
prevent further export sales, but exports have already exceeded the previous seasons
level.
Several countries have now export ban policies in place, including India, Pakistan,
Serbia and the Syrian Arab Republic.
World trade in coarse grains in 2007/08 is forecast to reach 121.5 million tonnes, 10
million tonnes, or 9 percent, more than in the previous season. The exceptionally higher
imports of maize and sorghum by the EU are the main reason for the expansion in world
trade this season.
Reduced supplies of feed wheat both in its domestic market as well as in those of
nearby suppliers in Black Sea region resulted in this surge in imports in the EU. Higher
imports are also forecast for Morocco, Mexico and the Syrian Arab Republic but smaller
imports are expected for Colombia, the Dominican Republic, Indonesia and the Republic
of Korea. The
anticipated sharp increase in world import demand this season is to be largely met by
higher sales from the United States and Brazil; the two countries benefiting from record
harvests. Argentina and Canada are also forecast to export more this season but tighter
169
domestic supplies and the imposition of export restrictions would cut exports from several
countries, including China and Ukraine.
A second consecutive season of poor production has prevented the Republic of
South Africa from increasing exports this season.
Prices
International prices for all major cereals continued their rise in this spring, largely
driven by persistent supply tightness and the imposition of new export restrictions. The
weak US dollar and strong import demand also provided support. In March, the United
States hard wheat averaged USD 481 per tonne, up USD 100 per tonne from the start of
the year and nearly 130 percent above the same period last year.
In the futures markets, prices remained firm but volatile; reacting to news about
further export restrictions, developments in energy markets and the deteriorating prospects
in financial markets.
The nearby May wheat futures at Chicago Board of Trade stood at over USD 390
per tonne in late March, down nearly USD 50 per tonne since late February but still more
than 130 percent over the corresponding period last year.
In spite of the expectation of a significant increase in world wheat production in
2008, even September futures, which provide a better indication of the current market
sentiment for the new season, were only slightly below the May values and as much as
120 percent above the corresponding period last year.
Export prices of coarse grains also made strong gains since the start of the year.
The United States maize averaged USD 234 per tonne in March, 38 percent more than in
March 2007.
Shortages of feed wheat combined with generally tight market conditions for all
cereals and the weak US dollar continued to provide support to maize prices. By late
March, the CBOT nearby May contract was quoted at around USD 214 per tonne, up 20
percent from the corresponding period last year.
While fear of a general economic slow-down and the arrival of new crop supplies
from Brazil and Argentina put some downward pressure on prices, the tightening of
supplies in the United States and uncertainties regarding the size of plantings this year
prevented prices from weakening as evidenced in December futures which stood at about
USD 60 per tonne more than in the corresponding period last season.

Romanias crops market
Romanias cereal production from 2007 was below 7.5 million, half from the outputs
registered in 2006, of 15.7 million, due one of the biggest droughts in the last decade.
Romanias wheat production was last year one of the poorest since 1990. The
outputs amounted to some 3 million tons, down 44% compared to the previous year.
Bread prices might increase starting this month as higher wheat prices worldwide
have driven Romanian producers into exporting, while the quantities sold will be brought
back to the country at a higher price.
Starting last summer, companies in the bread and bakery sector have gradually
increased bread prices due to higher production costs.
Every year, around two million tons of wheat production is needed by the
commercial sector, for bread and baked goods, 500,000 tons are necessary for sowing,
about 700,000 tons are used by households in rural areas, while 600,000 tons are
necessary for fodder.
In 2008, for wheat, cultivated on the 2.1 millions ha, the most optimistic forecasts
indicate yields of 4000 kg/ha due ideal weather conditions in almost all regions of the
country.
An important part of this production might not be selling on the market, due smaller
producer that will try to make stocks for their self consume.
170
Also Romanians trade in wheat is forecast to reach more than 1 millions tonnes
this year, due favourable price on world market.
The maize market is expected to recover after the 2007` droughts. There are only
sown delays in some regions of the countries, but the production will be also this year
under weather conditions, because lake or remove of irrigation systems.

CONCLUSIONS

The main trends on worlds agricultural market are:
The rapid rise in the use of grains as raw material for production of bio-fuels;
There is an important decline in worlds stocks of cereals.
The increase of inputs prices has contributed at increase of cereals prices.
The increase in world cereal outputs is not enough in this moment to cover worlds
increasing foods demand
The prices of agricultural outputs have increased significantly, and this trend might
continue
World cereal production has reached record levels in the last years, as a result of
higher cereal yields in countries such: SUA, Brazil or Argentina.
Grains consumption increasing in countries such South Korea, Taiwan, Mexico,
Nigeria, Venezuela or Japan
Decreasing in maize exports of USA to European Union with around 200 millions
euro per year, due OMG restrictions
The situation on Romanias cereals market:
Goods yields are expected this year due ideal weather conditions;
The price of agricultural outputs will remain high, despite good internal production,
due worlds grains market influence
There might be good prices for cereals producer if the export will be relevant
Still increase in food price, as a results of expected increase of stock at small
producers (an important part of the wheat production wont be sold at the market)

BIBLIOGRAPHY

ZAHIU LETIIA and co. - Agricultura Uniunii Europene sub impactul Politicii Agricole Comune;Edit Ceres
2006, Bucureti
ZAHIU LETIIA and co - Politici i piee agricole, Edit Ceres 2005, Bucureti
WOLF MARTIN - Food crisis is a chance to reform global agriculture, Financial Times, 30 Apr 2008
Food and Agriculture Organization of the United Nations - Crop Prospects and Food Situation, no 2, April
2008

171

TECHNICAL AND ECONOMIC INDICATORS CORRELATION IN FRAME
OF INFORMATIC SYSTEM DESIGNED TO AGRICULTURAL FARMS
(SIFA)

CORELAREA INDICATORILOR TEHNICO-ECONOMICI IN CADRUL
SISTEMULUI INFORMATIC DESTINAT FERMELOR (SIFA)

BEREVOIANU ROZI LILIANA, IVASCU TEODORA, ISBASESCU T.


Abstract

The informatic system (SIFA) was structured in two modules: estimation and realization, on two
profiles: vegetal and animal.
For estimation module realization has been used the crop technologies and the incomes and expenses
budget as base elements for bookkeeping and administration of all technico-economic elements from
agricultural farms, necessary in the production process. Estimation module allows the vegetal production
projection for one year and for animal production allows the selection of necessary months.
For the realization module has been selected a series of expenses categories related to the expenses and
incomes budget and technologies, in accordance with the accounting typology.

Key words: agricultural farms, technico-economical indicators, inforatic system


The correlation of technical economical indicators in the vegetal production module
Testing the functionality of the system was performed through following the
economical a relations existent by component elements of the program and based on their
way of relating.
The production projection module
This module functions with a simple introduction of the data by the user which are
integrated through the program in the technologies and which allow calculating the
budgets on hectare and exploitation. The data which must be introduced is divided into two
categories: data known by the user and data posed at his disposal annually by the ones
who realized the program. All the basic elements (Primary and secondary production,
Mechanic works tariff, Manuel works tariff, Inputs prices, Sales price for the primary and
secondary production, Hectare subvention, Necessary shares in estimative calculation of
expenses) our relations to the frame technologies of production and with the budgets on
cultures allowing their economical projection.
The production realizing module
The evidence of the expenses and effective incomes of the exploitation is allowed
by the program under the simplified form of a day book and by using the principles of
accounting. This assumes the introduction by the user of every invoice and allocating
directly to the expenses or by passing through administration.
The introduction of data by the user allows entering in the administration the
specific consumptions every product, respectively the expenses with producing, the
program allowing the allocation of every consumption on the type of culture selected in the
estimation. Thus are emphasized the monthly and agricultural year technological
consumptions for every crop, and for total exploitation. What reaches directly in the
172
expenses are the elements given for consumption the moment they were bought And will
be allocated directly in the technology or budget.
The incomes and expenses card
Taking over and calculating the data in the incomes and expenses cards is
performed correctly by introducing by the user of monthly incomes and expenses he
performs (fuel expenses other machinery, water expenses other than the irrigation
one, expenses would works and services done by third parties, other expenses would
work force, expenses would payments and credit repayments, current account interests
(only to the exploitation budget), other expenses that taxes and duties, other expenses,
expenses with mechanized works done by third parties, expenses with the workforce for
mechanic works, fuel expenses agricultural equipment, agricultural equipment liquidation
expenses, chemical fertilizers expenses (nitrogen, phosphorus, kalium), organic fertilizers
expenses, other materials expenses, plants health expenses (pesticides, herbicides, etc.),
seeds and seeding material expenses, irrigation water expenses, other irrigations
expenses, expenses with irrigations done by third parties, transport expenses done by
third parties, fuel expenses transport machinery, insurance and production credits
interests expenses, workforce expenses for manual works, buildings and utilities
liquidation expenses, taxes and duties expenses, incomes from the primary production,
incomes from the secondary production, other incomes, subventions, cashing from credits,
including own contribution to capital).
For every expense and/or income the program allocates the expenses on culture
budgets and on the exploitation budget as well as on the technologies afferent to crops,
starting from the following elements: the exploitation structure, the number of
hectares/culture the expense is allocated on and that performed agricultural works.
The specific consumption card
In this card are taken over automatically and correctly the elements introduced for
the expenses which require passing through administration (fuel expenses agricultural
equipments, chemical fertilizers expenses (nitrogen, phosphorus, and kalium), organic
fertilizers expenses, other materials expenses, plants health expenses (pesticides,
herbicides, etc.), seeds and seeding material expenses), respectively: name, quantity and
value.
The system allows the user to introduce expenses through the incomes and
expenses card, and the consumption is registered in this module by the simple recognition
of the introduced data. Giving for consumption is registered every time according to
quantity and value the program allowing the following: automatic calculation of stocks, a
location on cultures and on hectares, allocation on agricultural works.
Generated reports; comparisons
For the vegetal production module the program allows calculating: the technological
expenses per cultures, the budgets per cultures, the exploitation budget, profitability as
indicators, etc. both estimative at the beginning of the agricultural year, as well as
effectively at the end of the agricultural year.
The functionality of the program from an economical point of view resides in the
correct comparison at the level of a culture between the performed estimates based on
frame technologies and the accomplishments of the user by applying own production
technologies. So it is allowed the estimation and calculation on every culture of the
following indicators: raw materials and matters expenses, mechanized works expenses,
workforce expenses, variable expenses, fixed expenses, net profit, production costs, profit
ratio, gross margin, etc.

The correlation of technical economical indicators in the animal products module
The production projection module
173
This module is possible to achieve by the simple introduction of some data by the
user which are integrated through the program in the technologies and which allow
calculating the products budgets (milk, meat, etc.) and for exploitation.
From an economical point of view the program takes into consideration the
following essential factors: the time and a change of the structure of the effective until the
end of the year. These elements are the main factors which affect the way technologies
are loaded, at present existing two types of rations, a winter and a summer one. But the
summer and winter periods can be different from one species to another or from one
category to another. That is why, the frame technologies were created for every raising
module for a whole year with twelve options, afferent to every month of the year. The
program recognizes correctly the selection of months for estimation and the number of
animals afferent to every month.
All the basic elements(production structure, animal effectives heads, basic feed,
inputs prices, sales price for the primary and secondary production, subvention by head,
necessary shares in estimate calculation of expenses) are related to the production frame
technologies and to the crops budget a longing there economical projection.
The production realizing module
The evidence of effective expenses and the incomes of the exploitations is allowed
by the program under the simplification simplified form of day book and by using the
principles of the accounting. This supposes introduction by the user of every invoice and
allocates directly on expenses or by passing through administration.
The introduction of the data by the user allows entering the administration of
specific consumption of every product, respectively the production expenses, program
allowing the allocation of every consumption on each species of animals selected in the
estimation. Thus are emphasized the monthly and agricultural year consumptions For
every category of animals and for total exploitation. What goes directly on the expenses
are the elements given in the consumption the moment they were bath and will be
allocated directly in the technology or budget.
The incomes and expenses card
Taking over and calculating the data in their incomes and expenses carts is done
correctly by introducing by the user of monthly incomes and expenses they perform ( fuels
expenses other machinery, water expenses other than the irrigation one, expenses
with works and services done by third parties, other workforce expenses, expenses with
payments and credits repayments, current account interests ( only for the exploitation
budget), other taxes and duties expenses, other expenses, feed expenses, other
materials, water expenses, sanitary veterinarian actions expenses, biological material
expenses, expenses with transportation done by third parties, fuel expenses
transportation machinery, expenses with insurance with interests of production credits,
expenses would work force, expenses with buildings and utilities, taxes and duties
expenses, incomes from the main production, in comes from the secondary production,
other incomes, subventions, credits caching, including own participation to capital).
For every expands and/or income program allocates the expenses on crops
budgets and on the exploitation budget, as well as on the technologies afferent to different
categories of animals starting from the following elements: the exploitation structure, the
number of heads/ animal categories the expense is allocated on.
The specific consumptions card
In this card are taken over automatically and correctly the elements introduced for
the expenses which require passing through administration (feed expenses and other
materials), respectively: name, quantity and value. The advantage of this system is that
the user introduces the expenses through the incomes and expenses are and the
consumption will be registered in this module by the simple recognition of the introduced
data. Giving in consumption is registered according to date, quantity and value, program
174
allowing the following: automatic calculation of inventories, allocating on categories of
animals and on animal heads.
Generate reports; comparisons
For the animal production module, program allows the calculation of: technological
advances on animal categories, budgets on animal categories, petition budget, profitability
indicators, etc. both estimates on months or year, as well as effective at the end of a year.
The functionality of the program from an economical point of view resides in the
correct comparison the level of a category of the animals between the estimations
performed based on frame technologies and the accomplishments of the user in applying
own production technologies. Thus there can be estimated and calculated by every
category of animals and products indicators such as: Roman cereals and matters
expenses, mechanized works expenses, workforce expenses, variable expenses, fixed
expenses, net profits, production costs, profits ratio, gross margin, etc.

CONCLUSIONS

From the present of work some conclusions regarding the economical functionality
of the program as following:
Program product is structured in two modules: estimation and
accomplishment, on the 2 profiles: vegetal and animal
For realizing the estimation module, the culture technology and what its all in
loans and expenses were used as they see and as for the evidence and then station of all
technical economical elements in a agricultural exploitation needed to develop the
production process. For the vegetal profile were created 120 three technologies, and for
the animal one 54 frame technologies, realized for a number of over 27 crops and 24
animal breeding categories
The estimation module allows the projection of vegetal production for a full
agricultural year, and the one for animal production allows selecting the necessary months
for projection
For the production realizing module there have been selected a series of
categories of expenses which corresponds to the budget of incomes and expenses and
technologies but still respecting the typology of accounting registrations
Each created module vegetal/animal, projection/ accomplishment was
created separately and needs in the following phase separates the sting before validating
the program due to the problems which can arouse, respectively the immune systems at
the agricultural exploitations level of an evidence to support using the program; a larger
range of categories of expenses and incomes at a farm, product, animal level than the
proposed one; necessities to detail more or other certain categories of expenses etc.

BIBLIOGRAPHY

CROITORU C.- Marketing n agricultur, Ed. Tirtonic, Bucureti, 2001
Rozi Liliana Berevoianu - Cercetri privind aplicarea tehnicii de calcul n monitorizarea i optimizarea
tehnologiilor de cultur n producia vegetal, Ed. Cartea Universitar, Bucureti, 2007
NICOLESCU O. - Management, Ed. Economic, Bucureti, 1995
VOICU R. - Economia i managementul exploataiilor agricole, Ed. Tribuna Economic, Bucureti, 2000
VINTIL GEORGETA - Gesiunea financiar a ntreprinderii, Ed. Didactic i Pedagogic, Bucureti, 1999
ZAHIU LETIIA - Management Agricol, Ed. Economic, Bucureti, 1999
Manual de management al fermei, Ed. Atlas Press SRL, Bucureti, 2004
***www.fao.org Management, Farm Management and Farm Systems, Agriculture Department

175
THE MANAGEMENT OF INFORMATIONS IN ROMANIAN WINE
INDUSTRY

GESTIONAREA INFORMATIILOR IN SECTORUL VITIVINICOL
ROMANESC

BOBOC D., MANOLE V., ISTUDOR N.,

Academy of Economic Studies Bucharest
Faculty of Agro-food and Environmental Economics

Key words: wine chain, Common Market Organisation, competitiveness, SWOT analyse

INTRODUCTION

Short time after accession to the European Union, Romania faces big structural
problems, having a lack of medium-sized farms sector and a chain of cooperatives
upstream and downstream to agriculture. The accession to the European Union
represents a big economic and social opportunity, and a reason for fundamental changes
in micro and macro management of the food system, as well as in reconsidering the
agriculture and rural areas in the process of sustainable development.
Wine chain is one of the most efficient agro-food chains in Romania, well organized,
with specific regulations for and relationships between actors, and with professional and
inter-professional organizations on the chain, that coordinate different activities. Wide
assortments of grapes and large varieties of wine, high quality and specific compositions
of wine, place our country among first ten world producers and exporters of wine.

MATERIAL AND METHODE

The wine chain is analysed in each stage: viticulture, wine industry, wine market,
domestic and external trade with wine.
Viticulture
Viticulture accounts for 1.8% of the agricultural areas and 2.8% of the arable area.
The area harvested, the yield and the total production of grapes are presented in the
following table.
Area harvested, yields and production of grapes, 2000-2006
Table 1
Specification MU 2000 2001 2002 2003 2004 2005 2006
Area harvested 1000 ha 247.5 244.4 242.9 238.3 191.8 190.2 189.7
Yield Kg/ha 5,234 4,590 4,433 4,626 5,529 5,115 5,015
Total production of
grapes
1000 tons 1295.3 1121.7 1076.7 1102.4 1060.5 978.8 951.1
Source: Ministry of Agriculture and Rural Development, Romania, 2007

The structure of vineyards raises problems to chain performance. Thus, of total area
of 190,000 hectares, just 50% represent the grafted and native vineyards (Table no.2).
Beginning with 1990, the areas cultivated with hybrids have increased with 46%. This
structure represents an obstacle in European acquis implementation in wine sector, as
ones can notice in the paragraph Public policy for wine sector.

Structure of areas cultivated with vineyards
176
Table 2
Vineyards area (1000 ha)
Of which:
Year
Total
Grafted and
native
Hybrids
1990 224 161 63
1995 249 146 103
2000 247 128 119
2006 190 98 92
0
50
100
150
200
1990 1995 2000 2006
Grafted and native Hybrids

Source: Ministry of Agriculture
and Rural Development, Romania, 2007

Modern management concepts state that every production and distribution process
is derived from the demand and needs of the consumers. It seems that consumer
requirements for quality, quantity and availability dictate the design of the chain. But today
consumers demand a new type of quality. They are concern and asking for quality
throughout the whole chain, starting from the farm suppliers and ending to their own plate
(Hanf and Kuhl, 2002). Therefore, the approaches of food system regard the products
quality, in general, and the approaches for wine chain, the remove of the hybrid vineyards,
in particular.
Public policy for wine sector
Wine chain implies particular approaches, because there are no governmental
politics based on instruments and mechanisms like there are for other products. Still, this
market benefited of some general measures of agriculture policy, like financial and credit
policies, tariffs and subsidies for wine storage and distillation.
Romania, as a candidate country, was supposed to accomplish the acquis in wine
sector by implementing the European Union measures regarding removal of hybrid
vineyards in a period of 8 years beginning with 2007, and organizing the vineyards
inventory and Vine Register until 2007.
Romania has requested a transition period of 4 years until December 31, 2010, for
organizing the vineyards inventory and a register (Reg. 2392/86 and Reg. 649/87). The
commissioners have considered this period too long, the Register could have been solved
until 2007 (Mayhew, 2000). The second request was a transition period of 8 years until
December 31, 2014, for the removal of hybrid vineyards (Reg. 1493/99) (Romanian
Position Document, 2001). The results of the negotiations between European Union and
Romania, in May 2004, show that the Commission has accepted an area of 30,000
hectares of hybrid vineyards to be replanted with grafted and native vineyards, in a
transition period of 8 years.
Briefly, the mechanisms of wine market organization refer to the products quality
and to the removal of the hybrid vineyards. The quality level makes the difference between
products on the common market, being regulated by measures such as authorized
laboratories for analyzes execution, quality certification and transactions with viticulture
material, controlled origin denomination and geographical protected indication and so on
(Boboc, 2005).
177
For the removal of hybrid vineyards, the farmers receive primes and licenses for
vineyards plantation and re-plantation. In the Law no.244 there is stipulated that the
hybrids areas from vineyards regions and out-side the villages should be removed until
2014, through programs initiated by the Ministry of Agriculture and Rural Development
(Law 244/2002).
The farmers will receive yearly re-plantation rights, consisting in financial intern
support, maximum 30% in 2007, and 35% in 2008, the financial support increasing with
10% yearly, to 75% in 2014. The re-plantation rights are received for those 30,000
hectares negotiated with the European Union.
Also, as it is mentioned in the law, Romanian farmers will benefit of supplementary
plantation rights for recommended varieties on an area of 2830 hectares (1.5% of the total
area of 188,000 cultivated with vine). These supplementary rights consist in financial
support from the European Union, until 2014, which means 353.75 hectares yearly.
Wine industry
Grapes production is processed in the same unit, if there is a large company, or is
delivered to processing industry. In Romania, there are over 1200 units in alcoholic
beverages business, most of them small and medium enterprises with less than 50
employees. Alcoholic beverages industry has accounted for 13.6% of the agro-food
system, in terms of supply (Association of Wine Producers and Exporters, 2003).
There are presented bellow some indicators of performance (National Institute of
Statistic, Romania, 2005):
- turn over 1,989,888,888 USD
- exports 23,185,185 USD
- gross added value 459,074,074 USD
- investments 147,777,777 USD
- turn over per employee 59,229 USD/person
The wine production is appreciatively 5-6 million hectolitres per year, depending on
weather conditions.
Wine market
In this stage of the chain, we analyse the demand, supply, and price for wine.
The level of wine consumption in Romania is 22 litres/person/year, lower than the
level of consumption in the European Union, which is 33 litres/person/year, but much
higher than the level of consumption in the United States of America, which is 7.33
litres/person/year (FAOSTAT, 2004 last year for food consumptions statistics).

Wine and wine products consumption, 1990-2004 (litres/capita)
Table 3
Specification 1990 1995 2000 2001 2002 2003 2004
Level of
consumption
18.5 25.3 23.2 25.5 27 23.1 22
0
5
10
15
20
25
30
35
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Source: National Institute of Statistics, Romania, 2007

The wine consumption has increased from 1990 to 1997. After 1997, until present,
the level of consumption has stabilized around 20 litres/person/year.
178
In Romania, wine supply on the market is varied in terms of assortment. There are
over 400 types of wine, depending on qualitative characteristics, composition, and
technology used, classified as follows: 11 types of table wines, 42 types of superior quality
wines, 118 types of superior quality wines with origin denomination, 231 types of superior
quality wines with origin denomination and stages of quality (Association of Wine
Producers and Exporters, 2003).

Structure of wine production in Romania, 2004 (thousand hectolitres)
Table 4
Of which: Noble wine Hybrid wine Specification Total
noble hybrid White rose red white rose red
Wine
production
6166 3561 2605 2384 234 943 832 169 1604

The structure of wine varieties is much diversified. Production of noble wines is
larger than that of hybrids (Table no.4). In the noble wines category, white wines account
for more than 50%, but in the hybrid category, red wines account for more than a half.
Wine production is supplemented with imports in order to achieve the total supply
necessary to satisfy the internal consumption. But the quantities imported are too low in
the whole supply, and they will be mentioned in the paragraph External trade.
The prices for wine vary depending on assortments, type, season, geographical
area of provenience, type of store, brand, and so on. There is a wide range of assortments
of Romanian wines, from domestic ones to foreign ones. The average shelf prices for wine
vary between 3-10 dollars/bottle.
Wine trade. Domestic and external trade
There have been identified seven distinguish types of channels representing
opportunities for producers to put their products on the market as well (Manole and Ion,
2006).
Circuits no. 1 and 2 large companies of wine and grapes producers consumers
/ export it is characteristic for large companies that integrate the functions of wine
making and distribution. The production has two possible destinations: domestic market
(circuit no. 1) and external market (circuit no. 2).
Circuit no. 3 large companies of wine and grapes producers engross wine
selling consumers / export it is used when the grapes producers integrate just the
function of wine making and sell the wine to engross resellers, the wine having two
possible destinations: internal market and external market.
Circuit no. 4 small grapes producers centers of grapes collecting wine
making companies engross wine selling consumers it is used when small grapes
producers do not process the grapes production themselves, this one being sold to centres
of grapes collecting.
These centres are equipped with necessary logistics, having the role of grapes
collecting, transport and storage from numerous and small grapes producers,
characterized by low economic power. The centres deliver forward the grapes production
to the wine making companies who will process it and sell the wine forward to resellers.
Previous studies show that the integrator in this case is the wine making company (Manole
and others 2005).
Circuit no. 5 small grapes producers wine making cooperatives engross
wine selling consumers it is hardly met in economical practice. This circuit should be
revealed in Romanian agricultural structures context, in which the dimensions of farms are
very low and the farmers have reduced economical power.
Circuit no. 6 small grapes producers wine making cooperatives consumers
it is similar to circuit no. 5, having in particular wine selling direct to final consumer.
179
Circuits no. 7 and 8 small grapes producers consumers / self-consumption
consist in ultra-short channels. In this case, the grapes producers integrate numerous
functions: grapes and wines transportation, storage, processing and selling. They are the
integrator of the chain. Artisanal wine making takes place in households, the wine
production having two possible destinations: local market (circuit no. 7) and self-
consumption (circuit no. 8).
The circuit producer consumer is specific for all agro-food chains in Romania. In
this type of circuit, the physical functions of distribution (storage, packaging, transport, and
selling) are done in unsuitable condition of hygiene and quality. This type of commerce is
forbidden in the European Union countries and it will disappear when Romania will join the
community. Taking into account the experience gained by the countries where the agro-
food system is competitive, it is necessary to promote those channels and circuits that
favourite and creates associative and integrative structures between different partners of
the chain and that assure the highest advantages (Hueth, B., Marcoul, Ph., 2003).
External trade. Romanias balance trade for wine is positive (Table no.5). Romania
exports over 7.5% of the whole production of wine. The main export destinations are
Republic of Moldova, Great Britain, Germany, Japan, and United States of America.

External trade with wine, 2000-2005
Table 5
Specification 2000 2001 2002 2003 2004 2005
Exports (million USD) 17 19 23 24 26 22.3
Imports (million USD) 1.23 1.33 1.75 2.26 4.19 9.1
Difference (million USD),
export-import
15.77 17.67 21.25 21.74 21.81 13.2
Source: FAOSTAT, 2007.

The imports coming from France, Italy, Spain and California are usually designated
to satisfy the needs of consumers with high levels of income. Those coming from new
world countries Australia, New Zeeland, Chile and South Africa as well, make strong
competition to internal supply of wines for the same assortments. Still, Romania has
domestic varieties very much appreciated by the consumers. Those varieties (Francusa,
Feteasca, Babeasca, Tamaioasa) have no external competitions and are exported
successfully on the world market.

RESULTS
SWOT analyse
Analyzing the data above, there are some strengths that should be underline:
grapes producers integrate numerous functions: grapes production, wine making, storage,
transport and trade (wine sector is characterized by high level of specialization and
division into specific regions); in agricultural farms specialized on grapes production there
are cultivated large areas of vineyards and there are developed modern technology; the
grapes meant wine making are cultivated on large areas, especially in associative
organizations, companies and in some families farms from different areas of grapes
production; in agricultural stage, inputs costs are low, especially labour costs; there are
numerous professional and inter professional organisms, governmental and
nongovernmental organisms on the whole chain.
On the wine chain there are some weaknesses worth to be remembered: the
technologies used in the small farms are traditional, based on labour work and animal
energy; vineyards areas are divided into small fragments, which determine difficulties in
supplying the wine centres with grapes; the structure of the areas cultivated with vineyards
suffered deterioration in the last few years, in those that concern the share of native and
180
grafted vineyards; grapes production implies high level of expenses, especially those with
phyto-sanitary actions, resulting a high level of expenses by hectare; wine making
technology is very old (there are demanded measures for technologies rebuilding to
improve the wines quality); the wine produced in small families farms is used for self-
consumption, as a priority, thus the quantities delivered for processing are very low; lack of
orientation to quality and hygiene; lack of marketing orientation, in the agricultural stage of
the chain, argued by the age of the owners and by the high level of self-consumption; lack
of information regarding markets situation and evolution; and distribution system
fragmentation.
The opportunities for wine sector development are very large in Romania. There
may be mentioned: tradition and experience in wine making; environment conditions
(climate and soil) are very favourable for grapes production coming from native and
grafted varieties; vine culture reclaims areas unsuitable for other cultured plants; wine
chain is characterized by high level of vertical integration, for both large and small units; for
wine sector, Romania negotiated with European Union an area of 30,000 hectares to be
replanted with grafted and native vineyards in a period of 8 years (for replanting and
abandoning, there will be received primes); investments that could be made in vineyards
that produce high quality wines; increasing of demand for good quality wines as a result of
consumers education regarding wine consumption.
Threats for wine chain consist in excessive humidity, frosts, floods and droughts
and other restrictive environmental factors that determine quantitative and qualitative
losses of production; perishability of grape, which implies taking actions regarding
transportation, storage and processing; low level of power purchasing; lack of information
regarding industry structure, its yields, prices etc.; lack of opportunities regarding labour
market in rural area brakes; demands increasing for beer in some periods of the year
determines wine selling reduction; large penetration of imported wines on internal market.
If the wine quality and its productivity are maintained on a low level, new actors of the
world wine market: Australia, New Zeeland, South Africa, Chile, penetrate Romanian wine
market, which implies a strong competition (Manole, V., Ion, Raluca, 2006).

CONCLUSIONS AND RECOMMANDATIONS

Wine chain in Romania has numerous strengths: grapes producers integrate
numerous activities, the production is specialised, Romania has large areas cultivated with
grapes, there are many professional and inter professional organisms, governmental and
nongovernmental organisms on the whole chain. However, besides these strengths, it has
numerous weaknesses: traditional technologies, vineyards areas are divided into small
fragments, wine making technology is very old, self-consumption of wine in small farms,
lack of orientation to quality and hygiene, and lack of marketing orientation.
There have been identified some opportunities for developing wine sector in
Romania: tradition and experience in wine making, favourable environment conditions,
good results of negotiations with European Union, increasing of demand for good quality
wines. However, there are some threats in developing the wine chain: restrictive
environmental factors, perishability of grape, low level of power of purchasing, lack of
information regarding industry structure, its yields, prices etc., lack of opportunities
regarding labour market in rural area, demands increasing for beer in some periods of the
year, large penetration of imported wines on internal market.
The Common Market Organization for agricultural products in Romania could be
implemented by a marketing strategy focused on quality. This objective could be achieved
by providing financial support for the farmers, by setting up cooperatives that will provide
appropriated services for producers, especially those services regarding logistic system
and promotional activities. A public organization that will facilitate access to export market
181
is needed. Competitive structures, high quality and a good image of national products will
lead Romanian agro-food products to success.

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8. Manole, V., Ion, Raluca (2006), Wine chain in Romania, Agricultural Economics Revue, Belgrad, Serbia.
9. Manole Victor, Ion Raluca (2006), Conceptual and mathematical models for agro-food chains in
Romania, International Conference Economical and social impact of integration upon European countries
economies, University of Pitesti, pp. 371-379.
10. Manole, V., Boboc, D., Stoian, Mirela, Ion, Raluca, Andreea (2005), Marketing on the wine chain in
Romania, Bucharest Academy of Economic Studies Publishing House.
11. Manole, V., Boboc, D., Istudor, N., Ion, Raluca (2005), Agro-food chains, Academy of Economic
Studies, Bucharest.
12. Manole, V., Stoian, Mirela, Ion, Raluca (2003), Agricultural marketing, Academy of Economic Studies,
Bucharest.
13. Manole, V., Ion, Raluca, (2006) Wine distribution, Journal Tribuna Economica no.7 / 2006, pp 56-57.
14. Mayhew, A. (2000). Enlargement of the European Union: an analysis of the negotiations with the CEE
candidate countries, Sussex European Institute.
15. (2004), Law 244/2002 of vineyard and wine in the system of common market organization. National
Institute of Statistics, Romania.
16. (2001), Romanian Position Document, Chapter VII Agriculture, Romanian Government, December, 6,
2001, p.49, www.mapam.ro .
17. (2003), Association of Wine Producers and Exporters of Romania, Present situation and tendencies in
Romanian wine sector, In vino veritas Informative brochure, no.2.
18. Ministry of Agriculture and Rural Development, Romania, 2006, www.mapam.ro.
19. National Institute of Statistics, Romania, www.insse.ro.
20. FAOSTAT, www.fao.org

182
DESIGN OF COMPUTERIZED SYSTEM FOR AGRICULTURAL
HOLDINGS MANAGEMENT

PROIECTAREA UNUI SISTEM INFORMATIC DESTINAT
MANAGEMENTULUI EXPLOATAIILOR AGRICOLE

ELENA COFAS*,TOMA ELENA**, DRAGOMIR V.**

* University of Agricultural Science and Veterinary Medicine Bucharest
** THE RESEARCH INSTITUTE FOR AGRARIAN ECONOMICS AND RURAL
DEVELOPMENT

Abstract

In a market economy, agricultural holdings must face intense competition, both on the internal and the
external market, thus leading to the role of strategic analysis in defining precise objectives, respectively
areas of activity that lead to the increase of competiveness. Here, computer science brings an important
contribution, through the informatization of management problems, and especially through a priori analysis,
from the informational point of view, of the components of managerial problems.

Key words. Management, holding, capitalization, analysis, computerized system

INTRODUCTION
The development of computer science both by creating very powerful computers,
and by the development of informational thinking and especially of computerized
systems lead to an informational organization mode, which is fitting very well the high
requirements of such a complex domain as agriculture.
Farmers must perform periodical evaluations of the agricultural holdings
performances, and must continually change their choices regarding: production,
investments, personnel expenses, etc. and, based on the technical and economical
analysis of the holding, must put a diagnostic, in order to be able to take the best decision,
at the best moment. From the technical point of view, the computerized system aims to
determine and stimulate farmers to use at agricultural holding level powerful informational
applications, based on modern tools for data analysis, in order to evaluate, analyze and
select high-quality decisions. Practically, the computerized system is composed of an
computerized system (i) for leadership, and (ii) for assisting managers in decision making;
its main purposes are: research and development, production, commercial (selling and
marketing), finance and accounting and human resources.

MATERIAL AND METHOD
At international level, there are many computerized systems for management, in
four categories: Databank Computerized system, Predictive Computerized system,
Decision Making Computerized system and Decision-Taking Computerized system.
Various research regarding such systems have been performed in specialized institutions,
including: Scottish Agriculture College, Scottish Enterprise and High Lands & Islands
Enterprise, Center for Rural Research (University of Exeter UK), by identifying, together
with specialists and farmers organizations, the data types required for management
planning activities, and by elaborating practical annual guides (for example, The Farm
Management Handbook- SAC, Organic Farm Management Handbook- CRR, Farm
Management Guide Kansas State University). In spite of this, the information regarding
agricultural management are scattered, being offered mainly by consulting companies, as
computing programs for computing the gross margin or for estimating the inputs and
183
outputs, in order to estimate the investment effort (Data Analyses and Simulation
MSWindows version, created by FAO).
In Romania, an computerized system for management has been created, together
with British Extension Service (ADAS), for the holding network belonging to MADR. ICEA
designed a database for storing, analyzing and reporting information, using Microsoft
Access. The second agricultural holdings network belongs to ASAS and contains 95
research and development units, covers all geographical zones from Romania and
develops specific activities in the agricultural domain. The large quantity of data raised the
need for using a program for data storage and processing, together with ICSSA, using the
Paradox program. Data in each module can be displayed after annual or multiannual
processing in specific research institutes, and can be processed in order to be used in the
national agricultural system, for obtaining the necessary information.
The agricultural holdings will have to adopt methods for decision assistance and
adequate management, in order to increase the number of management practices that
ensure high-quality products and competitive abilities. Thus, those holdings wanting to be
or remain competitive need resources of adequate quality: financial, material, energetic,
human and information resources. No matter its profile, size, form of ownership, and social
and economic space, any modern agricultural unit needs a leading style based on
flexibility, dynamism and forecasting, which cannot be conceived without complex,
operative and quality information representing the basis of decision-making. In order to
increase the competiveness of agricultural holdings on internal and external markets, it is
necessary to improve the existing information flow in that branch and to provide methods
for business foundation, as well as to use the information technology for innovation,
according to the strategies defined at European level.
Computerized system represents a practical working tool supporting the decision-
making process at agricultural holdings level characterized by flexibility, adaptability,
easiness of use and rapid response to requirements. The main objective is the design,
implementation and development of a complex computerized system, which will analyze
capitalization (based on specific physical and economical indicators), will provide
management information needed for planning the best resource allocation, and will directly
contribute to the increase of potential beneficiaries competiveness (both on internal, and
external market).
The specific objectives of the computerized system refer to:
- conceptual delimitation of capitalization and competiveness, as basic elements in
ensuring high-quality management for agricultural holdings;
- identifying the main elements of the computerized system;
- designing the computerized system experimental model, for analyzing
capitalization at holding level;
- practical achievement of the software components of the computerized system;
- proving the functionality of the computerized system;
- results exploitation.
The computerized system covers many problems, which are specific to the The
National Program for Rural Development 2007-2013 (configuring a competitive agrarian
sector, being able to produce according to the community standards, based on knowledge
that use new technologies and on innovation, for the products on the internal and external
market; applying new technologies for reducing production costs, improving the quality of
products, and increasing their competiveness, etc.). The computerized system responds to
the national policy regarding the strategy for developing long-lasting agriculture:
- capitalization and increase of the efficiency of agricultural holdings;
- reducing the consumption of energy and labour force;
- quantity and quality increase of productions, increase of labour productivity and
diminution of environment pollution;
184
- increasing the technological performance and the efficiency of mechanization;
- continuous decrease of costs, as the main means for profit increase in the market
economy;
- providing an computerized system for the users, which will lead to decision
optimization and the increase of economical and technical performances.
The computerized system finalization will contribute to the increase of potential
beneficiaries competiveness on the internal and external market the technical and
economic effects being materialized by the increase of productivity, and the decrease of
cost price for products and investments. Due to the above and to the fact that there will be
created an information tool, which will ensure the evaluation and improvement of the
economic performance of agricultural holdings, the computerized system is viable and of
interest for the beneficiary.

In this context, the computerized system is aiming to help the business agricultural
environment, in an original and easily accessible way, by offering the necessary
information for achieving performance management and for efficient organization of the
agricultural holdings activity, thus supporting the development of long-lasting agriculture,
which respects the environment and implies precise input application, in time and space.
The computerized system will provide the means for putting together management,
information technology and production, being in fact a tool that will make information more
accessible and will improve the quality of decisions. The computerized system novelty
includes:
- creating an interface between the research and development system and the
production sector, which offers viable tools and techniques that are easy to use and very
useful for ensuring the evaluation, planning and control functions of management;
- providing information with increased quantity and quality potential, regarding
exactness, reality, opportunity, response speed, presentation form, completeness and cost
of information;
- elaborating intelligent and just-in-time decisions, implying real-time performant
monitoring and complete business visualization, updated and integrated information,
changing and reorganization of every process;
- implementing mathematical and economic-financial analysis models in the
computerized system, thus allowing to choose the optimum variant and ensuring better
correlation between objectives and resources (for example, in analyzing the profitableness
of the agricultural holding, choosing the optimum resource allocation variant in order to
obtained increased revenue can be performed by applying adequate models, together with
providing the data regarding the dynamics of prices, the performance of devices and
machines, etc.);
- eliminating anachronism in the holdings activity; most part of the time is used for
routine, report, data processing and reporting activities, not for technical information,
analysis and forecasting activities regarding the interesting economic phenomena and
processes;
- creating applications that offer all the economic information needed for agricultural
holdings capitalization, by offering the manager all the real and correct variants for
answering the problems arising during its activity;
- results dissemination will be accomplished directly to potential beneficiaries and
will materialize by: an experimental information application, a users guide, consulting.
Thus, the economic analysis component of the computerized system occupy an
important place and imply the following consequences in the management activity
(strategic, tactic or operative):
185
- it provides the elements for decision foundation, regarding the use of capital
goods, the capital and the labour force, in order to increase economic efficiency and
rational use of available existing and attracted resources;
- it contributes to the foundation of adequate decisions, oriented towards deficiency
elimination, extending and generalization of positive results, tuning the technical,
economical and commercial activities, etc.;
- it creates the frame for performing predictive computing, thus determining the
trend and evolution of economic indicators over a future period;
- it contributes to determining the factors that influenced the obtained technical and
economic results, and the deviations from expected results, according to the existent
circumstances and the context created by the national and branch economy;
- it allows the identification and use of the units existing reserves, which represent
both the possibilities for production growth and development, and for increasing the
economic efficiency of expenditures.
The computerized system will allow managers to search information both from
internal sources (annual financial situations, management and budget classification
accounting), and from external ones (other than holding accounting) these information
are required for maintaining the competiveness of own activity and products. It will also
allow evaluation, selection and choice from the various acceptable variants of the most
efficient decisions, thus requiring the use of working methods and procedures based on
systematic approach, and economical and mathematical modeling, which allow thorough
technical and economical analysis, based on taking into account all the technological
possibilities, the strong correlation between production objectives and existing resources,
the simultaneous analysis of all possible action variants, the adequate determination of the
priorities for satisfying certain needs, etc.

CONCLUSIONS
The computerized system will offer a significant competitive advantage, information
being treated as a resource, which can be used for increasing profitability and entering
new market segments (the system can process large volumes of data, on order to find out
models and rules that can be used during the process of adopting the management and
marketing decisions). Regarding the economic impact, the computerized system will
directly contribute to the increase of competiveness of potential beneficiaries, both on the
internal and the external market, by means of technical and economic effects
materialized through the increase of productivity, the decrease of cost price for products
and investments, etc. and financial effects, at analytic level, which we consider to have a
positive influence, both in developing the analysis and economic and financial prognosis at
agricultural holdings level, and in the decision-making process required for performant
management.

BIBLIOGRAPHY

1. Ifnescu A., Stnescu C., Bicui A. Analiza economic-financiar, ediia a II-a, Editura Economic,
Bucureti, 1999
2. Oancea Margareta Tratat de management n unitile agricole, Editura Ceres, Bucureti, 1999
3. Vtuiu Teodora - Informatics Systems Evaluation - A Major Challenge of the Emerging Information
Society, Universitatea Lucian Blaga, Sibiu, 2004
4. Hoffer, J.A., George, J.F., Valacich, J.S. - Modern Systems Analysis and Design, The
Benjamin/Cummings Publishing Company, Inc., Menlo Park, CA, 1996.

186
REGRESSION AND CORRELATION IN ANALYSIS OF FRUITS
PRODUCTION TREND IN ROMANIA

CORELAIE I REGRESIE N ANALIZA TRENDULUI PRODUCIEI
DE FRUCTE DIN ROMNIA

COFAS ELENA

U.S.A.M.V. Bucharest

Abstract
The complexity of economic and social events, which means their quantity and quality
characterization, causes the combined use of various sciences in the investigation of causality relations. The
methods and models most frequently used in the study of interdependency are correlation and statistical
regression.
In the frame of social and economical phenomena and processes, a series of connections and
interdependencies are created, these being determined by the action of various causes and conditions,
which influence more or less the existing phenomena. For example, in fruit production a functional
relationship can be established between the level of used production, the human consumption and the total
production during a certain period of time.

Key words. Correlation, regression, production, predictions, analysis

INTRODUCTION

Analytical estimating would normally be used for assessing work over a reasonably
period of time, where it may be difficult and more expensive to collect the information
required using other measurement techniques. In addition, in some work environments the
presence of an individual carrying out work measurement in the work place could be
unacceptable. In these cases, analytical estimating may be an appropriate method to use,
assuming someone with experience of the work is available to apply their experienced
judgment.
Depending on the subject under review, the future may be regarded as either non-
controllable or controllable, e.g. the weather is non-controllable, personal spending on
luxuries is controllable, future sales are partially controllable. The two main categories lead
to two branches of forecasting, exploratory and normative, each with their own techniques.
Taking the latter first, if the future is controllable, forecasting becomes a matter of
specifying the desired or intended future and becomes in practice, inseparable from
planning. Where the future is non-controllable you use methods such as extrapolating past
trends, or finding indicators that are related to a variable in which you are interested but
with a lead or lag (unemployment and the level of orders for machine tools for example).
Commercially, for sales forecasting and other purposes the main techniques used are
analysis of time series, regression analysis, exponential smoothing, and the use of
economic indicators.

MATERIAL AND METHOD

Regression analysis is the mathematical process of using observations to find the
line of best fit through the data in order to make estimates and predictions about the
behavior of the variables. This line of best fit may be linear (straight) or curvilinear to some
mathematical formula.
187
Correlation analysis is the process of finding how well (or badly) the line fits the
observations, such that if all the observations lie exactly on the line of best fit, the
correlation is considered to be one or unity.
When observations are made and recorded, usually they are scattered around the
field in such a way that no usable information can be gained from them. More can be
gained from assessing the general direction of the mass of points, known as the trend. The
purpose of regression analysis is to generate this trend line through the data.
Trend analysis is another application which produces a trend line through the past
data such as sales over five years, which can be extrapolated to estimate the possible
sales over the next five years. Also, the trend might be curvilinear and not described by a
straight line. Extrapolation must be used with great care, because what happened over the
past years may not continue over the following years.
Once the formula or model has been obtained, it can be validated using correlation
analysis. This again is best tackled using a scientific calculator or a spreadsheet. A value
of zero indicates no relationship (randomness) between the x variable(s) and the result, or
y, variable whereas a value of 1 indicates perfect correlation (i.e. the values of y all lie on
the line (or plane) of the regression model).
Regression and correlation can be used wherever it is necessary to study the
behavior of one or more variables and how they affect the final result.
Multiple regression analysis (MRA) is a useful method for generating mathematical
models where there are several (more than two) variables involved. However, the
regression line often is in the form of a curve of best fit such as a parabola y = bx
2
or
hyperbola or other function. Where two independent variables are involved we have
multiple regression and correlation and the model will not be a line but a plane. If more
than two independent variables then the model is build up of hyperplanes witch cannot be
visualized, but can be represented by a mathematical model, which takes the general form
for n independent variables as:
Y = a + b
1
x
1
+ b
2
x
2
+ b
3
x
3
+ b
4
x
4
+ ... + b
n
x
n

After the regression function is established (functional dependency y = f (x
1
, x
2
...
x
n
)), with help of regression method, we measure the correlation. This method assume that
the data are recorded regarding the two variables - factorial variable and result variable -
and assume that the link between them is in the form of a trend equation witch describe
the resulting function.


The analysis methods of correlation and regression functions is aimed at
optimizing the factors that influence the production functions used. For example, in fruit
production a functional relationship can be established between the level of used
production, the human consumption and the total production during a certain period of
time. At present, the fruits market it is influenced by following factors:
Temporary crises in the fruit market occur frequently because of the perishable
nature of the products and the fact that they often cannot be stored.
Volume and quality of the fruit and vegetables produced are often dependent on
weather conditions.
Consumption is also sensitive to weather. For instance, rain and low temperatures
in summer reduce consumption of peaches and apricots.
The above factors generate large price variations.

188
In this analyzed example, the results have on the base the production function take in
account result variable y is usable production and is influenced by two factorial variables:
human consumption x
1
and total production achieved x
2
.

Years
Usable
production (y)
Human consumption
(x1)
Total production
achieved (x2)
2000 904 904 1301.5
2001 1006 1041.2 1388
2002 1007.5 1068.4 1012.9
2003 1382 1429.4 2135.9
2004 2059.4 2128.1 1813.1
2005 2932.8 2902.5 1622.4
2006 2398.9 1795 1486.4

The value of those parameters at national level has been assembled in a
polynomial function in a shape of:

Y = a + b*x
1
+ c*x
1
2
+ d*x
2
+ e*x
2
2

After the statistical process is obtained following values for function coefficients in
the case of binomial function (simple correlation):
a= - 2433.9114
b= 2.4981016
c= -0.00038573
d= 1.9747989
e= -0.00071926

The coefficient values have been obtained by correlation analysis method and
regression function for forecast, the goal is to optimize the factors that influence the
production functions.

Evolution of production and consumption in Romania
0
500
1000
1500
2000
2500
3000
3500
2000 2001 2002 2003 2004 2005 2006
Usable production
Human consumption
Total production achieved

189
Observation: In the total production achieved are find the production made, imports,
exports and looses.

Based on the calculation of the 2000 2006 national rates, it is focused on the
knowledge and interpretation of the data resulting from human consumption x
1
and total
production achieved x
2
. The usable production y was emphasized by designing five
variants:
1. x1 +5 % (as x1*1,05) and x2 +5 % (as x2*1,05)
2. x1 +10 % (as x1*1,1) and x2 +10 % (as x2*1,1)
3. x1 +15 % (as x1*1,15) and x2 +15 % (as x2*1,15)
4. x1 +25 % (as x1*1,25) and x2 +25 % (as x2*1,25)
5. x1 +50% (as x1*1,5) and x2 +50% (as x2*1,5).

The calculation is base on period between years 2000 2006 and replacement of
factorial variables x1 and x2 has been made at year 2006. Because of intense seasonal in
Romanian fruit growing, the calculation for x2 has made for the production year 2006 and,
also, for the medium period 2000 2006.
In accordance with the proposed task we start from the need to know the
modification of usable productions in the case of rise of human consumption and total
production achieved between values from 5% to 50%.

a) Level of fruits usable production (y) function of human consumption (x1) and
total production achieved (x2) variation for the year 2006

Usable production
estimate (y)
Human consumption
(x1) Total production (x2)
Year 2006 2153,5 1795,0 1486,4
+5% 2234,2 1884,8 1560,7
+10% 2300,8 1974,5 1635,0
+15% 2353,1 2064,3 1709,4
+25% 2415,4 2243,8 1858,0
+50% 2323,3 2692,5 2229,6

190
Usable production function human consumption and total production (2006)
0,0
500,0
1000,0
1500,0
2000,0
2500,0
3000,0
5% 10% 15% 25% 50%
Usable production estimate (y)
Human consumption estimate (x1)
Total production estimate (x2)

Observation: We see that usable production for the data from year 2006 has value
y=2398,9; using the function regression and correlation we get a value of calculated
usable production y=2153,5. The error of 10% is due the facts we have a small amount of
data and some supplementary influence factors.

b) Level of fruits usable production (y) function of medium human consumption (x1)
and medium total production achieved (x2) variation between years 2000-2006

Estimate usable
production (y)
Medium human
consumption (x1)
Medium total
production (x2)
Year 2006 2143,4 1609,8 1537,2
5% 2217,8 1690,3 1614,0
10% 2277,5 1770,8 1690,9
15% 2322,4 1851,3 1767,7
25% 2368,2 2012,3 1921,5
50% 2225,2 2414,7 2305,8

191
Usable production function medium human consumption and medium total production (2000-2006)
0,0
500,0
1000,0
1500,0
2000,0
2500,0
3000,0
5% 10% 15% 25% 50%
Human consumption (x1)
Medium total production (x2)
Estimate usable production (y)

Fruit usable production resulted from human consumption and total production
variation has an ascending trend, but different in the two cases reviewed (a) and (b).
In both cases, we can see that for the rise between 5% - 25% of human
consumption and total production achieved, the usable production is proportionally
growing (ascending trend). For rise more than 25%, the usable production has a
descending trend.
The differences resulted from data means the influence of factors witch are not
included in obtained function, specially technical-economical and social-politics factors.
But, on the function bases obtained it is possible to know principal indicators of fruit
production economical grow who can estimate and predict the Romanian fruit usable
production.

CONCLUSIONS

The predictions and estimates elements valid in the knowledge of the usable fruit
consumption in Romania have been concluded as follows:
- the provisional estimation of the usable fruit productions requires their orientation by
the chain system in the current stage
- the most suitable, accessible and economically substantiated methodology is based
on the technical-economical statistical functions, including the forecast regression and
correlation functions analysis
- it is necessary to know the intensity structure of the two factors (human
consumption and the total production achieved), and their quantitative demultiplication
(stage-based structuring of the consumption volume and productions achieved), as well as
qualitative demultiplication (the estimation of the growth rate of the prospective level of the
usable production).
The work in this paper can be used:
- to improve EU fruits' competitiveness and market orientation or, in other words, to
contribute to achieving sustainable production that is competitive both on internal and
external markets
- to reduce fluctuations in fruit producers' income resulting from crises
192
- to increase consumption of fruit in the EU
- to continue the efforts made by the sector to maintain and protect the environment
- to simplify and where possible reduce the administrative burden for all concerned.
Perhaps, the most significant advantage of using analytical estimating is its speed
of application and low cost. Using trained and experienced personnel process and
measurement data can be quickly assembled and applied. In summary, the technique is
used most commonly in any work environment where a lengthy time (and associated high
cost) is needed to collect data.

BIBLIOGRAPHY

1.Viorel Gh. Vod, Alexandru Isaic-Manui, Proiectarea statistic a experimentelor. Fundamenta i studii de
caz, 2006, Ed. Economic.
2. Eugenia Lilea, Vergil Voinea, Aniela Danciu, Mihaela Vtui, Daniela Tudose, Statistica - teorie i
aplicaii, 2006, Ed. ASE Bucureti.
3. Postelnicu I., Dinescu C., Svulescu B., Matematici speciale aplicate n economie, Ed. Didactic i
Pedagogic, Bucureti, 1977.
4. http://sunsite.berkeley.edu/wikis/datalab/Data/Cd133487/Anuarul Statistic al Romniei.

193
RECOMPENCES SYSTEMS OF THE HUMAN RESOURCES ON THE
LABOUR MARKET

SISTEME DE RECOMPENSARE A RESURSELOR UMANE PE PIAA
MUNCII

CONDEI RETA, TINDECHE CRISTIANA

UNIVERSITY OF AGRICULTURAL SCIENCES AND VETERINARY MEDICINE -
BUCHAREST

Abstract

Remuneration is an essential element that contributes to attracting, maintaining and motivating
human resources and which, in correlation with the other aspects of human resources management,
contributes to the achievement of the organization policies. The increasing interest in an efficient salary
policy results from the specialists belief that remuneration is a premise of an efficient economic activity. The
practical conclusion thus imposed at international level is that the salary policy, carefully elaborated and
perfectly harmonized with the companys general policy stimulates the increase in economic efficiency. The
strategic approach to remuneration management consists of an integrated set of practices in the field of
salaries, bonuses and other incentives, as well as social or complementary advantages aiming at achieving
the organization objectives. The remuneration system in organizations must rely on: organization type and
culture; organization objectives and policies; the environment in which the organization and individuals
operate.

Key words: recompences system, efficient activity, salary policy, employees.

1. THE SALARY POLICY - COMPONENT OF THE GENERAL ORGANIZATION POLICY

The increasing interest in an efficient salary policy results from the specialists belief
that remuneration is a premise of an efficient economic activity. The practical conclusion
thus imposed at international level is that the salary policy, carefully elaborated and
perfectly harmonized with the companys general policy stimulates the increase in
economic efficiency. Therefore, an efficient policy in the field of salaries is necessary to
follow the overall company policy and to meet the general requirements, the objectives of
increasing efficiency, and to stress the employees commitment and achievement of
individual performances.
The general principles of the salary system are true guidelines in the application
and interpretation of the legislation in the field. Although it has a dynamic evolution, the
legislative framework of the salary system is still unconsolidated.
The elaboration of any salary system must take into account the following general
principles: setting the salary is subordinated to the market mechanisms and to the
economic agents commitment; the salary negotiation principle; the principle of the
existence of the minimum wage and social protection salaries; equal work, equal pay; the
principle of paying for quantity; the principle of salary paid according to the training,
qualification and professional competence; the principle of salary according to labour
quality; the principle of salary according to working conditions; the principle of
decentralization of salaries and liberalization of salaries; the confidential character of the
salary

2. CONCEPT

194
Reward management is the process of elaborating and implementing reward
strategies, policies and systems that allow the organizations to achieve their objectives by
recruiting and keeping their necessary employees, as well as to motivate them
accordingly.
It consists firstly in designing, implementing and maintaining the employees reward
systems, which must be adapted to the continuous improvement of organizational
performances.
In this context, many specialists in the field of human resources consider that
reward management, concept usually employed in the USA, and more recently in the UK,
describes a concept as Michael Armstrong put it a much larger and more positive
concept regarding rewards for employees.
It is a field of activity that is extremely important in human resources management
which influences both individual behaviour and organizational efficiency.
The purpose of such a system is to motivate individuals to adopt a behaviour
desired by the company. That is why, organizations must reward employees for them to
prove an adequate behaviour in the end. Also, according to the literature and managerial
practices in the field, for a reward to act as an efficient motivating factor the following
conditions must be met:
- the person must want the reward, or it will not be a motivating factor
- it is clear to the person that his/her individual effort will improve his/her
performance
- the persons must be convinced that his/her improved performance will bring, as a
result, the expected reward.
Therefore, reward management is one of the most complex activities of human
resources management because:
- while other activities in the field are important for some employees, rewards are in
fact considered essential for the whole staff;
- although one of the purposes of the reward systems is to motivate employees,
yet the managerial practice emphasizes the variety of individual values for a certain
reward.
- positions in most organizations imply a wide variety of knowledge and abilities,
with various requirements
- rewarding the employees is an important cost of the activity performed
- laws and regulations in the filed are varied and highly important
- employees may participate directly or through collective negotiations to the
establishment of rewards.
The reward management strategies define the organizations intentions about he
policies and systems for rewards that are to be elaborated in order to ensure the
necessary personnel to meet the objectives.
They envisage key issues on the long term and must meet a series of requirements,
as follows:
- to derive from the organizations objectives and strategies
- to support organizational values
- to relate to the performances
- to harmonize with the desired managerial style
- to provide a competitive scale in ensuring the personnel with high qualifications

3. CONTENT AND STRUCTURE

Remuneration is an essential element that contributes to attracting, maintaining and
motivating human resources and which, in correlation with the other aspects of human
resources management, contributes to the achievement of the organization policies. An
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appropriate efficiency of the activities is unconceivable without the adequate training of the
employees, an effective motivation, a competent management of work groups, a corporate
culture in accordance with the objectives and, last but not least, proper remuneration.
Remuneration management consists in elaborating and implementing remuneration
systems that contributes, together with other human resources management systems, to
attracting, maintaining and motivating the competent employees.
The remuneration system in organizations is an exchange of economic nature. It
must rely on:
- organization type and culture;
- organization objectives and policies;
- the environment in which the organization and individuals operate.
Setting the objectives for remuneration management is important in:
1. establishing the methods that will be used
2. assessing the remuneration system effectiveness.
Remuneration components
Remuneration is the total amount of financial and material revenues, rewards,
benefits and advantages granted directly or indirectly to an employee for the activity
performed within the organization.
Global remuneration has two components:
1. Direct or cash remuneration
2. Indirect remuneration, made up of social and supplementary advantages
Direct remuneration
The salary, the main part of remuneration, is the sum of money that an employee
receives per year, month, week or hour for the activity he performed.
The salary represents at least 60% of the global remuneration. The salary, also
called basic salary, is the foundation for all the other parts of remuneration. Considered
from various perspectives, the salary may be:
- basic salary or rate, namely it is established under standards conditions, without
any benefits
- nominal, representing the current value a certain sum of money
- real, the equivalent of an amount of goods and services that can be bought with
that amount
- minimum the level established by law, in order to ensure social protection.
Organizations adjust salaries on a regular basis according to inflation (the
consumer price index), the individual effectiveness and the employees work record.
Benefits are added to the basic salary for:
- overtime
- geographical distance
- work at the weekend or on holidays
- work record
- supplementary effort
- work in dangerous situations etc.
Another component of direct remuneration results from the stimulation and
involvement regimes that can take the form of efficiency bonuses, granting shares or share
options. These are a variable part of direct remuneration.
Indirect remuneration includes:
Social advantages:
- life insurance
- life insurance
- health insurance
- disability pensions
- retirement pensions
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Supplementary advantages:
- training fees
- subsidized meals
- company car, etc.
In addition to these sums that the employer pays as direct and indirect
remuneration, global remuneration also comprises amounts of money paid for passive
time, which are also important. In this category there are:
- holidays
- sick leaves

4. THE STRATEGIC APPROACH TO REMUNERATION MANAGEMENT

The remuneration strategy is part of the general organization strategy and of the
human resources strategy. Taking a strategic view on remuneration management means
establishing a connection between the remuneration policies and practices and the
general organizational management.
The strategic approach to remuneration management consists of an integrated set
of practices in the field of salaries, bonuses and other incentives, as well as social or
complementary advantages aiming at achieving the organization objectives.
The business strategy is, in most cases, the main guide in establishing the
organizational systems, because it is the one indicating clearly what the organization
wants to achieve, what the desired behaviours are, what types of performance there are
and what levels of performance are considered effective. This strategy strongly influences
the management style that the creation of remuneration systems should derive from. In
their turn, these remuneration systems contribute to the increase in performance,
influencing the important individual and organizational behaviours.
The characteristics of the creation process
The communication, decision-making policies and the characteristics of
remuneration systems reflect the organization management style. These influence the
degree in which the managers and employees accept, understand and observe the
remuneration system practices.
The business strategy the desired behaviour the remuneration strategy
process values structure fundamental values remuneration for performance
remuneration for competences
The remuneration system practices and structures
The following are included here:
- plans to share earnings and profits
- the companys administrative policies
- other organizational programmes
The better the correspondence between fundamental values, processes and
practices, the more effective the remuneration systems will be. It is very important to
establish a coherent strategy in remuneration management in supporting an effective
human resources management, but also in the percentage in the production costs of the
organization.
Remuneration systems objectives
The remuneration systems, through their motivating character, can affect individual
and organizational behaviours. In order to obtain positive long-term results it is necessary
that the remuneration system have clear goals. The research carried out so far indicates
that the remuneration systems influence the implementation of an organizations strategy
and it efficiency in general in several ways:
1. By attracting and motivating employees. The type and level of rewards that the
company offers influence the quality of the employees it attracts and keeps. Companies
197
which offer the largest rewards attract the most people. Various types of rewards attract
certain categories of employees. Companies that offer rewards which involve a high level
of risk attract entrepreneurial personalities. The companies that offer long-term and safe
benefits attract those who want to avoid risks. Therefore, in order to be efficient, the
remuneration systems must be conceived so as to attract and keep those employees that
match the organizations strategy.
2. By motivating performance. The remuneration systems are motivating only if they
meet certain conditions: (1) the organization offers important rewards consistently to the
employees who have outstanding performances; (2) the motivation system has two clear
goals, directly linked to the employees behaviour.
3. By promoting the development of abilities and knowledge. The remuneration
systems may encourage people to improve and develop new abilities. They target the
acquisition of those abilities and knowledge that the organization rewards. Some
organizations manage to achieve this objective also by means of the positions
organization system, associating higher remuneration and benefits with superior positions.
4. By sharing the organizational culture. The effective systems of remuneration
management help define and support the organizational culture. According to the specific
approach to the remuneration systems, the organizational culture can be defined as one
based on competence, directed towards human resources, entrepreneurial, innovative or
participative. The way in which remuneration is managed influences the employees
behaviour, having direct effects on motivation, satisfaction, creating and strengthening the
feeling of commitment to the organizations beliefs and values.
5. By strengthening and defining structure. The strategic remuneration systems
contribute to defining and strengthening the organizational structure. They can have
significant effects on the level of integration and differentiation among employees.
Research has proved that, for example, people tend to be united when they are
remunerated similarly and not to get along when they are treated differently.
6. By determining the remuneration cost. Remuneration is an important part of costs
in any organization, payment of salaries amounting to more than half of the operational
expenses.

Remuneration policies
The most important aspect of remuneration that must be taken into account is
equity. The elaboration of a remuneration policy must take into account the salaries status
in the field of activity of the organization and, in general, the level of salaries in the region
or country, the ratio between salaries and the advantages offered to various positions in
the organization and the capacities and contribution of each person that fills the same
position.
Internal equity
Internal equity is one of the essential values of the remuneration management
system and, consequently, of human resources management. Internal equity or coherence
implies establishing certain correct ratios between the various positions in the
organization, according to their importance, responsibility, contribution to achieving the
organizations objectives. The correct hierarchy of positions by objective means is
established using the position analysis and assessment methods.
The position analysis is carried out on two levels:
- the mission, namely the tasks, duties, responsibilities, nature and level of
decisions;
- the individuals contribution, namely the skills, knowledge, experience, efficiency,
work effort.
The method supplies the input data for the differences in remuneration in an
organization. Internal equity has an important impact on workforce, on the employees
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level of satisfaction and their productivity. Lately, though, the concept has begun to be
contested due to its bureaucratic character. In some companies we have started talking
about the maturity curve or about the stability of salaries according to the employees
capacities and competence.
External equity
External equity represents the provision of a competitive remuneration system as
compared to salaries and other advantages granted by other organizations in the same
field of activity. External equity has an effect on the organizations capacity to recruit, on
the stability of external workforce and finally on the companys profitability.
Neglecting the external equity results, in the case of overestimated remuneration, in
competitiveness losses through an increase in costs, and in the case of underestimated
remuneration, in competent personnel turnover and demotivation.

Individual equity
Individual equity aims at identifying those measures that allow the organization to
give importance to certain personal characteristics in establishing remuneration. Through it
the different remuneration of several employees in the same type of position is achieved,
in the context in which different performances are established through objective means.

Factors influencing remuneration management
The remuneration policy must take into account a series of factors, both internal
and external ones.
Internal factors
1. the organizational structure: according to the field of activity, the remuneration
policy can be unique or adapted to each field.
2. the organizations development stage: at the development stage, the emphasis is
on inciting remuneration, on commitment; at the maturity stage, fidelity to the company is
rewarded; at the decline stage, social advantages become more important.
3. the organization size: in general, large organizations grant bigger salaries, but are
more traditionalist and rigid. Small organizations are more flexible, can stimulate better the
achievement of organizational objectives but cannot afford to pay remunerations at the
maximum level on the market.
4. human resources characteristics: in organizations with powerful unions,
remuneration tends towards equalizing practices. Due to advanced technologies,
organizations need human resources with high qualification and must give them high
salaries.
External factors
1. legislation: several factors in the field of remuneration, such as the minimum
wage, holidays, medical leaves or studies breaks, official holidays, etc. are regulated by
law. The state salary system is subordinated to a strict legislative system.
2. unions: in the sectors with powerful unions, working conditions and salaries are
better for employees. If the supply of labour is high, unions are weak; if the organization
reduces its workforce, we deal with the weakest position for the union
3. social pressures: the characteristics of the supply of workforce are changing.
The new generations are better and better trained, consequently their salary claims
increase. Work becomes less physical and more informational.
4. economic pressures: economic growth influences to a certain extent all the
organizations and their salary policies. Market globalization leads to a stronger connection
between efficiency and remuneration.
5. the labour market status: an organization that operates on a labour market with
high unemployment wont have to pay big salaries to employees.
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6. cost of living: when the cost of living is high, inflation increases, pressure is put
on employers to increase salaries in accordance with the rate of inflation. The employees
purchasing power decreases leading to a decrease in productivity.

BIBLIOGRAPHY

1. Chiu Viorica Ana i colab. - 2002 - The Expert's Manual in Human Resources" Publishing House
IRECSON, Bucharest.
2. Constantinescu D. A. - 1999 - The Management of the Human Resources, National Collection
File, Bucharest..

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IDENTIFICATION AND INVENTORY OF ROMANIAN TRADITIONAL
AGRI-FOOD PRODUCTS

IDENTIFICAREA I INVENTARIEREA PRODUSELOR
AGROALIMENTARE TRADIIONALE ROMNETI

CONSTANTIN M*., MAGDALENA TUREK**, FLORIN FRONE*

*University of Agricultural Sciences and Veterinary Medicine Bucharest
**Institute of Research in Agrarian Economics and Rural Development

Abstract

Identification and inventory of traditional agri-food products have been initiated in Romania with the
purpose of their EU accreditation.
This requirement entails numerous issues regarding the existence of the current traditional products,
especially their concepts and classification, as well as the subsequent interpretation of terms like range and
line/article mentioned within the technologies of the Romanian products.

Key words: traditional products, Romanian trade marks, certification of food products

INTRODUCTION

In this study, the identification and inventory of traditional Romanian agri-food
products in some general guidelines was based on the actual names registered following:
the product holding. The product can bear the name of the producer. The competition
between the name of the producer and that of the intermediary can be, in some cases,
fierce;
the quality of the traditional product. When identifying a traditional product the
producer must choose a level of quality to support its position on the market. Some
markets are more sensitive to quality than others, some consumers preferring very high
quality products and others cheaper economical products with a very good price/quality
ratio;
* the form of choosing the name of the traditional product. In this situation when a
producer had destructive products with a real or potentially large demand, it was possible
for it to develop a separate identity from the name for each such product. When a producer
obtained a range of products relatively similar he used a single name for all the products
which composed it;
the positioning and repositioning of the traditional product. The position of a product
on the market is of a multidimensional nature. For example, a dairy producer could
develop a milk based beverage with special organoleptic characteristics. The product
could be positioned on some market: it can be promoted as a childrens food, as a healthy
food or as a food destined to some categories of consumers regardless of the selected
market, the product could have a high price, a medium or low one and could be sold under
different forms.
the opportunity of extending traditional products. The strategy of traditional
extending is applied where there already are such products. For example, ASI Nature Ltd.
has enjoyed a long success due to dairy products.
traditional multi-products. A traditional multi-product strategy is that where the
producers develops two or more products of the same family, products category. This is
useful in market segments where many agri-food traditional products are present. The
traditional multi-product strategy creates a healthy competition between producers in its
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field of activity, each traditional product having the ability of being developed in the
direction of presenting some different attributes from the other products, for the purpose of
occupying a better place on the market.
Still there is the risk of internal competition between traditional products. No matter
how well positioned a traditional products might be on the market, it is necessary to
reposition it at given periods of time. For example, the products of bread can be positioned
as food for the entire family and then can be repositioned as food very indicated for certain
categories of age. The normal thing to do is to reposition the existing products before
others are launched on the market.

MATERIAL AND METHOD

In the current situation of Romanian markets the forms of identification of traditional
agri-food products are assembled in a tridimensional system regarding: the place of origin,
the characteristics of the product, the person involved in obtaining these products.
In detail one can say that each of these dimensional forms includes a number
of naming elements, and for that reason the actual names fit in the following structure:
- a name to cover the entire family of products such as yogurt, cheese, palinca, bread,
bread specialties etc;
- individual product name which reflects the origin: liver sausage, stuffed pigs stomach,
black pudding sausages, Udesti salami, Plescoi or Radauti sausages, Bucovina tenderloin,
Bran telemea (feta cheese), INTERMACEDONIA cheese bag;
- emphasizing the name of the producer can quote products such as: ANA MARIA
CERTEZE apple palinca, CIONCA GEORGE PRILOG peach palinca, imonca Marin
cheese.
- local ethnic names of products such as: Burdujeni sausage, fir virsli, pork sloi, cocuti,
nuts or poppy seeds beigli etc.;
- names which imply knowing the technology such as: homemade white bread on hearth,
smoked tenderloin, home made potato bread, meat cake, home made small products with
stuffing, feta cheese from Oltenia with leek, homemade bread baked on hearth in the oven
on willow wood fire etc.;
- names through which quality is indicated such as: salted soft cow cheese, mixed feta
cheese (cow and sheep milk), prune brandy 30% volume, apple brandy, dark bread on
hearth, fresh ecological cow butter;
- company names, actually commerce names combined with the names of individual
products: DELICIA cheese, butter, ZUGO cream, MARK dairy products, TRAI-COV meat
products, BURATREX traditional homemade cake, Tovishat prunes palinca by Orau
Nou Vii;
- names which emphasize the social status of the local people of Romania (especially
under the existent forms in rural environment) such as: peasants bread, homemade
salami, products plated for religious events, traditional bread, gypsy tenderloin, noble horn-
shaped cookies etc.
Following there are synthetic renditions, in the structure, the lines/articles of
traditional food products attested by ranges and counties in the year 2007 (figure 1)

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Figure 1
The share of traditional products attested by development areas, in 2007
0%
50%
100%
C
e
r
e
a
l
e
L
a
p
t
e
C
a
r
n
e
L
e
g
u
m
e
-
F
r
u
c
t
e
M
i
e
r
e
B
e
r
e
NORD-EST SUD-EST SUD-MUNTENIA SUD-VEST-OL
VEST NORD-VEST CENTRU BUCURESTI-IL

Source: MAPDR


The inventory performed shows the following:
- from the territory point of view at the national Romanian level the areas of south
Muntenia, northwest and center hold the largest number of traditional Romanian food
products. In relative figures that total share held of 73.47% is structured on the three
regions as such: 22.24%, 22.12% and 28.95%. In the counties, a significant share towards
the national total is of the following: 7.08% Suceava County, 20.6% Arges County, 13.53%
Satu Mare County, 7.58% Alba County and 11.98% Sibiu County. In the same time one
can ascertain that the share of some counties in the total of the region their part of is
significant. As such, Suceava County represents 67.08% of the total of that region, Arges
County 93.52% of its region, Satu Mare County 61.19% of the total of the region;
- analyzing the assembly of the products on the ten ranges of products, one can ascertain
a differentiated structure. We refer to the fact that 97.36% of the total of traditional agri-
food products belong to four ranges which are: cereal products (20,93%), dairy derived
products (44,92%), meat products(20,86%) and alcoholic beverages(10,65%). The other
six products (processed vegetables and fruits, fish, honey, beer, millet beer and fermented
bran infusion) holds insignificant shares, but important as value to the traditional vocation
of the Romanian territorial areas.

CONCLUSIONS

At present, through Romanias adherence to the European Union and fitting in the
segmentation of the European market, regarding the aspect of agri-food consumption is
ascertained the predominance of festive and usual foods. Traditional intermediary foods
are not promoted adequately because of the existence of such a difficult market
positioning.
For this reason agri-food products, the Romanian traditional type ones, fit in a
certain market segment (referring to local products in a vocation areas such as goat milk
cheese or smoked cheese, soft cheese, Plescoi sausages etc.). In the EU market also
these products are destined for a small number of consumers, usually forming a niche, or
in the best case, a market segment but very small.
Fitting in this delimitation is a necessity to manage the data which can be presented
by identifying and inventorying the agri-food products which is considered first of all a
203
territory vocation issue for Romania. It is an easy to understand thing, but almost
impossible to accomplish only by the MAPDR network. This, because data is required
about the processor of products himself, through the people which make up the existent
field sales force, and the teams of merchandisers which they have to take into
consideration once entering the cutter.
But permanently the management of data regarding the authenticity of local
vocation must be kept daily, to ensure their continuum flux, by periodic annealing
according to the dynamics of sales, of the merchandise fund from the Romanian
producers level.

BIBLIOGRAPHY

*** Regulamentul (CEE) nr. 2082/92 al Consiliului din 14 iulie 1992 privind
atestatele de specificitate ale produselor agricole i alimentare
*** Regulamentul (CEE) nr. 1848/93 al Comisiei
*** www.maap.ro
*** www.insse.ro
Hervien B. Multifuncionalitatea agriculturii, ASAS, 2003
Kotler Ph. Managementul Marketingului, Teora Publishing, Bucharest, 1997

204
MANAGEMENT VERSUS LEADERSHIP

CREU DANIELA*, CONSTANTIN DUMITRA**, NEAGU CECILIA*

*USAMV Bucharest, Faculty of Management, Economic Engineering in Agriculture and
Rural development Clrai subsidiary
**Sandu Aldea Agricultural College

Abstract

The leadership represents a very important role of the manager, because it implies the interaction
with the others, determining the manager to express energy and enthusiasm to the vision he wants to
transmit to people. As a leader, the manager tries to motivate his subordinates becoming their mentor,
helping them in solving their problems and integrating the individual needs with the organization objectives,
so that to ensure the achievement of personal and group needs. The manager acts first of all as a resource
which is available to the group he leads. The manager uses also the power given by his position,
competence and character in order to influence the people to work together for the company success.

Key words: leader; manager; entrepreneur; charisma; behaviour; leadership style;

INTRODUCTION

Leadership represents a very important role of the manger, as it implies the
interaction with the others, determining the manger to express energy and enthusiasm to
the vision he wants to transmit to people. As a leader, the manager tries to motivate his
subordinates becoming their mentor, helping them in solving the problems and
integrating the individuals needs with the organization objectives so that to ensure the
satisfaction of the personal and group needs. The manager acts first of all as a source
that is available to the group he leads. The manager uses also the power to his position,
competence and character give in order to influence people to work together for the
company success.
Given the need for the entrepreneurs training in pro-active spirit, to have initiative
and ability to be flexible, to find new opportunities to act for the events and to obtain
support for the development of their own businesses, we consider necessary the study
about Management versus leadership.

MATERIAL AND METHOD

This material will serve as informational support for the economic agents who
develop agricultural, agro-food activities and related activities.
The study will materialize in the elaboration of a Guide entitled Management
versus leadership, that proposes to provide information adapted to the understanding
level of the beneficiaries, offering a wide range of information on the promotion of the
entrepreneurship and professional attitudes by leadership. It is structured on topics
aimed to show the practical steps needed for an organization leader in order to transform
the talent of each employee in performance and in order to create a coherent, strong and
efficient team.


MANAGER VERSUS LEADER
Management is understood as an action only from top to bottom, it refers only to
subordinates and it has as a support the management functions, leadership (informal side
205
of the power), it can exercise outside the frontiers and hierarchical responsibilities and it
aims all the types of relations: with the collaborators, colleagues, managers, beneficiaries
etc.
Manager is the person who applies the management functions, according with the
tasks, competences and responsibilities of the function he executes.
The primordial difference manager - leader: it the manager owns obviously the capacity to
influence, then he can be named ruler or leader. If the formal side of the power
predominates, he will be called chief, director, but not leader.
Management is limited to the targets, objectives and procedures which must be
fulfilled and observed.
MANAGER has objectives to achieve and procedures to observe.
LEADER must build trust relations, encourage the members of the team, believing
in their potential and assuming risks. Each person has a potential of leadership, although
not all people consider themselves leaders. Obtaining the right to lead depends on how
well each person know himself and how comfortable he fills with himself.
Leadership practically can be seen as a challenge everyone address: who he is,
what he does and how he expresses.
Leadership is a personal expression of the way in which someone reports to the
world and supposes attention to the vision, the vision communication, the trust building,
self respect, respect to the other and assuming risks.
Leadership begins from the courage to achieve his own potential and from
assuming responsibilities. People care of certain things and act if these things become
important for them.
Leadership includes two things: the definition of the personal objectives and the
knowledge of the reality. Lacking the reflection on these, the man learns extremely few,
and lacking the learning, the formation of the quality of leader is reduced to minimum.
A leader asks about everything is around him, is open to new information, attacks the
statute of quo and replaces it with a new thinking and with new ways to see the world,
dares to test new ideas, learns from mistakes and failures and continues always to learn.
The expression of leadership is not based on position or power, but on trust and
relations.
The development of abilities and qualities of leadership is made in a process of life
learning, which can be achieved in a democratic and free environment. These can be
disturbed in more ways by the organization in which each one works: by the
organizational structure, culture, values, power in the organization, economic
environment, competition, organization priorities.

ESSENCE OF LEADERSHIP
The essence of leadership consists of the capacity to create vision, motivation
and -enthusiasm in a group of people.
People are not lead by plans and analyses. They are lead by this triad and by other
things. LEADER really efficient concentrates almost all actions for their creation using
different attitudes for each element of the triad.

Vision is a positive image of what could become the organization and the way to
reach the destination. In order to create a vision to be shared, the leader must be always
in searching of new ideas, which fit with the organization strategy and to be sufficiently
intelligent to see good ideas. It is extremely important that he is an artist in transforming
these ideas in images and stories, exciting, logical and achievable ones.
Motivation is that which pushes to action. The leader uses his interpersonal
atitudes in order to awake the people energy and to help them to see how they could take
206
advantage of the journey to the objective, as well reaching the objective. He helps them
to see words coming to life
Enthusiasm needed for the organization projects and initiatives is the element
which helps the organization to reach the destination. Using energy and attitudes in
solving the problems, the leader ensures that the company is on the good way to the
achievement of the mission.
Leader must function efficiently in all these three dimensions. The visionary is not
a leader if he cannot motivate. The person who supports the enthusiasm is not a leader if
he cannot create a vision to be shared to all.
Some specialists in the field consider that the manager and the leader are
synonymous terms and use them alternatively.
Nevertheless, leadership and management represent in fact distinct dimensions
of the activities of the leading persons.
Leadership represents the capacity to determine people to act.
Good leaders have several things in common: they develop a clear vision, gain
people devotion and offer them the support they need to act efficiently.
Good leaders ensure that their people obtain quality results and guide the entire
team towards success.
In the most simple approach, we can say that the process to lead means first of all
to establish a direction and to influence others to follow that direction.
This thing can be made by a person by applying personal knowledge and abilities
of leadership. Although there are persons who by their positions of managers or
supervisors have the authority to accomplish certain tasks and objectives within the
organization, this power does not make them automatically leaders. True leaders will
make such a way that the persons they work/collaborate with will want to follow them and
to accomplish certain specific tasks. Leaders will not limit only to say to others what they
must do.
A leader can be defined as being someone who has a position within a group,
influence the others depending on the expectations of the position and coordinates and
directs the group for reaching the proposed aims.
True leaders do not born, but they form during the time. People can become
more efficient leaders if they really want this.
Good leaders form during a continuous process of study, education, training and
experience. The abilities specific to the leadership are not born but to a small extent and
that is why they must be always improved by work and study.
The best leaders will never finish the process of self training and study.
One of the most important things a leader can do is to ensure the background
and to encourage the training of new leaders within the respective organization, company
or community.
The leaders are those who make thing happen. They have vision, have initiative,
can influence people, can make proposals, can organize the necessary logistic, can solve
certain problems, finish things to the end and especially they assume responsibilities.
The qualities of a leader include:
Communication: the fact of being a good listener and to posses some
interpersonal communication techniques;
Facilitation of meetings and process of making decisions: the efficient leading
of the meetings and following some positive results by wide participation in the
organizational decisions;
Vision and strategic planning: the fact to have a strong personal vision on the
place in which the organization or community must reach in the future and understanding
the process which can lead to this thing;
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Resolving and negotiating the conflicts: the ability to face some different points
of view and to work to obtain positive results (human ones) within the proposed time;
Work with people: the promotion of the positive relations between the colleagues
and ability to inspire the others to act;
Public presentations: the ability to present in public messages which inspire
people;
Work in teams: the ability to work efficiently within a team;
Making decisions: involving suitable persons in the process of decision making,
using the most suitable measures to make decisions and making decisions which lead to
the achievement of the proposed objectives within the established time;
Assuming risks: assuming some personal risks to find new opportunities and
forming new initiatives;
The will of personal evolution: the will and commitment to continue the process of
improving the personal qualities;
Persuade people to follow you... How important is it to make people follow us
without imposing them something?
How important is it to have with the others a relation based on respect and trust ?
Why do we need all these to become reality ?
It is obvious to the human nature to look for behavioural models in persons they
follow, who inspire trust and safety. To a great extent it is a natural talent of the people to
be leaders. But individual qualities of leadership can be improved.
The notion of leadership is different of that of management, but not in the way
most persons think. The concept of leadership is not mystical or mysterious. It have
nothing to do with the "charisma" or other exotic personality features. It is not a space
reserved to the ones. It is not more important than the management or a substitute.
Leadership and management are rather two distinct and complementary systems of
actions. Each has own function and characteristic activities. Both are needed for the
success in a volatile business environment, more and more complex. Most companies
today are more managed and less lead. They need to develop the capacity to exercise
leadership.
The successful companies to not expect that leaders come to them. They are
actively seeking for persons with potential to become leaders and, during their career, they
put them in projected situations to develop their potential. Indeed, with a careful selection,
development and encouragement, tens of persons can play important roles of leaders in
an organization. While they improve their abilities to lead, the companies must not loos of
sight the fact that a situation of powerful leadership and weak management is worse than
the reverse.
The real challenge is the combination of the leadership abilities with the
management abilities, using them for a mutual balance. Of course, nobody is at the same
time a very good leader and a very good manager.
Passing to the market economy is conditioned, decisively by the implementation in
all economy components of a good management achieved by professional
managers.
The specialists consider that most companies today are more managed and less
lead. They need to develop their capacity to exercise leadership. The successful
companies do not expect that people come to them. They are actively seeking fro persons
with potential to become leaders, during their career, they put them in projected situations
in order to develop this potential.
While they improve their abilities to lead, the companies must not loss sight the fact
that a situation of powerful leadership and weak management is probably worse than the
reverse.
208
The real challenge consists of the combination of leadership abilities with the
management ones, using them to create mutual balance.
The best leaders have the ability to be both leaders and managers. Leaders are
those who have the courage and imagination to dream to a better possible future (vision)
and to enthusiasm the others in achieving the vision. Managers are those who manage
the processes and resources to put into practice the vision.
Leadership and management are two complementary and distinct systems of
action, each with its specific functions and characteristics. Both are needed to succeed in
a business environment with an increasing complexity.
Any organization must be aware that a powerful leadership accompanied by a
weak management is not good, and sometimes it can be worse than the reverse. The real
performance represents the combination of a powerful leadership with a powerful
management and their mutual compensation.
Not anyone can be simultaneously a good leader and a good manager. The
visionary organisations consider valuable both categories of persons and make efforts to
have them in the same team.
Management and leadership have in common the fact that they are action systems
which implies making decisions, creating links between people , of relations which can
lead to the achievement of a common plan and trying to ensure that those persons do their
duties.
Leadership solves the problem of changes. One of the reasons for which the
leadership became so important during the last years, is due to the fact that the business
world became complex and volatile. The conclusion is the fact that making the same thing
as yesterday or 5% better, it is not anymore a successful formula for long term. The major
changes are more and more needed in order to survive and compete efficiently in this new
environment.
Management solves complex problems. The managerial practices and
procedures answer to one of the biggest challenges of XX century: the appearance of
some big companies.
Without a good management, the enterprises with complex problems tend to
become rapidly uncontrollable and chaotic. A good management brings order and
consequence in the attributes needed to any company: the products quality and
profitability. This thing means that the management establishes and plans the budget,
chooses the aims and goals fro the future (usually one year, maximum three years),
establishes the detailed phases to reach these goals and allots necessary resources to
achieve the proposed plans.
Leader will lead the organization by constructive changes, by creating an image
(vision) on the future (this time the far future), choosing a direction, implementation
strategies, changes needed to achieve what they imaged.
Unlike management, that is considered a formal, institutionalized leading,
leadership is understood as a leading achieved at group level, informal, and the
leader as a chief of this group. The accent passes from the management to leadership,
from development and improvement to transformation and change, from achieving some
functions to the performance of some roles, from directing people to their inspiration and
mobilization.
SO:

MANAGER

LEADER

Controls and improves what already
exists
Changes what exists in what is needed
Promotes the stability Promotes the change
Acts in a transactional way Acts in a transformation way

209

CONCLUSIONS

Leadership is in a direct relation with the capacity to influence the people
behaviour. Manager, on the other side, is the individual who ensures the achievement of
the organizational objectives by planning, organization and orientation of work to
finalisation.
Leaders conquer the situation - instable, turbulent, ambiguous which sometimes sees to
conspire against us and which will suffocate us if we leave it so while the managers
subdue to it. Managers administer, leaders innovate. Manager is a copy, leader is an
original. Manager maintains, leader develops. Manager focuses on the system and
structure, leader on people. Manager is based on control, leader on trust. Manager
thinks on short term, leader on long term. Manager asks how and where, leader what and
why. Manager looks at the final foreseen results, leader to horizon. Manager imitates,
leader innovates. Manager accepts status quo, leader challenges it. Managers do things
well, leaders do good things. To pass from the condition of manager to that of leader
supposes to change a vision with another, to attack status quo, to test new ideas and to
continue always to learn. .

BIBLIOGRAPHY

1. BELKER B. LOREN I am manager!, Ed.Teora, Bucureti, 2002.
2. BENNIS, W., NANUS, B., - Leaders: strategies for taking the leading, Ed. Business Tech
International Press, Bucureti, 2005.
3. PROCTOR TONY Elements of managerial creativity, Ed.Teora, Bucureti, 2000.
4. REGESTER MICHAEL, LARKIN JUDY Management of crises and risk situations, Comunicare.ro,
Bucureti, 2003.
5. TAYLOR ROS, HUMPHREY JOHN How to reach in top. 10 steps to success, Ed.Polirom, Iai,
2003.
6. TICHY M.NOEL, COHEN ELI Leader and art to lead, Ed.Teora, Bucureti, 2004.

Follows established rules, ensuring
their observance and corrects the
deviations from the standards

Introduces new rules, encourages the
creativity and eliminates the constraints
which determine the conservatory
behaviours
Retains Sets free
Asks how? Asks what? Why? And who?
210
INTEGRATION OF THE QUALITY MANAGEMENT SYSTEM WITH THE
SOCIAL ACCOUNTABILITY MANAGEMENT SYSTEM ACCORDING TO
THE REQUIREMENTS OF ISO/DIS 9001:2007 AND SA 8000:2001

INTEGRAREA SISTEMULUI DE MANAGEMENT AL CALITATII CU
SISTEMUL DE MANAGEMENT AL RESPONSABILITATII SOCIALE
CONFORM CERINTELOR ISO/DIS 9001:2007 SI SA 8000:2001

DENUNTZIO R.

UNIVERSITY OF AGRICULTURAL SCIENCES AND VETERINARY MEDICINE -
BUCHAREST

Abstract

The paper establishes a method of integration of the quality management system with the social
accountability management system. For the integration of the two management systems the paper establish
the table of correspondence between the requirements of the quality management system defined in
ISO/DIS 9001:2007 and the requirements of the social accountability management system defined in SA
8000:2001.Finally the paper establish the structure of the integrated management system in the list of the
requirements of the integrated management system quality-social responsibility

Key words: Quality; Social accountability; Integrated management system; requirements

INTRODUCTION

The implementation of the social accountability management system starts to become
more and more a necessity for a competitive organization, because even more interested
parties have requirements for the social accountability performance of the organization as
a condition for a future co-operation. Usually these organizations have a quality
management system implemented according to the requirements of ISO 9001, so it is
recommended the integration of the two management systems having in mind the
existence of some common requirements.

MATERIAL AND METHOD
For the integrations of the quality management system defined in ISO/DIS 9001:2007 with
the social accountability management system defined in SA 8000:2001 its necessary to
establish the list of the integrated requirements which result from the two reference
documents. Comparing the requirements of the two reference documents results the
existence of some common requirements, some specific requirements of the quality
management system and some specific requirements of the social accountability
management system. The integration of the three types of requirements is realized having
in mind the sequence and interaction of the processes needed for the quality-social
accountability integrated management system.

In order to establish the list of the requirements of the quality-social accountability
integrated management system its necessary for the beginning to establish the table of
correspondence between ISO/DIS 9001:2007 and SA 8000:2001.
Table-Correspondence between ISO/DIS 9001:2007 and SA 8000:2001
ISO/DIS 9001:2007 SA 8000:2001
Clause Requirements Clause Requirements
Introduction - -
211
0.1
0.2
0.3
0.4
General
Process approach
Relationship with ISO 9004
Compatibility with other management
systems
1
1.1
1.2
Scope
General
Application
I Purpose and scope
2. Normative reference II Normative elements and their
interpretation
3 Terms and definitions III Definitions
4 Quality management system (title only) IV Social accountability requirements
4.1 General requirements 9.1 Policy
4.2 Documentation requirements (title only) - -
4.2.1 General 9.1 Policy
4.2.2 Quality manual 9.1 Policy
4.2.3 Control of documents 9.1 Policy
4.2.4 Control of records 9.14 Records
5 Management responsibility (title only) - -
9.1 Policy 5.1 Management commitment
9.5.a) Planning and implementation (roles,
responsibilities and authority)
3.1 Health and safety (planning) 5.2 Customer focus
9.2 Management review
5.3 Quality policy 9.1 Policy
5.4 Planning (title only) 9.5 Planning and implementation
5.4.1 Quality objectives 9.1 Policy
5.4.2 Quality management system planning 9.1 Policy
5.5 Responsibility, authority and
communication (title only)
- -
5.5.1 Responsibility and authority 9.5.a) Planning and implementation (roles,
3.2 Health and safety (management
representative)
5.5.2 Management representative
9.3 Company representatives (management
representative)
- - 9.4 Company representatives (non-
management personnel representative)
5.5.3 Internal communication 9.1 Policy
- - 9.12 Outside communication
5.6 Management review 9.2 Management review
6 Resources management (title only) - -
6.1 Provision of resources 9.5.a) Planning and implementation (roles,
6.2 Human resources (title only) - -
1 Child labor
2 Forced labor
4 Freedom of association & right to
collective bargaining
5 Discrimination
6 Disciplinary practices
7 Working hours
8 Remuneration
6.2.1 General
9.10 Addressing concerns
3.3 Health and safety (training)
9.5.b) Planning and implementation (training of
new and/or temporary employees)
6.2.2 Competence, awareness and training
9.5.c) Planning and implementation (training of
existing employees)
6.3 Infrastructure 9.5.a) Planning and implementation (roles,
212
9.5.a) Planning and implementation (roles,
3.5 Bathrooms, potable water, food storage
6.4 Work environment
3.6 Dormitory facilities
7 Product realization (title only) - -
7.1 Planning of product realization 3.4 Health and safety (operational control)
7.2 Customer related processes (title only) - -
3.1 Health and safety (planning) 7.2.1 Determination of requirements related to
the product
3.4 Health and safety (operational control)
7.2.2 Review of requirements related to the
product
9.10 Addressing concerns 7.2.3. Customer communication
9.12 Outside communication
7.3 Design and development (title only) - -
7.3.1 Design and development planning 3.4 Health and safety (operational control)
7.3.2 Design and development inputs 3.4 Health and safety (operational control)
7.3.3 Design and development outputs 3.4 Health and safety (operational control)
7.3.4 Design and development review 3.4 Health and safety (operational control)
7.3.5 Design and development verification 3.4 Health and safety (operational control)
7.3.6 Design and development validation 3.4 Health and safety (operational control)
7.3.7 Control of design and development
changes
7.4 Purchasing (title only) - -
9.6 Control of suppliers/subcontractors and
sub-suppliers (evaluations and selection)
sub-suppliers (record of commitments)
sub-suppliers (reasonable evidence)
7.4.1 Purchasing process
sub-suppliers (home workers)
7.4.2 Purchasing information 3.4 Health and safety (operational control)
7.4.3 Verification of purchased product 3.4 Health and safety (operational control)
- - 9.13 Access for verification to the suppliers
and sub-suppliers
7.5 Production and service provision (title
only)
- -
7.5.1 Control of production and service
provision
7.5.2 Validation of processes for production
and service provision
7.5.3 Identification and traceability - -
7.5.4 Customer property - -
7.5.5 Preservation of the product 3.4 Health and safety (operational control)
7.6 Control of monitoring and measuring
equipment
9.5.d) Planning and implementation (monitoring
of activities and results)
8 Measurement, analysis and
improvement (title only)
- -
8.1 General 9.5.d) Planning and implementation (monitoring
8.2 Monitoring and measurement (title only) - -
8.2.1 Customer satisfaction - -
8.2.2 Internal audit 9.5.d) Planning and implementation (monitoring
- - 9.13 Access for verification
8.2.3 Monitoring and measurement of
processes
9.5.d) Planning and implementation (monitoring
8.2.4 Monitoring and measurement of product 9.5.d) Planning and implementation (monitoring
213
8.3 Control of nonconforming product 9.5.d) Planning and implementation (monitoring
- - 9.11 Taking remedial action
8.4 Analysis of data 9.5.d) Planning and implementation (monitoring
8.5 Improvement (title only) - -
9.1 Policy 8.5.1 Continual improvement
9.2 Management review
8.5.2 Corrective action 9.11 Taking corrective action
8.5.3 Preventive action 9.1 Policy
Bearing in mind the correspondence between ISO/DIS 9001:2007 and SA 8000:2001 its
possible to establish the following list of the requirements of quality-social accountability
integrated management system. In this list the first figure represent the clause form
ISO/DIS 9001:2007 and the second figure the clause from SA 8000:2001.
4./IV. Integrated management system
4.1/9.1.General requirements
4.2/-.Documentation requirements
4.2.1/9.1.General
4.2.2/9.1.Integrated management system manual
4.2.3/9.1.Control of documents
4.2.4/9.14.Control of records
5/-.Management responsibility
5.1/9.1;9.5.a).Management commitment
5.2/3.1;9.2.Customer focus
5.3. /9.1. Quality and social accountability policy
5.4/9.5.Planning
5.4.1/9.1.Quality and social accountability objectives
5.4.2/9.1.Integrated management system planning
5.5. Responsibility, authority and communication
5.5.1/9.5.a).Responsibility and authority
5.5.2/3.2;9.3.Management representatives
-/9.4.Non-management personnel representative
5.5.3/9.1.Internal communication
-/9.12.Outside communication
5.6/9.2.Management review
6/-.Resource management
6.1/9.5.a).Provision of resources
6.2/-. Human resources
6.2.1/-.General
-/1.Child labor
-/2.Forced labor
-/4.Freedom of association & right to collective bargaining
-/5.Discrimination
-/6.Disciplinary practices
-/7.Working hours
-/8.Remuneration
-/9.10.Addresing concerns
6.2.2./3.3;9.5.b);9.5.c).Competence, training and awareness
6.3/9.5.a).Infrastructure
6.4/9.5a).Work environment
-/3.5.Bathrooms,potable water, food storage
-/3.6.Dormitory facilities
214
7/-. Product realization
7.1/3.4.Planning of product realization
7.2/-.Customer-related processes
7.2.1/3.1;3.4.Determinations of requirements related to the product
7.2.2/3.4.Review of requirements related to the product
7.2.3/9.10;9.12.Customer communication
7.3/-.Design and development
7.3.1/3.4. Design and development planning
7.3.2/3.4. Design and development inputs
7.3.3/3.4. Design and development outputs
7.3.4/3.4. Design and development review
7.3.5/3.4. Design and development verification
7.3.6/3.4. Design and development validation
7.3.7/3.4.Control of design and development changes
7.4/-.Purchasing
7.4.1/3.4;9.6;9.7;9.8;9.9.Purchasing process
7.4.2/3.4.Purchasing information
7.4.3/3.4.Verification of purchased product
-/9.13.Acces for verification to the suppliers and sub-suppliers
7.5/-.Production and service provision
7.5.1/3.4.Control of production and service provision
7.5.2/3.4.Validation of processes for production and service provision
7.5.3/-.Identification and traceability
7.5.4/-.Customer property
7.5.5/3.4.Preservation of product
7.6/9.5.d).Control of monitoring and measuring equipment
8/-.Measurement, analysis and improvement
8.1/9.5.d). General
8.2/-.Monitoring and measurement
8.2.1/-.Customer satisfaction
8.2.2/9.5.d).Internal audit
-/9.13.Acces for verification in the organization
8.2.3/9.5.d).Monitoring and measurement of processes
8.2.4/9.5.d). Monitoring and measurement of product
8.3/9.5.d).Control of nonconforming product
-/9.11.Taking remedial action
8.4/9.5.d).Analysis of data
8.5/-.Improvement
8.5.1/9.1;9.2.Continual improvement
8.5.2/9.11.Corrective action
8.5.3/9.1.Preventive action
CONCLUSIONS
The list of the requirements of the quality-social accountability integrated management
system is the starting point to determine the processes needed for the integrated
management system and to document this integrated management system. The fulfillment
of each requirement has to be the result of a process of the integrated management
system and each process has to be defined in a document of the integrated management
system.
BIBLIOGRAPHY

***Draft international standard ISO/DIS 9001:2007-Quality management systems-Requirements
***International standard SA 8000:2001-Social accountability 8000
215
FINANCING POLICIES OF ECONOMIC AGENTS FROM
AGRICULTURE SECTOR

POLITICI DE FINANARE A AGENILOR ECONOMICI
DIN SECTORUL AGRAR

MARIANA DOGA-MRZAC

Moldova State University, Department of Finance and Banking

Abstract

Financing small and medium businesses in agriculture is based on both internal and external
component. Own resources oriented towards the development of this sector, can and must be involved in a
multiplication process through approval procedures, especially those of fiscal nature that stimulate profit
reinvestment and attraction of new resources from shareholders and partners.

Keywords: financing policy, financing process, farmers community and agriculture policies.

INTRODUCTION

The process of financing the development of small and medium-sized enterprises in
the Republic of Moldova has undergone various discontinuities which were a consequence
of both, hesitations and errors in the reformation policy, and few resources. The negative
aspects were minimized due to the immaturity and instability of the institutional framework,
which did not allow the consolidation of several procedures and tools that could facilitate
the adaptation and consolidation of practices in this field used by the European Union, as
well as the mobilization of greater amounts of external funds.

MATERIAL AND METHOD

To study financing policies, economic agents from agriculture sector are using materials
from European Union Action Plan - Republic of Moldova, as well as the Governmental
Decision regarding the Economic Growth and Support the development of small and
middle-sized enterprises.


Though difficult, the financing process of this sector from external sources has a
greater positive impact than the involvement of financial resources, acting as an influence
factor upon the specific development processes of small businesses in agriculture, by:
o ensuring the transfer of instruments and working procedures checked in a
competitive environment;
o enhancing the efficiency and competitiveness, due to the fact that, as a rule, the
projects proposed for financing are approved taking into account the performance
indicators, depending also upon the existence of a certain ratio between own funds and
the resources that are going to be obtained. The Government elaborated a strategy,
targeting the support of small business sector The strategy supporting the development
of small and middle-sized enterprises in the period 2006-2008 (hereinafter Strategy),
that represents the main political framework in the medium-term concerning the
sustainable development of small and middle-sized enterprises from Moldova.
216
This strategy determines the strategic guidelines of activity and the actions involved
that are going to be implemented by the Government, so as to facilitate the development
process of small and mid-sized enterprises. In the elaboration process of this strategy the
following where taken into consideration:
the results and the impact of implementation of the state Program for supporting
small business for the period 2002-2005, approved by the Governmental Decision no. 850
of June 27, 2003;
priorities and objectives of the Strategy of Economic Growth and Poverty
Reduction (2004-2006);
the principles and goals stipulated in the European Chart for small enterprises, as
well as the international experience concerning the support and development of small
enterprises;
the features defined in the Partnership and Cooperation Agreement between the
Republic of Moldova and the European Union and the Action Plan Moldova European
Union;
the analysis of existent drawbacks in the development of small business
performed by the Government, the community of donors and independent analysts;
the results of consultations with the representatives of private sector.
From the European perspective, so as to recognize the role of small business in
agriculture and, especially, that of small agricultural enterprises, as the main promoters of
innovations and labour force employment, as well as social and local European
integration, it is necessary to identify several fields of activity: education and training of
entrepreneurs; starting-up businesses in a cost efficient manner and in a faster way;
improved legislation and regulations; ensuring the necessary qualification; improving the
on-line access; expanding on multiple markets; financial and fiscal aspects; consolidating
the technological capacity; representing the interests of these enterprises in a more
efficient manner at the European Union level.
Small enterprises are considered to be the main initiators of innovation and labour
force employment as well as of social and local European integration, this requiring the
creation of an optimal environment for these firms, as well as for the entrepreneurial
initiatives.
The financing of small and medium-sized enterprises in agriculture is performed using
resources deriving from an internal, but also from an external component. Their own funds,
oriented towards the development of this sector, can and should be involved in a
multiplication process through approval of procedures, especially those of fiscal nature -
that will stimulate the reinvestment of profit and mobilization of new resources from
shareholders and associates.
The participation of public institutions is required by the peculiarities of development of
this sector in the economies in transition and corresponds to the fields of activity and
sectorial practices promoted by the European Union.
The external component regarding the financing of small business in agriculture is
provided, mainly through crediting programs and non-reimbursable programs.
The implementation of these programs that involve institutions representing donors of
funds and Romanian institutions that ensure the functioning of these programs in the R. of
Moldova has positive effects also in the institutional field, on the entities involved, through
the adoption of some working procedures checked in a relevant competitive environment.
Financing small and mid-sized enterprises using external resources is a factor aiming
at enhancing the efficiency and competitiveness, because, as a rule, the projects are
accepted based on the solicitors' efficiency indicators and conditioned by the existence of
a certain ratio between own funds mobilized and the resources that can be obtained
through the respective crediting program.
217
Ensuring the continuity for the enterprises of small business in agriculture implies
frequently the promotion of change. This is true when referring to the common agricultural
policy (CAP) of the European Union.
The community of farmers has an important role in the 21
st
century. Only the farmers
can supply consumers with products that correspond to the high requirements concerning
quality and food security according to the ecological standards.
The founder states of the European Economic Commission have agreed that
agriculture should be included in the common market. In order to do this, a common
agricultural policy had to be implemented, so as to harmonize different national support
mechanisms and to establish some common customs barriers for the goods coming from
the non-member states. The CAP was one of the first policies adopted at community level.
The common agricultural policy has three fundamental principles:
a) creation and maintenance of a single market and some common prices (a single
market in which there is a free circulation of goods);
b) notion of community preference (in the agricultural trade preference is given to goods
produced within the Community, the buyers of non-community products have to pay an
extra cost);
c) financial solidarity (the member states participate jointly at the formation of resources
and benefit from the financing of expenses concerning the CAP).
The European Commission establishes its approach strategy regarding the most
important aspects linked with the negotiations of expansion in agriculture: direct payments
given to agricultural producers and the level of production quotas for the states candidates,
after joining the EU.
So as to reduce the problems concerning the transition in the rural area and enhance
the necessary reformation of the agricultural sector of the new member states, the
Commission suggests increasing the financial support through an improved policy of rural
development. Due to the fact that an immediate introduction amounting up to 100% of
direct payments will block the existent structures and will slow the modernization, the
Commission has favoured a gradual introduction of direct payments for a transition period
of ten years: for 2004, 2005, 2006 granting direct payments in proportion of 25, 30 and
35%, reaching the level of 100% in 2013. According to this proposal, this aid could be
supplemented with national funds. New member states will have immediate and complete
access to the market actions of the Common Agricultural Policy, like the intervention on
cereals. In order to ensure the simplicity and proper control, starting from day one, the
Commission has proposed an optional simplified system of direct payments for the first
three years, with eventual prolongation additionally for two years. According to this
proposal, direct aids could be supplemented with national funds. New member states will
have the opportunity to grant direct payments like a calculated payment independently of
production, given depending on the number of hectares.
The enlargement of the European Union implied a historical change for the Community
in politic, geographic and economic terms, continuously consolidating the politic and
economic interdependence between the EU and Moldova. The enlargement offers both
the opportunity to develop a relationship of continuous affiliation, to amplify significantly the
effects of economic integration and to deepen the political cooperation.
The Action Plan EU-RM is a political document that establishes the strategic
objectives of cooperation between Moldova and the EU. The implementation will contribute
to the accomplishment of the provisions stipulated in the Partnership and Cooperation
Agreement (PCA) and will enhance and support the objective of the R. of Moldova
concerning the further integration in the economic and social European structures. The
implementation of the Action Plan will foster significantly the adjustment of Moldova's
legislation, norms and standards to those of the European Union.
218
Together with the implementation of this plan, for the Republic of Moldova there
appear new partnership perspectives, namely:
The perspective of transition from cooperation to a more important stage of
integration, including through the access on the internal market of the EU and the
opportunity of a progressive participation at the key-aspects of its policies and programs;
The opportunity for the convergence of economic legislation, the mutual opening of
economies and the continuous reduction of trade barriers, which will enhance investments
and economic growth;
The increased financial support: the financial assistance of the EU to Moldova will be
available so as to sustain the identified actions in the above mentioned document;
Deepening trade and economic relations
- Ensuring the implementation of International Monetary Fund recommendations (IMF) and
the Programme of Financial Sector Assessment (PFSA).
- The optimization of a legislative framework of supervision for the financial markets in
accordance with the existent one of the EU;
- Setting-up and training the personnel of supervising authorities in the financial sector;
- The development of insurance market etc.

CONCLUSIONS

For the following period, in order to increase the volume, and as well the efficiency of
usage of funds intended for the development of private sector, the following measures are
required:
increasing institutional building-capacity, so as to ensure the interface in this field
between the Government of the Republic of Moldova and international institutions as well
as with the competent national institutions;
building in the territory the structures of competent ministry and the guarantee
funds created with funds from the state budget, which will result in a focus on the sector
problems, also ensuring the decentralization;
elaborating a procedure required by the legislative framework that will regulate
the cooperation between the involved institutions at national and territorial level;
elaborating monitoring procedures at territorial and national level regarding the
volume of funds used and the effects, especially concerning the fiscal facilities provided by
the state;
applying several procedures that will ensure the transparency of the selection
process of the projects beneficiaries and the access to information by the agents from the
small business in agriculture;
elaborating financing schemes differentiated by the solicitor's field of activity, as
well as by the type of enterprise;
ensuring competent monitoring in order to prevent, narrow and punish the illegal
acts and actions in the rolling of funds, not taking into consideration the persons involved.
Eligible measures of rural development, financed by the European Union in proportion
of maximum 80% are:
- early retirement of agriculturist;
- aids intended for the underprivileged areas or areas in which there are environmental
strictions;
- programs of ecological agriculture;
- foresting of agricultural plots;
- specific measures intended for individual agricultural producers;
- creating producer groups;
- technical assistance.
219
The reforms proposed in the Agenda of the European Commission explain the
implementation of a viable model for the European agriculture. The reduction of
administrated prices and the increase of direct payments will favour the European farmer
stimulating the consumption on the stagnant European markets, creating opportunities for
the competition on international markets that is quite promising, without taking additional
export subsidies. The policy of rural development, that represents the second foundation
pillar of the CAP, contributes to the direct remuneration of farmers for the services they
provide for the society, like the protection of environment and rural patrimony, which also
constitutes an important source for new labour places and regional culture.

BIBLIOGRAPHY

1. COBZARI L. Aspecte de finanare a ntreprinderii micului business Conferina internaional,
Chiinu 2004, p. 64
2. GUDM A. R Moldova i UE ca parteneri, TACIS, Chiinu, 2002, p.59
3. Resurse financiare pentru dezvoltarea micului business n Moldova, Observator Economic,1999, nr.3
4. OU A. Dezvoltarea micului business n Republica Moldova, Tez pentru conferirea titlului de doctor n
tiine economice, Chiinu 1998
5. www.business-suport-fund.md

220
ELEMENT ANALYSIS OF THE BREAD GRAINS CHANNEL

FRONE F., CONSTANTIN M., CHIHAIA ANIOARA, PANAIT R., FRONE
SIMONA

UNIVERSITY OF AGRICULTURAL SCIENCES AND VETERINARY MEDICINE
BUCHAREST

Abstract

A good understanding of the bread grains channel flow and structure first involves knowledge of
some elements of the bread grains range of products. Since this one is very miscellaneous and in a
continuous change, the bread grains chain has some particular features
1
: these are products acquired once
a year and may be easily preserved; bread grains are strategic products and an item of state stock; their
marketing may be done either as wholesale or in retail, depending on the stocking possibilities of the buyers;
bread grains are the most important agricultural products among the items of international trade.

Key words: bread grains channel, elasticity coefficients

INTRODUCTION
The agrifood channel is defined as whole of the activities developed and the
functions performed by the economic agents involved in the channel crossed by a product
or a group of products, starting from the agricultural producer towards the final consumer
2
.
Synthetically, the bread grains channel may be considered a long channel, since it
involves activities from the following main stages: agriculture, depositing, milling,
panification and marketing (involvement of the due professional associations).

MATERIAL AND METHOD
The method of analysis for channels requires, especially in the case of agricultural
and agrifood products, the knowledge of an investigation flow which may be analytically
structured according to the following steps:
Analysis of channel activities concerning the following forms of structures: markets,
dynamic and trends of consumption, major technological innovations etc.
Delimitation of the studied channel, as concerns: the structure of activities, products
and services; the length, width and depth of the channel; the geographical and temporal
delimitation etc. An important role has the channel defining through resources, final
product and technology.
Description of the channel, consisting in: identification and positioning of economic
agents; delimitation of functions and operations; identification of products; locating,
evaluation and measuring flows existing within the channel (monetary, goods and
services, information ).
Study of the channel functioning, as refers to the strategy of agents; the structure
and dynamic of markets; the adjustment and decision-making mechanisms; the
information circuits; the type of transactions and relations of power between the economic
agents existing within the; the process of innovation, dissemination and development of
technological progress ; the social, economic and political context.
Diagnosis and check up of the assumptions, consisting in explaining and
formulating an interpretation of the channel functioning, in the aim to determine levers for
possible and future actions. Through statistical methods (econometric modeling,

1
As according to Letitia Zahiu (editor), Agricultural policies and markets, Ceres Publishing, Bucharest, 2005
2
As according to Bublot, G and others, - Economie de la collete du lait, Revue de l'Agriculture, nr. 2/1991, Belgique
221
multifactor analysis, correlations) it may be determined the channel level, stability, linearity
(given by divergence, convergence, locks) and links between channels.

In this respect, the elasticity coefficients express sinthetically the form of influence
exerted by the agricultural production on the processed product. The products analysed
were integrated in the bread grains channel, in the dynamic period 2000-2005.

In table nr. 1 is presented the dynamic of the price of purchase of grain in Romania
and its influence on the total output of grain obtained in the 2000-2005 period.

Tab. Nr.1 The elasticity coefficient for the total output of grains obtained (y)
and the purchase price of grains (x)

Year
Total output of
grain
(thou. tons)
Y
Purchase
price of grain
(RON/kg)
X
Elasticity
coefficient with
fixed base
E
Elasticity
coefficient with
chain base
E
2000 4434.4 0.2540 0 0
2001 7735.1 0.3000 4.11 4.11
2002 4421.0 0.3001 - 0.01 - 1285.35
2003 2479.1 0.5100 - 0.43 - 0.62
2004 7812.4 0.5500 0.65 27.42
2005 7340.7 0.3600 0.01 - 0.003
Source of the processed data: Statistical Yearbook of Romania, I.N.S. 2006

Within this channel the following issues may be noticed:

- at the Elasticity coefficient with fixed base (year 2000), we find that in 2001,
the total grain production was influenced by the price of grain in the previous year 2000.
For the remaining years of the period under review, it cannot be claimed that the price of
grain had an influence on the total grain production;
- in the case of the Elasticity coefficient with chain base, there is an annual
fluctuation, as follows: the years 2001 and 2004, when there was a direct influence of the
price on the grain production; the years 2002-2003 and 2005, when the price had a weak,
indirect influence.

Synthetically we can show that the analysis of activities performed by the
intermediary is an imperative released firstly by the dissatisfaction of producers from the
agrifood sector.
Therefore, the structural analysis of the distribution activities developed becomes
necessary, to identify the structure and flow of these activities and to find out and assess
operations which may be conducted by economic agents, with the lowest costs.

222
Tab.nr. 2 - The elasticity coefficient for the output of processed flour (y)
and the purchase price of grains (x) within the channel

Year
Output of
processed flour
(in grain
equivalent)
(thou. tons)
(y)
Purchase price of
grain (RON/kg)
(x)
Elasticity
coefficient with
fixed base
E
Elasticity coefficient
with chain base
E
2000 2275 0.2540 0 0
2001 1382 0.3000 -2.17 -2.17
2002 1297 0.3001 -2.37 -184.52
2003 1603 0.5100 -0.29 0.34
2004 1828 0.5500 -0.17 1.79
2005 1742 0.3600 -0.56 0.14

The analysis of the bread grains channel for the 2000-2005 period in Romania
suggested that the output of processed flour (y) was influenced by the purchase price of
grain (x), according to the outcomes of elasticity coefficients rendered in table nr. 2.
The outcome analysis may be conveyed as follows:
- with the exception of the year 2000, the quantity of processed flour (in grain equivalent) is
growing, from 1382 thousands tons in 2001 to an amount of 1742 thousands tons in 2005.
During the same period, the purchase price of grain recorded an increase in 2000-2004
and a sudden decrease in 2005;
-the elasticity coefficient with fixed base (year 2000) recorded only negative figures,
namely a reverse elasticity. Also, the increase/decrease of the purchase price of grain had
a reverse influence on the output of processed flour
- the case of the elasticity coefficient with chain base: in the years 2001-2002, through the
negative figures, a strong reverse elasticity is displayed (the price of purchased grain
increases while the output of flour decreases); in 2004, the positive figure means a direct
elasticity (the increase in the price also induces the increase of the processed flour
output); the years 2003 and 2005 are marked by the lack of elasticity (the output of
processed flour is no longer influenced by the price of the grain purchased).

Tab. nr.3 - The elasticity coefficient for the output of processed flour (y) and the total
output of grain (x)
Years
Output of
processed flour
(in grain
equivalent)
(thou. tons)
Y
Total output of
grain obtained
(thou. tons)
X
Elasticity
coefficient with
fixed base
E
Elasticity
coefficient with
chain base
E
2000 2275 4434.4 0 0
2001 1382 7735.1 - 0.52 - 0.52
2002 1297 4421.0 142.26 0.14
2003 1306 2479.1 0.96 - 0.01
2004 1828 7812.4 - 0.25 0.18
2005 1742 7340.7 - 0.35 0.77
The case of the influence of the total output of grain obtained (x) on the output of
processed flour (y), leads to the elasticity coefficients with fixed base (year 2000) and with
chain base (previous year) rendered in table nr. 3, conveying the following issues:
223
- in the case of the elasticity coefficient with fixed base (E), the situations are
miscellaneous with regard to the form of dependence, considering as base situation that of
year 2000. Thus: only in 2002 it may be stated that the output of processed flour was
significantly influenced by the total output of grain obtained: in the remaining years, the
positive and negative sub-unitary figures mean an indifference of the output of processed
flour towards the total output of grain (amounts range between -0.52 and 0.96);
- in the case of the elasticity coefficient with chain base (E), in most years of the period
under review 2000-2005, the total output of grain does not influence the output of
processed flour (amounts range between 0.14 and 0.77). In 2001, due to the fact that the
output of grain is much bigger than the output of processed flour-decreasing, the amount
conveyed was negative (-0.52). All these facts suggest that in the period under review, the
total output of grain is enough to supply the demands for processed flour.

CONCLUSIONS
The support granted by the state complete the relations existing on the flow of
bread grains and their derivatives.
We can draw the conclusion that the bread grains channel running together with the
dynamic of the correlated agricultural sector are more and more dependent of the large
distribution. They are submitted to the markets requirements and trends of change and
are covered by strategic actions, successively directed towards the producer, through
various points of the channel.

REFERENCES

- Bblot, G., .a. - Economie de la collete du lait, Revue de l'Agriculture, nr. 2/1991, Belgique
- Constantin,M., - Tratat, Marketingul produciei agroalimentare, 2007, www.managusamv.ro
- Zahiu Letiia, coordonator - Politici i piee agricole, Ed. Ceres, Bucureti, 2005
* * * Analiza Piaa produselor de morrit i panificaie, InterBiz, Group, ANAMOB, Bucureti, 2004
* * * Lanul agroalimentar din Romnia: n drum spre aderare, MAPAM, Bucureti, 2003

224
STRATEGIES OF DEVELOPMENT AND PROMOTION OF THE REPUBLIC
OF MOLDOVA IMAGE

STRATEGII DE DEZVOLTARE I PROMOVARE A IMAGINII REPUBLICII
MOLDOVA

GANGAN SVETLANA

State Agrarian University of Moldova

Abstract

The image occupies a special place abreast of the consumer behavior dimensions. It is the result of
the way of how the consumer perceives the products, the brands, the organizations, the countries. The
general image is not a totality, but it is the synthesis of the image, of the product, of the brand, of the
enterprise, of the country. An image is formed progressively, during the years, from the mass media
information, advertising, from the comments of the enterprise/organization personnel as well as from the
satisfaction obtained as a result of the products utilization and the opinion about them.

Key words: strategies, promotion, image

The image occupies a special place abreast of the consumer behavior
dimensions. It is the result of the way of how the consumer perceives the products,
the brands, the organizations, the countries. The general image is not a totality, but
it is the synthesis of the images, of the product, of the brand, of the enterprise, of
the country. All this components of the general image have tangents and however
they are different as differ the terms of product, brand, enterprise, and country.
The specialists in advertising understood long ago the determinant role of the image
at the commercial level; according the general opinion this permits an increasing of the
commercial effectiveness and of business in general, acting as much as on the supply and
demand of the products and services
An image is formed progressively, during the years, from the mass media
information, advertising, from the comments of the enterprise/organization personnel as
well as from the satisfaction obtained as a result of the products utilization and the opinion
about them.
In such way the image has a character indispensable subjective and psychological.
The market studies attest that very often those who are devoted to certain products or
services they can not distinguish them from other similar ones, as a rule, they smoke or
drink an image. In this way they prefer an insurance society instead of other, a TV set
instead of other, a car instead of other and so on. So the factor of image can be essential
in the determination of the demand of services, products etc. This fact justifies the actions
of the public relations for the image management and promotion. The fight between the
image of the organization, offered products and services is as important as is their quality.
The images are those what buy the entrepreneurs that extend their firms. For the
enterprise owners the images are more valuable than the tangible elements, as there are
for example the factories.
By the analogy with the other states of East Europe the transition process to the
market economy in the Republic of Moldova is different from the general models of
transition. The process is achieved from the total centralized directing of the economy to
the domination of the market mechanism. This mechanism supposes that the competition
will always favor the most competitive one and will disadvantage or eliminate those that
dont adapt to the market requirements. It must be mentioned the fact that the Republic of
Moldova has a little economic market and depends in a large measure on the import of the
225
raw material and energetic resources that means that it is depended on the extern sector.
More than that, if we analyze the payment balance than we can observe that beginning
with 1991 its balance is adverse. Although in 2005 the size of balance adverse reduced
unessential the covering degree of the imports with the exports was 47.5%.
The Republic of Moldova principal partners in the foreign trade remain to be the
countries of CSI. The principal countries are Russia, Ukraine, and Belarus. As regard to
the traditional markets of CSI, Moldova is very well known but it is constrained by the West
producers. Their products quality is not always higher than our products but their image
and reputation permitted them to gain about 70% of the eastern market. Starting from
these conditions the object of the commercial policy of the Republic of Moldova is the
formation of an upright image and its promotion at the world level. The principal directions
of consolidation of the Republic of Moldova image are:
The definition of an ample conception of the development of economic relations and
international commercial and the creation of an adequate institutional-legislative organ.
For the Republic of Moldova it is necessary to promote a perfectionist policy directed to the
orientation of the imports to protect the national resources of the economy reorganization
of the development of the services and the stimulation of the producers in the sense of
export intensification and its effectiveness. We export a large quantity of raw material,
when a lot of autochthonous enterprises are stationed. As a result of these transactions
increase the unemployment, the local population poverty, a minority of businessmen grow
rich that dont invest the profits in the Republic of Moldova economy in its reorganization
and modernization.
The regaining of the traditional sales market and the gaining of the new markets
especially in the European markets, according the priority to the countries of the Black Sea
area, and between them the neighbor countries: Romania, Ukraine.
The realization of an offer for the export with a pronounced national specific.
Taking into account the favorable conditions for the development of the agriculture, the
priority must be accorded to export of the wine, juices, and preserves the finite
production but not of the cheap raw material. For the Republic of Moldova it is possible the
export of the centrifugal pump, of refrigerators, washing machines, ethereal oils, of
furniture. The services sector distinguishes itself in the transports assurance for all
interested countries in the transition of our territory and in the development of the
international tourism.
The assurance of a favorable structure of an offer for the export depends more and
more on the selection and revaluation of the autochthonous primary economic resources
abundant for us and in the same time relatively scarce for the partner countries. So it is
necessary to produce what can be exported relying on the knowledge of the foreign
partner demand. For this purpose are very important the close researches of the
international market so as our chances of success to be higher and the risks - lower.
The substantial improvement of the products quality, as our products to be produced at
the world standards level and to be competitive on the foreign market.
If we tend to a modern market economy and a favorable integration of the Republic
of Moldova in the European and World economy, a radical modification of our behavior
concerning the quality is imposed. Given the inherited situation from the Soviet
government we should carry out a true revolution in the Moldovas economy.
What can be done when the produces of the Republic of Moldova are equal or
superior of those of the competitors but their origin estrange the clients?
1. The solution could be the coo production with a foreign firms that beneficiate of a
good rename. For example, in the Northern Korea are produced leather cloths of a very
good quality that are finished in Italy. In the case of the Republic of Moldova in the
framework of the industry of machine construction, we can assemble a variety of electric
226
devices and machines even the computers designed by famous firm like: Samsung, Bosh,
Whirlpool, Renault, BMW, IBM, and so on.
2. Another strategy that would be applied is the one of creation of the national symbol
that could be recognized wherever in the world like as: Eiffel Tower for France, kangaroo
for Australia, the Liberty statue for USA, the queen for England, and so on.
For the Republic of Moldova can be elaborated a symbol that would be easily
recognized wherever. As a symbol we can utilize: the map of the republic that is alike a
bunch of grapes, a stork, a country house surrounded by greenness, an apple or other
graphic figures.
Another strategy should be the image promotion through the cultural measure: the
institution of some festivals, national manifestations that would be ample mediated. Such
holidays were organized in the Republic of Moldova like the wine festival, the beer festival,
etc., but their organization has a lot of gaps and needs supplementary efforts both human
and financial. It would be good if in the countries where the Moldavians constitute
minorities these holidays take place. The active participation of the Republic of Moldova to
different markets, exhibitions, national holidays of other countries with the intense
utilization of the promotional means with Moldavian logos (briquettes, pens, pennons,
calendars leaflets) would do our country more recognized;
3. Another strategy can be the creation of some radio station and international
television. At this chapter Moldova is situated in a very difficult position not only because it
has not an international station but the internal, the national one has minimum audience
and needs a profound reorganization. A product can gain the foreign markets easier when
it is firstly appreciated in the native country. Thats why the elaboration of some programs
at the national level which would maintain the national product would contribute at their
high evaluation and in the exported countries.
I described only some of the strategies that from my point of view can lead to the
easier recognition of our products and respectively of our country and that will have
repercussions on our integrity in the European and World structure and on the population
prosperity.

BIBLIOGRAFY

1. Lescu M. The country image in mass media //Moldova and the World, 2005, Nr.2
2. A sight on the Republic of Moldova industry. PRO BUSINESS, 2006

227
ATTITUDES TOWARDS SMOKING, DRINKING, AND DRUG USE IN
FIRST-YEAR STUDENTS AT THE FACULTY OF MANAGEMENT,
ECONOMIC ENGINEERING, AND RURAL DEVELOPMENT IN USAMV
UNIVERSITY

ATITUDINILE FATA DE FUMAT, EXCESUL DE ALCOOL SI CONSUMUL
DE DROGURI CERCETARE ASUPRA STUDENTILOR DIN ANUL I,
FACULTATEA DE MANAGEMENT, INGINERIE ECONOMICA IN
AGRICULTURA SI DEZVOLTARE RURALA, USAMV BUCURESTI

IORGA ADINA, TAPU C.

BUCHAREST

Abstract

This paper presents a research aimed at investigating the attitudes towards a series of dangerous
habits among students of the first year at the Faculty of Management, Economic Engineering, and Rural
Development in USAMV University (smoking, alcohol and drug consumption).
The results show a coherent attitude of the students towards these habits, the majority of the
students rejecting them, though some of them do smoke.
Female students are more prudent in fixing the goals of their behavior, though they are more
persistent and trustful in their capacities of success.
This fact holds important implications in differentiating the educational process with male and female
students: while we must induce the desire to achieve higher goals in female students, we also have to foster
self-trust in male students. We believe that this research should be extended to include other behaviors
pertaining to the students lifestyle and learning style, in order to better know their personality, and create
programs of performance enhancement and vocational guidance.

Keywords: attitudes, smoking, drinking, drug use, students, education

INTRODUCTION

The importance of this research consists in the fact that knowing students attitudes is
crucial to a normal educational process. The fact that smoking is a habit with great
spreading among students, being granted with false calming virtues and stimulating
properties in the area of cognitive processes. In effect, the arousal that smoking produces
has only the effect of prematurely consume the capacity of concentration, the positive
effect being a false one. By becoming aware of their attitudes toward smoking, the
students become able to create a project of personal change, base upon both personal
intentions, and educational expectations. Also, clarifying attitudes towards other
dangerous substances (alcohol, drugs) is very important for avoiding such addictive
behaviors, of which negative impact on educational process would be difficult to assess.
The goal of this research is to assess the attitudes of students towards addictive
behaviors, in order to positively modify the behavior, in a sense that would further the
individuals personal, educational and professional becoming.

MATERIAL AND METHOD

228
Smoking, alcohol, and drug abuse questionnaire has been applied to 90 students of
USAMV Bucharest, Faculty of Management, Economic Engineering, and Rural
Development, graduating in Agro-tourism and Economic Engineering. These students are
following the Psycho-pedagogic Module. The questionnaire was centered on the following
aspects:
Opinions of students on people who smoke, drink excessively, or take drugs;
Knowledge about people who smoke, drink excessively, or take drugs;
The reaction towards such behaviors displayed in the vicinity of students;
Prevalence of smoking and excessive drinking among students;
Number of cigarettes smoked daily;
The wish to quit smoking;
Perception of the desire to quit smoking, in smokers;
Perception of the desire to quit smoking, in non-smokers;
Perception of ability to quit smoking, in smokers;
Perception of the ability to quit smoking, in non-smokers;
Perception of the desire to quit drinking, should they drink too much;
Perception of the desire to quit drugs, should they take drugs;
Perception of the ability to quit drugs, should they take drugs;
Frequency of alcohol consumption;
Demographic indicators: age, gender, residence
The research is exploratory, and its results are partial. They are to be verified by
subsequent research.


About smoking:
- The opinion on smoking persons is bad in 48.9 percent of cases and very bad in
33.3 percent. A good, and very good opinion have 16.6 percent of respondents.
- Respondents declared in 90 percent of cases that know people that do smoke
- About others smoking in their presence, 66.7 declared that this fact bothers them,
while 32.2 declared that they are not bothered.
- 72.2 percent of the subjects do not smoke
- About the number of cigarettes: 13.3 percent smoke under ten a day, 12.2 percent
between 10 and 20 a day, and 1.1 percent over 20 a day.
- Among smokers, 71.1 percent do not want to abandon that habit, 23.3 would quit
smoking, and 5.6 percent are positive about continuing to smoke.
About the ability of quitting smoking, 71.1 percent do not have a clear image about the
capacity of quitting smoking, 25.6 percent think that they are able, and 3.3 think that they
are not able.
Non-smokers in proportion of 66.7 percent think that they would want to quit, should they
be smokers, and 3.3 percent think they would not. 28.9 percent did not respond to this
question, which could be interpreted as lack of sincerity about them being non-smokers.
Non-smokers think that they would be able to quit, should they be smokers, in proportion
of 64.4 percent, and 3.3 percent think they would not. 28.9 percent did not respond to this
question, which also could be interpreted as lack of sincerity about them being non-
smokers. Figure 1 shows opinion on smoking by age.

Figure 1: Opinion towards smoking correlated with age
229

About alcohol:
- The opinion about persons which drink excessively is very bad in proportion of 66.7
percent and bad in proportion of 26.7 percent. A good and a very good opinion have 6.7
percent of respondents. This is as a result of a lesser tolerance of alcohol abuse than of
smoking.
- 76.7 percent of respondents declared that they are not knowing people that drink
too much
- 80 percent are bothered by alcohol abuse around them. This shows the low degree
of tolerance of alcohol abuse.
- 68.9 percent of respondents are drinking occasionally, 14.4 percent never, 11.1
percent on a weekly basis, 3.3 daily then latter are potentially alcohol addicts.
- 92.2 percent declare that, if addicted to alcohol, would want to quit the habit, and
6.7 percent state that they would not.
85.6 percent state that if addicted to alcohol, they would be able to quit, and 13.3 percent
state that they could not.
About drugs:
Very bad opinion was found in 83.3 percent, and bad, in 11.1 percent. 4.4 percent have a
good opinion.
- Those with a good opinion are predisposed to addiction, or they have tried.
- 30 percent declared that they know people who consume drugs.
- About drug consumption in their presence, 81.1 percent declared that this bothers
them, whereas 17.8 percent are not bothered. The high percent, of 17.8 percent who
declare that they are not bothered in their presence shows a relatively high tolerance of
drugs, taking into account the high risk represented by drug consumption. The solution to
this is conducting an educational campaign.
- 91.1 percent say that if on drugs, they would want to quit
- 86.7 percent say that if on drugs, they would be able to quit.
70 percent of the respondents are female.
66.7 percent of respondents are born and raised in urban environment.

Significant correlations:
-Attitude towards smokers-degree of bothering produced by smokers (negative
correlation);
-Attitude towards smokers-presence of smoking;
-Degree of bothering produced by smokers- presence of smoking;
The three correlations above show a high attitudinal consistency amongst students.
0
5
10
15
20
25
30
35

V GOOD GOOD BAD FT.
V BAD
UNDER 18
18-20
>20
230
Bothering produced by smokers desire to quit by non-smokers, should they smoke the
more non-smokers are bothered by smokers, the more they think that they would want to
quit, should they smoke.

Number of cigarettes smoked wish to quit the more they smoke, the more they wish to
quit.Number of cigarettes smoked wish to quit alcohol should they drink too much
(negative correlation). The more they smoke, the less they think they would quit alcohol,
should they drink too much.Presence of smoking attitude towards drugs (negative
correlation) those who smoke are more tolerant towards drug use
Wish to quit smoking, should they smoke ability to quit smoking by non-smokers. This
positive correlation shows a consistency in projected attitudes: those who would want to
quit should they smoke generally believe that they would be able to quit.
Knowing people who drink too much- frequency of consumption (negative correlation) - the
more they drink, the less they do this alone, and not with others.

Gender degree of bothering by alcoholics (negative correlation) women are more
bothered by alcoholics than men.
Projected wish to abandon drugs- wish to abandon smoking (negative correlation)- the
more smokers wish to quit smoking, the less they think they would be able to quit drugs,
should they use.
Age does not positively correlate with the pattern of alcohol consumption.
Gender correlates negatively with projected wish to quit alcohol and positively with
projected ability to quit. This means that men would want more badly to quit alcohol than
women would, but women are more confident than men that they would be able to do it.
Residence environment does not correlate significantly with other variables, which means
that differences between urban and rural environments in terms of attitudes are
diminishing.

Following a two-step cluster analysis, two clusters resulted, having the following
configuration:
Cluster 1: positive attitude towards smoking, number of cigarettes smoked, knowing
persons who use drugs, opinion on drug use, lack of bothering by drug addicts, gender:
male
Cluster 2: tolerant attitude towards smoking, knowing people who smoke, number of
cigarettes smoked, opinion on alcohol abuse, knowing people who abuse alcohol, not
knowing people who use drugs, very negative opinion on drug use, bothering by drug use,
age under 20, gender: female, residence environment: rural.
The first cluster displays the profile of male students: positive attitude towards smoking,
declaring to a lesser degree that they smoke, who know people who take drugs, and are
not bothered by them. The fact that they are not bothered shows a vulnerability to this
behavior.The great difference between the declared number of cigarettes smoked a day
between the two genders could lead us to the conclusion that male students are less
sincere about admitting that they do smoke. Ignoring alcohol consumption can indicate
that male students are familiar with this habit, whether they are practicing it, or they assist
to it the traditional model of masculinity.The second cluster shows the profile of female
students: tolerant attitude towards smoking, knowing people who smoke, excessive or
absent use of cigarettes, divided attitude whether tolerant, or total rejection of alcohol
use, they are not able to clearly assess what excessive use of alcohol means, not knowing
people who take drugs, unfavorable opinion on drug use, bothered by drug use, age over
20, rural environment.
The division in two groups: non-smokers, and excessive smokers. These extreme attitudes
can be explained in the second group by a spirit of showing off, imitating a traditionally
231
male behavior. There is also a possibility that female non-smokers have a bad opinion on
alcohol use, and female smokers - a good opinion.
Taking into account the greater number of students from rural environment, we could
assume that they have a more traditionally-oriented education: they do not smoke, and
have a negative attitude on alcohol use. We could also assume that the females in urban
environment are smokers to a greater degree, and have a generally positive attitude
towards alcohol use, due to a greater degree of emancipation.
The older they are, the more negative is the female opinion on drug use, even if they do
not know much about this behavior.

CONCLUSIONS

1. The presence of smoking increases the degree of tolerance of individuals towards
use of other substances (alcohol, drugs). That is why fighting smoking in students has a
preventive role, stopping other addictions, to which they are more predisposed to.
2. Men would want to a grater degree than women to quit alcohol, should they use it
excessively, but women think to a greater degree that they would be able to do it.
On a more general note, this means that female students are more prudent in fixing their
goals, evaluating more realistically and more carefully the relation between desire and
possibility, but when they fix a goal, they are more optimistic about their ability to succeed,
than male students are.
3. Excessive alcohol consumption makes people more lonely the more they
consume, the more they do this alone, and not in groups. On the other hand, excessive
consumption has a negative, dissocializing, and alienating effect. Thus, education has an
extremely important role in changing the attitudes on alcohol consumption. To this
education are responsible professors, especially those specializing in social and
humanistic sciences. Students must become aware that there is an important difference
between consuming alcohol with moderation, and abusing it the two notions being
confused frequently.
4. The data of this research provide information not only about concrete attitudes towards
substance abuse, but also about more general traits of students personalities. Thus, the
strong correlation between attitudes on real and projected behaviors indicates a high
coherence of behaviors and attitudes of students, which is an encouraging signal about
their capacity to succeed socially and professionally. Also, differences between males and
females regarding attitudes and decision making are not to be overseen.
Female students are more prudent in fixing their goals, of their behavior, though they are
more persistent and trustful in their capacities of success.
This fact holds important implications in differentiating the educational process with male
and female students: while we must induce the desire to achieve higher goals in female
students, we also have to foster self-trust in male students.
5. We believe that this research should be extended to include other behaviors
pertaining to the students lifestyle and learning style, in order to better know their
personality, and create programs of performance enhancement and vocational guidance.

BIBLIOGRAPHY

FERREOL G Adolescentii si drogurile, Editura Polirom, Iasi, 2001
IACOB, L. Psihologie scolara, Ed. Polirom, Iasi, 1998
KAPLAN, H, SADOCK, B. Comprehensive textbook of psychiatry, Lippincott, Williams, Wilkins, New York,
2001
PRELIPCEANU, D, MIHAILESCU, R., THEODORESCU, R. (EDITORS)- Tratat de sanatate mintala, Editura
Enciclopedica, Bucuresti, 2000

232
WORLD POTENTIALS TO SUSTAINABLE AGRICULTURE

POTENTIALITATI ALE AGRICULTURII DURABILE LA NIVEL MONDIAL

ISBASESCU T.

DEVELOPMENT

Abstract

The agri-food business sector, farmers, NGOs and governments share many common interests.
Increased dialogue and cooperation between relevant stakeholder groups is required to identify and promote
opportunities for joint initiatives and partnerships in support of sustainable agriculture.

Key words: agriculture, sustainability, methods, management, food

The agriculture and food business sectors cooperate with farmers and other
stakeholders, including governments and NGOs, to develop appropriate technologies that
are needed to feed the growing world population. They also provide the support required
to put the technology in place throughout the food chain, and to ensure that the consumer
is offered healthy foodstuffs.
The private sector also takes on a considerable amount of the responsibility for
ensuring that farmers get the information they require to optimize the yield potential of their
crops and livestock and to protect them from pests and diseases in the most
environmentally and socially acceptable manner.
Protecting agricultural and natural resources
The farm support industries recognize that the maintenance of agricultural
resources is a global imperative. It is more favorable to the environment and less
demanding on resources worldwide to increase productivity on existing land rather than
expanding into marginal areas. Fertilizers, crop protection products and enhanced plants
allow farmers to increase production per unit area. Fragile ecosystems can be protected
and natural habitats preserved, therefore contributing to the maintenance of biodiversity.
The challenge lies in using all the knowledge, experience and technologies
available to achieve the most sustainable methods of production. For example, the
integration of organic and mineral sources of plant nutrients, the adoption of suitable
animal husbandry techniques, adapted plant varieties and integrated pest management
systems are some of the components of the modern approach to sustainable agriculture.
Choice of production methods
Sustainable methods vary, as they have to be adapted and implemented according
to the needs of the local conditions, markets, consumer demands and other factors.
Integrated farming systems, for example, which employ a mixture of modern and
traditional methods and maintain a basic standard of best agricultural practices, are
increasingly demonstrated to offer the greatest potential to achieve the goals of
sustainability: productivity, efficiency and economy, while providing the social and
environmental benefits sought by society. Although organic farming methods may be
appropriate in certain markets to satisfy particular consumer preferences and tastes, the
system is unlikely to be the preferred option for most farmers, because of its limited ability
to produce sufficient affordable food for the majority of the worlds population.
Furthermore, many developing countries face specific challenges and priorities
related to food security, such as soil fertility and water management, access to markets,
lack of infrastructure and credit, limiting farmers production choices. Governments should
233
take an active interest in removing such constraints since agricultural development is often
a catalyst or engine for subsequent expansion of other sectors of the economy.
Agricultural transformation generally entails greater crop specialization, production
of marketable surpluses through use of purchased inputs (fertilizer, improved seeds, crop
protection products), and greater reliance on the market for consumption needs. Changes
in the farm sector have a direct impact on other actors who provide production inputs and
services (upstream) and output marketing and processing (downstream).
Risk and uncertainty remain major constraints to the adoption of improved
production technologies, and on agricultural transformation in general. Farmers,
particularly in developing countries, face production, market, financial, legal, institutional,
and human resource risks. Commercial farmers in industrialized countries, however,
generally have a range of options and institutions available for dealing with these risks:
market and weather information services, price supports, crop insurance, debt
restructuring, options and futures markets, production contracts, etc.
All agricultural production represents an intervention to the natural ecosystem in
order to provide food and fibre in a productive and cost-effective manner. To be
sustainable, production systems must prove their ability to maintain a certain level of
productivity without the threat of long-term damage or degradation to the environment or
resource base.
To grow healthy crops and animals, most farmers employ rotational systems that
include crops of at least two or three species, and often use several different varieties.
True monocultural systems are indeed rare, and one of the few most highly developed
mono-cultivated crops is paddy rice, which has been stable for hundreds and in some
cases thousands of years.
Integrated farming practices
Integrated management techniques are a fundamental component of responsible
farm management, including both crop and livestock husbandry, which provide the
conditions that create the economic stability and the diverse and healthy environments that
make sustainable agriculture a reality.
For example, in Integrated Crop Management (ICM), the emphasis is on preventing
rather than curing nutrient deficiencies, pest outbreaks or soil erosion. The farm support
industries therefore focus on working with farmers and other stakeholders to develop
technologies that increase in a sustainable way the productivity of their specific
production systems.
Pest management options that fit into the approach of Integrated Pest Management
(IPM) include biological, mechanical and chemical crop protection measures as well as
biotechnology. Modern pest management is based on prevention, careful monitoring of
crop health (pressure from disease, weed and pest populations) and expedient
interventions. Natural control processes through techniques such as crop rotation and
encouraging beneficial pest predators also help to avoid outbreaks. The R&D-based
crop protection industry is strongly committed to developing, promoting and implementing
IPM technologies and practices at all levels.
Applying integrated approaches to plant nutrition, which enhance soil productivity
through a balanced use of mineral fertilizers combined with organic sources of plant
nutrients, is detailed in an FAO document titled Guide to efficient plant nutrition
management. As crops are harvested, the nutrients taken up from the soil are removed
and if they are not replaced, this leads to soil nutrient mining, which gradually
impoverishes the land. Although the recycling of available organic material (plant and
animal residues) is a desirable feature of all farming systems, helping to retain moisture
and build soil structure, it is now fully recognized that recycling alone does not provide
adequate nutrient value for sustained, productive cropping.
234
The development of sustainable crop management procedures is an incremental
process. It can only take place as a result of the full engagement of farmers and their
supporters. The farm support industries therefore seek partnerships to foster the sharing of
knowledge and experience that will result in the worldwide implementation of integrated
farming practices.
Precision farming - a new agricultural revolution
Great efficiency gains can accrue by adopting input application techniques based
on more site specific information and appreciation of factors limiting crop development. As
crop growth varies considerably due to local conditions, it is clear that applying inputs
uniformly across large areas is not the right approach. Accurate field mapping with
information collected from soil samples, pest monitoring and harvest yield data allows
farmers to target the use of plant nutrients and crop protection products, leading to an
efficient and judicious use of these products.
Highly developed systems use computers installed in farm machinery such as
harvesters, fertilizer spreaders and crop sprayers, combined with mobile satellite Global
Positioning Systems, enabling farmers in some situations to spatially vary the rate at which
inputs are applied, thereby optimizing the growth potential of the crop based on accurate
determination of soil and crop needs.
Precision agriculture does not, of course, always require a highly sophisticated
technological approach. The principle remains that farmers in all situations can
significantly improve the precision of their management techniques by collecting and
analyzing information from soil and plant testing.
Modern biotechnology
Modern biotechnology is a new and important tool for the agri-food industry. It
facilitates the improvement of a broader range of attributes in plants and food products and
achieves this more rapidly and precisely than in the past. Industry sees biotechnology as
offering real potential to contribute to meeting the needs of an ever-growing world
population for affordable and wholesome foods produced in an environmentally
sustainable way.
Business organizations, grouped within the International Agri-Food Network (IAFN)
support rigorous testing and comprehensive regulatory systems, according to generally
accepted scientific principles, to ensure the safety of new products. In return, agri-food
businesses expect to be able to operate in a stable environment, regulated by a framework
of internationally agreed rules based upon recognized scientific and economic principles.
The implications of the use of modern biotechnology are global, so it is at this level that
discussion must take place and balanced and responsible policy responses found.
Consumers drive the market
Just as farmers are the pivot of the agri-food production chain, consumers are key
to what products are brought to market and how. Consumer demands naturally influence
the nature, quantity, quality and diversity of future products. Consumers should have
access to sufficient information to address their concerns and priorities about the products
they buy.
The need for sustainable agricultural intensification
As the global population surges towards 8 billion in 2030, experts agree that food
needs in developing countries will almost double, with most of the growth occurring among
urban populations. Most new lands brought under cultivation are marginal and ecologically
fragile and cannot substitute for the land removed by urbanization and land degradation.
Agriculture, which currently provides almost half of the worlds food from irrigated land and
accounts for 70 per cent of all water use, will increasingly be faced with a reallocation of
water for municipal and industrial use.
More food from existing land is the challenge, making agricultural intensification a
critical imperative. However, increasing population puts greater pressure on land use, and
235
the amount of arable land per person is shrinking. In addition, rural depopulation leaves
fewer farmers to meet the growing urban food demand. The worldwide average land area
for grain production is currently 0.12 hectares per capita; some countries already have as
low as 0.08 hectares, which in certain cases are projected to fall to less than 0.03 hectares
per capita by 2050.
Agriculture, including pasture lands, dominates about 37 percent of the worlds land
area. Croplands occupy approximately 1.4 billion hectares, and extensive grazing, fallows,
forestry and hunting-and-gathering utilize another 7.4 billion hectares. Collectively, these
constitute both an environmental influence and an essential human resource. Protecting
forests, watersheds, rangelands, and land prone to erosion, desertification and salinization
depends on the development of suitable agricultural practices.
Sustainable agricultural intensification is a global technological and political
challenge, requiring both innovative solutions and improved management techniques. The
following are some examples of the contributions led by the farm support industries:
- New drought-resistant crop varieties that will contribute to water conservation.
- New crop varieties that can be grown out of season or on previously unproductive
land, thus contributing to soil conservation. Some crops can be used to provide an
additional source of food and income and stabilize the land or act as a green manure that
improves the fertility and structure of the soil.
- Soil erosion by wind and water can be minimized through conservation or
minimum tillage systems, a technique that stabilizes topsoil, reduces energy consumption,
and enhances yield. In most cases herbicides are an important tool to implement this soil
management approach.

BIBLIOGRAPHY

UNITED NATIONS COMMISSION FOR SUSTAINABLE DEVELOPMENT, 8th Session, New York
http://ec.europa.eu/agriculture/rurdev/index_en.htm
CEEX Project No. 732/2006, Project Director URSU ANA, ICEADR

236
ESTIMATES OF PRODUCTION COSTS FOR MILKING COW FARMS FOR
2008 AND A COMPARATIVE ANALYSIS WITH 2007

ESTIMRI PRIVIND COSTURILE DE PRODUCIE LA EXPLOATAIILE
DE VACI DE LAPTE PENTRU 2008 I ANALIZA COMPARATIV CU 2007

IURCHEVICI LIDIA

DEVELOPMENT

Abstract

Production cost is calculated based on the assessed inputs involved in milk production. Fodder
expenses account for the highest weight of total expenses (over 60%), followed by biologic material
expenses and period costs. Establishing the best food ration is rather complex in milking cows, given the
wide productivity variation in each animal. For milk yields ranging between 10-35l /day, a basic ration is
recommended consisting of volume fodder, to which two or more types of concentrated fodder will be added
(maize, barley or proteic concentrates).

Key words: estimates, fodder, milk, farms

One of the priority directions of a scientific organization and co-ordination of milking
cow farm production is to reduce the effort invested for an increased production, at the
same time limiting production expenses, so that the economic effort both at farm and head
level to be the highest possible.
Agricultural research has a great contribution to the economic calculation, making
sure total expenses/product unit are accurately assessed.
Production cost for cow milk is established in order to estimate the efforts to obtain
this product, so that the price can be adjusted according to registered costs.
The system used to establish the prices must result in a balance between supply
and demand.
Production cost is calculated based on the assessed inputs involved in milk
production. In terms of value, it is known that milk production occupies the second place
after meat, therefore a harmonious relation is necessary between livestock production -
fodder supply.
High quality volume fodder supply is the restricting factor in milk production. At
present the quality of volume fodder is rather low and that results in 1.5 times higher
specific consumption per litre of milk.
Data in tables 1-3 show that fodder expenses account for the highest weight of the
production cost (over 60% of total expenses) followed by biologic material expenses and
period costs.
In 2008, fodder prices increased with over 100% due to the prolonged drought in
2007, while proteic fodder prices experienced a 200% rise (tables 2-4).
Following these price advances, estimates were made for cow milk production cost
in a farm with 50 head, in two variants 4000 and 6000 l /head.
These expenses are justified, taking into account the yield/head, so that for a 6000 l
production, expenses/head are almost 20% higher compared to a 4000 l production, and
expenses/litre are 20% lower. In 2008, both the production cost and the estimated
domestic market price are higher than in 2007, due to the changes in fodder, power, fuel
and interests.
237
To maintain a viable farm, a milking cow breeder needs a minimum 10% profit, so
that a purchase price of 1.5 lei/l was estimated for 2008, which means a 50% increase
from 2007.
Also, had the value of subsidies increased from 2007, the current situation would
have been much better.
Table 1
COW MILK BUDGET, 4000 l/head

Average production 4000 l/head
RON/2007 RON/2008 ITEM
per head per litre per head per litre
A. PRODUCTION VALUE 4387 1,097 6442 1,610
A1. Out of which main production 4000 1,000 6000 1,500
B SUBSIDIES 400 0,100 400 0,100
C(=) RAW PRODUCT 4787 1,197 6842 1,710
D(-)TOTAL EXPENSES 4286 1,071 5739 1,434
D1.Out of which main production 3899 0,975 5297 1,325
I.VARIABLE COSTS 3709 0,927 4839 1,210
1.Fodder expenses 2460 0,620 3400 0,850
2.Biologic material 700 0,180 700 0,180
3.Electric power and fuel 61 0,015 85 0,021
4.Medicines and sanitary material 65 0.016 108 0,027
5.Other materials + water 121 0,030 150 0,037
6.Supply quota 246 0,061 340 0,085
7.Insurance 56 0,014 56 0,014
II.PERIOD COSTS 576 0,144 900 0,225
-Manpower expenses 288 0,072 550 0,137
-General expenses 74 0,018 100 0,025
-Credit inerests 100 0,025 130 0,033
-Liquidation 114 0,029 120 0,030
E.( =)TAXABLE INCOME 101 0,025 703 0,175
(-) Taxes - - - -
F.(= )Net income + subsidy 501 0,125 1103 0,275
G.TAXABLE INCOME RATE (%) 2,6 2,6 13,27 13,27
H. NET INCOME RATE + subsidies
(%)
12,8 12,8 20,82 20,82
PRODUCTION COST 3899 0,975 5297 1,325
ESTIMATED DOMESTIC MARKET
PRICE
4000 1,000 6000 1,500

Table 2
TECHNOLOGIC ESTIMATE COW MILK
Average yield 4000 l/head
QUANTITY
U.M. /HEAD
Expenses
lei/head
ITEM
U.M.
Quantity
Price/um
2007
Price/um
2008
2007 2008
1.Fodder expenses - - - 2460 3400
Hay kg 1300 0,40 0,45 520 585
Green fodder kg 10800 0,07 0,09 756 972
238
Juicy fodder kg 5000 0,08 0,08 400 400
PVM concentrates kg 800 0,65 1,45 520 1160
Bran kg 500 0,4 0,45 200 225
Coarse fodder kg 600 0,08 0,09 48 54
Salt kg 40 0,4 0,10 16 4
2. Biologic material 700 700
3.Power + fuel

kw/l

61

85

4.Medicines and sanitary
material
65 108
5. Other materials and
water
121 150
6 Supply quota 246 340
7.Insurance 56 56
TOTAL VARIABLE
EXPENSES
3709 4839
8.Manpower expenses 288 550
9.General expenses 74,19 100
10.Credit interests 100 130
11. Liquidation 114 120
TOTAL PERIOD COSTS 576 900
TOTAL EXPENSES 4286 5739

Table 3
COW MILK BUDGET, 6000 l/head

Average production 6000 l/head
per head per litre per head per litre
B SUBSIDIES 400 0,066 400 0,066
C(=) RAW PRODUCT 6787 1,131 9842 1,640
D(-)TOTAL EXPENSES 4670 0,778 6812 1,135
I.VARIABLE COSTS 4076 0,679 5826 0,971
1.Fodder expenses 2780 0,463 4142 0,690
4.Medicines and sanitary material 65 0,010 210 0,035
6.Supply quota 278 0,046 278 0,046
7.Insurance 56 0,009 56 0,009
II.PERIOD COSTS 594 0,099 986 0,164
-Credit inerests 110 0,018 150 0,025
-Liquidation 114 0,019 120 0,020
E.( =)TAXABLE INCOME 1717 0,286 2630 0,438
239
(-) Taxes - - - -
G.TAXABLE INCOME RATE (%) 40 40 41,3 41,3
(%)
49 49 47,5 47,5
PRODUCTION COST 4283 0,713 6370 1,061
PRICE
6000 1,000 9000 1,500

Table 4
TECHNOLOGIC ESTIMATE COW MILK
Average yield 6000 l/head
QUANTITY
U.M. /HEAD
Expenses
lei/head
ITEM
U.M.
Quantity
Price/um
2007
Price/um
2008
2007 2008
1.Fodder expenses - - - 2780 4142
Hay kg 1600 0,40 0,45 640 720
Green fodder kg 10800 0,07 0,09 756 972
Juicy fodder kg 4200 0,08 0,08 336 336
Bran kg 500 0,4 0,45 200 225
Salt kg 40 0,08 0,10 3,0 4
3.Power + fuel

kw/l

76

104

material
65 210
water
121 200
7.Insurance 56 56
TOTAL VARIABLE
EXPENSES
4076 5826
9.General expenses 82 116

240

TECHNICAL - ECONOMIC AND COMPARATIVE ANALYSIS OF
PRODUCTION COSTS AND SELLING PRICES OF
YOUNG CATTLE BEEF

ANALIZA TEHNICO - ECONOMIC I COMPARATIV A COSTULUI DE
PRODUCIE I A PREULUI DE VALORIFICARE LA CARNEA DE
TINERET TAURIN

LEPDATU CLAUDIA

DEVELOPMENT

Abstract

The significant increase in the costs of young cattle beef following input growth, especially fodder
price increase. Production results in young beef cattle depend firstly on the ration structure, on the volume
fodder/concentrated fodder ratio respectively. Rations must ensure the energy and protein requirements of
the animals, in correlation with their productivity.

Key words: young cattle, beef, cost, price

The main objective is to make a technical-economic substantiation of the
technological estimates and the incomes/expenses budget for young cattle beef in 2008
and the comparative analysis with 2007.
Production results of young beef cattle depend firstly on the ration structure, on the
volume fodder/concentrated fodder ratio respectively.
Within this context, a best structured ration should be found, so that both production
and economic efficiency reach satisfactory levels.
Under the new circumstances of beef capitalization, principles and practices from
our traditional experience should be reconsidered. Even for domestic consumption, beef
should be supplied by about 12-14 month old steers, with a minimum body weight of 400
kg, coming from beef or mixed breeds, with obvious qualities for meat production.
Animals should be registered in accounts thoroughly kept by cattle breeders
associations, so that farm-consumer traceability is ensured.
Rations should firstly provide the animals the necessary energy and protein supply,
in correlation with their productivity.
As for the nutritive value of the fodder included in the ration, special attention should
be paid to the proper balance between energy and nitrogenous matters.
Conversion of fodder into animal products depends on animals capacity of using
the nutrients and on fodder type, as well as on the combination of the latter in balanced
rations.
Lately, ration composition is meant not only to render efficient the syntheses in
animal body, but also to obtain the products by preserving soil-plant-animal-food
ecological balance.
The evolution of technologies has had a significant impact on beef cattle sector, as
they have become modern, efficient and multi-differentiated.
In the comparative analysis of young cattle beef prices two variants have been
considered:
- average daily increase of 950 g/day, weight at delivery of 450 kg and fattening
period of 368 days (table 1)
241
- average daily increase of 1200 g/day, weight at delivery of 450 kg and fattening
period of 290 days (table 2)

Table 1
YOUNG CATTLE BEEF BUDGET

Average production 950g/day
per head per kg per head per kg
B SUBSIDIES 150 0,333 150 0,333
C(=) RAW PRODUCT 1968 4,373 3543 7,873
D(-)TOTAL EXPENSES 1731 3,846 3116 6,935
I.VARIABLE COSTS 1344 2,980 2630 5,844
1.Fodder expenses 994 2,208 2167 4,815
4.Medicines and sanitary material 10 0,022 14 0,031
6.Supply quota 30 0,066 65 0,144
7.Insurance 20 0,044 24 0,600
II.PERIOD COSTS 387 0,86 486 1,080
-Credit inerests 250 0,556 300 0,666
-Liquidation 10 0,022 10 0,022
E.( =)TAXABLE INCOME 87 0,193 277 0,615
(-) Taxes - - - -
G.TAXABLE INCOME RATE (%) 5 5 8,9 8,9
(%)
13,8 13,8 13,8 13,8
PRODUCTION COST 1713 3,806 3098 6,884
PRICE
1800 4,000 3375 7,500

Economic calculations reveal an over 80% increase in the production cost for both variants
in 2008 compared to 2007. This development is caused by fodder price - which reached
3.2 times higher values in 2008 after 2007 drought- followed by the prices for power, fuel
and medicines. (Tables 2 and 4)
To obtain a 9% profit and 21% respectively, a price of 7.5 lei/kg of beef has been
estimated for 2008, which is 1.8 times higher from 2007.
As for the subsidies for this animal category, if they had increased in 2008, profit/kg
would have certainly been also higher, encouraging the farmer to increase his animal
number.

242
Table 2
TECHNOLOGIC ESTIMATE YOUNG CATTLE BEEF
Average production 950 g/day
QUANTITY
U.M. /HEAD
Expenses lei/head
ITEM
U.M.
Quantity
Price/um
2007
Price/um
2008
2007 2008
1.Fodder expenses
Hay kg 375 0,40 0,45 150 169
Green fodder kg 2465 0,07 0,09 173 223
Juicy fodder kg 1985 0,08 0,08 159 159
Coarse fodder kg 184 0,08 0,09 15 16
3.Power + fuel

kw/l

32

44,4
material
10 14
5. Other materials and water 8 16
7.Insurance 20 24
TOTAL VARIABLE
EXPENSES
1344 2630
9.General expenses 27 56

Table 3
YOUNG CATTLE BEEF BUDGET
Average production 1200g/day
per head per kg per head per kg
B SUBSIDIES 150 0,333 150 0,333
C(=) RAW PRODUCT 1968 4,573 3543 7,873
D(-)TOTAL EXPENSES 1533,5 3,077 2804 6,231
D1.Out of which main production 1515,5 3,367 2786 6,191
I.VARIABLE COSTS 1248,5 2,674 2347 5,215
1.Fodder expenses 874,00 1,942 1932 4,293
3.Electric power and fuel 22,00 0,048 50 0,111
4.Medicines and sanitary material 8,00 0,018 15 0,033
5.Other materials + water 6,50 0,014 18 0,040
6.Supply quota 43,60 0,097 58 0,129
7.Insurance 44,40 0,097 24 0,600
II.PERIOD COSTS 285,00 0,633 457 1,015
-Manpower expenses 55,00 0,122 120 0,266
-General expenses 25,00 0,055 47 0,104
243
-Credit inerests 200,00 0,444 280 0,622
-Liquidation 5,00 0,011 10 0,022
E.( =)TAXABLE INCOME 284,50 0,632 586 1,302
(-) Taxes - - - -
F.(= )Net income + subsidy 434,50 0,964 736 1,635
G.TAXABLE INCOME RATE (%) 18,8 18,8 21 21
(%)
28,6 28,6 26,4 26,4
PRODUCTION COST 1515,50 3,367 2786 6,191
PRICE
1800 4,000 3375 7,500

Table 4
TECHNOLOGIC ESTIMATE YOUNG CATTLE BEEF
Average production 1200 g/day
QUANTITY
U.M. /HEAD
Expenses
lei/head
ITEM
U.M.
Quantity
Price/um
2007
Price/um
2008
2007 2008
1.Fodder expenses - - - 874 1932,10
Hay kg 294 0,40 0,45 118 132,3
Green fodder kg 2044 0,08 0,09 164 183,96
Juicy fodder kg 1620 0,08 0,08 130 129,6
PVM concentrates kg 1025 0,45 1,45 462 1486,24
2. Biologic material 555,00 250
3.Power + fuel

kw/l

22,00 50
material
8,00 15
water
7,00 18
6 Supply quota 44,00 58
7.Insurance 45,00 24
TOTAL VARIABLE
EXPENSES
1555,00 2347
8.Manpower expenses 52,74 120
9.General expenses 31,31 47
10.Credit interests 190,00 280
11. Liquidation 4,95 10
TOTAL PERIOD COSTS 280,00 457

244
DIAGNOSTIC ANALYSIS OF COMPANIES OPERATING IN THE FIELD OF
MERCHANDISE DELIVERY

ANALIZA DIAGNOSTIC A SOCIETTILOR DIN DOMENIUL
EXPEDITIILOR DE MARFURI

VICTORIA MANEA, ALINA MRCUT , MRCUT L. STOIAN ELENA


Abstract

The objectives that we focus upon in this work converge into the directions of identifying realities and
making an economical-financial analysis of the evolution of companies and global operators in the field of
merchandise delivery who operate on the Romanian market as well as of comparing these local realities with
the relevant evolutions on an international level.

Key words: Creation of value; Value management; Merchandise delivery agencies; Financial health
diagnosis; Working capital; Treasury flow forecast; Cash flow planning; Operational gross margin; Net
operational profit; Cash value added; Market value added; Cash flow return on investment; Sustainable cash
flow; Global economic efficiency; Durable development;

Accurate and reliable presentation of financial information arising from the
application of the IFRS concerning companies combinations represent for the financial
analysts an essential outset in their providing expert opinions to the users of financial
records regarding the impact of the accomplishment of such a combination, the
opportunities and constraints arising as a result of such combination.
At the same time, one of the roles of the economic-financial analysis is to provide
pertinent and useful information about the financial health condition of the groups of
companies in which the investors wish to invest and the other third parties have a certain
specific interest, and even more, the economic-financial analysis having at the same time
the role to offer recovery solutions to financial groups in economic distress.
Thus, if there is still a high interest for the companies taken individually also after
having learnt financial information provided by the financial analysts, with the groups of
companies the interest over the economic-financial analyses becomes tens of times
bigger, due to the fact that the evolution of all the companies placed under its umbrella
depends on the evolution of the group itself, as well as the financial condition of all the
people depending on the respective group: employees, shareholders, creditors, state, etc.
The same applies to companies which operate in the field of merchandise delivery.
As to the companies operating in the field of merchandise delivery, the diagnostic
analysis of the financial position has an extremely special role, due to the well-known fact
that the profit represents a small amount of the turnover and the level of the sums received
from customers and paid to suppliers is an absolutely impressive one.
The presentation of the specific elements needed to diagnose the financial health of
delivery agencies requires extreme caution, as the specificity of their activity requires for
the position indices margins which are different from other fields of activity.
On an international level in merchandise delivery there are therefore certain specific
features of the structure rates, such as:
relatively reduced rates of the corporeal assets, due to the fact that most of the
premises, warehousing and office facilities are taken on lease, most of the money being
invested in lift-trucks, storage racks, vehicles, office equipment ( 25 35% );
average rates of the non-corporeal and financial means ( 1- 10 % );
totally insignificant or close to zero rates as to the stock amounts;
245
very high rates of outstanding debts to be paid by the customers who are
provided the services, which may reach a level of over 40% of the total assets;
high rates of the available bank accounts, sometimes necessary for the payment
in advance of the obligations, because of the longer term of customer debt recuperation as
compared to the term of payment to suppliers, especially when it comes to strategic
suppliers ( 5 12% );
very high rates of commercial debts to the owners of transport trucks, airlines
and shipping and last but not least to the railways and the other service providers, similar
to the commercial book debts, approximately 40%;
average rates of own capitals, these companies resorting in most cases to
internal financing ( 20 40 % );
low rates of long-term debts and shot-term credits.
The analysis of the financial position of the delivery agencies in the international
practice lays accent on certain specific indices.
It is useful to know that in merchandise delivery the profit margin in the turnover
generally falls below 5%, fact that requires special attention in the analysis of the financial
position of companies operating in this field. Performance by the delivery agencies of the
said deliveries in their own name determines the circulation both through the customers
accounts and through the suppliers accounts of come impressive sums of money.
In order to have control over the money in their own accounts of debts and suppliers
on the level of these delivery agencies, especially on the level of top companies an
analysis is made on a monthly basis on the number of days rotation speed of the book
debts, internationally expressed as DSO number of days necessary to receive the due
book debts and the number of days rotation speed of the suppliers, expressed as DPO
average number of days necessary for making the payments to the suppliers.
The DSO-DPO correlation is one of the most analysed on the level of merchandise
delivery, due to its utmost importance for the empirical assessment of the financial health
condition of the company.
As regards other peculiar aspects of this field of activity, we cannot help noticing
that the logistic operations, warehousing, manipulation, distribution and labelling carried
out by delivery agencies require solid investment in operational means: electric and
classical lift trucks, storage racks, cranes, pick-up transport vehicles, vehicles, computers
and some of the most modern IT software, RFID, as well as investment in land, buildings,
warehouses.
These investments which are necessary in fixed assets, require financing through
equities or long term debts and besides the accounts posts, long term debts and very
significant proximities in the case of merchandise delivery agencies, we will also have
important on-balance posts of fixed assets, equities or long term debts which require a
careful economical-financial analysis in order to identify the financial condition.
Likewise, when identifying the financial condition of enterprises which activate in the
domain of merchandise delivery, their affiliation to multinational groups of forwarding.
Another indicator which plays an important role for global operators of forwarding,
aiming at accomplishing the individual internal analysis is the work Capital Net working
capital.
On the basis of the work capital, the invested capital rate is calculated as a ratio
between the gross surplus before the taxes and interests and the engaged capital. The
work capital may also be used to perform internal economical-financial analyses at region,
country, department level and accordingly, to allot to every department the expenditures
with due interests.
The appreciation of the financial position by the reports specific to the merchandise
delivery activities represent an extremely important endeavor in order to achieve the
economical-financial analysis which is done monthly, quarterly and annually at branch,
246
area, region or group level. Depending on the demands of the merchandise delivery
agencies shareholders and managers, for appreciating the financial position of the group
members, the financial reports may be more synthetical but in the same time offering a
good image for identifying and administering the financial condition, or more detailed but
not so detailed so as to generate some exaggerated preparing costs and particularly not to
lose sight of the essential.
The diagnosis analysis of treasury flows, discusses a subject as sensitive as the
financial position and the financial performances because all transport, handling,
depositing and logistics operations are performed by the merchandise delivery agencies in
their name, the cash notion being vital for their existence.
Basically, the merchandise delivery agencies collect from the clients the entire value
of the performed transports, of which most of the time only a percentage of 510%
represent the remuneration of the deployed activity. Because in most of the situations the
merchandise carriers require payment earlier than the clients can or want to pay to the
merchandise delivery agencies, it always appears an unfavorable gap of cashing, which
can lead to serious financial problems or to the cease of activity if not kept under strict
control.
At the level of the merchandise delivery agencies, given the fact that the treasury
flows register very high shares and a multitude of specific particularities, not taking into
consideration the financial rates evolution afferent to the flux analysis and their comparison
to the average level of the rival firms, may lead to incorrect conclusions.
The future forecasting of treasury flows represents an aspect which is kept in view
by all merchandise delivery agencies and which comes to complete the analysis of the
generated treasury flows, very noted being also the utility of forecasting of the future
treasury flows for these companies, where the circulation of the cash reserves reaches
high sums and an impressive speed, similar to the cases of firms and groups in the
domain of commerce.
Although in practice, table SIG is not laid down at the level of the merchandise
delivery, there are still some companies which became aware of the importance of some
indicators such as the Exercise production, Value added or Gross exploiting surplus and
they calculate them in order to use them in compounding some series of structure and
efficiency rates, very useful from the management, analysts.
The contribution of rates of return to the diagnosis of the financial condition is a
major one, the procurement of the intended profits and efficiency being the most viable
method of appreciating the finality of every activity up to present. We can appreciate that
the analysis of the rates of return in the case of companies from the merchandise delivery
domain plays an important role in interpreting and appreciating their financial
performances, their correct calculation and interpretation carrying a real advantage.
Obviously the favorable performances must be real ones and ultimately they must
be put across in favorable treasury flows.
The analysis of the profitability threshold and the diagnosis analysis of the resulting
sensitivity compared to the activity level, end up the traditional analysis of financial
performances.
Another presented indicator, extremely synthetic and widely used as measurement
for shareholders generated value (relative or absolute) is the Total even break of
shareholders (TSR). It is an indicator that point out the markets perception on the
respective groups performances. Because of its nature, it cannot be calculated separately
for unlisted at the market companies hence another correlated indicator is used, i.e. the
Total break even of the business (TBR).
Another mean of internal appreciation of the value created by the companies which
exist in the domain of the expeditions may be the calculation of the Total benefit of the
business (Tbr) and the appreciation of this evolution on a period of a few years.
247
Also, we observe the existent correlation between the evolution of this indicator
(Tbr%) and the evolution of the liquid value added (CVA) at a top level and also at the
level of the domain of the expeditions of merchandise.
As a conclusion, the quality of each of these models to quantify the capacity of the
company to create value for the suppliers of capital is first of all given by the choosing of
that model to which must correspond to the categories of users of the information and
purposes in which this information is solicited.

Bibliography
1. Giurgiu I. Mecanismul financiar al ntreprinztorului, Ediura Dacia, Cluj Napoca, 1995
2. Isfanescu A., Robu V., Anghel I., Tutu A. Evaluarea ntreprinderii, Editura Tribuna
Economic, Bucureti, 1999
3. Mrgulescu D., Niculescu M., Robu V. Diagnostic economico-financiar. Concepte, metode,
tehnici, Editura Romcart, 1994
4. Mihai I. Probleme financiare ale unitilor economice din industrie n perioada de tranziie la
economia de pia, BCR Bucureti, 1998
5. Niculescu M. - Diagnostic global strategic, Editura Economic, Bucureti, 1997
6. Stancu I. - Gestiunea financiar a agenilor economici, Editura Economic, Bucureti, 1994
7. Bursa Romana de Marfuri Managementul Financiar al Riscului, Editura Adevarul SA,
Bucuresti, 2002.

248
ACCOUNTING METHODS AND POLICIES REGARDING THE
CONSOLIDATION OF ACCOUNTS AT THE GROUP SOCIETIES

METODE SI POLITICI CONTABILE PRIVIND CONSOLIDAREA
CONTURILOR LA SOCIETATILE DE TIP GRUP

MRCUT ALINA


Abstract

The work has proposed itself that as a result of a analysis of the specific aspects of the consolidated
accounts, to present the private aspects in international context, as well as in national context, to
individualize and personalize those essence aspects necessary to the decision of investment in group of
societies and the connection with the accounting information approached from the point of view of the local
and international standards of accountancy.

Key words: IAS The International Accounting Standards, IFRS The International Financial
Reporting Standards, Business combination, Fair value, Goodwill, Methods of consolidation, Equity method
of accounting, Perimeter of consolidation, Techniques of consolidation, Auditing

The main international standards, which influence the mergers and associations of
companies are: IFRS 3 Mergers of companies, IAS 24 Related-party disclosures, IAS
27 Consolidated and separte financial statements, IAS 28 Accountancy of investments
in the associated companies and IAS 31 The interests in the associations in
participation. Practically, there is a wide range of factors which make necessary the
knowledge by the accounting experts of the International Financial Reference Standards
(IFRS), within a world of globalization and internationalization; that employees or free-
lancers, they have to support the companies management in the elaboration of some
accounting policies that would make from accountancy an essential instrument of leading.
The IFRS 3 has centered mainly on:
(a) the accountancy method for mergers of companies;
(b) the initial evaluation of the acquired identifiable assets and of the debts and of
the identifiable contingent debts assumed within a merger of companies;
(c) recognition of debts for the ending or reducing of the activities of the purchased
society;
(d) the accounting solution of any exceeding of the purchasers participation in the
just value of the net assets purchased in a merger of companies over the afferent cost of
the merger; and,
(e) the book-keeping of the commercial fond and of the non-corporal assets
purchased in a merger of companies.
Regarding IAS 28 it was noticed that the use of the methods of putting in
equivalence or of the proportioned consolidation in the case investments hold by
organizations with capital in participation, mutual funds, investments funds and similar
entities, can generate, most of the times, information which are not relevant for the leading
or for the investors, and that the evaluation of the just value can produce much more
relevant information.
Another remark was that it can appear frequent modifications of the participants
repartition within these investments and that the financial situations are less useful if the
bookkeeping methods of the investments are modified frequently.
According to the recent apparitions, connected with IAS 31, are noticed a series of
modifications, like the idea that it is imposed its application to the investments that would
249
be interests of the associates in the entities controlled in common owned by organizations
with capital in participation, mutual funds, investments funds and similar entities, when
these investments are classified as being hold for transaction and registered in
accordance to IAS 39 Financial instruments: Recognition and evaluation. Those
investments are evaluated at their just value, changes in the just value being recognized in
profit or loss in the period in which they were generated.
In addition, the Standard stipulates exceptions from the application of the
method of proportional consolidation of from the method of putting in equivalence,
similar to those that stipulate that certain mother-societies dont have to present
consolidated financial situations.
These exceptions also include the situation when the investor is also a mother-
society which is exonerated, in accordance to IAS 27 Consolidated and separated financial
situations, from the presentation of the consolidated financial situations and the situation in
which the investor, not being a such mother-society, fulfills the same kind of conditions
which lead to the sparing of this kind of mother-society.
The consolidation facilitates the definition of big options at the groups level. The
consolidated synthesis documents allow the obtaining of the anticipated consolidated
accounts: information regarding the basic anticipated activities, the anticipated
consolidated financing description, and the calculus of the anticipated consolidated self-
financing capacities, all of these allowing to the groups leading the following: the defining
and ciphering of the most important options of the group; the permanent search of the best
financing; the repartition of a rational manner of the available resources; the dialog with the
societies within the group.
Therefore, a user of the consolidated accounts has to be perfectly aware of two
elements: the consolidated accounts are only an instrument (of management and of
information) among other instruments; they are an instrument which require certain limits,
which cannot be ignored, thus being drawn false conclusions.
Because the societies of a multinational group are situated in different countries,
their accounts are, most of the times, elaborated based on some different accounting rules
and audited based on some methods which can also, be different.
The consolidated financial situations presupposes the adoption of uniform
accounting methods at the level of the entire group. In this situation, the foreign branches
are obliged to elaborate two series of accounts: one, in accordance with the local rules, to
respond to fiscal and judicial obligations, and the other one, based on the principles
retained in consolidation.

Bibliography
1. Calin O., Ristea M., Bazele contabilitatii, Editura Didactica si Pedagogica, R.A., Bucuresti, 2003
2. Dutescu A., Ghid pentru ntelegerea si aplicarea standardelor internationale de contabilitate, Editura
CECCAR, Bucuresti, 2002
3. Feleaga N., Malciu L., Politici si optiuni contabile (Fair Accounting versus Bad Accounting), Editura
Economica, 2002.
4. Feleaga N., Malciu L., Reglementare si practici de consolidare a conturilor, Editura CECCAR, 2004
5. Horga V., Consolidarea conturilor societatilor de grup, Editura Economica, 2005
6. Petris R, Florea I., Istrate C., Betianu L., Ghid pentru ntelegerea si aplicarea Standardelor
Internationale de Contabilitate Combinari de ntreprinderi (IAS 22), Editura CECCAR, 2004

250
ACCOUNTING INSTRUMENTS AND STATEMENTS UTILIZED IN
ACCOUNTING ANALYSIS AND DECISION-MAKING PROCESS

INSTRUMENTE SI RAPOARTE CONTABILE
UTILIZATE N ANALIZA SI DECIZIILE MANAGERIALE

MRCUT ALINA


Abstract

The aim of a work is to get to pertinent scientific conclusions which contribute to the improvement of
the relationship between the producer and the beneficiary of the accounting information, of the financial
reporting, as well as to the growth of the degree of relevance, accuracy and understandability of the
information enclosed in the financial-accounting statements.

Key words: financial-accounting statements, managerial decisions, accounting information, cost
benefits accounting information, accounting process, financial position

Financial-accounting statements are the link between the producer and the
beneficiary of accounting information, having an important role in supporting the process of
decision-making in a company. These include the documents that are the basis for a
diagnosis of the financial status, profitability of a company; they allow the evaluation,
confirmation and confutation of the weaknesses and strengths in every domain of activity
of a company.
Economic development of the last years, along with the globalization has
determined an accelerated growth of the necessity for financial information. In the context
of Romanias integration to EU and in the international context, the financial-accounting
information needs to have transparency, because the investors, managers, etc. can
only substantiate their decisions on financial information that is clear, reliable, pertinent
and internationally harmonized. Trust in a company depends on the degree in which the
manager understands and applies the financial-accounting information, on their
accessibility and transparency. Company management uses a big volume of accounting
data to substantiate their decision, furthermore, the data have to be released outside the
company (the management is responsible for processing and broadcasting the financial
accounting information). Having direct access to accounting information, managers pay
special attention to the way released information is perceived, because this is how the
third parties find out about how the company is managed.
The financial-accounting instruments are the link between the economic process
and the decision factors, because the manager must have access to well-synthesized
information in order to make the right decisions, to define clear objectives, to conduct
efficient analysis of the outcomes of the company.
The main way of communicating the accountancys products is the annual financial
statements, the information they enclose resulting from a characterisation of the
companys economic reality in specialized language, by specific regulations and principles.
The financial statements represent a fragment of the financial information. Along with them
come other statements, as: the dashboard, budgets, auditors reports, environment
reports, reports containing economic-financial indicators, management accounting
products, business plans, feasibility research, a resume of the last three years activity, tax
returns, graphic charts, etc.
For managers, the observation of the economic environment in which the company
evolves is important and necessary, as it is the survey of the internal organization and the
251
way the departments function, the strengths and weakness analysis, the opportunities and
the dangers the company faces. The efficiency of the decision-making process is in direct
proportionality with the nature, quality, frequency and volume of data the decision factor
has at hand. Financial statements, especially, and financial-accounting statements,
generally, are basic documents for putting a diagnosis on the financial status and the
profitability of a company, they allow the strengths and weaknesses analysis for all the
functions of the company. The chapter focuses on managers possibilities to turn good use
of financial-accounting information they receive.
The image created for a company by their accounting statements and the quality of
accounting information depends on the professional skills and objectivity of the
professionals who manipulate and process the information, as well as it depends on the
receivers skills and understanding and on the correct reception of the message transmitted
by the accounts.
Managers decisions referring to the quality, quantity and the timing of data release
depend on the cost and the benefit of processing and releasing the accounting
information.
A quality accounting system is the system that collects data and information about
all the events in the company and presents them to the user in a simple and computerized
form. The system must direct managers attention towards proceedings, systems,
investments that leads to improved future performance. The efficiency of the decision-
taking process is in direct proportionality with the nature, quality, quantity, frequency and
the volume of information the decision factor has at hand.
The quality of the decision-taking process reflects over the profit, costs, efficiency of
the production factors. The decision process implies the consumption of a big amount of
time, necessary for data collecting and analysis, consulting for the decision strategy. The
decision-taking process and its quality are influenced by the skills, competence and the
involvement of the person who makes the decision.
To result in a well-founded an opportune decision, every decision-making process
must collect process and interpret a bigger and bigger volume of data in a shorter and
shorter amount of time. The financial-accounting and marketing departments, the human
resources department are the support for the managerial decision.
Among managers attributions, a special role plays the synchronization of his
actions: to know how and when to use the information the financial-accounting sectors
provides for him and to direct the companys resources and actions towards opportunities
of favorable and economic relevant results.

Bibliography
1. Clin.O., Ristea.M., Bazele contabilitii, Editura Didactic si Pedagogic, Bucuresti, 2004.
2. Caraiani C., Dumitrana M., Daclu.C., Controlul de gestiune n contextul globalizrii, Editura
CECCAR, Bucuresti, 2006.
3. Diaconu P., Albu.N., Mihai.S., Albu.C., Guinea.F., Contabilitatea managerial aprofundat, Editura
Economic, Bucuresti, 2003.
4. Du escu.A., Informaia contabil si pieele de capital., Editura Economic, Bucuresti, 2000.
5. Feleag.N.,Sistemele contabile comparate, Editura Economic, Bucuresti, 1995.
6. Lezeu.D.N., Analiza situa iilor financiare ale ntreprinderii, Editura Economic, Bucuresti, 2004.
7. Ristea M., coordonator, Sisteme contabile comparate, Editura CECCAR, Bucuresti, 2006.

252
WAYS FOR IMPROVEMENT THE LOGISTIC MANAGEMENT IN PUBLIC
INSTITUTIONS

CI DE MBUNTTIRE A MANAGEMENTULUI LOGISTICII N
INSTITUTIILE PUBLICE

MRCUT L.


Abstract

The process of changes where our society is involved on the way of reforms within all social-
economical fields, characterized by occurrence of suitable legislative background and application of required
measures for connecting and joint the Romanian economy to the European structures, using well defined
market tools, has direct implications on the structure, organization and logistic management of any company
or public institution.

Key words: logistic management, public institutions, resources, public purchase, purchase
procedures, quality, European integration, planning, improvement, implementation, rationalize principles,
material providing, administration of stocks, assigning of supply contracts, competitive advantage.

The public sector represents an important consumer of different types of resources
(human, financial, material, etc).
Therefore, it can not function in optimum conditions without and adequate sub-
system able to provide the needed resources for developing specific activities. Without to
neglect the role of the other types of needed resources to the public domain (human and
financial resources), we have to emphasize that the material resources have the main role
to provide resources for this field of activity. Consequently, further on we shall analyse the
main aspects related to provide material resources for public domain, important
component of logistic management.
In the present context of globalization of economic world, when Romania jointed to
Europe following to the technological development, and following to the rapid evolution of
informational communication, as well as due to the occurrence of those poles with
economical power (the European Union, United States of America and Asia) the analysis
of logistic management under a modern vision became as more as important. Certainly
that, the influences of the European community will become as strong as possible when
Romania will adopt all European standards and norms and when it will be completely
integrated in this European structure. The managers of organizations (private companies,
public institutions) will comply with the new requirements of the European logistic
management (and not only) as far as the said organizations will get successfully results.
During the last two decades, the ideas of managers and researchers relating to the
optimum supply strategy of an organization was considerably changed. First, the
organizations have began do not be credulous in the benefits of vertical integration.
Secondly, since 1990 the organizations have been advised to use the global supply,
selecting the best external suppliers to improvement their competitiveness (taking into
account that since the 1st of January 2007 Romania was integrated in the Europe Union)
The future of logistic management is dominated by flexibility and adaptability to the
market requirements (indifferently if its about a commercial organization that produces
and sale goods or a public institution that provides services to the population). At present,
many companies are confronting with an uncertain and very volatile environment, with
products or services that have short cycles of life, as well as with frequent and
unforeseeable changes relating to the market request (referring to volume and mix) and
253
with global logistic aspects. These matters determined a stress to the companies or public
institutions as regard their ability to meet the environmental incertitude without to have
negative influences towards the performance.
The recent strategic studies have begun to understand the importance of supply
strategy flexibility. It was realised a distinction between the physical effectiveness and the
market response towards supply strategy.
The first one represents the needed time to get a good or a service and to sale it,
and the latter one represents the way in which a company may adjust its promptness,
destination and the volume of supply.
Thus, the dynamism of commercial activity or other said the development of sale
of products or services results from the correlation that should be between the new
markets to be gained and the development of position on the already existing markets.
The effectiveness of sales permanently depends on the motivation, competence and
capability of sellers engaged on the companys or organizations sale network. Moreover,
this effectiveness depends on the performance and the availability of those facilities
needed to develop a proper commercial activity (as regard the companies) or it depends
on the way of how the performed activities meet the customers requirements (as regard
the institutions from public domain), such as to prepare the sales in a suitable manner
related to provided services in order to be able to evaluate the sale impact upon the
purchasers.
The favorable or unfavorable impact of commercial logistics upon the effectiveness
of commercial activity (depending on how it is organized) needs the interference of
logistics either for sales development or to improve any misunderstanding or deficiencies
occurred in relations with the clients.
Under the conditions of a large complexity (present and future one), it is required
the planning, organization and coordination of activities that are developing by more or
less groups of people based on scientific concepts, where each person of the said groups
has a certain role with various responsibilities (intellectual or physical) and for increasing
and developing the results, their activity should be planned, organized, motivated and
coordinated accordingly.
Principles to rationalize the logistic management are: Principle of unitary
management, Principle of autonomous management, Principle of efficiency and
effectiveness development, Principle of economical administration, Principle of
professional competence and motivation of personnel, Principle of flexibility, Principle of
reorganization, Principle of training and Principle of legality.
Modern methods and techniques used in management for substantiation of
logistic decisions in public institutions are: Traditional methods, Comparative methods,
Optimization methods, General methods and Specific methods.
The complexity and diversity of logistic activities requires to form a team
(commission) that should be judicious structured and correctly dimensioned in order to
collect significant information, complex interpretations and according to their final target
the diagnosis means to take corrective decisions related to the reasons of
nonconformities, respectively to develop and generalize the positive aspects.
Such formulated recommendations will be sent to the management team for
preparing the operational and decisional planning.

Bibliography
1. Balan, Carmen - Logistica mrfurilor. Bucureti, Editura ASE, 2000
2. Balan, Carmen - Logistica. Bucureti, Editura Uranus, 2001
3. Balan, Carmen - Logistica: funcie integratoare i factor de competitivitate. Bucureti, Editura
Uranus, 2004
4. Marin, Dumitru - Logistica n epoca globalizrii. n: Tribuna economic, nr. 35

254
RESEARCHES CONCERNING THE UNREEABLE COCOONS
PROCESSING IN HANDICRAFTS A WAY TO INCREASE
PROFITABILITY IN SERICICULTURAL FARMS

CERCETARI PRIVIND PROCESAREA GOGOSILOR NEFILABILE IN
PRODUSE ARTIZANALE - O CALE DE CRESTERE A
PROFITABILITATII IN FERMELE SERICICOLE

MATEI ALEXANDRA* , POPESCU AGATHA**, SLADESCU VIORICA***

*SERICAROM Commercial Company, Research Development Department , Bucharest,
Romania
**University of Agricultural Sciences and Veterinary Medicine, Bucharest , Romania
*** Academy of Fine Arts , Bucharest, Romania

Abstract

The paper aimed to present how unreeable cocoons resulting from silk worm rearing could be
processed in handicrafts instead of being sold as such for a low market price . In this way , the
sericiculturists could get higher incomes from selling handicrafts increasing his income and profit. In this
purpose, a number of 10 handicrafts were experimented using an amount of 50 kg unreeable cocoons.The
cocoons were processed by manual procedures into the following handicrafts : P1-coloured Shantung type
threads, P2- Thick fabric 1x0.8 m for Autumn-Winter season cloths, P3- Fancy Fabric 1x0.7 m for Spring
and Summer season cloths , P4 Bags, P5-Woven belts, P6-Kintted belts, P7-Necklaces, P8-Flower
brooches, P9 Portrait decorative poster, P10 Storydecorative poster and P0 50 kg unreealable silk
cocoons control variant. Profit was determined as difference between income and related cost and was
used as a criterium for calculating the equivalence ratio and variant hierarchy . The variants can assure a
higher profit to the farmer .

Key words : unreeable perforated cocoons processing, handicrafts , profitability, sericicultural farms

INTRODUCTION

A part of the cocoons resulted from silk worm rearing are perforated and for reason
they can not be processed in silk filament. They are sold as such in the market but for a
very low price . For this reason, sericiculturist have to look for some solutions to use
these perforated cocoons in order to increase the value added . Such an approach is
presented in this paper where an amount of 50 kg perforated and unreeable cocoons was
used in order to produce 10 sorts of handicrafts manually done in the farm .
This is a way to use creative imagination , preserve and promote Romanian local
traditions , assure production integration management , to establish an alternative for
production diversification , a better use of material, human and financial resources , a
source for getting additional incomes and a higher profit .
In this way higher economical and financial performances and an increased farm
competitiveness could be recorded as Romanias entry into the European Union requires
(1, 2 , 3) .

MATERIAL AND METHOD

In order to carry out this experiment , an amount of 50 kg unreeable cocoons was
used . The cocoons have been manually processed into 10 handicrafts as follows : P1-
coloured Shantung type threads, P2- Thick fabric 1x0.8 m for Autumn-Winter season
cloths, P3- Fancy Fabric 1x0.7 m for Spring and Summer season cloths , P4 Bags, P5-
255
Woven belts, P6-Kintted belts, P7-Necklaces, P8-Flower brooches, P9 Portrait
decorative poster, P10 Storydecorative poster. The variant P0 50 kg unreealable
silk cocoons was considered control variant.
For each variant , production cost was calculated taking into account raw material ,
water, energy, chemical substances used for painting , fixing etc .
Incomes were determined based on the amount of ready made handicrafts sold in the
market and price per piece which could be received .
Profit was determined as difference between income and related cost and was used
as a criterium for calculating the equivalence ratio .
The hierarchy of the variants was finally established based on the equivalence ratio
and product cost , putting on the first position the handicraft which assures the highest
profit .

The amount of handicrafts obtained from the hand made processing of the
unreeable at farm level. Using the amount of 50 kg unreeable cocoons , the following
handicrafts have been obtained : 43.50 kg colored Shantung type threads or 155.58
linear meters thick fabric 1 x 0.8 m for Autumn-Winter season cloths or 169.11 linear
meters fancy fabric 1 x 0.7 m for Spring-Summer season cloths or 1,555 bags or 1,298
woven belts or 1,298 knitted belts or 1,230 necklaces or 2,076 flower brooches or 88
Portrait decorative posters or 155 Story decorative posters .
The Total Profit obtained from marketed handicrafts . Taking into account the
2007 market price for the delivered handicrafts , the obtained profit ranges between
Lei Euro 1,278.2 in case of Shantung type colored threads and Euro 14,791 in case of
woven belts. Therefore, compared to Euro 52.6 profit obtained from the 50 kg unreeable
cocoons delivered as such , the hand made processing could result to a 24.29 up to
281.04 times higher profit as shown in Table 1 .
The profit per measure unit . Taking into account total profit carried out for
handicrafts marketing and the amount of sold ready made products , profit per measure
unit has been revealed for each handicraft separately as shown in Table 1 . In case of
unreeable perforated cocoons delivered as such in the market , a sericiculturist could get
only Euro 1.05 profit/kg , the lowest level. The most profitable solution is to process the
unreeable cocoons into Story Decorative Poster , getting Euro 85.56 per piece. Also, he
could have another alternative , i.e. to process the cocoons into Portrait Decorative Poster.
In this case , he could get Euro 58.22 per piece. The least profitable handicrafts are
Flower brooch ( 16 g weight ) for which a farmer could achieve just Euro 2.76 per piece ,
Necklace ( 17-29 g ) for which he could get Euro 3.90 per piece and Knitted belt ( 45 g
weight ) for which the farmer could obtain Euro 5.02 per piece. As we can see , if we
analyze profit per measure unit , the variant hierarchy is changed .
The equivalence ratio for the hand made goods and unreeable silk cocoons is also
presented in Table 1, based on total profit level obtained by control variant . We
considered P0 , unreaable perforated cocoons , as having equivalence ratio equal to 1.
Dividing total profit obtained for each variant by profit achieved in case of control variant
P0 , we determined the equivalence ratio . The highest equivalence ratio was registered
by Woven Belt ( 70 g ) - 281.04 and then by Story Decorative Poster 252 . The
equivalence ratio shows as many times as profit level is higher compared to the one
resulting from unspinning cocoons delivery as such and there are significant differences
from a handicraft to another and of course compared to unreeable cocoons.
The handicraft hierarchy , according to profit level calculated in 2007 current
price, shows that the most profitable hand made good is woven belt situated on the 1
st

position . On the 2
nd
position comes Story decorative poster and on the 3
rd
one
Functional bag , assembled fabric and so on .
256

Table 1
The comparative profit resulted from the amount of 50 kg unreeable cocoons
processed in handicrafts at farm level

V Product Equivalent
amount
Total Profit
Euro
Profit
/UM
Equivalence
Ratio
Variant
hierarchy
based on
equivalence
ratio and
total profit
P0 Unreeable
perforated
cocoons
50 kg 52.6 1.05 1 11
P1 Shantung type
colored threads
43.50 kg 1,278.2 29.38 24.29 10
P2 Thick fabric 1x
0,8 l.m. for
Autumn-Winter
season cloths ,
weight 400 g
155.58 l.m. =
62.23 kg
6,746 43.36 128.17 5
P3 Fancy fabric 1x
0,7 l.m. for
Spring-Summer
season cloths,
weight 380 g
169.11 l.m. =
64.26 kg
fabric
7,644 45.20 14.23 4
P4 Functional bag
of assembled
fabric, weight
48 g
1, 555 bags 9,425.3 6.06 179.08 3
P5 Woven belt,
weight 70 g
1,298 belts 14,791.7 11.39 281.04 1
P6 Knitted belt,
weight 45 g
1,298 belts 6,516.5 5.02 123.81 6
P7 Necklace,
weight 17-27 g
1,230 pieces 4,797.5 3.90 91.15 9
P8 Flower brooch,
weight 16 g
2,076 pieces 5,734 2.76 108.95 7
P9 Portrait
decorative
poster
88 pieces 5,123.3 58.22 97.34 8
P10 Story
decorative
poster
155 pieces 13,263 85.56 252.00 2

CONCLUSIONS

1.The paper aimed to present how unreeable cocoons resulting from silk worm
rearing could be processed in handicrafts instead of being sold as such for a low market
price . In this way , the sericiculturists could get higher incomes from selling handicrafts
increasing his income and profit.
257
2. The amount of 50 kg unreeable cocoons was manually processed into the following
handicrafts : P1-coloured Shantung type threads, P2- Thick fabric 1x0.8 m for Autumn-
Winter season cloths, P3- Fancy Fabric 1x0.7 m for Spring and Summer season cloths ,
P4 Bags, P5-Woven belts, P6-Kintted belts, P7-Necklaces, P8-Flower brooches, P9
Portrait decorative poster, P10 Storydecorative poster and P0 50 kg unreealable
silk cocoons control variant. Production integration assures product diversification and an
increased profit in the sericicultural family reproduction farms.
3. Profit level could be by 24.29 times up to 281.04 times higher than in case of control
variant.
4. The range of variants compared to the P0-control variant profit level is : P5, P10,
P4, P3, P2, P6, P8, P9, P7 and P1.As a conclusion , the most profitable handicraft is P5
woven belts , but all the choose handicrafts assure an increased profitableness. Therefore,
farmers must not deliver unspinning cocoons as such , it is more profitable to transform
them in handicrafts and then to sell them as folk art goods .
5.The farmer has to think how to use his imagination and creativeness to produce
more value added and deliver more processed products for getting higher incomes and
profit. In this case , instead of delivering just unreeable perforated cocoons as such, the
farmer could chose to process them in handicrafts promoting and preserving local
traditions and customs . Handicrafts represent special goods which are very much
required in the market satisfying both the local and foreign customer s desire for buying
things representing the Romanian traditions .
6. The solutions experimented in our research could be considered profitable
alternatives for farmers compared to the classical decision to sell the perforated
unspinning cocoons as such in the market.
7. Sericicultural farmers can choose any of the experimented variants presented in this
paper in close relationship to their purpose and financial capital , because production
integration assures them more additional income and a higher profit.
8. Sericulture is a secure additional income source for the ones who would like to
develop a business in the area under the condition to create profitable family farms
where integrated production management is applied.

BIBLIOGRAPHY

1. Matei Alexandra, 2001, Silk worm growing, Alex 2001 and Leli-Pres Publishing House,
Bucharest.
2. Matei Alexandra, Popescu Agatha, tefnescu Viorica, Bougiouskos Christos, Talpes
Marilena, Briloiu Tnase Doina, Dan Maria, 2006, Integrated production and durable management of a
reproduction Sericicultural family farm. The 35th International Session of Scientific Communications, The
Scientific Papers of the Faculty of Animal Science, UASVM Bucharest , ISBN 973 8905 09 5, pg. 327-
333.
3. Popescu Agatha , 2007 , Financial Analysis , Dominor Publishing House, Bucureti.

258
THE IMPLEMENTATION OF THE NATIONAL PROGRAM
MOLDAVIAN VILLAGE IN THE RURAL SPACE

MOVILEANU P.

The State Agricultural University of Moldova

Abstract

The agro alimentary sector has a great importance for the country economy. At present and in the
predictable future the productive sector of the national economy will have a preponderent agrarian character,
but for a little more than the half of the country population it represents the uniq source of existention, the
majority of the inhabitants being placed in the rural medium (56 % from the country population). In the
structure of the exports the agro alimentary production has a weight of about 65 %-67 %.
We can mention that the ministery of agriculture takes part very actively in the elaboration of the
Programs and Strategies initiated by the country government like: The Strategy of Economy growth and the
decreasing of the poverty, the national program The Moldavian Village.The governement initiated and
elaborated in colaboration with the local public authorities the Program of development of the agro
alimentary complex for the period of 2004-2010, development programs of the agricultural branches.
At the elaboration of the national program The Moldavian Village the Ministry co-operated with the
local public authorities which proposals served as a basis of the elaboration of this Program.
Key words: alimentary industry, modernization, competitiveness growth, ecological principles,
technique-material assurance, comparison prices, breeding swine.

INTRODUCTION

The elaboration of this Program could not be done without o profound analysis of
the obtained results in the last four years , of the problems with what is confronted at
present the agroindustrial sector and the ways of their solution.
In this context we mention that in the period of 2001-2004, the Ministry, as a
specialty organ, qualified in the promotion function of the state policy in the agroalimentary
branch centered its action to the continuing the property reform, to the creation of the
necessary institutional conditions for the formation and functioning of the economic agents
from the sector, the obtaining of a competitive production, the displaying of the external
economic relations, the organizing of the system of the services, the accordance of the
informational, consultative and of improvement assistance of the knowledge of the
agricultural producers.
To maintain the producers from the agrarian sector the Ministry elaborated and
realized a lot of strategies concerning the development of the agriculture and the
alimentary industry, elaborated and advanced for examination to the Government concrete
proposals concerning the modification and the improvement of the normative and
legislative body, oriented to the creation of some favorable conditions for the activity of the
economic agents, the elimination of the technique and bureaucratic barriers, the
maintaining the entrepreneurs, etc. We can mention such legislative acts:
1. The law concerning the cooperatives of production
2. The law concerning the subvention assurance in agriculture
3. The law concerning the unique tax
4. The law concerning the rent in agriculture
5. The Government decision concerning the rent in agriculture
6. The Government decision concerning the approval of the regulation
concerning the inventory of the leased agricultural goods and others.
To support the agroindustrial sector were advanced multiple proposals to the
elaboration of the laws of the State Budget, of the Budget Social Assurance of State, the
Fiscal Code, The Customs Code, the Labor Code.
259
The promotion of this acts created and will favor the adequate conditions of the
activity of the agrarian sector generating in spite of the difficulties an enlivening of the
activities of the agroalimentary sector of the republic.
During the years 2001-2004 the agrarian sector developed non uniform because of
the unfavorable climacteric conditions. Due to the measures undertaken by the
Government to support the agrarian sector the agricultural production increased in 2001
with 6,4%, in 2002 with 3,4% in proportion to the similar period of the precedent year. In
2003 took place the diminution of the volume of the agricultural production with 13,6 in
comparison with 2002 because of the decreasing of the vegetal production with 17,3%and
of that animal with 4,9% a conditioned fact in special by the unfavorable climacteric
conditions (the low temperatures in winter and risen in May and June , the drought in the
vegetation period).
According the preliminary estimation the volume of the agricultural production
(comparable prices) in 2004 constituted 9300,2 mln leis that shows an increase with
23,4% in comparison with the last year , and in comparison with 2002 with 6,7%.
The dominant position in the structure of the agricultural production occurs to the
vegetal production, which part in the total volume of the agricultural production constitutes
69,7% in the reference period.
Between the period of the years 2002-2004 in comparison with 2000 increased
with 30,6% the production of cereals and vegetables for grains, that were 2,5mln tones
than 9 mln tones in 2000 a fact generated by the increasing with more than 23,6% per ha;
the volume of the animal production registered an increasing of 4,3% , increased the
annual average volume of the poultry breeding production with 14,7%, of eggs with
12,5% , the cattle growth with 6,6%, of the milk- 5,3%.For the amelioration of the situation
in the phytotechny branch during the period of the years 2001-2004 improved the
organization and the assurance of the seeds production and the field culture was done a
rigorous control over the respecting the technology respecting of the production and the
commercialization of the seeds in the agricultural farms and the economic agents
authorized in this branch.
The republic fruit grower recorded in 2003 the highest production of fruit in the last
6 years 617,2 thousands tones than constitutes 1,9 times bigger than in 2002.Was
increased the fruit export. In 2003 were exported 175 thousand tones of fruits or with 2,3
more than in 2002.Were planted 870 ha of orchard plants or with 2,3 more than the
precedent year. The dynamics of the orchard plantation is considered positive, but the
rhythm of increasing in this branch is desirable.
The annual average production of fruit in 2001-2004 constituted about 418
thousand tones in comparison with 255 thousand tones obtained in 2000 or with 64 %
more , the general increasing depends on the increasing of the plantation productivity that
constituted 38,7 q/ha or with 96% bigger.
To support the fruit growing producers by the Ministry were elaborated a lot of
normative and legislative acts. For the 2005 in the state budget was preview a sum of
about 10,0 mln leis to support the establishing of the new orchards.
In the analyzed period satisfactory results were obtained at the cultivation of the
vegetable culture. The annual average production of vegetables constituted about 379
thousand tones registering an increasing of about 4% in comparison with 2000.
Thought the cultivated surfaces with potatoes in 2001-2004 was decreased in
comparison with 2000 with about 61% the global production of potatoes remain at the level
of the year 2000.
The economic decline of the animal husbandry sector continued permanent from
1990 till 2001 when by the application of a lot of measures, the decline stopped. Beginning
in were manifested the tendencies of improvement of this sector. In this way at the end of
the year 2002was marked an increasing of the animal livestock in comparison with 2000:
260
cattle from 394 to 410 thousands cows or with 4,0% more, swine-from 447thousands to
508 thousands animals or with 13,6%, sheep and goats - from 938 thousands to 956
thousands or with 1,9%, horses- from 7,1, about 78 thousands or with 9,8% of poultry of all
species from 13041 to 14955 thousands or with 14,7% more.
A weak link of the animal husbandry sector is the insufficiency of the breeding
animals with a valuable generic potential.
By the decision of the Government were founded the state enterprise
Molsuinhibrid, the republican center for the Amelioration and Reproduction of the Animals,
The State enterprises for the poultry reproduction Anenii Noi, Brinzenii Noi, that were on
the basis of the creation of the branch technologic system in animal husbandry. There
were obtained the first results: breeding swine 1200, poultry 675 thousands.
Such enterprises will ensure the animal husbandry , inclusive the industrial
complex and the private farms with the biologic breeding material, and the superior quality
of production.
The analysis the activity results of the production of the industrial alimentary
enterprises denotes an increasing of the production rhythm at the majority types of
products.
Were improved the technical material assurance and the financial one of the
branch. Were created State enterprises Moldresurse and Moldagroteh that have the
mission to assure the branch with all the necessary ( diesel oil, mineral fertilizer,
agricultural techniques, spare part)
The credit volume accorded to the agriculture from the proper sources of the
commercial banks increased from 180 thousands leis in 2001 to 80 mln leis in 2004.The
allocated sum of credits to the rural sector from the sources of the World Bank and IFAD
increased a lot. It must be mention the fact that these credits were received without state
guaranties. The state monitories their utilization.
In the rural localities were created over 85 agricultural shops, 150 veterinary
offices; it is created a good services net that offer consulting in all the agricultural
branches.
To surpass the crisis in the agriculture and to ensure the modernization and the
growth of the competitiveness in this branch of major importance are imposed the
realization of the following objectives :
- the continuing of the reform in the agricultural sector through the private
sector development
- the edification of an entrepreneurial body , of investment and financial
according the market economy principles
- the efficiency of the land resources utilization and the production means
through elaboration and implementation of the advanced technologies and the scientific
realization
- the utilization of the agrarian lots after the ecological principles , the
implementation and the respecting of the crop rotation scientifically founded
- the increasing of the productivity potential of the agricultural cultures and the
growth of the resistance against the diseases and the unfavorable climacteric conditions
- the recovery and the development of the wine growing , fruit growing,
vegetable growing, tobacco, medicinal cultures, the seeds production, animal husbandry
sector
- the assurance of the technique and financial support from the international
donors
- the protection , amelioration and rational utilization of the natural resources.
These key problems were at the basis of the elaboration of the National Program
Moldavian Village for the period of 2005-2015.
261
The mentioned problem has as its subject to stop the crisis in agricultural and food
sector, to use rationally the land fund, fixed and current assets, to respect the scientifically
proved crop-rotation, to increase the potential of the productivity of agricultural produce, to
revive and develop viticulture and fruit growing, to reestablish the situation in the animal
breeding sector through the increase of the effective force of animals, to create a vital
fodder base and to improve the productivity per head, to increase the volume of
productivity, to market and process the agricultural produce, to sketch the main economic
indices and the means directed to more efficient activity of agricultural and food complex.
For the period 2005-2015 some modifications in the structure of the surfaces meant
to be sown with agricultural produce are being planned. In this way the share of cereals
and vegetables of the first grouped for the year 2015 will be 62.9%, of technical cultures
17.1%, of fodder crops 10.8%.
Though without considering the average of the years 2001-2004, the share of
cereals is maintained at the level of about 63.0%, the volume of cereals production in 2015
will increase with 68% as a result of harvest increase for 1 hectare from 21.58 to 35.51 or
64.5% as a result of the strict observance of intensive technologies, of the species and
hybrids renovation, of supplemental fertilization of the soil. The extension of the surfaces
meant for vegetables and alfalfa will contribute to the improvement of soil fertility. Lately,
the surface sown with sunflower has extended, this fact led to the wrong crop-rotation, to
the reduction of surfaces with sugar beet, tobacco, to the immoderate infestation of the soil
with specific maladies.
According to the Development Program for the years 2005-2015 is planned the
decrease of the surfaces sown with sunflower, in 2005 on 18,2% and in 2015 on 41,5%
increasing the surfaces of sugar beet respectively on 28,9% and 87,1% and of tobacco
about twice and respectively thrice.
For the assurance of the output growth of the use of the existing capacity of sugar
beet processing in comparison with the year 2004, is planned an increase of the global
production volume of sweet roots for the year 2015 in 2,5 times which will include about
2,5 mln tons, especially as a result of harvest increase per hectare from 291,0 to 384,1 g,
and the extension of the surface sown with these species.
The revival of tobacco branch is planned not only through the extension of the
surfaces but through the harvest increase per hectare for the year 2015, that will generate
a considerable growth of global production in 2,3 times in comparison with the year 2004
and it will comprise 35.1 thousand tons.
Only 1,6% of fruit growing plantations have the age not more than 5 years, 28 to
100 between 6 and 15 years, 62,4 to 100 between 16 and 25 years and 8 to 100
over 25 years and taking into consideration the general condition of these plantations,
according to which only 13 from 100 of them are in good condition, 53 from 100 in
satisfactory condition and 34 from 100 in unsatisfactory condition, the extension of fruit
growing surfaces is planned for the year 2015 on 8,1%. This will ensure the growth of
global production of fruit in 2,4 times.
The reduced productive potential of existing vineyards is explained that 88 from 100
are over 15 years (the majority of them being planted with viticulture species of usual
category, not checked for chronic maladies, not homogeneous in productive potential and
quality) and only 2 from 100 are young vineyards. This fact does not allow the
prognostication of significant growth of grapes production. In the situation when the total
surface of vineyards for the year 2015 will stay at the same level of 105-110 thousand of
hectares, 5 thousand of hectares being planted annually, the global production of grapes
will rise on 19,4% and will constitute 800 thousand tons as a result of the harvest increase
twice per hectar (vineyards are changed in quality because of their settlement with clones).
About 86 from 100 from total surface of vineyards will be planted with technical
species , that will allow to obtain 688 thousand of tons of grapes for the production of wine
262
of superior quality. For the year 2015 the number of TMS will increase to 245 units, their
number in 2005 was 100 units, and during the periods 2005-2009 and 2010-2015 70-75
more TMS will be created.
BIBLIOGRAPHY

1.The decision of the Republic of Moldova Government Concerning the approval of the strategy of
promotion of the trade on the period of 2002-2005 Nr.80 from 29.01.2002, The Official Monitor of the
Republic of Moldova.-2002. Nr. 21-22.- art 156.33
2. The common agricultural policies of the European Economic Community, TACIS, Chisinau 2001
3.The principale currents of the European agricultural policy- Chisinau-2000, Movileanu P.,
Popescu G., Cimpoies D.

263
NECESSARY AND THE FUTURE OF AGRICULTURAL EXTENSION IN
ROMANIAN COUNTRY

CONSULTANA AGRICOL: NECESITATEA I PERSPECTIVELE
ACESTEIA N ROMNIA

PAULA PETRIC, VALENTINA TUDOR

University of Agronomical Sciences and Veterinary Medicine - Bucharest

Abstract

As the increasment, diversification and specialization of agricultural production take proportions and
make the transition from subsistence farm to a commercial farm the activity of agricultural extension is
imposed in Romania, too. The necessity of agricultural extension result from the desire of introducing new
technologies, assuring the farmers contract with the professional people from this area, who can offer
informations regarding an advantageous and quality economical framework for Romania agriculture. On the
future is establishing an increasment of quality services from this area, and the assistance activities must be
clear in what concern market.

Key words: agricultural extension, commercial farm, quality services

INTRODUCTION

The essential task of the advisor is to identify the necessity of change and the
modalities to achieve it. The advisor shall accomplsh his duty under independent terms,
without being organizationally subordinated to therecipient. The accurrate understanding
of the roles each party performs (recipient-advisor) ensures, to a large extent, the
efficiency of the advisory services. Generally, the agricultural producers appeal to the
advisory services if they feel the need of a helping hand in the issues they meet. The
activity of the advisor starts, in the majority of cases, from a situation considered non-
satisfactory or likely to be improved.
The basical principle for any advisory services activity is the following: thinking from
the point of view of the recipient and taking into consideration the social relations. This
means identifying the hindering and stimulating forces in the recipients action field and
understanding his subjective perception on the matter.

MATERIAL AND METHOD

This paper represents a perspective on the importance and necessity of the
development of the agricultural advisory services in Romania resulting from the lack of
knowledge and information in the field, of the insufficient infrastructure and production
factors which have, most of all, a restrictive feature, as well as the low motivation for
development of the agricultural producers. The material used to draw up this research
paper consisted of the research, analysis and interpretation of the documentation in the
field.


The fast and on-going development of the Romanian agriculture requires the
transfer from property pattern of the subsistence farms to a high-quality and profitable
agricultural exploitation structure, which might ensure the populations food health, the
environment protection and preservation.
264
The vital role of the agricultural activity today and in the future is the private
agricultural producer. To move from a commercial farm to an activity in a competitive
market environment, agricultural producers need new knowledge and skills, reason for
which these are and will be in the future as well the main clients of the extension and
advisory services.
The job of an agricultural advisor has emerged recently within the context of the
Romanian agricultural development under the rise of reformation processes, as a result of
the integration of the Romanian agriculture in the efficient European agricultures. The
necessity of this profession results from a desire to introduce new technologies, as well as
to enable the farmers to get into contact with people specialized in the field, who might
offer information about the ways to ensure a profitable and high-quality economic
framework for Romanian agriculture.
Advisory services as a concept should imply the following elements: the advisor
should be an altruist, sharing his knowledge with the recipient, the recipient should
collaborate with the advisor as much as possible for recipients job to be a successful one
for both partners, any advisory service represents an experience of mutual learning and
improvement of the professional skills.
For agriculture, the advisory service activities have three main streams as
objectives:
- News-spreading activities in agriculture and field technical assistance, for agricultural
producers, specialists and economic agents;
- Achieving the international flow by publishing, copying and distributing magazines,
books, booklets, folders, films and other audiovisual materials regarding the agricultural
exploitation management, the agriculture and food industry law, economic prospects,
plant-growing technologies, tractors usage, agricultural machinery and equipment, rational
and efficient development of the produce, model-projecting for agricultural exploitations;
- Providing instruction and in-service courses to the agricultural producers and to other
professional categories in agriculture or in connection with agriculture ||(agricultural
specialists or economic agents from the field of the produce supply and valorization etc.)
Practically, in the case of the agricultural exploitation managers or of the agricultural
producers, as owners, the potential reasons which might urge them to turn to the
agricultural advisors are the following:
- Acquiring special knowledge and techniques. There difficult situations that the
agricultural producers could meet and which might imply special methods and techniques
which the producer is not aware of and in which the advisor is the expert. The fact that
some agricultural managers or producers do not have a range of knowledge, even if they
have a long experience in the productive activity, is not an unusual fact and does not
necessarily represent a sign of professional incompetence, as, because of a fast rhythm of
change which occurs in the economic , technological or social environment where the
agricultural exploitations take place, which the agricultural producers cannot always face.
- Temporary recourse to the intensive specialized assistance. Some agricultural
managers have the necessary competence and experience for resolving major issues, but,
because of lack of time, they are forced to recourse to the advisory services. The advisors
may resolve these issues in time and may be with much more professionalism.
- Getting an impartial point of view. Even the best managers can be influenced by their
personal involvement in the activity. The advisor, who is independent of the client, can
offer an impartial point of view, sometimes with an original mark which represents an
advantage for the recipient. In the some managers practice there is the habit, fortunately,
that before taking important decisions, to consult different advisors, in order to verify the
validity of their decisions.
- Justifying some decisions and actions. Quite often, before starting strategic actions or
actions with major economic implications, part of the agricultural managers appeal to
265
advisors, who analyze the content of the decisions and draw up reports which support, if
necessary, their feasibility before the managers, shareholders and employees.
- The necessity to learn from the advisory services. In the modern concept of advisory
services, the most important component of the advisors activity is that of teaching the
people to resolve the problems they face. Many agricultural managers or producers appeal
to advisors not to find a solution to a certain problem, but to acquire special knowledge.
To resolve problems and find the most efficient solutions, the advisor has to find more
modalities of resolution, so that the recipient should choose the best solution. And the
content of the information has to be clear, for the recipient to understand it, orderly, simple,
intelligible and attractive.
From the theoretic point of view, the advisory services will attain their goals if their
goals are known, the methods of attaining the goals are well-mastered (the goal-means
relationship), the working methods are exclusively used to attain the organizational goal,
the working environment, and the way the work takes place are efficient and appropriate,
information transfer has to be done so that it should be oriented to the recipients
problems, and as far as the teaching techniques, alternative methods should be used. The
most important organizational measures refer to the procedures to establish the goal,
planning, decisions, working tasks achievement, responsibility, competence, control,
communication and motivation.
The advisory service, as a branch of management, develops its activity on the basis of
well-defined principles, and among these the most important are: professional competence
and high qualification in the advisory service, the advisor has to enjoy total independence
in his advisory activity, the advisory service is, basically, a counseling activity, so that the
advanced proposals and the solutions should not have an imperative character for the
recipients and the confidentiality of the advisory activity.
From the content of the agricultural functions we infer that the main task of the
agricultural advisory service is to help and support the producers, by well-planned and
well-organized actions, there where the own solutions are not satisfactory, and the
stimulating measures, through the prices or the infrastructure-improvement policy will be
sufficient.
Besides the advisory service regarding the technologies of produce production,
processing and valorization or the supply and use of production factors, the advisory
service has to aim at socio-economic problems regarding the food and family budget
improvement , as well as discussion on the topic of employment, in other fields, for the
family members.
A particular attention should be paid to stimulating rural development programmes,
programmes where agriculture plays an important part. Generally, these programmes
have a political character, and that is why there should be an agreement and a support for
them both from the recipients and the politically responsible people. The measures which
are taken without the consent and understanding of the recipients come against, in many
cases, their lack of interest, confidence and their refuse to accept them.
Also, some state-supported actions, which, to larger or smaller extent, conflict with the
agricultural producers interests, lose their efficiency and they often become unachievable,
even if the state will use constriction in applying them.
Nowadays there are both public and private suppliers of advisory services. ANCA,
by its structure, is the only public institution which can supply advisory services for
farmers. Unlike the other suppliers, ANCA offers almost totally free rural information,
formation and development services. The ratio between the number of ANCA advisors and
the number of the recipients of services is of 1363 (in case subsistence farms are included
here) or 1136 (considering only the farms registered in the Farm Registry). In order to be
really supported, economically valid family farms would averagely need an advisor for 80
266
farms. In case they operate in multidisciplinary teams, then a team of 6 advisors could
assist approximately 500 family farms.

CONCLUSIONS

The necessity of organizing agricultural advisory service and information activity
under the terms of the agricultural development in Romania arise from:
- The average low level of professional training of the agricultural producers;
- The need of updating the professional skills for specialists with an agricultural
background;
- The poor level or the lack of knowledge regarding the market economy;
- Supporting the agricultural producers in the valorization of the exploitatation both
through technical instructions, and organizational for acquiring management and
marketing knowledge necessary to a profitable activity;
- The rise of new issues with a special impact on the agricultural producers;
- The use of the scientific research results;
- The lack of an information system for farmers;
- The efficient use of the specialists in agriculture.

BIBLIOGRAPHY

1. GHEORGHE SIN, TEODOR MARIAN, Research-Advisory Services-Production, Ideas, facts,
opinions, Ceres Publishing House, Bucharet 2004;
2. IOAN ALECU and company, Agricultural Exploitatation Managementul, Ceres Publishing House,
Bucharest, 2001
3. www.consultantaagricola.ro

267
APPROACH OF MANAGEMENT ACCOUNTING IN COST CONTROL IN
AGRICULTURAL COMPANIES

ABORDAREA CONTABILITATII MANAGERIALE IN CONTROLUL
COSTURILOR IN SOCIETATILE AGRICOLE

PIRVUTOIU I. *, POPESCU AGATHA** , GRIGORAS M.A. ***

*Hyperion University, Bucharest, Romania
**University of Agricultural Sciences and Veterinary Medicine, Bucharest , Romania
*** University of Agricultural Sciences and Veterinary Medicine, Cluj-Napoca , Romania

Abstract

This study aimed to present an approach of Management Accounting in order to show its role In
Cost Control within agricultural companies. Accounting is the most important component of information
system within an organization. It provides information for formulating overall strategies and long-term
plans, for allocating resources , for pricing and cost planning, for controlling operation costs , performance
measurement and personnel evaluation. In agriculture , there is a large range of cots, cost planning and
evaluating is more complicated than in other economy branches . They have to be analyzed for primary and
secondary products . Cost benefit analysis is a part of Management Accounting determining future business
plan and strategies . Cost control is important to follow plan achievement , to compare incomes and costs
and judge results .This is the main reason in agriculture the firm managers have to pay a special attention to
cost by product, cost by sections or production division, labor cost , loss cost , cost behavior by activity.

Key words: management accounting , information system, cost control, decision making ,
agricultural companies

INTRODUCTION

Management Accounting is that part of accounting integrated within the company
management concerned with identifying , presenting and interpreting information used
for : formulating strategy, planning and controlling activities, decision taking, optimising
the use of resources, disclosure to shreholders and others external to the entity, disclosure
to employees , safeguarding assets. This means that Accounting is deeply involved as a
participant in the comany management to ensure that there is effective : formulation of
plans to meet objectives ( strategic palnning ) , formulation of short-term operation plans
(budgeting/proft;planning) , acquisition and use of finance ( financial management ) and
recording of transactions ( financial accounting and cost accounting ), communication of
financial and operating information , corrcetive action to bring plans and results into line
(financial control ) , reviewing and reporting on systems and operations ( internal audit ,
management audit )( 1,4,5).
Therefore management accounting is of high interest to managers for use in
planning and controlling operations and in decision making . It assists managers in
carrying out their responsibilities (planning, directing, motivating and controlling) .
Since management accounting is geared to the needs of the manager rather than
to the needs of outsiders, it differs substantially from financial accounting. Management
accounting is oriented especially to future, places less emphasis on precision,
emphasizes segments of an organization , is not governed by generally accepted
accounting principles, and is not mandatory.
The business environment in recent years has been characterized by increasing
competition and a relentless drive for continuous improvement. Several approaches have
been developed to assist organizations in meeting these challenges-including just- in -
268
time (JIT), Total Quality Management TQM), Process Reengineering, and the theory of
constraints(TOC).
This new approaches are more and more discussed in our country as long as it
has become an EU member state . Agricultural companies have to pay a special attention
to T.Q.M. , to take into considerations T.O.C. under the unsecure business environment
and also to evaluate production P.R. This involves a plenty of costs, which must be
computed and analysed by decision makers ( 1,2,3,4,5).

In order to set up this study literature in the field was carefully studied, identifying
the role of Managerial Accounting in cost control in agricultural companies. Based on a
logical schedule , we approached the following important aspects related to Managerial
Accounting : information on the costs of an organizations products and services. Budget
planning, performance reporting , other information which assist managers in their
planning and control activities. The comments concern managers point of view and also
results got in managerial practice in agricultural companies.
Management accounting is concerned with providing information to managers, that
is, to those who are inside an organization and who direct and control its operations. It
includes :
a)Information on the costs of an organizations products and services. For instance ,
in agricultural companies , managers can determine production cost and analyze its
structure in order to identify the increasing or descreasing items , the causes which have
determined the items statement , the positive and negative factors affecting the nomal
evolution of cost . Costs have to analyzed as a whole or a a cost unit related to
production amount . There is no doubt that , its is important to know the share of every
item cost in total cost : materials ( raw materials used in the product , parts and
assemblies incorporated into the finished product , farm inputs such as high value seeds
and seeding material , fertilizers , herbicides etc ) , labour ( wages paid to production
workers for work directly related to production , salaries directly attribuable to a saleable
service , related contributions ) , electricity, water , depreciation, interest , taxes ,
overheads etc. In fact the analysis must be done upon the two important cost categories :
fixed and variable costs in close relationship to production level. Therefore managers
could approach marginal costing as a part of the accounting system in which variable
costs are changes to cost units and fixed costs of the period are written-off in full against
the aggregate contribution .Managers can also use product cost in order to guide the
setting of selling prices . In addition, these product costs are used for inventory valuation
and income determination.
b) Budget, which is the quantitative expression of a production plan, fundamenting
future costs required to help income coming . The forecast for the future budget is based
on the results obtained in the previous periods , so that it is compulsory as costs and
incomes to be precisely recorded and analized and then to represent a starting basis for
the prospective figures calculation. Therefore , the full budgetary process comprises
budgetary planning and budgetary control. These include coordination, clarification of
responsability , communication, control, motivation and goal congruence. The budgeting
process requires that feasible , detailed bidgets are developed covering each activity,
department, function in the enterprise. This must be done when the effects of one
departments budget are related to the budget of another department. A weel coordinated
budgeting system helps to ensure that, for instance, inventory and purchasing plans are
geared to production requirements , that production shedules are related to sales
budgets, that arrangements are made for overdraft facilities to coincide to cash flow
budget . A budgeting system is more likely to be successful when the follwoing conditions
269
are found ; the involvement and suport of top management, cler cut definition of long-term
objectives which the budgeting system will operate , a realistic company management
structure , an appropriate accounting and information system which will include : the
records of expenditures and performances related to responsibility, a prompt and accurate
reporting system , the ability to provide more detailed information or advice on request ,
regular revisions of budgets and targets , budget flexible administration and coordination.
c) Performance reporting often refers to comparisons of budgets with actual
results and the resulting deviations have to be deeply analised in order to look for the
main causes and determining factors enabling managers to find the corresponding
measures for improving situation in the coming years. In fact managers performance is
often judged partly by his ability to meet budgets.
d) Other information which assists managers in their planning and control activities
could include revenues of an agricultural company and services which they may provide,
sales back logs , unit quantities and demands on capacity resources .
The last decades new managerial accounting practices in agriculture such as
activity-based-costing, the balanced scorecard and bottleneck accounting were
developped. Unlike traditional managerial accounting, activity-based-costing
deemphasizes direct labor or raw material as cost drivers and concentrates instead on
activities that drive costs. Activity-based costing gives the management of an agricultural
company a clear picture of the cost drivers and the opportunities to reduce costs .
Cost accounting is the process of tracking, recording and analyzing costs
associated with the products or activities of an organization. Managers use cost
accounting to support decision making to reduce a company's costs and improve its
profitability. Cost accounting is mainly used for internal managers rather than external
users. Cost accounting can be viewed as translating the Supply Chain the series of events
in the production process that, in concert, result in a product into financial values. There
are at least four approaches: Standardized Cost Accounting, Activity-based Costing ,
Throughput Accounting and Marginal Costing /Cost-Volume-Profit Analysis. Classical
Cost Elements are: Raw Materials Labor and Indirect Expenses / Overhead .
The precise calculations of all sorts of costs depends on the use of adequate
methods and procedures that accounting has at its disposal. Managers have responsibility
to look for ways to assure and increase profitability . This is not possible without taking into
account cost and income levels , the comparisons between planned figures and obtained
ones.
Besides its capacity to evaluate efficiency of producing a special product in
agriculture, cost accounting creates a basis for setting up options and decisions in case
the effects or variants of a project are similar. In this case , the only criterium to chose the
optimal variant is the lowest cost .
The increased competitiveness in agriculture imposes to handle the best way cost
control with a deep impact on profit level. The sold production has a deep influence on
cost level. The higher the production, the lower the cost. This is explained by cost structure
and its variations over the time depending on production volume. Income and Variable
costs determine Gross margin, considered a real profit barometer within agricultural
farms , a comparison basis for farm performance evaluation .
As a result Management Accounting plays its part in financial record keeping , the
preparation of final accounts , dealing with debtors and creditors , the raising of finance
and dealing with all aspects of taxation. In this way , it keeps under control revenues and
expenses , profit and profitability.
Management Accounting has to make use of a number of information systems or
networks , frequently computer based . Sometimes there are separate information systems
dealing with sales , production , personnel , financial and other matters , sometimes teher
is integration of these sub-systems. Very rarely the information system is a totally
270
integrated one dealing with all aspects of managements requirements for planning ,
control and decision making.
In many enterprises , including the ones dealing with agriculture, the management
accounting information system is the most developed of all the information systems and it
is therefore critical that management accounting systems are designed in accordance with
the principles of systems theory.
In Management Accounting it is very important as the accounts to use the
appropriate statistical and operational research techniques , which improves or refines a
particular solution. This is available for cost calculation, planning , decision making ,
planning etc. In agriculture , more and more companies pays more attention to the
implementation of information systems as an useful tool for a modern and effcetive
company management. The new computer packages of software give a help in hand to
accountants and assist them in the application of statistical and operation research
techniques in many fields of activity , among which the most important for an agricultural
company are : statistical forecasting for cost an sales extrapolations, liner programming for
resource allocation problems such as production planning , economic order quantity
models to help solve inventory control problems and so on.
The use of relevant techniques in management accounting depends on how familiar
an account is with them and on his/her capacity to distinguish where their use will be
beneficial and cost effective. It is obviously recognized that the modern management
accountant should use the relevant techniques accordingly to the target purposes.

CONCLUSIONS

1.Management accounting is concerned with providing information to managers. In
agriculture , managers are directly responsible of cost planning and control , taking into
account the peculiarities of agricultural production .
2. In Management Accounting, cost accounting is the process of tracking, recording and
analyzing costs associated with the products or activities of an organization. Managers use
cost accounting to support decision making to reduce a company's costs and improve its
profitability.
3.Cost analysis and control, besides cost information system and cost generation and
calculation represents a premise for a rationale approach of the whole strategic
development of an agricultural company.

BIBLIOGRAPHY

1.GARRISON, R. H., NOREEN P. E., 1999, Managerial Accounting, Irwin McGraw Hill
2.HORNGREN, C. T. AND G. FOSTER, 1987, Cost Accounting, A Managerial Emphasis, Prentice-Hall, Inc.
1987
3.KAPLAN, R.S. AND A. A. ATKINSON, 1989, Advanced Management Accounting, Prentice-Hall
International Inc.
4.LUCEY , T. 1992, Management Accounting, DP Publications Ltd. Aldine Place , London
5.RISTEA M., OLARIU N. , 2005, Accounting in Enterprise Management, Economic Publishing House,
Bucharest

271
CONSIDERATIONS UPON THE APPLICATION OF RATIO ANALYSIS IN
FINANCIAL MANAGEMENT

CONSIDERATII ASUPRA APLICARII ANALIZEI RATELOR IN
MANAGEMENTUL FINANCIAR

POPESCU AGATHA

University of Agricultural Sciences and Veterinary Medicine Bucharest Romania

Abstract

This paper aimed to present some considerations upon the application of Ratio Analysis in Financial
Management, based on the data provided by Balance and Profit and Loss Account ended at December
2005, 2006 and 2007 and belonging to an agricultural company dealing with cereals cultivation in the South
part of the Romanian Plain . The following groups of indicators were determined and interpreted :long-term
solvency and stability, short term solvency and liquidity and efficiency and profitability . The obtained
results revealed that the company has registered an increasing financial statement from a year to another
due to a rationale financial and technological management . Profitability and efficiency rates represent a
guarantee that the company is both solvent and liquid , that is , that is has adequate cash or cash
convertible resources to cover borrowings and interest required by loan creditors and meet all current
liabilities as they fall due.

Key words: Ratio Analysis, financial management, agricultural companies

INTRODUCTION

Financial statements are produced not merely for their own sakes but for the uses o
which they can be put by the various parties interested in different aspects of these
statements .Within a company, the managerial body is interested in overall figures which
indicate whether the company is profitable or it is on a sound of financial footing. At
workshop/department level in a manufacturing business as the one in agriculture are the
foremen and chargehands who are concerned only with those matters which relate to the
particular section for which they are responsible . From the point of view of the company
ownership, the actual and prospective shareholders are interested in its current and future
earnings out of which dividends can be paid , the security of their dividends , return on
their investment and so on. The external interested parties as loan and trade creditors are
interested to know if the company is solvent and liquid , that is , it has adequate cash and
cash convertible resources to reimburse loans and the related interest and meet all current
liabilities as they fall due( 1,2,3,4,5,).
Taking into consideration the difficulties and instability of business environment in
agriculture , this paper aims to present an application concerning the use of Ratio
Analysis in a company dealing with cereals production in order to concretize theory in
practice and find specific aspects which could affect profitability and efficiency in agri-
business.

MATERIAL AND METHOD

The paper is based Ratio Analysis Method and used the data registered in the
Balance and Profit and Loss Account ended at December 2005, 2006 and 2007 ,
belonging to an agricultural company dealing with cereals cultivation in the South part of
the Romanian Plain . The following indicators were calculated : Current ratio ( Current
Assets/Current Liabilities ), Liquidity Ratio ( Liquid Assets/Current Liabilities ), Total
272
external liabilities to Owners equity ( Total Debts/Owners Equity), Long-term debt to
Owners equity ( Fixed external Liabilities / Owners Equity), Owners Equity Ratio
(Owners Equity/ Total Assets ) , Gross Profit Share to Sales ( Gross Profit x 100/Sales ),
Net Profit to Sales ( Net Profit x 100/Sales ), Sales to total assets ratio ( Sales/Total
Assets), Sales to Capital employed ( Sales/Capital employed), Net profit to Capital
employed ( Net profit /Capital employed ) .


Finacial Accounting Papers are concerned only with income statements ( trading
and profit and loss accounts ) , with statements of financial position ( balance sheets ) and
with the ones of changes in financial position ( cash flow statements , funds flow
statements ). Financial Analysis is a specific tool in managers hand but also a real art
and science which firstly consists in the selection of those ratios most appropriate under
the circumstances and subsequently in the interpretation of the position which they reveal.
Literature present a large range of indicators classified into many categories . In common
use, ratios are divided into the following categories : Trading account ratios ( Gross profit
%, Stock Turnover ), Profit and loss ratios ( Expense %, Fixed interest cover , Fixed
dividend cover ) , Balance sheet ratios ( Current ratio, Liquidity ratio, Debt ratio, Long-term
debt to Owners equity), Owners equity ratio, Gearing, Net book value per share ), Trading
account/profit and loss account ratios ( Net profit to sales % , Expense to sales), Trading
account /Balance sheet ratios ( Debtor collection, Creditor payment period, Sales to total
assets, Sales to capital employed , Sales to Asset ratio ), Profit and Loss Account to
Balance Sheet ratios ( Net profit to capital employed %, Earnings per share, Dividend per
share) and Other ratios such as : Price/earnings ratio, Earnings yield, Dividend Yield ). In
fact, all these indicators can be redivided into other four categories : Long-term solvency
and stability, Short term solvency and Liquidity, Efficiency and Profitability , Potential and
actual Growth .
The financial analyst should be selective in approach and not to use all these
indicators .The first step is to identify those areas for which ratios should be calculated.
Fairly, obviously , these should be those concerned with long-term and short-term strength
and with efficiency and profitability . But , when employing ratio analysis , the analyst must
be aware of the major dangers , which in general are the following ones: (a) the figures
resulting from the calculations are often given o a number of decimal places, thereby
creating a false impression of absolute accuracy, (b) the interpretation of the ratios must
not be divorced from an examination of the surrounding circumstances, (c) a business
may carry out an analysis of its results , on a comparative basis , at different points in time,
(d) the ratios of one business are commonly compared to the ratios of another business,
but in this case the analyst has to know if there were applied uniform accounting policies.
However, ratios are useful as they afford a means of comparing otherwise incomparable
absolute figures. Furthermore, ratios are useful indicators of trends and when used in
conjunction with other figures , particularly with statements of source and application of
funds.For the considerations mentioned above , the study case presents just a selection
of the main indicators calculated for the agricultural company dealing with cereal
production on the South area of the Romanian Plain as shown in Table 1.
Current ratio indicates an increased ability of the company business to meet its
short-term liabilities , as they fall due , out of its short-term assets. In the year 2007 ,
Current ratio was 1.83 , meaning 1.9 times higher than in the year 2005 . This was due to
the higher increased value of Current assets compared to the increased value of Current
liabilities , which is a positive aspect.
Liquidity ratio indicates the relative amount of assets in cash or which can be
quickly converted into cash , available to meet short-term liabilities. The company liquid
273
assets consist of cash and bank balances and debtors . It registered an increasing trend
from 0.97 in the year 2005 to 1.11 in the year 2007 , showing that the company business
has been well developed so that to assure a higher liquidity. This was due to the higher
increasing value of liquid assets compared to the increasing value of current liabilities.
Table 1
Main Ratios used in Financial Analysis
Euro
Indicator 2005 2006 2007 2007/2005 %
BASIC DATA
Current Assets 71,300 108,758 158,215 221.90
Current
Liabilities
74,302 67,493 86,234 116.05
Liquid Assets 64,738 70,686 95,550 147,59
Total Debts 140,272 176,251 244,448 174.26
Owners Equity 148,735 148,860 149,104 100.24
Long-term
Debts
6,106 4,843 3,653 59,82
Total Assets 294,338 325,112 393,553 133.70
Gross Profit 8,759 1,250 2,199 25.10
Sales 205,333 259,747 167,634 81.64
Net Profit 7,341 1,050 1,848 25.17
Capital
employed
154,842 153,703 152,756 98.65
FINANCIAL RATIOS
Current ratio 0.96 1.61 1.83 190.62
Liquidity Ratio 0.97 1.05 1.11 127.58
Total external
liabilities to
Owners equity
0.94 1.18 1.63 173.40
Long-term debt
to Owners
equity
0.04 0.03 0.02 50.00
Owners Equity
Ratio
0.50 0.46 0.38 76.00
Gross Profit
Share to Sales
4.27 0.48 1.31 30.67
Net Profit Share
to Sales
3.57 0.40 1.10 30.81
Sales to total
assets ratio
0.70 0.80 0.43 61.42
Sales to Capital
employed
1.33 1.69 1.10 82.70
Net profit to
Capital
employed
0.05 0.07 0.01 20.00

Total external liabilities to Owners equity ratio indicates that the firm business
is solvent and therefore the company has passed the test of financial stability. In the
year 2007 , this indicator was 1.63 compared to 0.94 in the year 2005.
274
Long-term debt to Owners Equity ratio indicates the extent of cover for fixed
liabilities .In 2007, this indicator level was twice lower ( 0.02 ) than in the year 2005
(0.04).
Owners Equity ratio indicates the degree to which unsecured creditors are
protected against loss in the event of liquidation. Unfortunately , this indicator level
decreased from a year to another , from 0.50 in 2005 to 0.38 in the year 2007. This was
due to the fact that the owners equity has remained almost at the same level while total
assets have increased by 33 % during the analyzed period.
Gross profit share to Sales ratio indicates the average gross profit margin on
sales of goods. From this point of view , the company is facing a critical situation. In the
year 2007, gross profit represented just 1.31 % to sales compared to 4.27 % in 2005. The
both indicators determining its calculation , that is gross profit and sales recorded a deep
decrease . In the year 2007, sales were by 19 % lower than in 2005, while gross profit
was by 75 % lower.
Net profit to Sales ratio recorded a similar situation taking into account as its level
depends on almost on the same determinants . In 2007, its level was 1.10 compared to
3.57 in 2005/
Sales to Total assets ratio does not indicate an increased efficiency of total assets
in generating revenue. On the contrary , as sales decreased and total assets increased , it
was normal that in the year 2007 , the level of this indicator to be 0.43 , by 29 % lower
than in 2005.
Sales to Capital employed ratio indicates a decreasing efficiency of utilization of
capital employed in generating revenue. In 2007, its level recorded 1.10 compared to 1.33
in 2005, mainly due to the diminished sales .
Net profit to Capital employed ratio indicates that the overall profitability of the
business is at its limit of surviving . In fact it is practically zero , because of the low net
profit.
CONCLUSIONS

1. Based on a few but key financial ratios , this study proved that we could make a
global image of how company business is developing, if its capital employed was
efficiently used or not .
2. Despite that the agricultural company registered a higher current ratio and liquidity
ratio in the year 2007 compared to 2005, long-term debt and owners equity decreased as
well as sales and consequently gross and net profit share in sales .
3. Profitability is practically zero reflecting a lack of efficiency in using the capital
employed.
4. The company has to pay more attention to production diversification , cost
management and clients selection , in order to increase revenues and keep costs at a
corresponding level .
BIBLIOGRAPHY

2.JENNINGS, A.R. 1993 Financial Accounting, DP. Publications Ltd, Aldine Place, London, page 401-
485.
3.HORNGREN, C. T. , FOSTER G., 1987, Cost Accounting, A Managerial Emphasis, Prentice-Hall, Inc.
1987
4.KAPLAN, R.S. , ATKINSON, A.A.- 1989-Advanced Management Accounting, Prentice-Hall International
Inc.
5.POPESCU AGATHA , 2007, Financial Analysis , Dominor Publishing House, Bucharest, page 132-157
6.RISTEA M., OLARIU N. , 2005, Accounting in Enterprise Management, Economic Publishing House,
Bucharest

275
STUDY UPON THE ROLE OF CAH FLOW ANALYSIS IN FINANCIAL
MANAGEMENT

STUDIU PRIVIND ROLUL FLUXULUI DE NUMERAR IN
MANAGEMENTUL FINANCIAR

POPESCU AGATHA

University of Agricultural Sciences and Veterinary Medicine Bucharest, Romania

Abstract

This paper aimed to present the importance of cash flow information for financial management .
Cash is the life blood of an enterprise and for this reason managers and external parties are interested
to pay a special attention to its inflows and outflows. According to legislation in force , the paper presents
the users of financial statements and the way in which International Accounting Standard 7 classifies cash
flows . In this respect , it is referring to cash flow coming from operating, investing and financing activities
using data about the historical changes of cash and cash equivalents. Direct and Indirect Methods used for
cash flow calculation are also presented according to the legislation in force destined to assure the alignment
of the Romanian Accounting to the provisions of the International Accounting Standards 7.A model for Cash
Flow Statement is presented for ALFA Company .

Key words : cash flow , importance, financial management

INTRODUCTION

In the past, the importance of Cash to the health growth of an enterprise has either
been neglected or simply underestimated. Nowadays, it is recognized that Cash is the life
blood of a company. For this reason , a special attention is paid by managers and
external parties ( creditors, investors ) to its inflows and outflows.
Sometimes , it is considered that if a company is making substantial profit, it does
not need to be matched by a corresponding increase in cash. But this is just partially true
because cash receipts and payments include not only those items which affect revenues
and expenses ( and therefore profit ) but also those items which affect assets and liabilities
which are not reflected in the profit and loss account.
The cash of a business is generated by capital subscribed by investors and sales
of goods and services to customers, receipt of dividends , fixed assets sales , loans
obtained from creditors and it may be absorbed by capital withdrawn , dividends /interest
paid , wages/salaries paid to employees , purchases of goods/services from suppliers,
fixed assets acquisition , payments of tax collected , repayments of loans to creditors and
so on( 1, 2, 3, 4, 5 ,6, , 8).
For this reason, this paper aimed to present the role of Cash Flow for Financial
Management taking into account the provisions of the IV th Directive of International
Accounting Standards which have to be put into practice by our country in order to assure
the alignment of the Romanian Accounting to the international standards (7,9 ).

MATERIAL AND METHOD

The paper is based on the provisions of the IV th Directive of International
Accounting Standards and make comments concerning its application in the Romanian
Accounting showing its importance for Financial Management .
Cash Flow statement presents the inflows and outflows showing their origins and
also destinations , as well as the factors causing its variations. The EU IV Directive
276
provides information only about Balance Sheet, Profit and Loss Account and Explanatory
Notes leaving at the disposal of the member states to decide the structure of the annual
accounts and other statements. In Romania , Cash Flow Statement is a component of
the annual financial statements according to legislation in force destined to harmonized
Romanian accounting to the European one in order to put into practice the rules applied at
international level.


The International Accounting Standard 7 defines Cash Flow as inflows and
outflows of cash and cash equivalents . The key components are therefore cash in hand
and cash deposits at any bank ( if repayable at demand ) and cash equivalents which
include short-term , highly liquid investments which are readily convertible , without notice,
into known amounts of cash , less bank advances repayable .
The setting up of Cash Flow is destined to offer a tool for evaluating a company
capacity to generate cash and cash equivalents , as well as its capacity to use this
Cash Flow .
Cash Flow Statement is included among other reporting financial statements
because of its importance for financial management of the enterprise.
The role of Cash Flow Statement is characterized by the following aspects :
assures the evaluation of enterprise net assets variation, allows the evaluation of the
enterprise financial structure, including the degree of liquidity and solvency of the
enterprise, emphasizes the enterprise capacity to influence cash flow value and the
moment of its appearance, assures the comparison between the reports concerning
operating results , eliminating the effect of using different accounting treatments, allows
cash flow evaluation in the past and in the future.
Cash Flow Analysis is useful for identifying the correlation existing between profit
and cash , for separating cash generating activities from the ones which does not
produce any cash flow , for assessing the company capacity to be solvent and liquid ,
that is to be able to pay its debt in cash, for evaluating the further cash flows .
Cash Flow is classified into three categories as flows : cash flow coming from
operating activities , cash flow coming from investing activity and cash flow generated by
financing activities.
Cash flow generated by operating activity is a result of the main activities
generating profit. For this reason , the value of operating cash flow is a key barometer
for the measure in which the activities of the enterprise have produced enough cash
flow in order to reimburse loans , to maintain the operating capacity of the firm , to pay
dividends and make new investments without using any other external sources. Also ,
the historical cash flow value related to operating activity may be useful for setting up
the forecasts of operating cash flow.
The origins of operating cash flow are the following ones : inflows from the sale
of goods/services , inflows from rents, honoraries, commissions and other income
sources, outflows to suppliers for goods/services, outflows representing wages/salaries
paid to employees , inflows and outflows related to insurance , annuities, damages in
case of insurance companies , outflows representing profit taxation , inflows and outflows
generated by acquisitions/selling of value titles (shares and bonds).
Cash Flow generated by investing activity is determined by outflows for
purchasing lands and fixed assets , intangible assets and other long-term assets , inflows
from selling lands and buildings, installations and equipments , intangible assets and other
long-term assets , outflows for purchasing own capital items and acquiring debts from
other companies, inflows from selling own capital items and debts belonging to other
277
companies, inflows coming from cash advances and loans provided by other parties,
inflows from advances and borrowings reimbursement to other parties .
Cash Flow generated by financing activity consists of : inflows coming from
share /bonds emission and other capital items , outflows representing payments to
owners/shareholders for purchasing or rebuying firm shares , inflows coming from
bonds emission , credits , mortages and other loans, outflows representing other
borrowings coming , for instance , from financial leasing operations.
The methodology used for determining cash flow can be divided into two
categories :
a)Direct Method involving inflows and outflows expressed in gross values .
Enterprises are encouraged to practice Direct Method because it provides information for
cash flow forecast which are not available by using indirect method.
In order to use Direct Method , it is needed to collect information about gross inflows
and outflows which can be obtained in two ways : (a) either from accounting records of the
company for operating cash flow and in this case inflows are compared with outflows or
(b) from Profit and Loss Account by adjusting operating incomes and expenses with the
changes running during the period for operating inventory, debtors and debts .
The formula used for determining operating cash flow by direct method in case of
the implementation of the engagement accounting is given below:
OCF = ORI OEP _NCF,
where : OCF = operating cash flow ;ORI = operating revenues to inflow ;OEP =
operating expenses to pay , _NCF = variation of operating circulating fund .
Cash Flow Statement ended at December 31 and concluded based on Direct
Method consists of ( 8,10 ):
Operating Cash flow : inflows from selling goods/services ; inflows from rents,
honoraries, commissions and other incomes;outflows to suppliers for goods/services;
outflows representing wages/salaries paid to employees ;inflows and outflows related
profit tax , only if they had not been identified with investing and financing activites.
Investing Cash Flow :outflows for purchasing lands and fixed assets , intangible
assets and other long-term assets ;inflows from selling lands and buildings, installations
and equipments , intangible assets and other long-term assets ;outflows for purchasing
own capital items and acquiring debts from other companies;inflows from selling own
capital items and debts belonging to other companies;inflows coming from cash
advances and loans provided by other parties;inflows from advances and borrowings
reimbursement to other parties .
Financing Cash Flow :inflows coming from share /bonds emission and other
capital items; outflows representing payments to owners/shareholders for purchasing or
rebuying firm shares ; inflows coming from bonds emission , credits , mortages and
other loans; outflows representing reimbursement of borrowings; outflows for reducing
obligations related to a financial leasing operation.
b)Indirect Method where net result is corrected by the influence of non monetary
operations , revenue and expense items related to cash flows aiming investing and
financing activities operations related to working capital .
Indirect Method requires as net operating to be determined adjusting net profit or
loss with the effects of stock , debtors and creditors variations , as well as with
depreciation charges , provisions , postponed taxes , losses and gains in foreign
currency and so on.
The formula used to determine operating cash flow by this method is :

OCF = ANR CR - IFR + CE + IFE- _NCF,

278
where: OCF = operating cash flow ;ANR = accounting net result ;CR = calculated
revenues ;IFR= investing and financing revenues ;CE = calculated expenses ;IFE =
investing and financing expenses ;_NCF = variation of operating circulating fund .
Cash Flow Statement ended at December 31 and concluded based on Indirect Method
consists of ( 8,10 ) :
Operating Cash flow :net result ;changes during the period related o working
capital; adjustments for non monetary items and other items included in investing and
financing activities.
Table 1
Cash Flow Statement ended at December 31, 2007 ALFA COMPANY (Euro)
Indicators Year 2006 Year 2007
A.Liquidities at the beginning of the period 801,436 1,210,943
-In bank accounts 24,073 98,010
- In cash 381 248
-Cash advances 155 66
-Receipts 42,617 59,589
-Placements 734,210 1,053,030
Inflows from operating activity 3,677,755 5,180,824
-Inflows from customers 3,501,849 5,056,186
-Other inflows 175,906 124,638
Outflows from operating activity 3,271,413 4,620,475
- Outflows to suppliers 1,793,197 2,864,612
-Outflows to personnel 924,092 1,033,647
-Outflows concerning taxes 128,318 102,757
-Outflows concerning profit tax 181,279 102,756
-Outflows concerning paid interest 3,750 2,847
-Other payments 240,777 513,856
B. OPERATING CASH FLOW 406,342 560,349
Inflows from investing activity 46,920 34,194
- Inflows from selling lands, fixed assets and other
intangible assets
0 0
-Inflows from advances reimbursement and borrowing
to parties
0 0
Outflows for investing activity 367,682 344,359
- Outflows for acquiring land, fixed assets and
intangible assets
367,682 344,359
- Outflows for purchasing own capital items and other
companies debts
0 0
C.INVESTING CASH FLOW -320,762 -310,165
Inflows from financing activity 0 954,868
Outflows for financing activity 0 1,693,965
D.FINANCING CASH FLOW 0 - 1,039,097
E .TOTAL CASH FLOW +85,580 -788,913
F.Liquidities at the end of the period 1,211,090 576,701
-In bank accounts 98,010 60,009
- In cash 248 348
- Other values 147 530
-Cash advances 66 -
-Receipts 59,589 83,874
-Placements 1,053,030 431,940

Investing Cash Flow :outflows for purchasing lands and fixed assets , intangible
assets and other long-term assets ;inflows from selling lands and buildings, installations
and equipments , intangible assets and other long-term assets ;outflows for purchasing
own capital items and acquiring debts from other companies; inflows from selling own
capital items and debts belonging to other companies; inflows coming from cash
279
advances and loans provided by other parties; inflows from advances and borrowings
reimbursement to other parties .
Financing Cash Flow :inflows coming from share /bonds emission and other
capital items; outflows representing payments to owners/shareholders for purchasing or
rebuying firm shares ;inflows coming from bonds emission , credits , mortages and
other loans; outflows representing reimbursement of borrowings; outflows for reducing
obligations related to a financial leasing operation.
Each Cash Flow Statement presents the situation both at the beginning and at the
end of the period as shown in Table 1.Despite that International Accounting Standards 7
recommends Direct Method , most of enterprises agree to use indirect method because
it fits better to the accounting reports and seems to be more confidential without
affecting the company image in the business environment .
As we can see cash flow plays an important role within financial management
proving useful information about the obtained inflows and outflows, as a starting point for
setting up the future cash flow strategy , which is a part of financial management.

CONCLUSIONS

1. Cash is the life blood of an enterprise and for this reason managers and
external parties are interested to pay a special attention to its inflows and outflows.
2. Romanian enterprises has to calculate and report Cash Financial Statement
according to International Accounting Standard 7 and E.U . IVth Accounting Directive ,
using either Direct or Indirect Method.
3. Cash Flow comes from operating, investing and financing activities and has to
take into account the data about historical changes of cash and cash equivalents.
4. The role of Cash Flow Statement for Financial Management for the following
reasons : assures the evaluation of enterprise net assets variation, allows the evaluation
of the enterprise financial structure, including the degree of liquidity and solvency of the
enterprise, emphasizes the enterprise capacity to influence cash flow value and the
moment of its appearance, assures the comparison between the reports concerning
operating results , eliminating the effect of using different accounting treatments, allows
cash flow evaluation in the past and in the future.
5.Cash Flow Analysis is useful for identifying the correlation existing between profit
and cash , for separating cash generating activities from the ones which does not
produce any cash flow , for assessing the company capacity to be solvent and liquid , for
evaluating the further cash flows .
BIBLIOGRAPHY

1.BREZEANU, P. AND COL., 2003, Financial Diagnosis , Economic Publishing House, Bucharest.
2.DRAGOT, V., CIOBANU ANAMARIA, OBREJA LAURA, DRAGOT MIHAELA,2003 , Financial
Management , Economic Publishing House, Bucharest , p. 224-225.
4.HALPERN, P., WESTON, F. J., BRIGHAM E. F., 1998, Managerial Finance , Economic Publishing
House, Bucharest, p. 97.
5.JENNINGS, A.R. 1993 Financial Accounting, DP. Publications Ltd, Aldine Place, London, page 401-
485.
6.KAPLAN, R.S. , ATKINSON, A.A.- 1989-Advanced Management Accounting, Prentice-Hall International
Inc.
7.POPESCU AGATHA , 2007, Financial Analysis , Dominor Publishing House, Bucharest, page 132-157
8. STANCIU, I., 1997, Finance, Economic Publishing House, Bucharest , p. 490
9. * * * Public Finance Ministry Order No .94 /January 29 , 2001 for approving Accounting Regulations
harmonized with the IV th Directive of European Economic Community and International Accounting
Standards
280
CLEANING AND MAKING THE WATER BEING DRINKABLE, IN
BUCHAREST

EPURAREA SI POTABILIZAREA APEI IN MUNICIPIUL BUCURESTI

SALCIANU MARIANA, ROXANA FLORENTINA IONESCU

AGRONOMICAL SCIENCES AND VETERINARY MEDICINE UNIVERSITY IN
BUCHAREST

Abstract

For assuring a proper quality of the used water poured in the natural waters, usually it is necessary
like the used water to be cleaned. In the water quality field, the main environmental problems that Bucharest
faces, are:
1. Non-existence inside the city of a cleaning station of used waters. Nowadays, through the seven big
collecting channels to which most of the economical agents are connected, daily are poured 200.000 cubic
meters of used water, which, in the end, are arriving in the natural waters.
2. Increasing of underground waters, as effect of creating the subway tunnels and as creating the digs
around Dambovita river.
3. Improper quality of the chain lakes water. This is due to the direct pouring into Colentina river, by all the
industrial units and by the population, of used waters resulted from the area around Bucharest. Buftea (food
and beverage industry), Crevedia (chicken farm and population), Mogosoaia (film industry, population). On
the other hand, the bottom of Colentina river has not been cleaned anymore over 30 years before,
conducting to big gathered mud quantities.

Key words: water, cleaning, making, sewerage

CLEANING WATER SYSTEMS IN BUCHAREST CITY

The cleaning of the used waters is made in complex installations, called water
cleaning stations.
Domestic waters are cleaned in city water cleaning stations, and the industrial
waters it is necessary to be cleaned directly at the production source.
An important role in the quality of the used waters is played by the public sewerage
system. The public sewerage system represents the total of works and necessary
measures for collecting, transport, cleaning and evacuation of used waters came from
different uses, also of meteo waters. The total length of the public sewerage system is
referring at the channels and pipes length through which are collected and evacuated the
used waters from the territory of the city with public sewerage systemResidual cleaned
water represents the water quantity resulted from the use process, evacuated through the
public sewerage system and which was subject of a cleaning process.
Bucharest is distinguished through the existence of a public sewerage system in total of
1664 km. The length of the streets with sewerage pipes is 1602 km, from a total of 1825
km. The worse situation is represented by the fact that, nowadays, Bucharest does not
have the own city water cleaning station. If in counties which can be considered even not
so developed ( Botosani, Gorj, Ialomita, Ilfov, Neamt, Teleorman, Tulcea, Vaslui ),
there are cleaned, annually quantities of 30.000-50.000 cubic meters of used water, in
Bucharest there is not evev one cubic meter cleaned.
From technological point of view, the cleaning process is made in more steps:
- mechanic step, through which are eliminated the solid products which float or
which are in suspension in the water;
281
- biological step, the second one, using some certain aerob bacteria. The main
purpose is to put in contact as many bacteria together with the organic substances from
the water, timeframe in which it is assured also an intens ventilation, like this to assure for
the bacteria a bigger possible oxygen quantit;
- chemichal treatment step, the third one, which can be executed also through
various procedures, has as purpose the removal of some unorganic toxic compounds,
which were not removed in the first two steps of the treatment.
The chemical treatment can be realised by combining some chemical procedures
with some physico-chemical procedures:
- using specific reagents;
- modifying Ph
- using the ion changers;
- ultrafiltering, through selective membranes;
- osmose (direct or reverse)
- cataphoresis
As effect of cleaning the used waters, there are, as result, treated used waters, with
an adequate quantity of toxic substances, which allow the pouring of those into the natural
waters, without affecting negatively their quality, and, on the other hand, muds, which,
depending of the composition, can have different uses (construction materials, agricultural
base).
Although the water pollution phenomena cannot be completely excluded, this can
be contollled, maintained between certain limits and even diminishedBut, it is necessary
the existence of a more restrictive legislation, also an energic and strict application of it.
The industry, the human communities, the states and the nations, must dedicate to
this purpose with all the seriozity, energy and resources which they have.
Bucharest is the biggest city of Romania. Its surface is cca 228 square kmeters. In
Bucharest, there are 5340 streets, with a total length of 1820 Km. To almost 2,3 million
people, thera are now over 100.000 companies.
Industrial units are divided in 10 big platforms, situated on the outskirtsin of the city.
There are also 18 industrial groups, more reduced, within the residential area, also a lot
which are functioning separately in habited areas. To those, it is to be added also the
semnificative increase, as volume and intensity of the traffic.
This general situation, in time, conducted to appearance and aggravating the
environment problems of Bucharest.
In the whole perimeter of the city, it is remarked the effect of acid rains, with high
concentration of hydrates, nytrits, nytrats, chlorurs, calcium, sodium, potasium.
Nowadays, the most severe problems can be considered:
- Non-existence of a city sewerage station for cleaning the used water. Today, through the
seven big collecting channek, to which are connected the most economical agents, are
poured daily, over 200.000 cubic meters used water, which arrive in the end, in the natural
water.
- Raising of underground waters level, following the construction of subway tunnels and
the construction over Dambovita.
- Unproper quality of the wate from the chain of lakes of Colentina River. This is due to the
direct pouring in Colentina river by all the industrial units and by the population of used
waters from Bucharest: Buftea
(food industry, low industry, population), Crevedia (ckicken growing farm, population),
Mogosoaia cinema industry, population). On the other side, the bottom of the lakes on
Colentina river has not been cleaned anymore for 30 years, wich leaded to:
-The accumulation of big quantities of mud;
-Inexistance of waters quality monitoring system;
-Inexistance of echological systems for depositation and elimination of urban garbage.
282

THE WASTE WATER CLEANING PROCEDURE

Water treating, in order to insure the quallitative coditions of waste water cleaning, can
be made by different mechanical and physichal-chemical procedures, all of them are
characterised by the existence of more treatment steps:
1. treatment for deinfection, wich involves:
- the deinfection, wich can be made by: - chlorinating;
- ozoneising; - chorosion control;
- fluorination; - ionic exchange;
- oxydation; - filtration.
2. mechanical treatment, which purpose is the elimination of some components
suspended in the water, and that involves the next technological main options:
- adsorbtion on activated carbone; -filtering through membranes;
- reversed osmose; - classical filtering;
- filtering through diatomatical grounds; - filtering through a sand
surface.
3. removing the organical components through:
- treatment with granulated activated carbon;
- oxigenation through barbotation of the air.
- oxidation and filtering, for the removal of the iron especially;
4. the removal of the organic components through:
- ionical exchange;
- ionical adsorbtion.

WASTE WATER PIPE SYSTEM

After the cleaning of waste water is done it results on a side treated waste water,
with a correspondent content of toxical substances, which can allow their leakage in the
nature waters without afecting negative their quality, and on the other side, mud, that
depending on the composition, can have multiple purposes (construction materials,
agricultural fatenents, etc.).
An important key in the quality of the waste waters is played by the public pipe
network. The public pipe network represents the group of works and measurements
needed for collecting, transporting, cleaning and evacuating of the waste waters camed
from miscellaneous usage, as well as the meteorical waters. The total length of the public
piping network it refers to the length of channels and pipes through the waste water is
collected and evacuated on the territory of the city with public piping network.
The volume of cleaned waste water is representing the quantity of water resulted from the
using process, which is evacuated in the public piping network and has been taken
through an cleaning process.
Bucharest city is charracterised through the existance of an public piping network
totalising around 1641 km. The length of the streets with pipes, represents 1602 km, from
an total of 1825 km of existing streets. The most severe situation is represented by the fact
that at this very moment the city of Bucharest is not having an city waste water cleaning
plant. This fact is leading to pollution of Dambovita rivers way out of Bucharest from the
joint of Dambovita-Arges, till the leaking of this one into the Danube, with all the negative
consequences .
The Bucharest piping system consists of :
283
- Used water pumping stations 13 pcs;
- Main collectors on the right side of Dambovitas river (A0-A3);
- Main collectors on the left side of Dambovitas river (B0-B7);
- Main collector in Colentina C1 area;
- Secondary collector pipe networks circular or ovoidal;
- Service pipe networks, whitch undertake the used waters from the pipes;
The total length of different categories of pipes is the following :
- service pipes channels 1152,4 km;
- secondary collectors 185,2 km;
- main collectors 303,7 km.
To these is added the piping with a total length of 763 km.
From the pipes age point of wiew, situation is the following:
- under 10 years 218,10 km;
- between 10-30 years 812,17 km;
- between 30-50 years 239,99 km;
-over 50 years 371,13 km.
Outside of these principal elements, Bucharests piping system contains as
elements :
- inspection doors 41.772 pcs;
- leaking doors 39.074 pcs;
- channel connections 56.749 pcs.
At this very moment , to the Bucharests piping system are connected beside the
population, an number of 1036 big companies. From these , over 400 companies are
having an high potential of pollution. The situation is severed by the fact that not all these
companies contains own waste water cleaning plants, and in many cases, those that tey
have own waste water cleaning plants , they are not functioning on the projected
parameters or they dont function al all. In these conditions, the majority of waste water
quantities with high pollution potential, are leaked directly in the citys piping system,
arriving finnaly in the Dambovita river, and from here, in Arges river and further to the
Danube.
According to the estimations, annualy through the collecting channels of Bucharest ,
are leaked around 500.000 tones of polluting substances, of whitch:
- suspentions around 260.000t;
- organic substances around 200.000t;
- fenols around 15.000t;
- detergents around 24.000t;
- chlores around 320t;
- chrome around 40t;
- nickel around 22t;
- zink around 64t;
- cooper around 52t;
- other substances in smaller amounts.
The supervising of the quality of waste waters leaked in the pipe network is made
by the S.C. APA NOVA S.A., through his special laboratory. Analise of the poluting
substances , made on moments samples collected from the existig control points on the
14 collecting channels, reporting the moments concentrations to the maximim admitted
concentrations.
The evacuation of the waste water through the citys pipe network, is facing many
difficulties, the main causes for these we can consider the following:
- the old network, with an advanced state of usage;
- the existing network covers around 85% of the citys surface;
- the new network from new built areas is not totally finalised.
284

MANAGEMENT QUALITY WATER IN BUCHAREST CITY

By the stipulations of the Law nr. 69 / 1991 regarding local public administration, as
well as the Law nr. 137 / 1995 regarding environment protection and water quality, The
General Council of Bucharest has major obligations in the field of protection and
reconstruction of environmental quality :supervises the applying of the stipulations from
the city planning and teritorial fitting out plans in accordance with environmental
planning ;supervises the econimical agents, to prevent elimination of pollution or
uncontrolled waste storage. Passes plans for sewer system development, pluvial water
collecting, fresh water supply, purification centres.Takes measures for prevention and
restriction of the impact of substances and wastes of any nature on the environment.
Insures by own means the supervision of environmetal quality for risk identification and
prevention. Maintains and develops green areas, parks, gardens and street alignment and
lakes. Regarding the serious and complex problems existing in the present, as well as
obligations that rest withlocal public administration in the field of environment protection, it
is obviously necessary that it should involve itself in an efficent way in approaching and
solving problems. Developping a strategy regarding environmental quality is a multi-
layered process that involves different technical analysis, coordination and cooperation
between this action participants, like economical agents, industrial patronal associations,
local civic organizations, local officialdom and public.The developing and carry out process
of a strategy for water quality is specific by area, being conditionated by a series of
elements :
- expanding the apliying geographical area ;
- the existing applyable environment procedures;
- the polution types an their control;
- the state an the evolution of the water;
- the institutional situation and the decisional factors involved in;
- the civil societys activity and involvment.
The formulation of the specific objectives of the strategy for the development of
water quality is based generally on the detailed evaluation of problem.
An fundamental argument in making the decision regarding the building of the
strategy for the waters quality in Bucharest city is the echonomical one. In the case when
the local budget is facing with difficulties targets are changing from a day to another, the
information management is wrong and the state of quallity of the environment is getting
worse, the local administration cannot afford anymore to act supervise and correct when
an complex decisional and fuctional structure is missing. The elimination of mixing the
activities, certifiyng the quality of the actions and informations supplied, allocation of clear
responsibility to the involved sides become priorities for the administration.
Todays state of quality of Bucharests city is asking for short term decisions to be
maken.
Of these , the most important is asuming the responsibility of coordonatig the action plan
for a cleaner water by the authority of local administration. This thing will happen with the
comunication with all the factors interested and especially with the environment protection
agencies.
This moment the context is positive from all points of wiew of starting the necessary
actions for creating a strategy for the waters quality protection in Bucharest. The urban
space of Bucharest combines all the specfic conditions of a typical crowded place,
situation inwith the european community recomends the institutional actions regarding the
management fo water quality to be a must.

STRATEGY AND OBJECTIVES
285
Insuring the water stock, related with this times request and for perspective,
as well as the clean waters quality improvement supplied to the final users, are asking:
renewing, rehabilitation and modernising the two waste water stations, Arcuda
and Rosu;
the rehabilitation of the capting fronts of the enderground water;
works regarding the transportation, depositing and distribution;
In order to improve the quality of the water of Colentinas river network is necessary to
make major investments, for realising of some works of witch the most important could be
considered the following:
- the executing of an waste water collecting network between Buftea and Bucharest;
- declogging the lakes bottom;
- the modernisation and remake of all of the hydrotechnical needed works
(dams,billows,coffer dams, etc.) as well as all the action equipment belonging to these
works;
- penetrating the deployment dors of waste water;
- eliminating of all unorganised waste and uncleaned waters sources in lakes;
- establishing and respecting of sanitary protection perimeters;
- the annual sanitation of the lakes vanes by emptiying and cleaning.
Considering the importance of these lakes for the Bucharest municipality and its
enhabitants together with the National Comission of The Romanian Waters, to enterprise
the necessarily measures in order that the Colentinas river network to be rehabilitated ,
and the water in these lakes to correspond qualytatively to all indicators.

C O N C L U S I O N S

Non existence of a supervising system of quality water;
Coming from chritical analyse af the actual situation of quality water from
Bucharedt, it is necessary the Local Public Administration, as a teritory administrator, to
become also an administrator of environment quality fators.
In quality water field:
I. Drinkable water
- The improvement of treating water technologies of initial water;
- Reabilitation of drinkable water distribution network.
II. Used water
- work finalising on the city used water cleaning station;
- rehabilitation of the citys waste water channel network;
- creating the authomatical system of monitoring the pollution from used water thrown in
the channels network;.
III. In the field of quality of natural water (chain of Colentina river lakes)
- creating of used water channel Buftea-Bucuresti
- dragging of the lakes bottoms from the chain of Colentina river lakes;
- corespodingly maintaining of superior cave of Dambovita river.

BIBLIOGRAPHY

1. Bretotean M., Wagstoff S., Zamfirescu F., Burgess W.G., Albu M. - Risque de la dtrioration de la
qualit des ressources en eau du systeme aquifere des Couches de Fratesti dans la zone de Bucharest.
Compte-rendu du Symposium Hydrogologique International A.I.H. - A.R.H. Constanta 2004;
2. www.abd.org; 3. www.eea.eu;
4. www.europa.eu.int; 5. ww.mappm.ro;
6. www.policolor.ro.

286
INVESTMENTS, DEVELOPMENT PRIORITIES AND INVESTMENTS
DIRECTIONS IN MIONICA MUNICIPALITY
3

SUBI JONEL, VLADANA HAMOVI, DRAGO CVIJANOVI

INSTITUTE OF AGRICULTURAL ECONOMICS, BELGRADE

Abstract

Regarding existing transitional process of social-economic and political system in Serbia, like as
opening domestic economy toward globalization and modernization processes, there is a need for invest
activities and their crucial role in development of regions, municipalities and settlements. In other words,
higher investments on Mionica Municipality territory, represent a condition for providing growth of basic
productive capacities, increasing number of working places, increasing tools efficiency, higher work
efficiency, production variety, better infrastructural equipment and life conditions improvement of all its
inhabitants.
In this paper has been given a preview of investments and developing priorities per activities, with
special accent on investments directions of local communities, enterprises and development-oriented
households.

Key words: investments, local communities, enterprises, development-oriented households,
Mionica Municipality.

INTRODUCTION

Looking at the future, realization of economic development basic goals of Mionica
Municipality is conditioned by increment of investments, parallel with undertaking suitable
activities for increasing their economic efficiency, which imply also creation of economic
ambience for business total efficiency growth, especially following ones:
- construction of livestock-farms;
- purchasing agricultural mechanization;
- making permanent crops;
- construction processing capacities etc.
Among quoted above, certain financial assets are also necessary to provide for
invest projects, related to following fields:
- infrastructure;
- education, culture, sport;
- tourism and religious objects.

MATERIAL AND METHOD

Aiming at identification of priority developing programs, which will give their
contribution to economic development of Mionica Municipality, there have been used data,
got on the base of conducted poll (or conversation with representatives of local
communities, enterprises' managers and households' bearers).
In need of subjected research, planned investments were analysed on base of
next criteria:
1. local communities priority

3
The work is a part of the 149007 project of the Ministry of Science of Republic of Serbia under the title
Multifunctional agriculture and rural development in the function of involving Republic of Serbia in the
European Union.

287
2. interests of enterprises
3. purpose of development-oriented households.

Likewise, there has been given special reference to certain suggestions and
proposals, which need to be addressed to Ministry of agriculture, forestry and water
management of Republic of Serbia.


Local communities, enterprises and development-oriented households make
harmonious family which basic task is to hasten economic development on territory of
Mionica Municipality. On the other hand, tradition, expert and warranty existence have
serious influence of the municipality on creating economic policy and appreciation of
legitimate legal provisions in business activities process.

1. Priorities of local communities in period 2008-2013.

In future period, developing priorities of local communities on territory of Mionica
Municipality are following fields: infrastructure; education and sport; tourism and religious
objects. On the other hand, the highest investments are in projects as: reconstruction of
local roads, reconstruction of electric-power network and structure and adaptation of
cultural centre (Table 1.).

Table 1. Possible investments direction of local communities*
Purpose of investments
P
l
a
n
i
n
i
c
a

O
s
e
e
n
i
c
a
T
o
l
i

S
t
r
u
g
a
n
i
k

M
a
l
j
e
v
i

P
a
t
r
i

T
a
b
a
n
o
v
i
V
r
t
i
g
l
a
v

K
r
m
a
r

B
u
k
o
v
a
c

T
o
t
a
l

(
1
0
)

I Infrastructure 0 1 2 1 1 2 3 2 1 2 15
1
1. Reconstruction of local roads
0 1 1 1 1 1 1 1 0 1 8
2. Extension of existing plumbing network 0 0 1 0 0 0 0 0 0 0 1
6. Reconstruction of electric-power network 0 0 0 0 0 1 1 1 1 1 5
8. Extension of fixed telephone network
capacities
0 0 0 0 0 0 1 0 0 0 1
II Education, culture and sport 0 0 0 1 0 0 0 1 1 1 4
8. Structure and adaptation of Cultural
centre
0 0 0 1 0 0 0 1 1 1 4
III Tourism 1 0 0 0 0 0 0 0 0 0 1
10. Construction of objects for rural tourism
needs
1 0 0 0 0 0 0 0 0 0 1
IV Other activities 0 0 1 0 0 0 0 0 1 0 2
13. Extension of cemeteries 0 0 1 0 0 0 0 0 1 0 2
V Total 1 1 3 2 1 2 3 3 3 3 22
VI Investment/polled LC 1 1 3 2 1 2 3 3 3 3
2,2
0
Remark: *Some settlements in Mionica Municipality have been polled in period September
November 2007 and January 2008.
Source. Poll documentation. Development strategy of Mionica Municipality, Institute of
Agricultural Economics, Belgrade, 2007-08.

288
2. Interests of enterprises, in period 2008-2013.

The enterprises on Mionica Municipality territory see their own developing
priorities in following fields: agriculture and fishery, industry and other activities (trade,
handicraft trade, catering industry and tourism). The fields which attract the most
investments are:
- productive-service business activity;
- construction of store-sale space;
- improvement of industrial production.
Taking into consideration individual investments, the biggest interest concerning
investments has shown enterprise Djuric from Mionica (totally 5 planned investments,
related to realization of two business plans in the field of agriculture, one business plan in
the field of industry and two business plans in other fields of business activities). The other
polled enterprises on territory of Mionica Municipality have mostly directed their
investments toward realization of just one business idea (Table 2.).

Table 2. Possible investments directions of enterprises*
Investments purpose
A
g
r
a
n
e
l
a
e
o
k
a

M
i
o
n
i

K
l
j
u
V
o
d
a

v
o
d
a

B
a
k
e
r
y

I
H
T
S

K
o
v
a
e
v
i
T
r
a
d
e

I
T
S
K
o
v
a
e
v
i
L
a
b
u
d

M
i
o
n
i
c
a

E
u
r
o
p
a
k
K
r
u
i
k
M
e
d
i
t
e
r
a
n

C
o
l
d

s
t
o
r
a
g
e

M
e
d
i
k
o
m
u
r
i

M
i
o
n
i
c
a

L
a
b
u
d

M
i
o
n
i
c
a

i
r
a

S
Z
T
U
R

M
i
l
o
v
a
n
o
v
i

I
T
S

H

M
A
R
K
E
T
K
o
s
t
i

L
.
L
.
C
.
.

I
H
T
S

S
t
i
l

M
i
o
n
i
c
a

P
h
o
t
o

J
o
t
i

I
C
I
S

K
o
d

B
o
b
e
k
a

T
o
t
a
l
l
y

(
1
9
)

I Agriculture and fishery 1 0 0 0 0 0 0 0 1 0 2 0 0 0 0 0 0 0 0 4
1. Introduction of irrigation
system
1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
2. Permanent crops 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1
3. Fish ponds 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1
4. Cloches 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1
II Industry 0 1 1 1 0 0 1 1 0 1 1 0 0 0 0 0 0 0 0 7
1. Section for water factory 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
2. Introduction of juices
production
0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
3. Production improvement 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 2
4. Construction of new capacities 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1
5. Extension of productive
capacities
0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
6. Equipment purchasing 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1
III Other activities 0 0 0 0 1 1 0 0 0 0 2 1 1 1 1 1 1 1 1 12
1. Productive-service activity 0 0 0 0 1 1 0 0 0 0 1 1 0 0 0 0 1 0 1 6

2. Purchasing of delivery vehicle
0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1
3. Construction of store-sale
space
0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 4
4. Purchasing machine for photo
production
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1
IV Totally 1 1 1 1 1 1 1 1 1 1 5 1 1 1 1 1 1 1 1 23
289
VI Investment/polled PL 1 1 1 1 1 1 1 1 1 1 5 1 1 1 1 1 1 1 1
1,
21
Remark: Some settlements in Mionica Municipality have been polled in period September
November 2007 and January 2008.
Source. Poll documentation. Development strategy of Mionica Municipality, Institute of
Agricultural Economics, Belgrade, 2007-08.

3. Intentions of development-oriented households in period 2008-2013.

There have been polled 325 households, with totally 1.730 inhabitants, in 33
settlements of Mionica municipality, in period September-November 2007 and January
2008.
Invest priorities of development-oriented households of Mionica municipality are in
next fields: agriculture and fishery, processing capacities and other activities (or: rural
tourism, construction of mini hydroelectric power plant, purchasing transport vehicle and
opening car mechanic workshop with car-spare-parts shop). Otherwise, the attention of
potential investors draw development programs like:
- bullock farm (61 investments);
- agricultural equipment and mechanization (44 investments);
- milking cows farm (43 investments);
- poultry farm (28 investments);
- pig farm (15 investments);
- plum seedlings (12 investments);
- cloche (for production of early vegetables and strawberries 8 investments), sheep
farm (7 investments), purchasing land (7 investments); Blackberry seedlings (6
investments); raspberry seedlings (5 investments), rural tourism (5 investments);
- mini - dairy (3 investments) etc.
Regarding average number of investments per polled household, the most
investments should be expected in following local communities:
Maljevi (1,33 investments/household);
Gornji Lajkovac (1,20 investments/household);
Robaje (1,13 investments/household);
Struganik (1,13 investments/household);
Dui (1,11 investments/household);
Komanice (1,07 investments/household) etc.
The most of polled households (totally 216) have intention to initiate, in period
2008-2013, invest activity and therefore realize certain business idea, while leftover
households (totally 109) have not expressed neither the possibility, nor wish for investing
in mentioned time interval.
Total number of planned investments on polled households is 232, out of it:
- the highest number of investments is connected to livestock production, which is
around 24% of all planned investments, and meant for purchasing fattened bullock heads
and reconstruction and construction of objects for their accommodation;
- around 17% of investments total number is connected to purchasing milking cows
heads and reconstruction and construction of objects for their accommodation;
- approximately 17% of all investments is connected to purchasing new
mechanization;
- for construction and equiping objects for poultry, as well as for buying heads of
fattened poultry and egg-laying hens (around 12% of investments);
- leftover 30% is related to investments like land purchasing, raising plum and
blackberry seedlings, making new cloches etc.
290
Potential amount of all planned investments in polled development-oriented
households is around 4,18 million EUR. The structure of planned investments is shown
through priorities, such as:
invest in objects for fattened bullock and fattening (around 25%);
invest in poultry production (around 25%);
invest in objects for milking cows and their purchasing (around 15%);
invest in purchasing new mechanization and servicing the existing one (around
12%);
invest in realization of other business plans (around 23%).
As distinguished from former years (period of economic crises and political
unstability), in coming period, development-oriented households expect better support
concerning other financing sources (credits and incentive assets of Ministry of Agriculture,
Forestry and Water Management of Republic of Serbia, credits from Fund for
Development of Republic of Serbia, bank credits, joint assets etc.), while their capital
would help to reconcile necessary participation.
In order to achieve successful realization of business ideas, planned by
development-oriented households, it is necessary to solve urgently problems like:
- bad parities (disparities) of input and output prices in agrar (low purchasing and
selling prices of agricultural products, in relation to much higher prices of needed
production materials);
- incertainty of agricultural products placement;bad measurements of agrarian policy,
especially regarding subsidies; bad credit policy; lack of labour; obsolete and non-
qualitative mechanization; obsolete rural infrastructure and similar.
As above mentioned, there is a necessity of certain suggestion and proposals
reffered to authorized ministry, with special reference to:solving problems of big price
disparity in agriculture;more powerful credit support to agrar;better communication
between authorized ministry and agricultural producers (with accent on registered
agricultural husbandries, as well as for other agriculturalists, in order to end successfully
the process of registration in Registry of leftover agricultural husbandries); more qualitative
measurements of agrarian policy (regarding incentive assets, subsidies and regressions);
more strict usage control of all kinds of purposeful assets (with special accent on non-
repayable assets); alleviated administration in agrar etc.

CONCLUSIONS

Investments planned by local communities, enterprises and development-oriented
households are mostly directed to those priorities, in function of further economic and
social development, as individual, as well as society in whole. Accordingly, based on
research results in this paper, here comes following statements:
the reconstruction and modernization of comlete communal infrastructure is
necessary, especially in domain of water supplying (improvement of water resources
exploitation, reconstruction of water-system transferable network and water-system
network), in order to provide covering whole territory of the municipality with main water-
system,
the construction of plants for water-waste refinement, adding (or construction) of
fecal and rainy sewerage network,
better exploitation of thermal and thermo-mineral waters in spa and sport-recreative
purposes, because, beside the fact that Banja Vrujci is the most plentiful in Serbia, major
thermal waters stay unexploited,
it is necessary to invest in telecommunications, mass media and internet
(construction of cable-system for distribution of radio- and TV-signal, as well as internet in
all settlements on whole territory of Mionica Municipality),
291
investments should be directed toward priorities related to tourism development
(construction of new accommodation capacities, construction of objects for rural tourism,
arrangement of ethno-houses and construction of ethno-settlements, development of
mountanious tourism, development of spa tourism, development of excursion tourism,
development of hunting and fishing tourism, development of sport-recreative tourism and
making conveniences for residence and rehabilitation, structuring, adaptation and
adjustment of religious objects to tourism needs, improvement of tourist offer also
throughout policy of environment protection).
necessary modernization of existing and construction of specialized commercial
objects,
expanding production of construction materials, food products and fodder,
reconstruction and modernization of existing and construction of new sections for
construction and metalworking industry, chemical industry, wood processing etc.),
necessary investments in enlarging property,
invest in storage construction and equipment for preparation of fodder (silos and
mixing-rooms),
higher investments in purchasing equipment for cooling and storaging milk,
construction of storage and finishing capacities, mini drying-rooms distilleries and
processing capacities for production of traditional fruit manufactured products,
introduction of quality-system and protection of products' geographic origin,
branding and improvement of fruit and fruit manufactured products placement,
invest in development of beekeeping, enlarging assortment and improvement of
honey placement and other bee-products, etc.
In future period, there should be paid attention to possibilities and need to invest in
all those fields that could be of utmost importance for growth of the municipality's economy
in whole.
Thus,this is one more appeal for all structures, capable and legitimate, to give
necessary financial support (incentives, subsidies, credit facilities etc.), in order to
complete a palette of investments, according to comparative advantages of region
potentials in Mionica Municipality.

BIBLIOGRAPHY

1. ANDRI, J., VASILJEVI ZORICA, SREDOJEVI ZORICA, 2005: Investicije osnove planiranja i
analize, Poljoprivredni fakultet Univerziteta u Beogradu, Beograd, str. 5-8.
2. SUBI JONEL, ARSI SLAVICA, LANG JELENA, 2007: Planirane investicije razvojno opredeljenih
domainstava u selima Banotor i Susek, Meunarodni nauni skup Multifunkcionalna poljoprivreda i ruralni
razvoj II ouvanje ruralnih vrednosti, Tematski zbornik druga knjiga, Beograd-Beoin, 06-07.12.2007,
Institut za ekonomiku poljoprivrede Beograd - Srbija, Optina Beoin Srbija, Regionalna Privredna Komora
Novi Sad Srbija, Poljoprivredni fakultet Novi Sad - Srbija, Poljoprivredni fakultet Zemun - Srbija, Ekonomski
fakultet Subotica - Srbija, Institut ekonomskih nauka Beograd Srbija, Akademija ekonomskih nauka
Bukuret - Rumunija, Institut za ekonomiku poljoprivrede Bukurest Rumunija, Institut za poljoprivrednu i
prehrambenu ekonomiju Varava - Poljska, Banatski univerzitet poljoprivrednih nauka Temivar Rumunija,
Balkanska asocijacija za ivotnu sredinu (B.EN.A.) Solun Grka, str. 748-756.
3. VASILJEVI ZORICA, 1998: Ekonomska efektivnost investicija u poljoprivredi. Zadubina
Andrejevi, Beograd, str. 13-15.
4. VASILJEVI ZORICA, SUBI JONEL, MIHAILOVI BRANKO, 2006: Investiciona aktivnost na
poljoprivrednim gazdinstvima u optini Mali Zvornik, Ekonomika poljoprivrede, Tematski broj, Meunarodni
nauni skup Multifunkcionalna poljoprivreda i ruralni razvoj I razvoj lokalnih zajednica, Drutvo agrarnih
ekonomista Srbije i Crne Gore, Savez poljoprivrednih inenjera i tehniara Jugoslavije i Institut za ekonomiku
poljoprivrede Beograd, str. 57-63.
5. VASILJEVI ZORICA, SUBI JONEL, MIHAILOVI BRANKO, 2007: Investiciona aktivnost na
poljoprivrednim gazdinstvima u naseljenom mestu Glogonj, Zbornik naunih radova sa XXI savetovanja
agronoma, veterinara i tehnologa, Institut PKB Agroekonomik, Beograd, str. 165-172.

292
THE BASIC ACCOUNTING RECORDER IN THE SERICULTURE
REPRODUCTION FARMS

EVIDENA CONTABIL PRIMAR IN FERMELE SERICICOLE DE
REPRODUCIE

TANASE DOINA, GLAVAN CORNELIA, UNGUREANU C.

C.S. SERICAROM Research Department, Bucharest

Abstract

The paper presents basic documents for accounting record in the sericulture reproduction farm in
order to access the subvention according to the E.U. Regulation Rules no. 223/2008, and for inputs and final
products.There are identified a minimum number of minimum ten basic documents used in the technological
diagram in obtaining of two main products (silkworm eggs and mulberry hybrids) and for one secondary
product (perforated silk cocoons).

Key words: accounting record, sericulture, silk cocoons, mulberry hybrids.

INTRODUCTION

The paper work presents an instructive and demonstrative application of primary
bookkeeping in reproduction sericultural farms in order to obtain the subventions according
with the European regulations; to register the inputs and final production. The paper work
is part of the researches made for a project financed by MEC CNMP Modulus 1 CEEX
Contract nr. 40/2005 Integrated production and durable management of a reproduction
sericultural family farm.The sericultural farms have as main activity development of
reproductive biological material, as silkworm eggs and mulberry planting material. The EU
and national reglementations, in order to obtain subsidies for silkworm rearers, are the
following:
1. COMMISION REGULATION No 223/2008 of 12 March 2008 on establishing the
conditions and procedures for recognition of silkworm rearers organisations;
2. COMMISSION REGULATION No 1744/2006 of 24 November 2006 on detalied rules
for aid in respect of silkworms (Codified version);
3. COMMISSION REGULATION No 1544/2006 of 5 October 2006 laying down special
measures to encourage silkworm rearing (Codified version)
4. ORDER No 824 of 3 October 2007 of ministry of agriculture and rural development for
aproval of European standards regarding silkworm rearers aid. Based on these
reglementations, the reproduction sericultural farms may obtain important incomes by
marketing specific products and the subsidies.

MATERIAL AND METHOD

During the project, based on the previous measurements estimates for 0.5 ha
surface (land preparation, establishment of plantation for mulberry planting material and
maintenance of I
st
year mulberry plantation), there were realised the following variants:
V1 - mulberry microplantation destinated to obtain planting material as layers mulberry
layering for a 0.5 ha surface, soil type: Cernoziom luvric, for Cislau habitat, Buzau
department.
V2 - mulberry microplantation destinated to obtain planting material, such as:
- mulberry seed tree for 0.2 ha;
293
- mulberry sowing in protected areas (solarium) for 0.1 ha;
- mulberry layering for 0.2 ha.
The variant was realized for a podzol soil type from Comanesti habitat, Bacau department.
Photo 1 Experimental field, Comanesti habitat, Bacau department

V3 mulberry microplantation, destinated to obtain planting material as:
- seed tree field - for 0.2 ha;
- direct field sowed for 0.1 ha
- I
st
repication field with saplings for 0.2 ha.
This variant was realised for a forestry red-brown type of soil, from Bucuresti
Baneasa habitat for the I
st
repication field and a Cernoziom luvric soil type, from Cislau
habitat, Buzau department for seed tree and direct field sowing.
The biological matherial was:
- - mulberry species of Japanese origin (Ichinose, Kokuso 21, Wasemidori and
Kenmochi), Chinesse origin (Husan 32 and Husan 199), Ukrainean origin (Ukraine 107)
and Romanian species (Eforie, Olteni and Calafat);
- Mulberry hybrid seed (F1), harvested in 2005 and 2006.
During the vegetation period there were performed the agrotechnical and
exploatation activities according with the mulberry microplantations specific technologies,
nursery type.
To be able to realize a bookkeeping, there were identified the primary documents in order
to register the materials and manual labor consumptions according with the technological
sheets for each experimental variant and accordingly with the quantitative qauntum of
estimate planting matherial production and reproduction cocoons (the final planting
material period is three years, respectively 2008 - autumn).


According with the experimental variants, there were realized the following agro
productive parameters:

Vari
ants
Specification/
Localization
Plants
density
/ha
Kg/ha
Realise
d
density
Biologic
matheria
l type
Base
Planned
productio
n
plants/ha
or kg/ha
Estimate
d
productio
n 2008
Estimate
d income
2008
lei*
294
V1 Layer/
Cislau
1600 800 species 16000 8000 44000
V2 Seed tree/
Comanesti
1100 220 species 50.00 2.5
50.00
2000
V2 Solarium/
Comanesti
20.00 2.00 Hybrid
seed
4000000 400000 -
V2 Layer/
Comanesti
1100 220 species 10000 5000 27500
V3 Seed
tree/Cislau
1100 220 species 50.00 2.5
50.00
2000
V3 Direct field
sown/Cislau
20.00 2.00 Hybrid
seed
1000000 100000 -
V3 Field I sapling
repication
hybrids/Baneas
a
166000 33200 hybrids 150000 30000 75000
Prices: 5.5 lei/each for rooted layers, 2.5 lei/each for hybrids, 800 lei for 1 seed
kilogram.
The table data distinguish the regular values of estimated production at the end of
2008 experimentation period, being of 8000 pieces rooted layers obtained in Cislau habitat
and of 5000 pieces rooted layers from Comanesti habitat, 400000 pieces mulberry hybrid
saplings Ist year, Comanesti habitat (solarium 1000 m
2
) comparatively with 100000
pieces sapling mulberry hybrids Ist year Cislau habitat, but obtained from direct field
sowing (1000 m
2
). At the end of 2007vegetation period, out of the Ist repication field, there
were obtained 30000 pieces mulberry hybrids saplings from 2000 square meters from
Bucuresti Baneasa habit. 25000 fulfilled the quality standards of mulberry planting
matherial and 5000 didnt.
The total estimate income for 2008 is between 27500 44000 lei for mulberry
planting matherial, by rooted layers (mulberry species), obtained from the experimented
variants V2 (Comanesti habit), respectively V1 (Cislau habitat). The estimated income for
mulberry hybrids are 75000 lei, for V3 (Bucuresti Baneasa habit).
Based on these informations and the requests of reglementation norms, there were
identified the following primary documents:
1. Documents for production and marketing of mulberry planting matherial. It is used
the JOURNAL FOR PRODUCTION AND MARKETING OF MULBERRY PLANTING
MATHERIAL, with the elements:
- the nursery plan and the field usage (the nursery structure for each year);
- inventory of mulberry planting material for each year, recoup for: layers production
and rooted seedling and for mulberry hybrid saplings from field or solariums;
- fertilizing and maintenant activities to mother plantations, field and solarium
sowing according to the technological sheet;
- phytosanitar activities according to the technological sheet;
- inventory of mechanic and manual equipments.
2. Documents regarding production and marketing of reproduction cocoons: these
informations are recorded into the REARER JOURNAL in progress.
3. Data bookkeeping primary documents regarding inputs recording, and recording of
the final production, represented by planting material and silkworm eggs, are the following:
- reception note for unfinished production (layer mother prodution), for direct sown
filed and solarium;
- consumption note (Code 14-3-4A) for mulberry seed, fertilisation and silkworm
eggs these materials are used for silkworm rearing (in stock or bought with an invoice);
295
- contract employees attendance recorder, for reproduction farms such as
commercial societies;
- payroll;
- buying contract for silkworm eggs, sanitary veterinary, phytosanitar substances
and fertilizers (bought with an invoice);
- reception note based on suppliers invoices;
- consumption note for phytosanitar and fertilizers products;
- check report for mulberry leaves harvesting;
- reception note and consumption note for the harvested leaves quantities and used
for silkworm feeding process;
- harvesting check report for planting material and reproduction cocoons;
- invoice and the advice of dispatch for the marketed mulberry planting material and
for reproduction cocoons.
In order to obtain the subventions, according with the European regulations and
applied at a national level, there were identified the following documents according with
the Applicant guide, issued by the Agency for Payment and Intervention in Agriculture:
- typified form for payment request for the silkworm rearers assistance, Code AJPo-
VM-f001;
- according with the Order 824/3 October 2007, the value of this assistance for the
silkworm rearers, as in annex 3 is 133.26 euro for each silkworm box with minimum 20 kg
of cocoons.

CONCLUSIONS

The reproduction sericultural farm can obtain important financial income through
selling the mulberry planting material and reproduction cocoons. In the conditons of the
experimental variants, the total income out of rooted layers and mulberry hybrids is
between 27500 75000 lei.
For the reproduction cocoons the subventions go to 133.26 euro for each silkworm
eggs box, used as the conditions of The Council Regulation (EU) no 1544/2006.

BIBLIOGRAPHY

1. BRILOIU TNASE DOINA, MATEI ALEXANDRA (5-7 June 2005) The diversification and the utilization
of the genetic stock as source of initial material in the amelioration works 11
th
International Conference
NAROSSA, Poznan, Polonia.
2. VOICULESCU N., BRAILOIU D., COTEANU O., STEFANESCU S. (1996) Fundamentarea
ecopedologica a zonelor de favorabilitate pentru cultura dudului.- Contract cercetare Orizont 2000
3. ZHENG (1988) - Sericicultura. FAO - Roma.
4. MEC CNMP Modulul 1 CEEX Contract nr. 40/2005 Producia integrat managementul durabil al unei
ferme sericicole de reproducie.
5. COMMISION REGULATION No 223/2008 of 12 March 2008 on establishing the conditions and
procedures for recognition of silkworm rearers organisations.
6. COMMISSION REGULATION No 1744/2006 of 24 November 2006 on detalied rules for aid in respect of
silkworms (Codified version)
7. COMMISSION REGULATION No 1544/2006 of 5 October 2006 laying down special measures to
encourage silkworm rearing (Codified version)
8. ORDER No 824 of 3 October 2007 of ministry of agriculture and rural development for aproval of
European standards regarding silkworm rearers aid.

296
SURVEY CONCERNING THE EU HORTICULTURAL FRESH PRODUCE
SUPPLY CHAIN

STUDIU PRIVIND LANUL DE APROVIZIONARE CU PRODUSE
HORTICOLE PROASPETE N UNIUNEA EUROPEAN

TEMOCICO GEORGETA, TUDOR VALENTINA, ALECU EUGENIA,
ASANIC CRISTINA

University of Agronomical Sciences and Veterinary Medicine of Bucharest

Abstract
This paper presents recent evidence of supply chain developments in the horticultural fresh produce
industry, based on a survey realized with the occasion of several documentation visits in European countries
(France, U.K.. A number of success factors were evident, to varying degrees, in all of the companies visited.
These included: continuous investment (despite increasingly tight margins), good staff (to drive the process
of innovation and develop good trading relationships with key customers), volume growth (to fund the
necessary investments and provide a degree of confidence in the future), improvement of measurement and
control of costs (in the pursuit of further gains in efficiency), and innovation (not just the product offer but also
the level of service and the way of doing business with key customers).

Key words: fresh produce, supply chain, retailer

INTRODUCTION

In the past the horticultural fresh produce industry has lagged behind the
manufacturers of fast moving consumer goods in its approach to marketing, clearly
resigned to the status of commodity traders. The ascendancy of the multiple retailers and
the importance of their label products has elevate the fresh produce industry to a position
where suppliers have a veritable opportunity to escape of the commodity decoy and take
the fresh produce category out of the trading environment.
Total imports of horticultural fresh produce in the EU reached 13,926,758 tons in
2007, this accounts for an increasing of 7% respect to last year. Imports value was 10,940
million euros. According to Eurostat, imports of vegetables registered the largest increase
of 2,422,401 tons, (19%). Potatoes, tomatoes, garlics and onions, represented 66% of the
total. Fruit imports summed up an amount of 11,504,357 tons, with an increase of 5%. The
main importing fruits have been bananas (4,673,315 tons), citrus (2,142,922 tons) and soft
fruit (1,307,963 tons). In value, imports reached 8,867 million euros.
Main importing countries were UK (2,593,729 tons), The Netherlands (2,285,868
tons) and Belgium (2,037,679 tons), the latter two due to their conditions as entrance
ports. They are followed by Germany (1,336,797 tons), France (1,333,392 tons) and Italy
(1,201,541 tons). Spain reached 916,300 tons. Besides, with 31%, it has one the highest
growth rates of the EU and the highest among the biggest EU countries.
The research upon which this paper is based involved structured interviews with
staff members of some successful fresh produce suppliers importers (fruit) and pre-
packers to establish how they understand the relationship between suppliers and
retailers and to identify some examples of best practice in the industry.

MATERIAL AND METHOD

With the increasing need to assure consumers that the food they intend to consume
is safe and nutritious, the food industry is moving away from the traditional means of
buying towards a more direct and reliable means of procurement where buyers exert
297
greater control over prices, quality and production methods. Development agencies
worldwide are giving increasing attention to the concepts of supply chain management in
seeking to address the growing income disparity between smallholder farmers and the
urban community. The papers address the following questions: do producers know what
consumers want? How can farmers and traders coordinate their activities to meet the
needs of the institutional market? How is it possible to introduce and implement quality
assurance systems for horticultural producers? Also included is a summary of the policy
recommendations that were proposed during the presentations and interventions to
develop competitive agribusinesses and agro-industries within the horticultural sector.
The purpose of the research is that to evidence the supply chain developments in
the EU fresh produce industry, based on a survey realized with the occasion of several
documentation visits in European countries.


A number of success factors were evident, to varying degrees, in all of the
companies visited. These included: continuous investment, good staff, volume growth,
improvement of measurement and control of costs, and innovation.

The role of horticultural fresh produce in the market strategies
The role of fresh produce in the strategies of the major supermarkets has changed
dramatically over the past ten years. Understanding the factors driving the growing
importance of the fresh produce category provides the key to understanding their
approach to vertical co-ordination and the steady move towards fewer larger suppliers
operating in dedicated supply chains for specific supermarket customers.
There are four key factors that have driven the transformation of the fresh produce
industry in recent years:
1. Supermarket strategies
2. Food safety legislation and supply chain integrity
3. Rationalisation of the supply base
1. Supermarket strategies.
Fresh produce has become what retailers describe as a destination category
fresh fruit and vegetables is one of the few product categories (along with fresh meat and
wine) for which shoppers will switch stores. It is also one of the two remaining categories
(along with meat) which is virtually all own label and thus over which they can exert
considerable influence and control. As a result, over the past fifteen years, the fresh
produce department has moved from the back of the store to the front and has doubled its
shelf area in store and the growth has occurred without substantial growth in consumption
volume, but with significant growth in expenditure. The search for competitive advantage
and a point of difference between supermarkets coincided, in the early 1980s with the
consumers move towards an increasingly Mediterranean diet, driven by heightened
awareness of (and concern about) health and nutrition.
Changing the location of fresh produce within the retail stores yielded immediate
benefits some of them attribute a 50% increase in their fresh produce sales directly to
the re-location of their fresh produce counter from the back to the front of their
supermarkets but inevitably resulted in problems over wastage, as retail managers
lacked the knowledge to handle the increased volumes. Pre-packing driven by
retailers, not suppliers, substantially reduced wastage problems and enabled
supermarkets, to introduce greater control over quality, presentation and pack size. Once
retailers realized they could manage the category in-store, they were well placed to push
ahead.

298
2. Food safety legislation and supply chain integrity
The 1990 Food Safety Act gave the process of vertical co-ordination, driven
backwards from the retailer rather than forwards from the grower/processor further
impetus, with the growth of own label increasing the need for improved due diligence and
tighter supply chain control.
The 1990 Food Safety Act requires buyers to take all reasonable steps to ensure
that the food they receive from upstream suppliers is safe. It also means that upstream
firms need to monitor more carefully their food handling to satisfy their downstream
customers. The critical word in the definition of due diligence is reasonable. This is
sufficiently vague that it has encouraged retailers to take extraordinary steps to ensure the
safety of products reaching them from their suppliers. If their desire to develop own label
products had encouraged, them take a greater interest in what was happening upstream,
the 1990 Food Safety Act compelled them to effectively take control, by instituting stringent
quality assurance programs with their suppliers, with a particular emphasis on traceability.
In effect, risk management became a key driver for greater co-ordination in the fresh
produce supply chain. Retailers drew up codes of practice, covering all aspects of crop
management and issued them to their suppliers.
The industry responded by developing a generic farm assurance scheme for
domestic fruit and vegetables Assured Produce highlighting best practice in integrated
pest, disease and crop management systems. Protocols have been drawn up for individual
products, by growers and retailers (par example in UK the NFU-Retailer Integrated Crop
Management Partnership) and are now established as the baseline industry standards for
safety and quality. All of the major supermarkets now require all fresh produce to come
from suppliers who are members of the assured produce scheme. A genuine (and visible)
quality and safety culture is a must have for companies who supply the multiples.

3. Rationalization of the supply base
The search for improved supply chain integrity and greater consistency in the
quality of fresh produce coupled with the need to squeeze costs out of the supply chain,
through greater control (either directly, through grower/co-operative partnerships or
indirectly, through pre-packers with their own grower networks) has resulted in the
rationalization of the supply base, with retailers seeking to deal with fewer, larger,
technically efficient and innovative suppliers.
The major supermarkets now deal with just a handful of suppliers in key product
areas (potatoes, root vegetables, brassicas, salads, top fruit, stone fruit and soft fruit) and
take every opportunity to pass responsibility (and associated costs) for quality control and
procurement, storage and distribution upstream to their key suppliers, in return for which
the chosen few are rewarded with volume growth. The latter is vitally important for
suppliers, the bulk of who are privately owned and struggle to generate the cash surpluses
necessary to maintain the level of investment in processing plants and new product
development.
The race is on for retailers to find the best partners with whom to take on the
competition. As a result, the power struggles between buyers and sellers that have
characterized the European Union fresh produce industry for decades is being replaced by
intense competition between chains. Whilst this will create opportunities for pre-packers
and growers, it will also create growing tensions between supply chain partners, unless a
way can be found to remove price as the key point of difference between suppliers (in the
eyes of the retail buyer) and between retailers (in the eyes of the final consumer). It is here
that innovation provides the key.

4. Innovation
299
Innovation drives value creation new varieties (sweeter, juicier, crispier, improved
visible characteristics etc), new formats (pre-prepared, mixed salads, stir-fry packs etc.),
extended shelf life - and production efficiency (processing, storage, packaging and
logistics technology). However, the shortening of product life-cycles and lead times for
introducing new products and new technology, which reduce entry barriers the process
of commoditization - keeps the market moving on.
Product innovation is limited in the fresh produce category, but the difference in
retail margins between raw and semi-prepared produce is substantial: the choice is
between a 25% margin on raw carrots at 29p/Kg and a 25% margin on processed
(washed, sliced, diced, shredded) at 89p/Kg. With consumers demanding more of the
latter, it is easy to see why retailers are looking for innovative suppliers with the ability to
invest in processing capacity and professional product development programs, along
similar lines to the branded food manufacturers. Innovation has been a major factor driving
the growth of own label in other key sectors, such as chilled ready-prepared meals, and
supermarkets are keen to exploit value creating opportunities wherever they can,
particularly if it provides them with a point of difference against their competitors.
Innovation is difficult to achieve and exploit in a sector which offers low margins for
suppliers and in which the rewards for first movers on new products (varieties, preparation,
and packaging) are limited and short-lived. Moreover, it is likely that the growth in value
added fresh produce is heavily dependent upon economic growth. Investment in
processing facilities may be thwarted as we move into recession, when the growth in value
added (prepared) salads etc. is likely to slow down markedly. Given the importance of
growth and the fact that most of the growth has been in value-added products, investing in
product innovation (and processing capacity to deliver them) is the only way in which fresh
produce suppliers can break out of the commodity trap.
Dedication is a high-risk strategy but a feasible one for relatively small companies,
but for larger businesses it is simply not an option. Technical excellence and innovation
becomes even more important for those companies seeking to supply all of the major
supermarkets if retailers cannot have exclusivity they expect an irresistible offer.

Characteristics of fresh produce suppliers
The good firms are getting better building relationships, developing systems,
improving service levels and management skills but the challenge to achieve year-on-
year growth remains: margins are squeezed as volume goes up but prices are cut, yet the
need to invest is ever present and privately owned firms in a highly competitive market
need profitability to fund it. Even the best ones are finding it difficult in a market that is
oversupplied. So what makes a good supplier and what are the characteristics of those
that are growing their business in such a demanding and highly competitive environment?
This section is focused on the criteria which the supermarkets use for assessing their
suppliers, across the whole of their business not just fresh produce, and provide examples
of best practice from the companies interviewed in this study.
The implementation of Efficient Consumer Response (ECR) and Category
Management (CM) programs by the major retailers over the past few years has resulted in
a fundamental examination, by retailers, of their suppliers. This process not only enabled
supermarkets to identify those suppliers best equipped to implement ECR and CM, it also
enabled them to identify the level of commitment from their fresh produce suppliers, which
in turn assisted them in their rationalization of the supply base and the search for technical
excellence and competitive edge in the fresh produce supply chain.
Factors which supermarkets regard as key indicators for the development of
successful partnerships in the fresh produce supply chain:
Pro-active relationships across all aspects of the business;
Complete electronic integration;
300
Information sharing;
Innovation (supply chain management, new marketing strategies, new product
development)
Strategic relationship with customers;
Financial stability ;
Supply Chain Management;
Cost Management (analyze, positive action, feasibility).

The role of market information
What becomes clear from the list of success factors outlined at the beginning of
this section is the need for size and sophistication. There is a distinct lack of market
research in the horticultural fresh produce industry that struggles to break out of the
commodity trap. Yet product knowledge is one of the few areas where suppliers can (and
should have) an advantage over their customers. Small-scale fresh produce companies
need to wear big company clothes and tailor them to their budget market knowledge is
one of the few remaining sources of countervailing power.
The high degree of inter-dependency which has been established between some
suppliers and their retail customers reduces the risks associated with information sharing.
With competitive prices at the core of their respective marketing strategies, open access to
cost and market data is a must.
It is perhaps significant that in the case of those companies who appeared to be
doing the most in terms of market research and recognized the considerable benefits from
so doing the Managing Directors had previous experience outside of the fresh produce
industry, bringing with them experience from an fast moving costumer goods environment
and a clear marketing focus to their strategic management. Moreover, effective market
research does not have to be outsourced, at a cost that may prove difficult to justify. With
the right people and the right level of motivation, cost-effective market research can be
done in-house.

Strategic orientation of companies/organizations
This is a particularly difficult characteristic to measure and is closely linked to the
expression of a (shared) strategic vision. It is essentially concerned with the people factor
and the degree to which suppliers comprise the sort of people with whom the retail
customer (and most notably the buyer) feels happy working. Culture is concerned with the
ethos of the business and the attitude of employees (including senior management) to
customer service, whilst structure is concerned with the way in which suppliers choose to
communicate with their customers, at all levels of the business.
As with the other key characteristics identified as being of particular significance by
retailers, all those companies interviewed in this study made reference to the importance
of good quality staff, which most found difficult to attract and even harder to keep, given
the limited career opportunities in a tight margin industry with a unattractive image for
young graduates a problem which the fresh produce industry as a whole needs to
address.
All of the companies interviewed in this study had structured their businesses into
account management teams, and in some cases these teams were run as strategic
business units independent profit centers with a strong customer focus. Such a structure
enables suppliers to handle issues relating to exclusivity or dedication, even with a mixed
customer portfolio, and facilitates the process of cross-functional alignment between
customers and suppliers, which all those interviewed regarded as an important means of
developing customer relations.
Despite the progress which all those companies interviewed had clearly made in
terms of structuring themselves to meet their customer needs more effectively, there was a
301
common perception that retailers had made little progress on their side to develop genuine
category management teams, better equipped to break out of the trading mentality. Many
of those companies interviewed expressed skepticism over the retailers approach to
partnerships, pointing at the central role of the buyer which has changed little in recent
years, and the policy of rotating buyers on a regular basis, which makes it difficult (and
costly in terms of the time it takes to develop an adequate level of mutual understanding
between buyer and account manager) to build long term relationship.

Cost control
As demands from retailers on their fresh produce suppliers become increasingly
exacting, the capability to measure the cost of increasing customer service is essential for
those suppliers who seek to meet those demands at a profit. All the companies in this
study had invested heavily in recent years in IT systems which gave them more accurate
costing, although every one of them recognized that their remained scope (to varying
degrees) for improvement.
Measurement and control of costs go hand in hand and good measurement is often
associated with core competence. Logistics is one function that many suppliers regard as
a cost, yet some regard it as a core part of an integrated business and a genuine source of
profit.
The EU, food supply chain is regarded by many as one of the most efficient in the
world, yet there is still room for improvement, not least in the level of standardization.
Retailers have gone to extremes in recent years to differentiate themselves from their
competitors and, it would appear, make it increasingly difficult for suppliers to service
several retail customers. As the rationalization of the supply base continues and retailers
become increasingly dependent on fewer larger players, so supply chain efficiencies will
become increasingly driven by the suppliers, who are best placed to identify the costs of
operating parallel systems.

Innovation
In a highly competitive market such as horticultural fresh produce, characterized by
over supply and a commodity orientation, innovation is the only long term source of
competitive advantage, which is why retailers place so much emphasis on selecting
suppliers who demonstrate a desire and an ability to be innovative not just in developing
new products, but in all aspects of the business. The lack of product innovation is a feature
of commodity markets. In the fresh produce industry, it is also a result of the proliferation of
entrepreneurial (often family owned) businesses, in which the injection of creativity and an
open mind essential ingredients for innovation - is often lacking. The companies in this
study who demonstrated the clearest understanding of the benefits of market research
an essential ingredient for innovation in the marketing mix - were run by people with
experience in other sectors.

CONCLUZIONS

Consumers have a greater choice of top quality produce, all year round, and
retailers have set out their stalls - to make fresh produce a destination category, attracting
new customers in the battle for market share and generating handsome margins through
predominantly own label product lines. Yet the trading environment from the suppliers
perspective does not reflect the success which retailers have had at store-level and the
pressure on suppliers margins is intense.
There are very few companies of the size and sophistication and with the resources
and strategic orientation necessary to compete for both portions of the profit. What is also
clear is that in order to compete in the value-added portion of the profit, suppliers need to
302
build collaborative trading relationships with their customers, not least to gain a measure of
strategic insight into the retailers perspective on the future growth areas, but also to lock
customers into innovative, but often high risk, investments.
The future is bound to see a steady move away from traditional commodity trading,
with its emphasis on price, towards integrated supply chain partnerships, with much
greater emphasis on value added and return on investment to all members in the supply
chain. At the grower/pre-packer interface, the need for further volume growth will mean
further rationalization of the supply base with the largest and most professional growers
being rewarded with whole-crop marketing agreements on a cost-plus basis, which in turn
will lead to much greater product differentiation and market segmentation.
The next decade will see a continuation of the process which has led thus far to a
substantial increase in the scale, scope, sophistication and strategic importance of the
fresh produce industry in the EU.
It is evident that the dominance of food retailers in food supply chains around the
world is growing and it is surely only matter of time, at least in developed countries, before
retailers around the world recognize the opportunities to drive value not volume in the
fresh produce category, opportunities which are currently being exploited successfully by
EU retailers and driving the future of the horticultural fresh produce industry in the EU.

BIBLIOGRAPHY

1. Patiacia Aust Sterns, Jean_Marie Codron and Thomas Reardon - Quality and Quality Assurance
in the Fresh Produce SectorA Case Study of European Retailers Selected Paper, AAEA Annual Meeting
Chicago, IL August 5-8, 2001.

303
EFICIENA ECONOMIC A PRODUCIEI AGRICOLE N CONDIIILE
ECONOMIEI CONCURENIALE ALE REGIUNILOR DE DEZVOLTARE DIN
REPUBLICA MOLDOVA

ECONOMIC EFFICIENCY OF AGRICULTURAL PRODUCTION IN
CONDITIONS OF COMPETITIVE ECONOMY OF REGIONAL
DEVELOPMENT FROM REPUBLIC OF MOLDOVA

TIMOFTI ELENA

UASM

Abstract

As economic branch, agriculture basic differs from others branches not only through its role and
functions, but also through specific particularities. This generates the necessity to be taken into consideration
at studying and researching of the economic efficiency of agricultural production. In conditions of competitive
economy the goals of enterprises activity are aimed at getting profit from selling merchandize-production,
which satisfies the human necessities. The essential principles of sustaining regional development are
efficiency well use of natural, human, financial, production recourses on the whole territory.
In this paper was analyzed the weight of the main economic indicators and economic efficiency of
production in agricultural enterprises on the development regions of Republic of Moldova.

Key words: economic efficiency, competitive economy, indicators, profit, regions

INTRODUCERE

Ca ramur economic, agricultura se deosebete fundamental de alte ramuri nu
numai prin rolul i funciile ei, ci i prin particularitile specifice. Aceasta genereaz
necesitatea de a fi luate n considerare la studierea i cercetarea eficienei economice a
produciei agricole. n condiiile economiei concureniale obiectivele activitii
ntreprinderilor sunt orientate spre obinerea profitului din vnzarea produciei marf, care
satisface necesitile umane.
Principiile de baz ale susinerii dezvoltrii regionale sunt eficiena-buna utilizare a
resurselor naturale, umane, financiare, de producie pe ntreg teritoriu.
n lucrare s-a analizat ponderea principalilor indicatori economici i eficiena
economic a produciei n ntreprinderile agricole pe regiunile de dezvoltare din Republica
Moldova.
Cuvinte cheie: eficien economic, economie concurenial, indicatori, profit,
regiuni

MATERIAL I METOD

n cercetare autorul a utilizat date din Anuarul Statistic i formularele specializate
ale ntreprinderilor agricole n plan teritorial. Drept metode de cercetare a problemelor
abordate au fost aplicate: metoda selectiv, metoda de comparare, metoda gruprilor
statistice .a.

REZULTATE I DISCUII
Eficiena economic reflect rezultatul final, efectul eficient (util) obinut din folosirea
terenului agricol, a mijloacelor de producie, consumurilor materiale, resurselor de munc
.a.
304
Nu poate fi considerat o economie eficient dac ea nu este suficient de receptiv
la realizarea progresului tehnico-tiinific i folosete iraional resursele sale economice.
Pentru o economie eficient este caracteristic un nivel nalt de folosire a posibilitilor sale
economice i de producere. Eficiena este rezultatul producerii i acest rezultat poate fi de
nivel jos, nalt sau negativ. i deaceea n unele cazuri se pot crea condiii favorabile pentru
efectuarea procesului de reproducie lrgit, iar n alte cazuri, din contra, situaia creat
duce la micorarea produciei.
Pentru caracterizarea eficienei economice a oricrei ramuri de producie se
folosete un sistem de indicatori. Aceti indicatori reflect nivelul utilizrii factorilor de
producie, precum i condiiile de vnzare, cererea, oferta, concurena ntre productori .a.
Sistemul de indictaori valorici ne ofer posibilitatea de a analiza complex i a obine
rezultate certe privind noile direcii de dezvoltare i perfecionare a eficienei economice a
produciei.
Rezultatele finale ale estimrii eficienei demonstreaz n mod concret
productorului de mrfuri cum s-i organizeze o structur de producie care s
corespund cerinelor pieei concureniale.
Prin noiunea de sistem de indicatori se subnelege subordonarea multiplilor
indicatori, care se afl ntr-o legtur reciproc, au la baz o concepie unitar privind
consumul, metodologia de calcul i mijloacele de agregare, snt coordonai i au o
structur ierarhic de la un nivel la altul, respect comparabilitatea, caracterizeaz
aspectele principale ale proceselor economice, ndreptate spre soluionarea unor obiective
concrete.
Coordonarea diferitor indicatori se obine pe calea armonizrii i mbinrii lor avnd
ca baz noiuni i concepte unitare.
Conform Legii din 16 februarie 2007 nr. 438 privind Dezvoltarea regional n
Republica Moldova au fost definite urmtoarele regiuni de dezvoltare: Nord, Centru, Sud,
mun. Chiinu, UTA Gagauz-Eri, Transnistria (nu avem acces la date) [2].
Principiile de baz ale susinerii dezvoltrii regionale sunt eficiena buna utilizare
a resurselor naturale, umane, financiare, de producie pe ntreg teritoriul.
n baza datelor ntreprinderilor agricole din Republica Moldova care gestioneaz
mai mult de 60% din suprafaa terenului agricol au fost efectuate cercetrile n domeniul
eficienei economice a produciei.

Tabelul 1
Ponderea principalilor indicatori economici ai ntreprinderilor agricole pe regiunile de
dezvoltare ale Republicii Moldova n medie pe anii 2004 2006

i n c l u s i v
Indicatorii
Total pe
Republic
a
Moldova
Mun.
Chiin
u
Nord Centru Sud
UTA
Gagau
z-Eri
Numrul de ntreprinderi 1502 76 569 470 294 93
Suprafaa terenurilor
agricole, ha 820319 14711 341564 171003 212399 80642
Ponderea, % 100,0 1,8 41,6 20,8 25,9 9,9
Efectivul mediu annual
de lucrtori, persoane 96400 2570 40345 23046 22028 8411
Ponderea, % 100,0 2,7 41,8 24,0 22,8 8,7
Valoarea medie anual 3644046 180999 103669 968204 106682 391318
305
a mijloacelor fixe cu
detinaie agricol, mii lei
7 8
Ponderea, % 100,0 5,0 28,5 26,5 29,3 10,7
Consumurile materiale
incluse n costul
produciei fitotehnice i
zootehnice, mii lei 1756231 87574 712509 461888 358409 135851
Ponderea, % 100,0 5,0 40,6 26,3 20,4 7,7
Valoarea produciei agri-
cole globale n preuri
comparabile, mii lei 2684710 79465
111270
2 645422 608423 238698
Ponderea, % 100,0 3,0 41,4 24,0 22,7 8,9
Venituri din vnzarea
produciei agricole, mii
lei 2908393 97915
120394
5 685482 662530 258521
Ponderea, % 100,0 3,4 41,4 23,5 22,8 8,9
Profit, mii lei 469511 20351 162113 121832 134394 30821
Ponderea, % 100,0 4,3 34,6 26,0 28,6 6,5
Surs: calculele autorului n baza datelor din formularele specializate viznd activitatea
ntreprinderilor agricole n plan teritorial

Datele tab.1 demonstreaz c ponderea cea mai mare n activitatea tuturor
ntreprinderilor o are Regiunea de Nord (40%) pe toi indicatorii economici, excepie face
valoarea mijloacelor fixe, care sunt la nivelul de 28,5%, urmat de regiunea Centru i Sud
(25%), UTA Gagauz-Eri cu ponderea pn la 10% i a mun. Chiinu pn la 5%.

Tabelul 2
Eficiena economic a produciei n ntreprinderile agricole pe regiunile de dezvoltare din
Republica Moldova n medie pe anii 2004 -2006
Regiunile de dezvoltare
Indicatorii Mun.
Chiinu
Nord Centru Sud
UTA
Gagauz-
Eri
Media pe
republic
Numrul de ntreprinderi
76 569 470 294 93 1502
Valoarea produciei
globale vegetale i
animaliere (n preuri
comparabile), lei
calculat la:
1 ha teren agricol; 5401,7 3257,6 3774,3 2864,5 2959,0 3286,1
1 leu valoare de
teren agricol*; 0,29 0,16 0,21 0,16 0,18 0,18
1 lucrtor mediu
anual; 30920,2 27579 28005 27620 28379 27849
1 leu consumuri
de producie; 0,60 0,94 0,88 0,92 0,91 0,90
1 leu mijloace fixe
de producie. 0,44 1,07 0,67 0,57 0,44 0,74
306
Profit obinut din vnzarea
produciei agricole, lei,
calculat la:
1 ha teren agricol;
1383,4 474,6 712,4 632,7 382,2 572,35
1 leu mijloace fixe
de producie cu destinaie
agricol
0,11 0,15 0,12 0,13 0,08 0,13
Rentabilitatea produciei
agricole, %
26,24 15,6 21,61 25,45 13,54 19,25
*
)
Valoarea terenurilor agricole a fost estimat la preul normativ de 289,53 lei pentru o
unitate grad-
hectar.
Surs: Calculele autorului n baza datelor din formularele specializate viznd activitatea
ntreprinderilor
agricole n plan teritorial.

Cercetrile demonstreaz c:
randamentul terenului agricol este mai nalt n mun. Chiinu i U.T.A. Gagauz-
Eri, iar n regiunea de Nord indicatorul este la nivelul mediu pe republic;
productivitatea muncii mai nalt s-a evdieniat n mun. Chiinu, regiunile Centru
i U.T.A. Gagauz-Eri;
randamentul consumurilor de producie este mai ridicat n n regiunile de Nord i
Sud;
mijloacele fixe sunt utilizate mai eficient n regiunile Nord i Centru;
la fiecare 1 leu consumat n mun. Chiinu au fost obinute 26,2 bani profit, n
regiunile Sud i Centru 25,4 bani i 21,6 bani respectiv.

Regiunea de Nord cu potenial de resurse cel mai nalt are o eficien sczut n
comparaie cu alte regiuni. Aceast situaie ne vorbete despre utilizarea neefectiv de
ctre ntreprinderile agricole a resurselor care le posed.
Unii indicatori sporesc, alii se micoreaz, unele resurse sunt utilizate mai efectiv,
altele mai pui nefectiv. i numai dup nivelul de rentabilitate de estimat eficiena ar fi
incomplet.
Variaia indicatorilor indic la necesitatea de rnd cu indicatorii tradiionali de a
determina eficiena economic dup un indicator integral.

CONCLUZII

Rezultatele estimrii eficienei economice a produciei globale agricole ne permit s
conchidem c situaia actual a agriculturii n Republica Moldova se caracterizeaz printr-
o eficien sczut. La prerea autorului cauzele principale sunt:
Agricultura s-a dovedit a fi nepregtit pentru trecerea la noile condii economice.
Nu au fost create la timp sistemele structurale necesare (financiare i organizatorice)
adecvate schimbrilor ce se produc i care s asigure dezvoltarea efectiv a agriculturii.
S-a distrus baza tehnico-material (scoaterea din uz a mijloacelor fixe i insuficiena
activelor curente, deficitul de mijloace financiare pentru procurarea lor);
Parcelarea terenului agricol;
Eficiena sczut a produciei ca urmare a deintensificrii ei;
Productivitatea sczut din motivele:
Reducerii brusc a dozelor de ngrminte minerale i organice;
307
Micorarea suprafeelor de culturi cultivate dup tehnologii intensive;
Reducerea suprafeelor culturilor irigate de la 308 mii ha n anul 1990 pn la
37 mii n anul 2007 din cauza nefuncionrii sistemelor de irigaie.
nrutirea disciplinei de munc i tehnologice;
Nu se creeaz condiii pentru reproducia lrgit.
n concluzie putem afirma c esena eficienei economice a produciei agricole
const n formarea unui complex de cerine i condiii necesare asigurrii reproduciei
lrgite, care s permit ramurii nu numai s satisfac necesitile societii n produse
alimentare, ci i s se dezvolte n armonie n condiiile funcionrii unor legturi i relai
ieconomcie, organizatorice, juridice, sociale, morale i nu n ultimul timp n condiiile
asigurrii unei agriculturi durabile.

BIBLIOGRAFIE
1. Legea nr. 1161 privind preul normativ i modul de vnzare-cumprare a pmntului. Monitorul Oficial al
Republicii Moldova nr.147-149. Chiinu, 2001, pag. 9.
2. Lege Privind dezvoltarea regional n Republica Moldova nr.438-XVI din 28.12.2006// Monitorul Oficial
al Republicii Moldova, nr.21-24 di n16 februarie 2007, p.9-12.
3. Hotrre cu privire la aprobarea Strategiei naionale de dezvoltare durabil a complexului agroindustrial
al Republicii Moldova (2008-2015). Monitorul Oficial al Republicii Moldova nr. 57-60, Chiinu, 2008, pag.
20.
4. Anuarul Statistic al Republicii Moldova. Chiinu: Statistica, 2006, 559 p.

308
WAYS FOR INCREASING ECONOMIC EFFICIENCY AT THE
AGROTOURISME COMPANIES

CI DE CRETERE A EFICIENEI ECONOMICE LA NIVELUL
UNITILOR AGROTURISTICE

TINDECHE CRISTIANA, CONDEI RETA, GOGU C.I.


Abstract

There are some may to improve the activity of the company as follows developing a marketing
department, identifying the constant clients which respect the deadlines for the payment allocating a
considerable budget for the commercial activities and for the publicity employing young staff; training the
staff for applying for an upper level; introducing a motivating programme.
There are some may to improve the activity of the company as follows developing a marketing
department, identifying the constant clients which respect the deadlines for the payment allocating a
considerable budget for the commercial activities and for the publicity employing young staff; training the
staff for applying for an upper level; introducing a motivating programme. This study has been developed at
the level of representative company from S.C. CARAIMAN.

Key words: management activity, agrotourisme companies, economical financial indices, ways for
improving

MATERIAL AND METHOD

In order to make this study, some accounting data from the Accounting Department
of the company for the period 2003-2007 were used.
The economic and financial indicators were calculated for the analysed period using
the existing methodology for economic and financial analysis. The decision factors can
decide on the appropriate measures to improve the management activity and the
profitableness of the company, taking into consideration the values of these indicators.

Table 1
The evolution of profit and turnover during 2003-2007 - thousand lei
Years Specification
2003 2004 2005 2006 2007
Turnover 1831530 5000000 14000000 13788502 16077344
Profit 104555 300000 900000 536304 212847
Percentage the
turnover in the
profit
5,5 6,00% 6,40% 3,90% 1,32%

Analysing the data from the table, we notice a decreasing evolution of these
indicators beginning with 2006, situation which needs radical measures to make the
company more profitable.

Table 2
Financial profitableness rate in the period 2006-2007
Indicators Year
2006
Year
2007
309
Income 18429858 21800300
Total assets 5531121 5539302
Proper capital 3588119 3769002
Net profit 536304 212847
Financial rentability 14,94% 5,64%
Assets rotation speed 3,29% 3,93%
Financial lever 1,54 1,46
Net profitableness of income 0,029 0,009

A significant decrease with 9,3% of the financial profitableness rate was registered
in comparison with the previous period.
Table 3
The situation and dynamics of the income, expenses and profit in the 2006-
2007 period
Indicators Year
2006 2007
2007/2006
%
Turnover 13788502 16077344 116,59
Brought to day turnover 1516735 1125414 74,19
Other sources of income 10868 23795 218,94
Overall exploitation income 18358256 21654914 117,95
Overall exploitation expenses 17202488 21186598 123,16
Gross margin from exploitation 1155768 468316 40,51
Exploitation expenses
-human resources
-others
17202488
3416367
15095
21186598
3491381
11715
123,16
102,19
77,60
Financial expenses 34673 169252 488,13
Exceptional expenses 224482 87228 38,85
Exploitation result 1155768 468316 40,51
Financial result 7705 - -
Exceptional result - 27133 -
Overall income 18429858 21800300 118,28
Overall expenses 17461643 21443078 122,80
Profit before taxation 968215 357222 36,89
Profit tax 431911 144375 33,42
Net profit 536304 212847 39,68
Brought to day net profit 5899344 1489929 25,25

In conclusion, in the last years, S.C. Caraiman S.A. made profit, but both the
turnover and the profit obtained in 2007 are situated under the values from the preceding
year.

Table 4
Financial profitableness rate in the period 2006-2007
Indicators Year
2006
Year
2007
Income 18429858 21800300
Total assets 5531121 5539302
Proper capital 3588119 3769002
Net profit 536304 212847
Financial rentability 14,94% 5,64%
310
Assets rotation speed 3,29% 3,93%
Financial lever 1,54 1,46
Net profitableness of income 0,029 0,009

Table 5
Indicators used for debts obligations diagnosis
Indicators 2006
Thousand lei %
2007
Thousand lei %
Turnover 1378502 100 16077344 116.6
Debts 563101 100 377970 67.12
Obligations 2744704 100 2420882 88.20
Debts/obligation
relation
0.20 0.15

In conclusion, in the analysed period, the debts and obligations decreased, while
the turnover increased, which favourably influenced the flow of reserves. This influence is
also showed in the debts /obligations relation.
Table 6
The situation of the liquidity and solvency indicators
Indicators 2006 2007
General liquidity 0,56 0,63
Imediate liquidity 0,36 0,29
General solvency rate 2,84 3,12
The size and the evolution of the indicators show that, the company while regarding
the solvency is in a better situation, the values of the liquidity indicators show an alarming
situation.
Taking into consideration the values of the economic and financial indicators
determined through the known methodology and information picked up on an interview
leasis at the level of the company a few recommendations can be made regarding the
aspect of improving the activity of the company in order to increase its profitableness.
Recommendations for improvement
Among the proposals which could immediately be solved are:
-creating a new marketing department;
-finding new clients who will increase the production orders towards a maximum
capacity;
- modernisation and development of the distribution and selling system;
-developing the base for materials, additional materials and auxiliary materials
coming from importation
-implementing new and efficient motivating methods
-promotion on a competence leasis;
- increasing the budget for advertising the products and for publicity;

Research and development
-organizing activities with a main concern on:
-creating new products and technologies;
-implementing new technologies and using substituted and value added products;

CONCLUSIONS

1. Employing new qualified staff in the company's departments represents a
necessity within S.C. Caraiman S.A.
311
2. What is really in order to promote a modern management, is implementing new,
efficient motivating methods
3. Modernizing and completing the management instrument, anew quality at the
decision level needs a radical transformation and reconsideration of the range of the
management methods is needed as well as real methods of utilization at the level of all
organization phasing within the companies
4. Increasing the budget for the advertising the products and for publicity represents
a solution for earning new clients and regain the market
5. Developing the base for raw materials, additional materials and auxiliary
materials coming from importation is a very important issue in a strategic supplying with
material resources

BIBLIOGRAPHY

1.Allaire, Y and Farsitoru, Mihaela 1998, Strategic management-the strategies of success. Ed.
Economica, Bucuresti
2003, Management strategies in turism. Editura Economica, Bucuresti.
D., Staneascu C, David I.- 1999, Economic and financial analysis. Editura OscarPrint, Bucuresti.

312
INFORMATIC SYSTEM DESTINED TO FARMS (SIFA) AN
OPPORTUNITY FOR ROMANIAN AGRICULTURAL MANAGEMENT

SISTEM INFORMATIC DESTINAT FERMELOR AGRICOLE (SIFA) - O
OPORTUNITATE PENTRU MANAGEMENTUL AGRICOL ROMNESC

TOMA ELENA*, ELENA COFAS** DRAGOMIR V.*, VLAD MIHAELA CRISTINA,
BEREVOIANU ROZI*

* Institute of Research in Agrarian Economics and Rural Development
** University of Agricultural Sciences and Veterinary Medicine Bucharest

Abstract

Continuous development of informatics systems, of collecting methods and efficient processing of
inputs have a obviously impact on production processes improvement, being a viable solution for efficient
activities in agriculture. From this point of view, an informatic application becomes a real component of
production process.

Key words: Informatic system, agricultural management, informational technology

INTRODUCTION

Developing systems management databases has formed a secure means of
obtaining the information systems in which redundancy is controlled. Currently there are
two types of applications used in agriculture depending on the availability of databases:
classical programs (characterized as applications for solving specific problems at local
level) and information systems (aiming to assist producers in making decisions or even
assisting factors makers of agricultural policy).

MATERIAL AND METHOD

Among existing software currently on the market mention: WinDASI the last
update of the "Data analysis and Simulation (DASI)", developed during 80 years' FAO SST
informatics systems were created to develop a management system agriculture to help
farmers and to maximize management efficiency and yields; DACNET Indian computer
program that has as main goal the development of coherent and integrated solutions (best
agricultural practices, experiences, global solutions), allowing the Department of
Agriculture a better interaction with farmers; Livestock Recording is a computer program
created by an Australian company which manages information regarding costs,
production, processing and performance; Key Indicator Data Systems (KIDS), which was
developed by the Centre for World Agricultural Information, the Organization Food and
Agriculture United Nations; PlanMagic Business 9.0 is an application science to help
achieve a comprehensive business plan and easily developed. An important category of
tools used to solve problems related to sustainable development in agriculture represents
a systems support the decision. These instruments are called decision support systems -
SSD (Decision Support Systems - DSS). Among them are real help SSD based analysis
multidimensional data analysis multi-criterion (multi-attribute and multi-objective) analysis,
risk management, data mining, statistical advanced. In Romanian society of the past
decade have been remarkable changes, the use of technology is essential in most public
or private activities. Agriculture is no exception, being created applications with high utility
both directly and through the Internet, such as applications for compiling dossiers to
313
access funds for financing (ie applications SAPARD programme); sites that offer advice
on-line; sites with suppliers, vendors, etc.. The sites in the field can be pursued according
to the main information they provide, namely: general information (news, news, etc., about
equipment, information providers and distributors of agriculture; specialty magazines,
books specialist; fairs and exhibitions. nevertheless there are no applications for
Romanian farmer than in the form of accounting, generalized, why not take into account
the particularity of this sector and is not as effective instruments of decision-making.
Informatization records revenue and expenditure in a farms represent a need for the
Romanian agriculture, the conditions under which raises the issue of permanent low
productivity and profitability both at the production plant and animals. Lack of records
tailored to the needs of farms automatically lead to the absence of a coherent database
activity holdings and, to the impossibility of establishing the correct income and
expenditure and other indicators useful in appreciation of profitability and cost efficiency.
Thus, in addition to the information that a normal accounting program provides, in
agriculture there are a number of necessary information, more complex, highlighted by a
series of economic indicators and technical-economic picture provides a quantitative and
value of the work undertaken and which can explain the behaviour of economic agricultural
producer.


The information was so structured so as to permit analysis of farm work,
identifying: fixed costs, variable costs, production costs, the profit rate on product; budgets
on the product. The benefits they will bring are managing a very large volume of data a
long period of time and produce reports and cases on them, data security and protection
system from unauthorized access, while protecting data through automated procedures
rescue and restoration; investment is safe, durable, opening onto the improvements and
upgrades and independence from the technological changes of equipment hardware.
What is more important as our view is that this program is primarily an information
structure easy to follow and allows the user to achieve a hand calculations with extreme
ease and on the other hand understanding that even in the absence of specialized
knowledge. The programme was structured in three modules. The first module is the
estimation, the second and the realization of a third that allows comparison of data and
analysis of economic performance. The modules are made for both the production plant
and animal production, but we now stop the production plant.
Module I. The estimate was structured from a database containing the technology
framework for culture, which is pre-calculated and unchangeable by institutes profile.
In addition to these technologies, the user will be able to introduce a series of data such as
identification data of the farmer; holding area, existing crops and their areas. Also, there
will be viewing records technological possibility to provide information farmer estimates
relating to culture.
The following are presented and explained the main elements of the programme
information:
1. Authentication user - the farmer will introduce the following data: name holding;
user name (farmer); data contact address, telephone, e-mail address.
2. Identification holding - the farmer will introduce the following data: the type of holding (to
be related to choose from the list - holding individual agricultural association with and
without legal personality, society agricultural, commercial agricultural society); profile
holding (to be related to choose from the list - profile plant profile or animal).
3. Design production - the farmer will introduce the following data: total holding area; type
agricultural area (to be related to choose from the list - his own area, the area taken
lease); area related to each type (such amount = total surface area).
314
4. Selection production structure - the farmer will introduce the following data: name crops
(crops will choose from a list of related); crop areas (areas will be completed for every
culture); production area / culture (to be related to choose from the list - plain, deal ,
Mountain); system of production / culture (to be related to choose from the list - irrigated,
unirrigated).
5. Summary cultures - will display the structure of production, with the following
information: names selected crops; areas for each crop; production areas previously
selected specific crops, production systems specific to selected crops.
6. Date culture - will display the structure of production culture and will complete the
following data: tariffs mechanized work, manual work rates (will choose from a list of work
performed related) materials and materials prices (will choose from a list of related
materials)
7. Date culture budget - will complete the following elements: selling price primary
production, selling price secondary production; subsidy / ha; supply expenses (a
percentage will choose between 5% -10%); expenditure on labour ( will fill in%, broken
down by type of labor force: temporary and permanent); insurance costs (will the
insurance); overheads and management (will percentage of distribution); interest
expenditure on credit production (will percent interest); amortisation on buildings and
utilities (to be full value, broken down irrigated respectively unirrigated system ).
8. Block computing - will make calculations for technology culture, the culture budget
9. Generate reports - will show the following reports estimated technology culture / ha;
technology culture / total area; budget culture / ha; budget culture / total area; other reports
(technical indicators, phytosanitary measures, etc.)

Module II
1. Identification balance - the farmer will introduce the initial balance and its type (home or
bank).
2. Introduction income or expenditure data - the farmer will fill the following data: the
current date, type of expense (which will choose from a list of charges); type of income
(which will choose from a list of income); value of the expenditure ( will be completed for
each type of expense), the amount of income (to be completed for each type of income).
Also, all in this step, for each type of charge introduced, the farmer will pay and how it (the
house or bank).
3. Bon entrance - the farmer will fill the following data: name materials (which will choose
from a list of related materials such as seed, fertilisers, insecticides, etc.). Quantity (in the
unit specific to each type of material); price material for each unit, the value (in GBP).
From this point, making the module will be split in two components, namely: a) the
expenditure and revenue b) management
a) record the expenditure and revenue
-- Block account balance - the program will calculate the balance monthly balance as the
difference between the baseline and rolling months;
A.1 Show reports
-- Bank records and home - will contain the final balance.
-- Register spending - will contain the total expenditure on the types of expenses (for raw
materials, materials costs mechanical work, textbooks, fuel, labour - permanent and
temporary expenditure on transport, etc.).
-- Register revenue - will contain earnings in the holding.
b) management
-- Block account balance material / bon material output
-- Display reports - will generate and display a series of reports on material consumption
(technological), technology culture, the culture budget and a series of other reports.
315
Module III. Under this method will generate complex reports, namely: the register and
register a home farm.

CONCLUSIONS

"The introduction of fibre optics in a desert does not make it green, but the absence of
modern communication block economic development in any oases" Parker et al.
As quoted phrase and say, the introduction of computerized records in households and
small farms represent an important starting point for future sustainable development sector
micro-farms. Computerized records of resources and results at the farm represent a key
tool for more efficient farming and beyond. The introduction of science in rural areas
represents a challenge oldest in Romania and other countries and is still searching for
practical ways to do this. Starting from the premise that the needs are known people who
live in rural areas as regards the need for information and that there are means to enable
communication and information (radio and television, newspapers, Internet, etc.). It may
be found how to turn these things into reality. The means of modern communication and
computer networks have different effects in rural areas over cities, rural communities with
a capacity to accept different technologies and their use, which depends on the usefulness
and ease that one of these instruments of transmitting information. The introduction of
such software in rural areas should lead to decentralization of information and keeping
records of how much more precise design of input and output design at micro-farms and
peasant households. Rural communities must learn how to benefit fully from information
technology and modern information if they want to pass the threshold of subsistence.
Using these programs in agriculture are a number of advantages and disadvantages:
-- Advantages: confidence in the data obtained and generated; speed in carrying out
calculations, internal and external communication; system working well defined and
organized farm growth potential, etc..
-- Drawbacks: the cost of hardware and software equipment; incompatibility between
hardware, software or holding profile, the need for trained personnel costs or additional
training of staff; requires a system to collect data efficiently.

BIBLIOGRAPHY

1. ALECU I., MERGE E., PAN D., SMBOTIN L., CIUREA I.V., BOLD I., DOBRESCU N.
Managementul n agricultur, Ediia a II-a revzut i adugit - Editura CERES, Bucureti, 2001.
2. IOAN RADU - Informatica pentru managementul firmei (Tipologie, structura, pachete de programe), Ed.
Tribuna Economica 2001
3. SBDEANU P., VEVERCA D., TUREK A. Fundamentarea economic a tehnologiilor de producie i
estimri privind costurile de producie i preurile de valorificare la principalele produse vegetale. Editura
Agris, Bucureti, 2000.

316
ELEMENTS OF IMPROVEMENT OF THE MANAGEMENT CHAINS FROM
STRAWBERRY CULTURES TECHNOLOGY, HAVING THE PURPOSE TO
DIMISHING THE INPUTS, WITH THE PURPOSE OF INCREASE THE
ECONOMY EFFICIENCY

ELEMENTE DE OPTIMIZARE A MANAGEMENTULUI VERIGILOR DIN
TEHNOLOGIILE DE CULTUR A CAPUNULUI, ORIENTATE CTRE
REDUCEREA INTRRILOR DIN EXTERIOR, N SCOPUL CRETERII
EFICIENEI ECONOMICE

TUDOR VALENTINA,TEMOCICO GEORGETA, PETRICA PAULA, BURCEA MARIANA


Abstract

In the countries who are the U.E members and are the biggest fruit producers (France, Spain, Italy,
Germany, Belgia, England), North America, Australia, the improvement of technology exploitation, with the
purpouse to obtaining at a high qualitative and quantitative level of productiones, in dimishing the condition
of industrial input, it was, is and it will be a actuallity object. In this work we are proposeing to improve the
management chains of the strawberry culture technology, fertilization, irrigation and the maintaing of the soil
land the integral combat of disease, predators and weeds, especially the carburants, pesticides, fertilizators,
etc, concerning to realize and to implement technico-science and economico-financial informations, formed
like a program, at the level of strawberry farm.

Key words: management, inputs, strawberry, economy efficiency

INTRODUCTION

The surface of earth necessary for every human being is in permanent decrese, fact
who leads at the necessaty of development and use of intense technology, expenditing of
energy, who leads at major clime exchanges. Only using the fuel, from 1800 until the
present, the concentration of CO
2
has encrease with 25%, fact who make the men of
science to estimate an encrease of global temperature with cca. 3
0
C in the next 90-100
years. In consequence, the terrestrial ecosystem must addapt at the new climatic
conditione.
After long nights of meetings and consultation, the main actualisation of the
Conventione concerning the Climatic Changings, the Kyoto Protocol (1997) signed by 169
countries and approved by 167 countries, imput to this countries, including Roumania, that
between 2008-2012, to diminishing GES with 5.2% like was in 1990.
The comercial successful of the strawberry lead to introduceing of a more ample
program of amelioration in the most countries with this species culture, who in the last
decades had as a result the radical improvement of the characteristic and performance of
cultivate variety
.
The apparition of the species, one quart millenium ago, situates the
strawberry as an only fructifer species, with an known historical. Much more, it is estimate
that of this plant we know more than others plants. In this context we can appreciatte that
no other plant isn t more complex and sensitive like strawberry.
The extention of the culture of this variety innew areas, is a consequence of the big
strawberry demands, in equal measure for consume and industry processing, as well as
keeping and transport them fresh a big period of time at a long distance. Recently, at the
strawberry qualities added the high level of elagyc acid, composed with antimutagenyc
and anticarcynogenyc activity.

317
MATERIAL AND METHOD

Analysis and evaluation of technological phases from the technology of apply
culture of strawberry (annual, biannual and multiannual culture) in field and conserved.
The evaluation of potential risk, who can produce major perturbationes, if the inputs from
exterior werent used.
Specific phases of technology of soil and of protecting the plants for the
strawberry culture are big consumers of afferent resourses inputs from outputs and with
major implicationes on quality of the finished products. In soil case from the intensive
agricultural exploitation, as the strawberry culture arent mention the existation of some
biological mechanismes of self-adjustment. The rapport between pathogen and profitable
microflora is chemical examinated. Biological mechanisms of self-adjustmentwere
eliminated through useing the industrial pesticids and the chemical substances of soil
disinfection. We can notice a big imbalance of the soil ecosystem in the intensive
agricultural exploatation and we can affirm the soil is inert by biological point of view.


In the last years in Europe, were obtain some results regarding the transformation
of organic remains of the green charcoal, incorporating this as a fertilizator and with the
purpouse in degradation of pesticide rezidue from soil and in the improuvement of physico-
chemistry properties inclusively natural fertilization of the soi. After the first stages of work,
till now are necessary researches to establish: the value of different types of organic
remains as source of vegetal charcoal, the role of different microorganisms in oxidateing
the particules of charcoal until humic acid, the effect of vegetal charcoal of the soil
microbial community, the capacity to fixing and liberating the nutrients in improved soils
trough treatements with vegetal charcoal, the evaluation of agronomy efficacity of the
improved soil with charcoal and of the physiological and phytosanitary condition, of the
productive potenial and to the harvest quality.
Activ carbon can support a small microbial community but much more actively than
that from the humus(Pietikainen ,2000 )her microporrs haveing set up as a protein
structure against the predators .The microorganisms from soil are transforming and recicle
the organic matter and plants nutrients and could be reservoir(in imobilizations time)as at
a nutrients source(in mineralisations time).
The improvement of culture technology of strawberry with the purposed of a long
lasting evolution, the increasement of technico-ecomony competitity for this culture ensure
a saffety alimentation and the wellbeing of population, in a saffet enviroment, can
contribue at the development of agriculture.
The strawberry is one of the culture with the highest level of intensivity. The
progress of productivity in fixing the atmospheric carbon-dioxid in organic matter
accessible to plants and reducing the nutrients lost, encreasement of soil natural
fertilization, the efficient use of water, the improvement of productivity, the enviroment
saffety trough reduceing the inputs, represent a present state of actuality as well as for the
scientific research as for the strawberry producers, too.
At european level the strawberry culture is well seen, but on the market
consumption is a presiune concernig the strawberry with gustative qualities, actually
technology from the european area havent an optim answer for growing strawberry with
gustative qualities, his main area of growing being Roumania and Polonia.
The main essues who must be solved in this project are similar with other
countries who have an advanced pomiculture, with an high level of nouvelty, are complex,
and have a practical and scientifical applicability of a good development of culture which in
Roumania the surfaces of cultivation are into continous growing because of his
318
possibilities to recuperate his placement. The results obtained until now, on international
and national plan are encouraging, but for roumanian strawberry cultivators, the results
regarding practiceing the improvement technology, regarding the increasement of soil
fertilization, the improvement of physiological and phytosanitary culture, the increacement
of his quality which in the end will decrease the inputs with the purpouse to concerve the
enviroment and to encrease the outputs.
The new changes into property structure and economy mechanism, the
european market exigenty, the global climatic changes and necessity to concerne the
enviroment and to asure a long lasting development, impose some scientific researchs
which will bring solutions for the increasement of economy efficacity of the autochthonous
production of strawberry.
After 1990, in Roumania where left apart some field areas which previously where
used on an intensive agricultural exploatation of some pesticides and chemical fertilizeres,
soils with majores ecological imbalances and who could be consider inert by biological
point of view. People belive thet if they let the field neglected for a period of time hell be
recoverd But, actualy this strategi is invalidated because of field measure: leaving behind
the biological control of diseases, pestes and weeds suffered an ecology imbalance and
where accentuated not attenuated. Hence, the pathogen microflora was growing
dominateing the ecosystem. In Roumania, pomiculture is spreat on hills areas,
disadvantageous from agricultural point with a biggest population density that in other
place, affected of un employment. The technology of this work make more easy
multifaction utilization of the field busy by the pomicol ecosistem, whit favorable
consequence of haveing good condition of work, health, life and education for the
population from this areas. Multifaction utilizations is the solution for combine the
desideratum of concerved environment and natural resource with natural resources and
new places of work.
The vegetal remains from the culture are either absorbed in soil or used as
different forms in compost burning the vegetal remains was an dis used until now, but will
be forbbiden in future, because of monocultures practice, the vegetal remains are carrying
of pathogens and pests, and in this situation the farmer is obligated to take measures for
stopping the spreadding of infection and pests. The absorbation of vegetal remains is no
longer a solution. Practising of compost require measures of disinfection (the compost can
be a proper medium for spreading and increasement of fungs and pathogen bacterium).
Chemical disinfection cant be used and so will be used the thermic sterilize. Is suggested
to produce green charcoal from vegetal remains and his utilization in agriculture and
strawberry culture, too.
In agriculture the green coal is used as amendment and as an disinfection of pesticids
from soil starting from 1kg/m
2
to 10kg/m
2
used in soil stratum 0,02m (meening 10-100
tone/ha)

.Charcoal and green coala RE good catalytic of some chemical and biochemical
reactions haveing a proper role in biodegradation process of dross pesticides, of organic
substances result from interaction plant-soil, are good absorbent of nitrogen components
(oxides, ammonia ,etc).
Administer of green carbon to soil is a method in increasement of quantities of
organic carbon. The easy increasement of organic carbon, besides other measures of
biology agriculture, as: quantitative increasement of organic matter, increasement of
contact areas, increasement of physical protection in inside aggregates althrough in
forming an agromineral complex , etc .
Utilization of charcoal in agriculture is influenced of clime fluctuations. Parameters of
environment and clime, such as: soil humidity fluctuations, variation of temperature diurn-
nocturne, monthly and annual variation influence the adsorbtion and resorbtio process in
cycle haveing long values of time. In soil are continuous water varieties, meaning an
permanent exchange between coal and soil. Coal store water and soil substances (all the
319
chemical and biochemical reaction have place in an watery medium). Because of water
and humidity fluctuations, of the exchange of water and osmotic presure, take place
resorbtion of the organic substance from sit and his reactivity. From the moment when the
adsorbtion and saturation started in coal situ until resorbtion pass a long period of time,
and in this period take place biological degradation and chemical processes.
On the test made in germinator and in vegetation house will be led after some medium
terms (temperature, humidity, etc) so that they be close of real once. The coal will be use
on granulate form and on support plate.
The purpouse of the work is to improve the management chains from
technology of strawberry culture known as a great input consumer (fertilization, irrigation
and the maintaing of the soil and the integral combat of disease, predators and weeds),
through new solutions friendly to the environment.
Reduceing the inputs of industrial nature will help on the improvement of management
technology chains, who will increase the output son surface unit (cca.15-20%), but in the
same time will increase the qulity and quantity of fruits production. The successful of
extension will be provide of an guvernamental financial help (subventiones ,credits ,etc).

CONCLUSIONS

The achivements of a big productions of higt quality fruits, at a low cost, it remaines a big
objective faceing the demographic increase and in the every day fruit diet. The
achivements of this objectives must lay on useing the natural sources and in practicing of
an ecology theory.
The main objectives and the activities who make them possible have as a purpose to
improve the managment chains from the strawberry culture (fertilization, irrigation and the
maintaing of the soil and the integral combat of disease, predators and weeds) regarding
the improvements and the inputes coming from exterior, especially the carburants,
pesticides, fertilizators, etc, concerning to realize and to implement technico-science and
economico-financial informations, formed like a program, at the level of strawberry farm.
In this case, we intend to have in a way, an secvential improvement of technological
chains (fertilization, irrigation and the maintaing of the soil and the integral combat of
disease, predators and weeds) regarding diminuate the inputs, and in another way we
intend to look closely how the new variety of strawberry are acting in south-east of
Roumania at the application of alternative technology of gathering the athmosferic carbon
through useing vegetal remains (weeds between the rows ,leves, wood) and the
application of the black coal as the result of :amendment, charged of suction and
degradation of dross pesticide from soil, tank for water and nutrients, etc.

BIBLIOGRAPHY

***FAO ,Yearbook ,1994
*** An alternative technology for the strawberry crop in a cultural system directed to the biological agriculture
used in the temperate climate of Europe. Proposal acronym: strawberry. 2007
*** Extention of keeping the perishable fruits much long fresh trough risk management factores with pre-
and postcrops, 2006
*** The control and mentaining the quality postcrop on stone fruits species, 2005-2007

320
SEQUENTIAL IMPROVEMENT OF PRODUCTION TECHNOLOGIES
BASED ON SCHEDULED CHEMIFICATION AND FERTILIZATION
MEASURES

OPTIMIZAREA SECVENIAL A TEHNOLOGIILOR DE PRODUCIE
PE BAZA PROGRAMRII MSURILOR DE CHIMIZARE I FERTILIZARE

TUREK A.*, DINU TOMA**, PETRUA TUREK*

*Institute of Research in Agrarian Economics and Rural Development
** University of Agricultural Sciences and Veterinary Medicine Bucharest

Abstract

Rational succession and best dimension of any activity specific to the crop systems are the key of
large productions. Above all, this requires the harmonization of crop needs with the ecological and economic
characteristics of every farm. Yearly output variations show that the strategies used do not always ensure a
complete revaluation of production resources, especially in the game against nature, where man
sometimes loses due to unpredictable weather conditions.
Key words: improvement, production technologies, economic efficiency

INTRODUCTION

To obtain an agricultural product we may determine different technologies through
the sequence of the operations, the way they are performed, the quantities of factors
allocated, the biological material used. All technological variants must meet the
requirements of the plant, but lead to different effects quantitatively and qualitatively, and
call on various economic efforts, leading to different levels of efficiency.
Optimizing production technologies means choosing variations appropriate
technologies.
The need for optimization technologies resulting from:
- the desire to obtain greater quantities of products at the surface by choosing
varieties, density, doses of fertilizers, and how the work of maintenance culture;
- desire to get results as more favourable economic resources available through May
as a cost reduced;
- striking a balance between the requirements of soil and economic conditions existing
at a given moment.
MATERIAL AND METHOD

The possibility of optimization technologies is created by the dynamic factors of
production:
- the emergence of more productive varieties, more resistant and better adapted to
conditions, with superior quality parameters;
-the emergence of technical means with the best characteristics;
-equipping new possibilities of machinery and aggregate;
- different manner of irrigation;
- modification of financial resources and manpower of the unit that allow the growth or
decrease quantities of factors.
The optimisation of production technologies represents a management activity
monitored at several moments:
- in perspective, when the equipment with mechanical means if specified, which gives
certain characteristics to future technologies
321
- at annual level, when the choice for the technology aims at obtaining economic
results and effects as large as possible with the available resources and at obtaining the
production at a certain cost which allows for the achievement of the desired profit
- at operative level, when the technology adapts to the need of the plants and the
concrete natural and economic conditions
Planning and carrying out the production process is based on the technology of
production. Technology represents all the processes, methods procedures, rules, which
operations are conducted in a well-determined sequence, respecting certain conditions
and using a range of mechanical equipment in order to obtain a product.
The production technology is developed, projected for each product, culture, based
on thorough analysis of the level of development of production forces in accordance with
the requirements of various species and production systems, taking into account the size
of the unit, providing technical and material and manpower.
Technology is science processes of manufacturing equipment that allow economic
transformation under conditions advantageous raw materials into products.
Scientific research, through its various branches sought by new technologies, more
advanced technical, economic, energy, environmental, which should launch since the
period of maturity and development of other technologies.
Concentration, specialization and enhancing agricultural production in recent decades
have made that technology get a more complex character, with elements increasingly well
defined and related in time and space, oriented to the maximum recovery of fund and
resources and biological materials with a view to production highest level and efficiency
increased as May.
The production technology is characterised by two aspects:
- the technical aspect (the sequence work, how to do their quantities of materials used,
etc.).
- the economic aspect (the economic effort required, and the expenses per ha and for
elements, etc.).

Achieving the forecast of the vegetal production:
Forecasting the average production level is another element of optimization systems
growing plants. Because of the variation of specific biological and physiological cultivated
plants, soil fertility, weather conditions, factors of economic, social, organizational and
generally probabilistic nature of the progress of these factors, forecasting average
production constitutes an element of difficulty. Forecast production plant is based on
thorough study of the development ahead of production correlated directly with a
conditional factors.
Programming chemification measures:
In current conditions it is necessary to maintain and enhance labour productivity in
agriculture, in terms of reduced energy consumption. For this purpose a measure is
important in increasing the efficiency of solar energy bioconversion, yield determined by
the characteristics of plants cultivated (biological factors), natural conditions (natural
factor) and technology culture (technological factor). The factor on which to act in this
regard is the technological factor, the only consumer of energy, but also one who
decisively influence the efficiency of bioconversion.
Among the elements of technology, the main crops, the biggest producer, while a
consumer of energy is chemification (fertilization, the use of herbicide chemical combat
diseases and pests), but with which we can contribute primarily to obtain production large
and constant at the surface.
Programming fertilization measures:
322
The use of fertilizers is one of the main levers for both maintenance and removal of
soil fertility through the renewal of permanent fund nutrients, and for obtaining large
harvests and consistent. The nutrients are applied in the form of fertilizers, according to
the source of origin may be organic and chemical.
Determining the type of fertilizer is subject to the requirements for a particular plant
nutrient element, type of soil, the possibilities of purchasing fertilizers, and not least the
market requirements:
-- dose of fertilizer determined by the quantity of nutrients applied to crops at the
surface, it depends directly: fertilising item, the nature and method of fertilizer application,
and indirectly the age of application, the chemical, physical fitness of fertiliser, the
cultivated plants, soil, climate and supply of fertilizers;
-- the method of application depends on both age and implementing the physical fitness
of fertiliser and the nature of, plant cultivation;
-- nostalgia for the application of fertilizers is determined by plant cultivation, fertilising
item, the nature and form of chemical fertiliser, soil conditions;
-- chemical form covers only the fertiliser and depends on the requirements of plants
grown technology and manufacturing of fertilizers.
A plan fertilization must answer two questions:
-- must apply fertilizers and amendments to what type, dose, when and how to apply?
-- rewarded the effort will be made economically and to what extent?
Because the plan is realistic fertilization should be complied with the following
principles and criteria:
-- performing the agrochemical mapping and repeat it at intervals of 3-5 years;
-- developing uniform fertilization programs for periods of 5 years to be updated
annually;
-- drafting plans annual fertilization (depending on the location of crops, the average
planned, the average yield achieved the previous year;
Use of chemical fertilizers is an important factor for increasing the average yields per
hectare. Substantiating economic decisions for the allocation of chemical fertilizers every
culture, differentiated by soil types, depending on the degree of assurance of various
factors of production, the crop plants require to carry out experiments with different doses
of chemical fertilizers, on a period of several years. The results of these experiments be
processed and compared, using mathematical-statistic methods.

CONCLUSIONS

The basic approach lies in the optimization system as a complex culture whose function
is determined by a lot of factors. The methodology optimization seeks economic factors
influence and interaction of all of them, including solutions from both the elements that
characterize the culture as a whole and the elements that characterize the edge of its
components. For optimal choice variant uses a system of indicators of production and
businesses, which mention:
-- increase the production per hectare;
-- increase production obtained using a kg of fertilizer;
-- increase the value of production per hectare;
-- increase the value associated with monetary unit additionally spent;
-- cost of production of one kg of increase;
-- for the profit associated with the production increase per hectare;
-- the rate of increase profitability as a result of the use of fertilizers.
The formulas for calculating the efficiency indicators:

323
1. To increase production ha (Sp)
Sp = qi - qo
qi = ha average yield from the variant You (which were used chemical fertilizers)
qo = average yields in the version Vo (which were not used chemical fertilizers)

2. Increase production obtained using a kg of fertilizer (Sp/1kg)
Sp/1kg = Sp / qi
Sp = increase production
Qi = amount of fertilizer applied

3. The increase in production ha (Vs)
Vs =Sp * p
Sp = increase production
P = price of a kg of the product obtained

4. The value of the increase associated with a monetary unit additionally spent (Vs/1ubs)
Vs/1ubs = Vs / Chs
Chs = Chi - Cho
Vs = value increase production to ha
Chs additional expenditure = ha
Chi = costs of production variations You (which were used chemical fertilizers)
Cho = expenses Vo production version (which did not use chemical fertilizers)

5. Cost of production of one kg of increase (Cus)
Cus = Chs / Sp
Sp = increase production to ha

6. Profit for the increase in production ha (Prha)
Prha = Vs - Chs
Vs = value increase production to ha

7. The rate increase profitability as a result of the use of fertilizers (R)
R = (Prha / Chs) * 100
Prha = profit for the increase in production ha

324
PROTECTION OF THE TRADITIONAL CHARACTER OF FOOD
PRODUCTS ROMANIAN TRADEMARKS ON EUROPEAN MARKETS

PROTEJAREA TRADIIONALITII PRODUSELOR ALIMENTARE -
MRCI ROMNETI PE PIEELE EUROPENE

Turek Magdalena
**
Constantin Marian*, Silviu Beciu*, Anioara Chihaia*

*
The University of Agronomic Sciences and Veterinary Medicine
**

Abstract

Romania has sent to Brussels a list of 162 traditional food-products which are to become registered
trade marks beginning with 1
st
January 2007, meaning they are not to be produced and marketed under the
same name by any other EU member state. This way, apart from the already known products like Plescoi
sausages, Dobrudja pies, Sibiu salami or Maramures horinca, the product list also contains food less known
even to the Romanians. This is the case of Bobalna pressed cheese, Raureni plum jam and Manastur
cheese, Camarzana horinca or Segarcea brandy. Romanian trade marks will fight for acknowledgement on
EU market, to become as well known as mozzarella, tortilla or the Brazilian coffee.

Key words: traditional products, Romanian trademarks, certification of food products

INTRODUCTION

After the accession, the local traditional products will be a viable counter offer to
similar products from other countries. Thus, a diversification of the market and a real
competitive environment will be achieved, in which these products, according to their
qualitative performances will provide the consumers with a wider range to choose from.
In 2007, in the MAPDR register about 1596 certified traditional products were
recorded, this process still going on. The list thereof will be published annually in the
Official Journal, so that any producer, distributor or salesman will be informed about the
traditional products.
The food trademarks for which Romania required protection
Milk: from Dorna, Cedra from Apuseni, from Cluj, from Covasna, from Satu Mare, from
Harghita, from Rarau.
Yoghurt: from Cedra, from Apuseni, from Satu Mare, Napoca.
Buttermilk: from Harghita.
Green cheese: from Oas, from Baschiu, from Alba, from Sibiu.
Cheese: from Moeciu, from Fagaras, from Taga, from Nasal, from Vlafromasa, from
Manastur, from Satu Mare, from Moldova, from Dorna, from Napoca, from Sibiu, from
Arad, from Harghita.
Pressed cheese: from Rucar, from Covasna, from Bobalna, from Tamita, from Fromj,
from Moeciu, from Vidraru, from Mateias, from Rausor, from Satu Mare, from Carei, from
Napoca, from Harlau, from Dobrogea, from Fetesti, from Penteleu, from Harghita, from
Ciuc, from Sibiu, from Rarau, from Brafromt, from Vidraru, from Arges, from Covasna, from
Dorna.
Feta cheese: from Brasov, from Huedin, from Arges, from Carei, from Oas, from Valcea,
from Sibiu, from Harghita.
Meat products: Sibiu salami and Plescoi sausages.
Bakery products: potato bread from Ardeal, thick-crusted bread, Buzau pretzels and
Brasov pretzels, Dobrudja pie.
Processed fruit: plum marmalade from Raureni and Topoloveni.
325
Plum brandy: from Zetea, from Mediesu Auriu, from Valea Milcovului, from Buzau, from
Arges, from Zalau, Arfromleneasca from Bistrita.
Horinca: from Maramures, from Camarzana, from Seini, from Chioar, from Lapus, Turt
from Oas, Turt from Maramures.
Palinca: from Bihor, from Rieni, from Zalau, from Arfromal, from Maramures, from Carpatii
Apuseni, from Transilvania, Romaneasca Tricolor, from Brad, from Bonovita, from
Calnau, Crai Nou, from Valea Vinului, from Mediesu Aurit, from Camarzana, from Oas,
from Cluj, from Focsani, from Dragosloveni, from Vrancea, from Jaristea.
Vinars: Tarnave, Vaslui, Murfatlar, Vrancea, Segarcea.

MATERIAL AND METHOD

Each European Union member state has its own list of local traditional products,
which can be accessed online. On the European market, traditional product account for
30-40% of consumption, without taking into account the local/internal/regional
consumption; with this consumption we can arrive at 50-60%, especially that at European
and global level there is a strong consumption tendency towards traditional or natural
products.
Even if they imply higher expenses, they have special characteristics, which give
them an advantage in comparison with the conventional products of the same type. The
elaboration of a traditional products catalogue, with specific data, will give to those who are
interested the opportunity to find out the whole range of traditional products. It is estimated
that after the publication of the guide the consumption of these products, including
restaurants, especially traditional ones, will increase.
The food products and beverages sector represents in 2007 28% of the total value of the
gross agricultural production and 7% of Romanias gross domestic product. The number of
economic agents was of 16,509, over 99% of which were private ones. The food products
sector provided over 240,000 jobs, which represents about 5% of the active population.


Our country required from Brussels the protection of the trademarks of those
products with national character, among which the feta cheese from Huedin, the potato
bread from Ardeal or the plum marmalade from Raureni. Practically, the respective
products become famous brands, just like Columbian coffee, mozzarella, tortilla, panellets
or parmezan.
For example, a group of producers of cheese bag in fir tree bark can require to use
the brand cheese bag so as to be able to export it to he EU member states. After
everything is checked and legalised, no other country or producer will be able to market
cheese bag in Europe. In order to certify a traditional product, the producers submitted, on
1 January 2007, an application to have the product registered, which includes a task
notebook from the Direction for Agricultural Development and Rural Development (ADRD).
The task notebook will contain the name of the product, the description of the production
method, including the nature and characteristics of the raw materials or ingredients used,
as well as the product preparation method, with reference to its traditional character. Also,
the task notebook will include elements that present the assessment of the traditional
character, as well as the description of the product characteristics, by indicating the main
physical, chemical, microbiological characteristics which are related to the traditional
character.
We consider it is necessary that the production of alcoholic drinks should be
encouraged in favour of the small producers by means of the way in which the installations
326
producing them are excised and certified, as it is the case in the European Union countries
that have a tradition in the field and that protect the small producers.
The MAPDR proposals are based on the community legislation regulations and
production excise levying practices for traditional beverages in the EU member states,
which stipulate low excises on producing them.
The MAPDR proposals aim at the following:
- The complete excise exemption for a quantity of 400 litres of product (plum brandy
or palinca or fruit brandy, wine lees and pomace);
- The payment of a excise of 50% of the standard value for a quantity larger than 400
litres but which would not exceed 1000 litres of product (plum brandy or palinca or fruit
brandy, wine lees and pomace);
- For the quantity exceeding 1000 litres of product (plum brandy or palinca or fruit
brandy, wine lees and pomace), the excise will be paid in full.
According to MAPPDR, the beneficiaries of these proposals would be the fruit,
grape and wine owners who process their own crop wither using their own installation
(kettle), or another installation for producing brandy in the area, belonging to another
producer who has a kettle or processes at other industrial kettles, certified according to the
law.
Regarding the certification for the kettles owned by fruit producers and for small
distilleries, the MAPDR proposals aim at simplifying the certification procedures. Through
this proposal it is aimed to bring order and operation legality of the small alcohol
producers, given the fact that a large part of the kettles owned by the small fruit producers
or the small distilleries is not registered or certified, these not being able to be excised and
monitored by the adequate institutions.
According to community regulations, plum brandy, palinca and certain brandies are
Romanian traditional products acknowledged as unique in the European Union.
The current Fiscal Code establishes that for the quantity of 50 litres of products for
an individual households own consumption, the excise level is of 50% of the standard
quota of the excise levied for ethylic alcohol, respectively 375/hl the standard quota). If
this quantity is exceeded, the excise is paid in full. Until 2006, no excises were paid for
quantities under 300 litres with the alcohol concentration of 40% for each household.

CONCLUSIONS

In order to achieve these objectives, these Romanian traditional agrifood products
will have to fight for consecration on the European market with a favourable impact on
Romanian tourism. Promoting the traditional products with specific characteristics can
become an important advantage for the rural economy, especially in the marginal or
remote areas, both by increasing the farmers income, and by settling the rural population
in these areas.
In order to ensure the proper operation of the internal market in the food products
sector it is necessary to provide the economic operators with the instruments which will
allow them to increase the market value of the products, at the same time ensuring the
consumers protection against abusive practices and guaranteeing the correctness of
commercial transactions.
In this context, multiple problems are raised with special reference to the existence
of the current traditional products and especially to the conceptual delimitations and
classifications of these products and later of the forms of interpreting the concepts of
ranges and lines/items nominated within the product manufacturing technologies.

BIBLIOGRAPHY

327
*** www.maap.ro
*** www.insse.ro
Hervien B.
Multifuncionalitatea agriculturii, ASAS, 2003
Kotler Ph. Managementul Marketingului, Editura Teora, Bucureti, 1997

328
PROMOTION OF TRADITIONAL ROMANIAN PRODUCTS INVENTORY
AND OPPORTUNITIES FOR PROMOTION ON NEW MARKETS

PROMOVAREA PRODUSELOR TRADIIONALE ROMNETI
- INVENTARIERE I OPORTUNITI DE PROMOVARE PE NOI PIEE

TUREK MAGDALENA, PETRUA TUREK


Abstract

Promotion of traditional products with specific characteristics may become an important advantage
for rural economy, especially for the less favoured or remote areas, both by increasing farmers income and
by population settling down. Instruments for increasing products market value should be available for the
economic agents, to ensure a functional domestic market and consumers protection against abusive
practices, also guaranteeing correct commercial deals.
At present, after Romanias EU integration and becoming a part of European market division, food
consumption is characterized by the prevalence of festive and usual food. Intermediate and traditional food is
not promoted properly due to its difficult market position.

Key words: promotion techniques, traditional products

INTRODUCTION

The production, manufacturing and distribution of agricultural and food products
have an important position in the national and Community economy. Therefore, it is
necessary to encourage the diversification of agricultural production.
In order to ensure the proper operation of the internal market in the food products
sector, it is necessary to provide the economic operators with the tools that will allow them
to increase the market value of their products, granting at the same time the consumers
protection against abusive practices and the correctness of commercial transactions.


The promotion methods can also be influences by the product life cycle. When a
new product is launched on the market, the communication mix must provide the
information and raise the awareness of the existence of the product. At this stage,
advertising is most important, and the product must be exhibited and launched by the
distribution channel with the help of personal selling, exhibitions, fairs, etc. As the product
enters its maturity stage, the communication mix shifts its focus towards promoting the
sales. During the decline period, the old products are replaced by the new ones, the
former being abandoned eventually. At this stage, specific promotion tools are often used:
tombola, games with prizes, competitions, the promotion expenses being significantly
reduced ad then completely eliminated. Promotional sales, known in the economic practice
under the simple name of promotional, are a promotion policy instrument and they are
defined as representing: The purpose of using this tool is to increase sales. By means of
promotional offers, the agrifood company is known by the public attracted by opportunities,
favourable purchasing occasions, because at the basis of promotional sales there is the
buyers opportunity to save money, to strike a bargain.
Although this opportunity is somewhat hidden reduced price, two objects for the
price of one, rebates, etc. it remains, yet, an offer to save money.
329
The importance of the promotional actions increases once very large self-serving
shops, supermarkets, malls and discount shops appear and develop. The period in which
the product was recommended by a salesman has passed, the latter has been replaced by
a bar code and a computerised scanner. The product must recommend itself, with the help
of its package, logo and brand image the silent salesmen of the product.
The clients are motivated to buy in order to profit from the special offers and form
those which, in addition to the product, also offer something valuable, such as a price
reduction, a free product, a gift. They are convinced to buy by means of posters placed at
the points of sale, of product location in the shop, sweepstakes, the sale of food products
whose expiry date is closing in and any other possibility to save money.
The company must plan its promotional activities when elaborating the marketing
plan, so that these will be compatible with the other communication tools: advertising,
public relations, sponsorship and sales force. Of all these tools, promotional activities have
the closest relationships with the sales force, who uses the promotional materials to
promote the products and who has to be trained in order to know the promotional activities
rigorously. The tools used in making the promotion are: samples, coupons, rebates,
grouped sales, sweepstakes, rewards, competitions with prizes, free trials and animation
at the point of sale.
Of the promotional materials most widely used, printed or serigraphied with the
name of the company and/or product and which we can see all over the place, we
mention: banners, folders, fliers, posters, catalogues, brochures, headed sheets of paper,
personalised envelopes, agendas, calendars, flags, bloc notes, self-adhesives, pens,
lighters, ash-trays, mugs, key-holders, watches, badges, caps, umbrellas, T-shirts,, bags,
glass holders, etc.
These promotional materials are either placed in a visible location, in the street or
inside the shop/company, or offered as gifts. In a marketing research it was noticed that
40% of the people that receive free gifts remember the name of the company even 6
months later. Calendars, agendas and pens are the most popular promotional materials
given out as gifts.
In another marketing research the conclusion was drawn that coloured brochures
and filers are much more effective that those in lack and white. Colour makes the number
of readers increase by 41% and increases the peoples tendency to buy by 26%.
Promotional activities can be used both by the producer and by the distributor.
Thus, we can differentiate:
the promotion made by the distributor at shop level;
the promotion made directly by the producer and possibly regulated by the distributor
though a trade marketing operation.

The promotion made by the distributor
In this case, price reductions, advertising at the point of sale or small advertising
fliers distributed outside the shop can be used. These operations create a supplementary
demand, but they are desired first of all by the shop, which aims at improving its image in a
relatively cheap and highly animated way. Experience has proven that sales promotion by
means of the distributor does not bring real advantages to the producer. Indeed, there is a
supplementary demand, but at a low price, and buyer want to profit from every promotion
so as to make the most of the price advantages that are being offered. Te producer that
grants promotions to the distributor does not have many advantages as long as the
consumer, convinced today by the promotion of the day, is lost tomorrow to the
competitions promotion.
We speak more and more about the so-called permanent promotion products. The
distributors want to promote those products hat are very famous and appreciated by the
consumers: leader products or products with very low prices which give the shop the
330
image of a discounter. These products become the victims of their own success because
the distributors try to sell them at the lowest prices so that they will end up competing with
one another.

The promotion made by the producer
The second choice the promotion made directly by the producer represents an
advantage for the consumer, who is stimulated to buy either a new product, in order to try
it, or a product he bought in the past as well, in order to become loyal to the brand. This is
about direct communication regarding the product whose sales are to be increased.
Sales promotion, together with advertising, aims at accelerating the increase in
demand and not at reducing prices (although one of the main promotional activities refers
to reducing prices). In other words, advertising and sales promotion must gain potential
consumers that will become plus loyal to the product. Sales promotion is an interesting
tool, but it is difficult to handle in practice.

Characteristics of the purchasing and consumption behaviour
The food purchasing and consumption behaviour is defined by all the decision-
making instances at individual or group level, related to buying and consuming agrifood
products meant to meet the present and future need for food, including both the decision-
making processes that precede, and those that lead to the purchase/consumption of those
categories of products.
Regarding the agricultural and food products, we identify both a purchasing and
consumption behaviour specific to the end user, and a purchasing behaviour of the
companies whose activity is aimed at producing and/or marketing agrifood
products
x
. In the case of the companies in the agrifood industry, the purchasing
behaviour generally exhibits the characteristics of the purchasing behaviour manifest at
the business market level: the purchased quantities are large, several persons participate
in the decision-making process, they are well-trained, and the decision I generally based
on preset criteria and objectives. In the case of the consumer market, the agrifood
products consumers behaviour exhibits a series of characteristics as compared to other
categories of goods.
The agrifood products purchasing and consumption behaviour can also be defined
as the set of responses of the individual to internal and external stimuli which require the
input of food or stopping the input of food. The outputs (the individuals decisions about
the purchased product, the commercial unit, the purchasing frequency, not purchasing a
certain product or delaying the purchase, the consumption and quantity consumed from
the respective product) are the result of complex processes, performed at the level of the
human mind and they are influenced both by he inputs and by a series of individual
characteristics, there being huge variations in behaviour both from one individual to
another (even in the context in which they are exposed to the same stimuli), and in the
case of the same consumer, from one interval to another. Consequently, the purchasing
decision has both an objective motivation (meeting the needs for food) and subjective
motivations.

CONCLUSIONS

The consumers characterise the traditional product through the important aspect of the
corporal components thereof and which differentiate it form the other similar ones (a

x
The purchasing behaviour is the set of decisions which the company makes about purchasing agricultural and / or food
products, implicitly including the process of assessing and selecting supplies and brands.
331
phenomenon which is manifest in the consumers behaviour in Romania as well). A
successful agrifood product adds value to the product, meeting the psychological needs of
the consumers as well. It is important for a producer to invest a lot in obtaining the product
because this ensures the long-term loyalty of the consumers, who will refuse the products
of the same type, even if they are offered at smaller prices. This is where the economic
importance of using traditional products lies, in gaining the buyers loyalty by taking action
which acts as a lever t pay off, in time, the investment made by the producer.

BIBLIOGRAPHY

ZAHIU LETIIA, TUREK
PETRUTA I COLAB.
Politici i piee agricole -Reform i integrare european, Ed. Ceres, 2005
VICTOR MANOLE, MIRELA
STOIAN, RALUCA ION
Agromarketing - editia a II - a
*** www.maap.ro
*** www.insse.ro
*** Anuarul Statistic, INSSE, 2006

332
STRUCTURE AND SIZE OF ROMANIAN TRADITIONAL PRODUCT
MARKET

STRUCTURA I DIMENSIUNEA PIEEI PRODUSELOR TRADIIONALE
ROMNETI

TUREK PETRUA, MAGDALENA TUREK


Abstract

Recognition of traditional food products offers the consumer security when choosing them, bringing
psychic welfare, which is very close to meeting consumers needs. This work identifies and structures
Romanian traditional products on four dimensions:
width: given by the number of nominated product lines;
length: given by the number of articles in all the lines;
depth: given by the number of models for each article;
homogeneity: given by the degree of association of different product lines, so that the products obtained by
the local farmer can be distributed through the same channels and the consumption demand is met.

Key words: market size, economic agents, product ranges and lines

INTRODUCTION

With the accession to the EU, it becomes necessary to know the structure of the
producers that obtain these traditional agrifood products in Romania. We f to nominating
the legal status of these producers presented in the paper as: family associations (FA),
producers associations (PA), trading companies (TC) and certified natural persons (CNP).
In order to understand the issue, we will observe the same order of the analysed intervals,
but we will take into account the producers legal status.


For the ranges and lines of traditional food products certified through the
nominations of the producer within classes (families) we have taken into account the
periods up to 2006 and the total number of products recorded in the entire period until the
end of 2007 (see table 1).
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Table1
The number of economic agents that obtain traditional products, in 2006

The producers status Number
% of the
total
Family associations 95 10.3
Trading companies 729 79.3
Natural person 95 10.3
TOTAL 919 100

Figure1
The ratio of the ranges of traditional products obtained by the same family associations in
2006
12%
34%
5%
7%
0% 0%
cereals milk meat veg. fruit beverages fish honey

Figure 2
The ratio of the ranges of traditional products obtained
by trading companies in 2006
34%
26%
2%
4%
0% 0%

Until 2006, the inventory made and presented structurally in figures 1,2 means the
following:
- in the total number of 919 products obtained the dominant ones are those from trading
companies, which amount to 729 and represent 79.32% of the total. The family
associations and certified natural persons are represented in equal ratios of 10.33%;
In the product ranges structure there are differentiations according to types of units:
a) in the family associations from the total number of 95 products 72 are represented by
milk derivates and meat products, which represents a ratio of 42.10% and respectively
32.33%. For these two products obtained in family associations the Arges county is
significant with 34 milk derivate products and the Suceava county with 21 meat products
(from this point of view, the two counties account for 85% and respectively 65.62% of the
two nominated products);
b) in trading companies the dominant number of 729 products obtained is mostly located
for the cereal products, milk derivates and meat products. These products account for % of
all the products obtained in trading companies (of 34.01%, 34.02% and respectively
26.47%). By organising the products in the product ranges allocated to counties, the
334
situation is as follows: for cereal products, the Alba and Sibiu county are considered
dominant because they account for 52.41% of all cereal products (25.40% and
respectively 27.01% of all 248 products); for milk products the Covasna county is dominant
(with 16.53% as compared to the total of 248 milk products at national level), followed by
the Alba, Arge, Cluj and Sibiu counties (the ratios for each of these counties ranging from
8.06% to 11.29%);
c) in figure 3, the products obtained by (certified) natural persons are mostly based on milk
products, the number being of 74 such products, which represents 77.89% of all the 95
products. The Arges county is significant with 70 traditional milk products obtained by
natural persons representing a ratio of 73.86%, a significant level with is also maintained in
the national total, namely 19.33%.
Figure 3
The ratio of the ranges of traditional products obtained
by natural persons in 2006
0%
12%
0%
8%
2% 0%

The structure of the presented data illustrates specific aspects which correspond to
the nomination of these products per producers according to their legal status (FA, PA, TC
and NP), from which the following can be identified:
- the certified products obtained in family associations (FA), amounting to 328 have a
significant ratio in the national total (20.55% as compared to 1596). From these, in the
South-Muntenia development region there are 191 such products representing 11.97% of
all 1596 types of products existing at national level. With reference to the same region, we
can show that all the products in this region are concentrated in the Arges county (the ratio
of 11.97% means that there are no such manufacturing family associations in the other
five counties in the region). In structure, the milk derivates, meat products and beverage
product ranges cumulate the majority of the total number of products in this county. With a
significant number of products, we can nominate the South-East and Centre regions
whose ratio of the total is of 2.07% and respectively 3.25%;
- the producers associations are represented at national level by 32 products obtained in
associative forms which produce and market certified traditional products. They are
recorded and inventoried through the product obtained (palinca, horinca, rachie), the
private livestock associations (in the Ilfov county), the name of the species of livestock
(sheep, goats), toponyms (Asu Valley, Buzu Valley). This number of products
represents 2.01% of the national total, and from the regions the following ones are
significant: the Centre region (0.63%), the North-East region (0.38%) and the North-West
region (0.38%);
- the trading companies are considered the main producers of traditional products,
because they obtain a number of 967 such products, which represents 62.46% of the
national total. At the level of development regions in Romania, we may consider that the
Centre region is significant, where trading companies account for obtaining 389 traditional
products, which represents 24.37% of the national total. A relatively high level in obtaining
these products is recorded in the North-West region as well (10.59%) and in the North-
East region (9.14%);
335
- the (certified) natural persons in obtaining traditional agrifood products through the total
number of 269 products represent 16.85% of the national total for these products. The set
of regions includes two extremes, namely: regions such as South-Muntenia and North-
West where most products are obtained (6.39% and respectively 9.46%) and the other
regions with a very low level in obtaining these products (they begin with 2 products and
end with obtaining no products). In the structure of the counties in these two regions we
can emphasise the multitude of products obtained in Arges and Satu-Mare, which
represent 100% and respectively 97.35% of the products in the respective regions.

CONCLUSIONS

From here we can deduce that the economic practice proves that it is very tempting
for a producer in a region with potential to be trained for a diversity and multiplication of
traditional agrifood products. At the same time, through the required rigorous organisation,
in loading the product catalogue, the management thereof becomes difficult.
The set of traditional product records at national level in 2007 is a cumulative
inventory for the set of traditional agrifood products in Romania so far. For this reason,
both the identification and especially the analysis were made for 10 ranges which amount
to a total number of 1596 products.

BIBLIOGRAPHY

*** Anuarul Statistic al Romniei, 2005
*** Global Competitiveness Report 2006-2007, World Economic Forum , 26 sept.2006
*** Eurostat, 2006
*** Recensmntul General Agricol, 2002, volumul 1, Institutul Naional de Statistic,
Bucureti, 2004
*** Date operative transmise de ctre DADR Judeene, 2007
*** I.C.E.A.D.R.-A.S.A.S., Analiza spaiului rural romnesc, 1998-2003,Bucureti, 2004
*** Regulamentul (CEE) nr. 2082/92 al Consiliului din 14 iulie 1992 privind atestatele de
specificitate ale produselor agricole i alimentare
*** www.maap.ro
*** www.insse.ro

336
ECONOMIC ACTIVITY ANALYSIS - MANAGEMENT INSTRUMENT OF
VEGETAL FARMS

ANALIZA ACTIVITII ECONOMICE INSTRUMENT AL
MANAGEMENTULUI EXPLOATAIILOR AGRICOLE VEGETALE

Vlad Mihaela Cristina*, Olteanu V., Ursu Ana


Abstract

The analysis, as notion, its a research method, based on decomposition or unbinding of an object or
a phenomenon in its component parts. In all sciences domains, the analysis play an indispensable role of
knowledge

Key words: management, agricultural unit

INTRODUCTION

The analysis of the economic activity of agricultural businesses researches, on the
basis of the information system data, the results obtained in the activity thereof, the factors
that determined them and the ways to improve them. It plays and important part in
ensuring the scientific management of agricultural businesses, representing an essential
tool in performing the management tasks at all hierarchical levels.
The analysis, through the formulated conclusions, is the basis for the
adequate substantiation of the positive results, promoting advanced methods and
procedures.
The analysis of the economic activity is not only an instrument of the
agricultural business internal management, but also the main content of the control
activity performed by specialised bodies (financial, banking ones, etc).

MATERIAL AND METHOD

In performing the analysis of the agricultural businesses economic activity, we
must take into account the characteristics of the agricultural production. These
leave their mark on the company structure, its features, its manner of performing
the activity. Characteristics such as: combining the social process of working with
the biological process of reproduction, the considerable influence of climatic factors,
using the land as main means of production, the inconsistency between working
time and production time, the use within the companys production process of a
significant quantity of its own production, obtaining both the main products and
secondary products within the same activity are only a few of them. The elements
listed above and many more, through the concrete manner in which they are
manifest, give the specific character of agriculture as branch of the national
economy.
At the level of agricultural businesses, the economic analysis is differentiated firstly
according to the agricultural production profile. Thus, the businesses classification
according to their profile has a high level of complexity, implying the identification of the
activities performed within them and the correct determination of the value ratios in the
337
total revenues. A correct classification and an adequate system of indicators lead to much
more viable interpretations and comparative analyses.
Synthetically, businesses can be classified according to profile as follows:
agricultural businesses with vegetal production: field crops, vegetable growing and
floriculture, permanent crops; agricultural businesses with animal production: raising
livestock with vegetal fodder (dairy cows, beef cattle, mixed, sheep and goats; raising
livestock whose food is based on compound feeds (farms specialising in raising swine,
poultry and mixed ones); agricultural businesses of vegetal polyculture, agricultural
businesses with diversified livestock husbandry; agricultural businesses with a mixed
profile.
The classification of agricultural businesses according to size implies a
differentiation of the indicators into direct ones (indicators that express the size, as well as
the gross revenue, gross margin) and indirect ones (indicators which express the size, as
well as the area of land, livestock, number of persons, technical equipment). The
classification of agricultural businesses according to vertical or horizontal integration has a
direct influence on the economic indicators for the assessment of the activity, risk
measuring indicators being necessary.
The classification of the agricultural businesses according to the technico-
economic profile (specialised, bipolar, partially dominant profile) enables the complex and
comparative comparison of agricultural businesses, but implies the use as specific
indicators of the gross margin and standards gross margin.
The legal form of organisation, as business classification criterion, has, in our
opinion, the largest influence on the economic assessment and analysis indicators. Thus
we have two major business typologies, respectively, legal entities (agricultural
associations as legal entities, agricultural companies) and those that are not legal entities
(individual agricultural businesses and associations that are not legal entities). These
typologies have a direct influence on the system of economic assessment and analysis
indicators due to the characteristics of bookkeeping, respectively, single entry and double
entry bookkeeping.

In performing the economic activity analysis, we follow the reverse direction of
phenomena. The analysis starts from the end results of the analysed process towards
elements and factors, respectively from effects to causes. The performance of the
technico-economic analysis in the presented direction implies achieving the following
objectives:
to determine the level of the analysed phenomenon or process;
to study it according to components and their contribution to changing the global
result (when the phenomenon is complex);
to research the factors which led to the changes in the phenomenon or in its
elements;
to quantify the influence of the actors in order to assess the consequences of
their actions, as well as to study the causes which constituted their reason;
to identify the reserves and establish the measures that are necessary in order
to increase the future activity level.
To achieve these objectives, it is necessary to perform operations in a certain order,
systematically. The stages in the economic activity analysis are the materialisation in time
of the way in which the analysis process develops.
The main stages covered by the economic activity analysis are:
elaborating the analysis plan;
gathering the necessary information material;
verifying the gathered data;
338
systematising the data and performing the analysis calculations;
interpreting the results and formulating the conclusions
The elaboration of the analysis plan is necessary in order to cover all the problems
which the analysis has to take into account, as well as to establish deadlines, so that the
action is performed in due time.
The elaboration of the plan starts from identifying the analysis goal. According to
the goal, the main problems to be studied are established from the complexity of the
aspects exhibited by the research unit activity. The clear specification of the goal ensures
the correctness of gathering the necessary material and prevents useless references to
collateral, minor aspects. For each analysed aspect goals are established. In the case of
wider analyses, the plan must specify: the date for beginning and finishing the analysis,
the place and means to be uses, and even the persons who will perform the operations.
In the case of current analyses, the task to perform them falls into the job
description of certain persons through the position they fill.
In elaborating the analysis plan, but especially in performing it, we must take into
account the characteristics of the investigated unit, the natural and economic conditions in
which it operates, the production process characteristics. In the very plan, when the
analysis in performed by persons outside the company, the need to study the general data
regarding the economic agent and its activity must be stipulated.
According to the concrete objectives that were set, we progress to gathering the
information necessary in documenting them. The documentary material must be treated
very carefully, because its quality depends on the possibility to analyse the researched
phenomenon entirely and accurately. The information must correspond to the purpose of
the analysis, provide all the data necessary in characterising the investigated
phenomenon. The informational sources of analysing the economic activity of the
agricultural business are made up of two large categories: external and internal sources.
The external sources are represented by: development programmes for the
respective branch or activity, the market context, the internal sources of other economic
units that have relationships with the analysed unit, etc. this category of sources generates
the information necessary in directing the business activity, integrating it in the complex
mechanism of macro-economy, in order to achieve its goals. The internal sources are
represented by all the sources which reflect the activity of the analysed unit, its states at
certain moments. Although in the economic activity analysis, both categories of sources
are absolutely necessary, the major role, in terms of information volume supplied, is
played by inside sources.
Checking the gathered data mainly regards two aspects, content and correctness.
The content checking means examining the veracity of the information, the degree
to which it reflects the level and way the phenomenon is produced. This targets the
examination of the logical links that must exist between the levels of certain indicators,
between their values and characteristics in time and space of the illustrated phenomenon,
between the whole and its components.
Checking the accuracy of the information consists in examining the correctness of
the calculating what was at the basis of the gathered data. It is also called arithmetic
checking, made by repeating the operations which led to the respective values.The
gathered information is mainly presented under the form of numeric indicators resulted as
such from the sources already used, or determined when gathering or processing the data.
The economic indicators are the numeric expression of the quantitative aspect of
economic phenomena, closely connected with the material content thereof, under concrete
time and place conditions. They can be characterised by absolute, relative measures,
averages, indicators and various coefficients according to the phenomenon they refer to or
the aspect they signify.Synthesising the information is an absolutely necessary operation
to make processing and interpretation easier. This is made firstly by grouping the
339
information into issues according to the analysis typology. Because normally for each
issue or aspect being studied the numeric information is made up of a considerable
number of data, these are put into tables.
Tables are an important means of presenting the gathered information in an orderly
manner, meant to facilitate reading, comparing, making the analysis calculation and
interpreting the phenomenon. Designing the tables and synthesising the data in them is an
essential link in the chain of operations making up the analysis. In order to make the
analysis easier, the data can be expressed in graphic form. Without providing
supplementary information to that in the tables, graphs have the quality of presenting
synthetically, suggestively, and attractively, the essential features of the phenomenon,
giving an overall image of the existing interdependence relationships.
Performing the calculation is an important moment in the analysis, both through its
content, and through the work volume it requires. Through the operations it implies, we
ensure the direct achievement of the economic activity analysis objectives, which in fact
define its content (observing the phenomenon, its structure, researching the influence
factors, etc.).
The methods used to this end are different, some of them being specific to the
economic activity analysis, and other being taken over from related subjects. The most
useful grouping of the methods through which the analysis processes the gathered
information can be made using as criterion the pursued objective. Thus, we can
distinguish: the comparison method, the results division method, the balances method, the
scientific abstraction one, the modelling method, etc.
Interpreting the data is the stage in which the analysis process is completed, in
which the conclusions drawn from processing the gathered information are formulated.
The interpretation of the results of the calculations performed is the most difficult part and
bears the highest responsibility within the entire analysis process. It cannot be separated
from the rest of the analysis work, being determined by the way in which the other stages
and actions are completed, practically starting at the same time with their development.
Formulating the conclusions and proposals must be clear, contain no
contradictions, include precise answers to the set objectives. They must be based on the
gathered facts processed within the analysis. The conclusions must target essential
problems of the agricultural business activity, and the proposals, concrete measures
should lead to increasing its efficiency.

CONCLUSIONS
Making a thorough analysis of agricultural businesses economic activity implies the
simultaneous use, as resources, of three forms o economic record keeping (bookkeeping,
statistics records, technico-operative records), which, although they operate each
according to its own methods, complement each other, constituting a unitary set. The
analysis of the economic-financial data brings a more relevance, clarity and
expressiveness into assessing the state of the business, being useful first of all to the
management activity, because it facilitates decision-making in the field of management,
investment, credit, etc., as well as to external users of the information about solvency,
profitability and other economic-financial aspects which characterise the activity of the
respective business.

BIBLIOGRAPHY
COJOCARU C.CONSTANTIN, Analiza economico financiar a exploataiilor agricole i silvice, ediia
a II-a,Editura Economic, Bucureti,2000
DUMITRESCU DALINA,DRAGOT VICTOR,CIOBANU ANAMARIA, Evaluarea ntreprinderilor
,ediia a II-a,Editura Economic,Bucureti,2002.
GHEORGHIU AL., Analiza activitii economice a ntreprinderii, Editura Didactic i Pedagogic,
Bucureti, 1982.
340
THE PROCESS AND PRODUCTION PLAN IN VEGETAL FARMS

PROCESUL I PLANUL DE PRODUCIE N EXPLOATAIILE AGRICOLE
VEGETALE

VLAD MIHAELA CRISTINA, INARCU G.


Abstract

Production plan elaboration represents a complex activity in which are present technical, technological
and economics knowledges. In the same time present a great responsibility for managers assuring the good
functioning and development of the farms, optimal work conditions and a high level of incomes for workers.
Currently, managers are creating many variants for production plan, seeking to create an accordance the
possibilities and needs, choosing, based on a indicators system, the optimal variant, from the economic
efficiency and profitability point of view.

Key words: production process, production plan, agricultural unit

INTRODUCTION

Planning the production activity is much more than a simple theoretical concept,
expressing a complex set of actions through which it is aimed to conduct the economic
activity according to forecasts determined scientifically within a plan.
The process of planning the production activity in the vegetal agricultural business
is in fact a set of activities through which we study the alternatives to be followed and
make the best choice. It is performed on the basis of the planning theory, by the farmer
and aims at providing an increased efficiency of the activity, at developing and improving
the tools, techniques and levers for the market competition, reducing the level of
uncertainty, provide the management and control tools in crisis situations etc.

MATERIAL AND METHOD

The production plan, respectively the process of obtaining the products within the
vegetal agricultural business is a component of the business plan. It joins other
components thereof, such as: the marketing, product sales and promotion component or
the financial component. In terms of the current stage content, the emphasis is on drafting
production plans, as a formalisation of what needs to be done in this field, but also with
reference to certain elements (for example, production expenses) which ensure the
passage to various components of the business plan.
The production programme, as part of chronological planning, plays the part of
directing the production activity of a vegetal agricultural business for a short period of time
(up to one year). After rigorous substantiations, the main production objectives for the
above-mentioned interval are materialised in it.
Its elaboration and implementation implies, in fact, very precise actions in the field of
production as well (crop structure, setting the level of returns per hectare, etc.), which
helps achieve the objectives in the strategic plan and, implicitly, materialise the strategy.
Such actions are possible because the production plan is the result of the businesss
own concerns and of those of the management system thereof, the objectives and
measures already taken being correlated with the available conditions, from the natural
and economic ones to the social ones. Taking into account that drafting the business plan
and putting it into practice are exclusively attributes of the business, the latter will provide
341
the necessary substantiation, because it is strictly to its interest. This is about taking a
series of measures before setting the production objectives which result from the strategy
and strategic plan. Thus, the premises are provided for drafting a production plan in
accordance with reality, with the business potentials, at the same time giving its
components the elasticity necessary in adapting to new requirements in the period they
refer to. Thus, the following can be envisaged:
a) providing information about the awareness of the demand for the products which are
going to be obtained, the system of relationship with the beneficiaries, the suppliers of
inputs, the potential competitors, which leads to a good choice for products and allows for
changing the strategic production objectives previously set and formulating the current
ones, so that they will be adapted to the new contexts in the economic environment;
b) estimating, qualitatively and quantitatively, the production resources the business
currently has , identifying, in general, the possibilities o provide all that is necessary to
obtain the forecast production: the terrain, which reflects the main part of the business;
labour resources, estimated for different periods and in correlation to the work campaigns;
the technical equipment level, possibilities to provide such means (the possible
investments) as well as discontinuing some of the most intensely used in the previous
period; the crop rotation, the situation regarding the location of the crops, which will
constitute the structure of the plan in the case of the vegetal production; the production
technologies used in growing plants, types of plants, other resources the business has;
c) resorting to a series of information resulting from the diagnosis of the activity, which
will be useful in substantiating the programme, if the factors that generated them do not
change, such as: unitary resource consumptions; the production level per hectare
recorded in other crops, this entering the dynamic series thereof for the forecast
calculation aimed at its size in the interval for which the plan is made; the way in which the
labour was ensured, the salary level, obtaining the inputs and their prices;
d) the measures taken by top management (in the case of the units that have a
managerial structure) regarding the improvement in production and labour organisation;
e) updating all the information (taking into account the evolution of the environment)
and introducing new information, with special reference to the informational subsystem in a
farm;
f) correlating the forecast production results with the usable resource quantities, so as
to ensure a certain level of economic efficiency and to protect the environment and the
products against various types of pollution;
g) taking into account the relationships between branches, the cooperation between
trading company subdivisions (farms and sectors), in order to be able to size
correspondingly the various activities, so as to meet the mutual needs for products or
services; thus, each branch and each subdivision will have created the conditions to
perform their activities according to the preset objectives, and the operational subsystem
of the business will operate at the set parameters, which will lead to achieving the forecast
production results;
h) we must not ignore the fact that the elaboration of the plan takes place under risk
and uncertainty conditions, which influences, as we know it, the diversification of products.


In the production plan for the vegetal sector the whole production to be obtained
from growing the plants is materialised. In the case of smaller units, this is a formalisation
of what is going to be done in this domain. In other cases, which are most numerous, the
plan is found under the form of a mental representation, without being put down in a
document, into a computer, etc. the manager of a family business, for example, formulates
ideas about what and how much he will cultivate, but it is unlikely that he will put them
342
down on paper of using other means, to say nothing about resorting to substantiating
decisions, correlating the production with the factors that will be used, an later to estimates
regarding the economic results that can be obtained. In one way or another, there is a
plan, it must be developed according to value judgements, so that, when trying to achieve
what was planned, to be able to achieve positive economic results. The production plan
includes: the crop structure (their type and area allocated to each of them), as a basic
component of the production system in growing plants; the average forecast production
and the total production for each crop; total production expenses and production expenses
per hectare.
The plan is substantiated on the possibilities to obtain the vegetal production, aiming
at meeting the businesss own needs. The resources will be allocated to crops according
to the requirements for each one (crop), to which we add the forecast product prices, the
crop rotation requirements, etc., elements specific to the process of ensuring an optimum
crop structure.
Otherwise, in drafting the plan we envisage The way in which the land is used,
which, in the case of agricultural joint stock companies, agricultural companies, etc.,
includes the allocation of the land to types of usage (arable, vineyards, orchards, pastures,
natural hay fields), as well as the possible changes that will appear, in the area of each of
them, in the interval for which the production plan is made, related to: increasing the arable
area by means of, for example: leasing land, introducing, if possible, certain areas into the
agricultural circuit; decreasing the arable area for various reasons (removing arable land
from the agricultural circuit, in compliance with certain regulations or removing members
form the agricultural business).
Drafting the production plan takes into account other elements with which it has direct
connections and, especially, with those regarding the provision of other resources
necessary in achieving a certain (preset) level of the production for each crop, namely:
improving the structure of categories of use; performing improvement works on the
cultivated terrains (scarification, water draining, shaping and levelling) or on natural
pastures (trimming the woody vegetation, administering chemical fertilizers, etc.); the
status of the terrains set up for irrigation, in which the compulsory areas are stipulated
according to categories of usage, at the beginning of he year, to which we add the newly
introduced terrains and from which we deduce the possible cassations, including the
cultivation plan for these areas;
Simultaneously, we also establish the irrigation sources: from our own production (if the
case be), or from purchases; the supply of fertilisers, amendments and pesticides
(insecticides, herbicides and fungicides). The quantities of fertiliser result from the crop
technologies, having to be provided according to the needs, taking into account: the area
of each crop, the number of treatments, the attacks from diseases and pests or the degree
of weed growth and the norm administered per hectare in one treatment; according to the
characteristics of the business we can take into account the quantities of usable natural
fertilisers; the forecast workload to be performed through the crop technology is another
element with which the production plan is in direct relationship.
The farmer will then deal with establishing and providing the various inputs before
he needs to use them in production. Otherwise, there appear discrepancies between the
two moments (the one of providing and the one of using them) which have negative effects
on observing the optimum period to perform the works and implicitly on the quantity and
quality of the products that will be obtained
An important part in substantiating the production plan is played by the crop
technologies (technological files). They include technical and economic data regarding
each crop. Thus, the files list, in chronological order, all he works that will be performed for
each crop, both the mechanised ones and the manual ones, the amount and optimum
periods for the performance of all consumptions of factors (seed, planting material,
343
fertilisers and pesticides, other materials etc.), which allows for establishing the total direct
expenses for the crop, and by adding those of common and general interest allocated to it,
the level of the unitary production cost is forecast.
But there are characteristics of various crops (in the case of some there results a
secondary production, others are perennial crops, successive ones, etc.), which leads to
specific ways of establishing the probable cost level. By forecasting the level of expenses
and the unitary cost, in the context of predicable sales prices, we move on to determining
the economic and financial results (revenues, turnover, profit, etc.). These indicators are
synthesised in the revenue and expense budget.
The farmers must take into account, when drafting their medium and long-term plan
at farm level, the agricultural forecasts elaborated by the authorised institutes, so that the
products he will obtain in the farm will have large chances of being marketed rapidly and at
a price that leads to profit.
The agricultural forecasts operate with many elements of uncertainty and
unpredictability, with random states. Their need derives also from the need to provide
information that will make it possible to prevent he negative effects of the impact of natural
and biological factors and of the fluctuation of prices on the agricultural market and to
forecast the possible future. The forecasting methods for the agricultural production can be
grouped as follows: extrapolating trends based on the evolution of the phenomenon in the
past; modelling the processes in order to establish the optimum choice; methods to
investigate the experts opinion; methods based on comparison; probabilistic methods;
simulations.

CONCLUSIONS

In substantiating the guiding programmes and plans, modern agricultural production
forecasting methods and techniques are used. Forecast surveys cannot be limited to one
single calculation method or technique, no matter how precise it is. It is necessary to use
several methods which complement one another, contributing to as accurate as possible a
determination of the evolution, of the tendency of the phenomena. It is important that,
according to the investigated phenomenon, the most adequate forecasting methods are
selected, which lead to the possibility to detect the choices with a maximum efficiency.
Agricultural forecasts for the vegetal production are based on experiences performed in
time, on experimental plots. According to the purpose, we monitor the effects of allocating
various resources or plant behaviours, under different environment conditions or action of
the natural and human factors. The elaboration of the production plan thus envisages
knowing the directions in marketing the products, its connection with the various
components (marketing, sales, promotion, etc.) of a substantiated and comprehensive
business plan being obvious.

BIBLIOGRAPHY

LETITIA ZAHIU, MIRCEA NASTASE, Economia intreprinderii, Editura ASE, 2002
NICOLESCU O., Marketing n agricultur, Ed. Tirtonic, Bucureti, 2001

344
MANAGEMENTUL EXPLOATAIILOR AGRICOLE N ECOMOMIA
BAZAT PE CUNOTINE

THE MANAGEMENT OF AGRICULTURAL EXPLOITATIONS IN A
KNOWLEDGE BASED ECONOMY

VOICU R., DOBRE IULIANA, BRAN MARIANA

Faculty of Agro-food and Environmental Economics, Bucharest Academy of Economic
Studies

Abstract

In a knowledge based economy, the management is a neofactor with synergetic role for assuring a
high economic results. The Romanian agriculture is in a radical reform, from many point of view +
proprieties, type of exploitations, its dimensions etc. + before 1990. In conditions of new type exploitations,
the management must to represent a preocupation for managers, wich to contribute to the evolution of
agriculture. The authors of this paper to astound the specifical management wich is determinate to the
functioning of different agricultural exploitations. In some time, will idetified the directions of actions wich will
favorisate promotion, in perspective, of a performant management in agriculture.

Key-words: radical reform, type of exploitations, specifical management, agricultural exploitations,
crop rotation.

The contemporaneous society is more and more marked by the insight of science in
the economy. Many products capture a lot of knowledge and creativity, in spite of their
material content. Science puts more and more into shade the classical production factors:
the soil (the natural resources), the labor and capital. It is affirmed that these factors are
not extinct, but have become secondary, that they can be easily obtained on a
knowledge basis.
The need for information and the reality of knowledge based society led to the
formulation of a new definition of management: to provide information in order to find out
in which way the existent information can be applied best so that to provide results, is, in
fact, our understanding of management.
Agriculture also appears to be a field in which knowledge coming from agronomical,
as well as economical and social science is induced. The empiricism is more and more
replaced the modern methods regardless the type: production, management or marketing,
are entering in a fast manner in the agriculture of many countries.
The Romanian agriculture has known, in its millenary existence, numerous types of
properties, generating different relationships among the people involved in this field of
activity. The last land reform in agriculture was launched primarily by the application of
Law provision no 19/1991. On its basis, the private property concerning land was
reconstituted and established. The new type of property generated a chain reaction
regarding: the exploitation types, their dimensions, production structure, the way of
managing the exploitations.
The exploitations landscape, after 1991, is totally different from what it existed in
the previous period. The existent agricultural units were swept away of the agricultural
economys stage. On the empty place were mostly built exploitations based on private
property, compatible with the new type of economy towards which our country has passed.
The new structure of exploitations comprises as main types (Table 1):
Table 1
Current
Nb
Exploitation type Number %
345
1 Individual agricultural exploitations 4237889 99.6
2 Juridical units 18263 0.4
3 Agricultural companies/ associations 1630
4 Commercial companies 4824
5 Public administration units 4818
6 Co-operative units 108
7 Other types 6883
TOTAL 4256152 100.0
Source: The Statistical Annual of Romania, 2007

The reality shows that individual exploitations prevail in an almost absolute manner
99, 6%- out of the total number of exploitations. Naturally, the largest part of agricultural
resources (soil, animal effectives, occupied population) is in the administration of these
exploitations (Table 2).
Table 2
Current Nb The resource category % out of total
1 Agricultural surface 65.5
2 Animal effectives
a. cattle 95.3
b. sheep 96.8
c. porcine 84.7
d. poultry 72.3
3 Farm tractors 97.9
4 Occupied population in the individual exploitations 98.0
In these conditions, the production and economical results of agriculture will depend
of the productive and economic behavior of these exploitations, of the manner by which
they are going to manage the available resources, so that to succeed to render them
valuable in a performing way.
The owned production resources are, of course, significant in terms of quantity and
even quality. Unfortunately, they are pulverized on a lot of exploitations, a fact that has a
negative influence on the efficiency with which they are used. Thus, on exploitation occur
the following: 1.8 hectares (used surface); 1.4 cows in milk, 2.6 porcine, 6.5 sheep and
17.9 hens.
The degree of capitalization of individual exploitations is low and therefore the
technologies that are practiced contain workings, manual ones, with animals of draught, as
well as with mechanical means. It is least probable that the used technologies to
correspond to the plants requests for a normal growth. Such situation is generating risks
regarding the acquirement of production at desirable quantitative and qualitative
parameters.
To the above mentioned ideas is added the fact that the exploitations are usually
managed by elder persons (close to retirement) or who have exceeded the active limit
(beyond the retirement age). As a consequence, problems concerning the following
appear:
the level of rudiments, of specialty and managerial knowledge (it is appreciated the fact
that the majority of persons who manage the subsistence farms have no level of
preparation or possess a limited level of competence or grounding);
the way in which an entrepreneurial attitude is manifested, this being influenced by age
also.
Naturally, any economic agent who organizes and carries on production activities of
materials goods has to be in touch with the economical waves and to be in exchange
relations with the surrounding environment in which he exists and functions, as a
346
necessary condition of his survival. In the case of individual exploitations, their productive
behavior and the one referring to the relations with the economic environment are
determined by the fact that they behave as subsistence units or, in the best case, as semi
subsistence units.
Thus:
a - their production systems contain numerous crops (surface segmentations, already
reduced, which the exploitations own) and many animal species, but each one having
small effectives, following the goal to ensure the food consumption of the families and
several intermediary consumptions. Such exploitations do no longer exist or they have a
weak representation in the developed agricultures, in which the commercial ones prevail;
b - their relations with the market are sporadic (according to the General Agricultural
Census from 2002, only approximately 92 000 individual exploitations produced
exclusively for selling purposes), the immediate consequence being that they sustain, at a
low scale, the establishment and functioning of the die stocks on products, thus having a
low contribution to the consolidation of the Romanian agro-alimentary system, which has
the purpose to ensure the food security and soundness of the population, to contribute to
the economic growth and to integrate our country in the international trade of agro-
alimentary products;
c - the ones who manage such exploitations seem to manifest a weak receptivity towards
some organizational forms (groups of producers, cooperation and so on), which may lead
to a better use of their material and human potential of production. The situation may be
explained also through the existence of a psychological weight determined by the
experiences from the co-operative agriculture period, which would determine a certain
attitude towards various organizational means.
In market economy there is a need of another kind of behavior and more initiative in the
business domain.
The typological structure of the agricultural exploitations includes trading companies
too, with them having another kind of productive and economic behavior. Due to their
statute of enterprises, their activities have other finality, rather than the majority of the
individual exploitations. Their commercial character is obvious.
Being organic structures or managerial functions, it is obvious that their management must
work on the principles of the management science. In the same area, we can associate
the agricultural companies too.
In a world full of several exploitations, one can ask: What kind of management
works with agriculture and in fact with its economic cells?
- the productive behavior and the one referring to the relations with the economic
environment are determined by their preponderantly subsistence or semi-subsistence
character;
- they practice numerous crops and grow diverse species of animals, but in little effectives
for their own alimentary needs or for middle consumption;
- the relations with the market are sporadic or weak (only 92.000 produce for selling
only), what exercises a negative influence on the appearance and the function of the
products stocks;
In the present terms of the typology structures of exploitations, we can say that the
management must be seen in different ways.
In the circumstances of the well known contents of the management science, one cannot
state that this can be found totally in the agricultural exploitations and, none the less, in the
domestic ones. Concerning the last mentioned ones, we have to deal with empiric
management, dominated by elements regarding: tradition, intuition, common sense, flair,
rural communities economic behavior, finding answers to household needs (the practiced
activities in reference to the needs of the exploitations).
347
Even though, in the European Union, the domestic exploitations have a highly
evolved form and practice a trading agriculture, they look like mono centrically integrated
systems a single decision point. The power of decision is in the hands of the exploitation
chief. He does all the decision-making, irrespective of their kind. This matter results from
the fact that, through his polyvalence, he exercises the functions and their components
that characterize an enterprise (where, as we already know, there are organizational
components which fulfill them).
The factors which do not favor performing a management at the desired level are
numerous, but the next ones seem to have a special weight: the ages of the exploitations
chiefs; the insufficiency of the general knowledge, specialized and managerial ones.
Advanced age negative consequences:
- the exploitations development in order to practice a trade agriculture;
- the appearance of the entrepreneurial spirit (it is considered a quality of the persons
between 30-40 years old; the older population does not have the will to do that kind of
risking);
- the reorganization of the exploitations and the adjustment of the production to the market
demands.
The age of the producers associated with the financial insufficiencies, the high
prices of some production factors and the fees of some mechanical works may result in:
resorting to traditional means of practicing agriculture; empiric decision making process;
orientation of the production structures on solving the food and middle consumption needs
of the exploitation.
Is such way of managing exploitation encouraging? It is hard to say. Of course, on
this kind of exploitations, characteristic to subsistence and semi-subsistence agriculture,
one cannot lay too much account on achieving prosperity of the agricultural producers.
The length of the process in time can be hardly evaluated, and time may eliminate it or
maintain it in quasi-isolation. More than that, the products are obtained in conditions which
do not assure the observance of the European Union standards of quality and, as a result,
they cannot be accepted on the market. Concerning the second factor the insufficiency
of the general knowledge, specialized (in France for someone to practice agriculture, it is
required a certain degree diploma), managerial ones the negative consequences can be
found in several domains: ways of cultivating plants and growing animals; communication
possibilities; the chances of the producers to get information; management exercising;
making an account evidence, as simple as it can be; the ability to use certain economic
instruments from the environment outside the exploitations; directing the exploitations
toward adequate technologies.
The modernization of the agriculture and the efficient administration of the
agricultural exploitations claim, among other aspects, the existence of an agricultural
producer with a proper level of his general and professional training. Until this kind of
producer type will be reached, it is imposed that, through adequate means (guidance,
information, consultancy, communication), the farmers must be directed toward the
specific objectives of the agriculture, in the circumstances of the European Union
accession.
The new economic type implies profound landing of the problems which
characterizes the financial and production results obtained by the agricultural exploitations.
A minimum of knowledge and information in the economic domain seem to be very useful.
An account, as simple as it can be, helps in this kind of purposes, but using this kind of
help involves training. In this moment the accountancy is used sporadically and mentally.
The general situation of the exploitation types and the characteristic of those who
administrate them demands, in a necessary approach, measurements of extending the
information, the preparation, the consultancy etc.
348
The needs are obvious much more in the domestic exploitations where important
land and production resources can be found. The administration of the landed capital
reverts, mainly, to these exploitations. Also the results of the animal growth will depend, in
a meaningful percent, to what will be done in these exploitations, inclusively in achieving
the production shares obtained after negotiating the agricultural files with the European
Union.
BIBLIOGRAPHY

1. DRUCKER, P.-F. ,1999 Societatea postcapitalist, Ed. Image.
2. NICOLESCU, O., NICOLESCU, LUMINIA, 2005 Economia, firma i managementul bazate pe
cunotine, Ed. Economic, Bucureti.
3. RADULESCU-MOTRU,C., 1999 Psihologia poporului romn, Ed. Paideia, Bucureti.
4. VOICU, R. i DOBRE, IULIANA, 2003 Organizarea i strategia dezvoltrii unitilor agricole, Ed. A.S.E.,
Bucureti.
5. * * * Planul Naional de Dezvoltare Rural 2007 2013.

349
FRESH FRUIT AND VEGETABLE COMMON MARKET
ORGANIZATIONS IN EU-27

ORGANIZRILE COMUNE DE PIA A LEGUMELOR I FRUCTELOR
PROASPETE N UNIUNEA EUROPEAN CU 27 STATE MEMBRE

ZAHIU LETIIA *, ADRIAN T.*, ANCA DACHIN**. RALUCA ION**

* Institute of Research in Agrarian Economics and Rural Development
** Academy of Economic Studies

Abstract

Fruit and vegetable production accounts for about 17% of EU agricultural production. Average daily
vegetable consumption recommended by WHO is about 400 grams. This level is reached by some of the
member states. A satisfactory consumption is an important future objective for the improvement of
nourishment structure in EU member state populations, as an element of a sustainable consumption model.
Fruit-vegetable sector has been oriented towards the improvement of product quality and export increase.
Common Market Organizations aim at the achievement of CAP objectives: market stabilization, an equitable
level of farmers revenues, quality productions for satisfying consumers demands, etc.

Key words: Common Market Organizations, single market, Common Agricultural Policy (CAP)

INTRODUCTION

The European Union is the second largest world producer and a large consumer of
vegetables and fruit. The supply of vegetables on the EU market is provided manly from
inside this area, the Mediterranean states and Holland being the largest producers of
vegetables and citrus fruit. The diversification of the vegetable and fruit consumption is
ensured also on the basis of imports. At the same time, the large producers export
important quantities of certain types of vegetables and fruit, especially processed ones.
Most member states cultivate large areas with vegetables, especially: Italy (573.8
thousand ha), Spain (374.7 thousand ha), France (254.6 thousand ha), Romania (278.9
thousand ha) etc. Those that grow vegetables on smaller areas are: Denmark (9387 ha),
Estonia (2974 ha), Sweden (22255 ha) etc. According to types, the dominant ones are:
tomatoes, cabbage and onion. The largest productions of vegetables in 2006 were
obtained by: Italy, Spain, France, Portugal, Poland, etc. The average production of
vegetables per capita in Romania was of 191,8 kg in 2006.
The average annual consumption of vegetables per capita in the European Union
member states varies between 275.7 kg in Greece and 70 kg in Slovakia. In Romania, the
average consumption per capita was of about 180 kg of vegetables, above the level of the
production obtained per capita.
The largest areas that are cultivated with trees in the European Union are in Spain
(over 1.85m ha), Italy (over 1.22m ha), followed by France (971.5m ha), Portugal (4113m
ha), Greece (239.6m ha) etc. The dominant types of trees are: apple trees (Poland has the
smallest area, of 161.9m ha); plum trees (Romania has the largest plantations in the EU,
of about 78.9m ha); peach trees (Spain has the larges area of 85.8m ha, followed by
Greece with 43.26m ha); nut trees (the largest plantations are in Spain with 669.5m ha,
followed by Italy with182.3m ha ad Greece with 41.29m ha).
The largest producers of fruit in 2006 were: Italy (17.8m tons), Spain (16.51 m tons),
France (9.68 m tons), Greece (3.61 m tons) etc. Romania produced 1.48 m tons in 2006,
and the average production of fruit per capita was of 68.9 kg in 2006.
350
The consumption of fruit per capita varies between 182 kg in Holland and 45 kg in
Bulgaria. In Romania, the fruit consumption per capita was of 83,2 kg in 2006, under the
production level obtained per capita.
Romania can provide a high level of vegetable and fruit consumption per capita
from the national production, the differences between the consumption per capita and the
production per capita will be compensated from imports, which have risen in the past few
years. We must also take into account the high self-consumption of vegetables and fruit in
rural areas, which is only partially recorded statistically. At the same time, due to the lack
of marketing channels, a part of the harvest is lost on the field or as a result of improper
storage in the small producers storage areas.
Despite the unfavourable conditions and of the traditions, Romania exported
vegetables amounting to 46.61m in 2006 and imported the equivalent of 54.87m. At the
same time, it exported edible fruit amounting to 39.31m and imported the equivalent of
136.38m. The negative balance of trade reflects a low competitiveness of the vegetable-
fruit sector on the foreign market. To this we add the unsatisfactory level of providing these
products for self-sufficiency at domestic level.
According to types of vegetables and fruit, the variations in productions according to
countries are large, according to the climatic conditions and the consumption model which
differs among countries, regions of the same country, or even towns. In Romania, for
example, the production of plums is high, and the western European market for this type of
fruit is not saturated. In 2006, the plum production per capita was of about 27 kg. The
surplus of plums, which is high, finds significant market niches inside the Community.

MATERIAL AND METHOD

The organisation of the single market in vegetables and fruit at community level
provides important benefits to the producers and meets the qualitative and price needs to
the consumers in the member states. These desiderata are met by the Common Market
Organisation in fruit and vegetables.
The vegetables and fruit market undergoes strong competitive pressures inside
each member state, at community level, but also at global level. Therefore, the necessary
measures were taken to organise the market for this sector as well. For fresh vegetables
and fruit the first measures for the Common Market Organisation were taken in 1962, and
for processed vegetables and fruit in 1968.
The general framework of the Common Market Organisations was initially valid for
all vegetal products and groups of products. Later, this was adapted to the market
requirements according to groups of vegetal products. The number of Common Market
Organisations increased in time to 21, as the need to maintain the structural balance of the
markets and to establish the policies to be followed by each sector.
In each member state the common market regulations are observed, but marketing
channels are organised operating according to the national or local characteristics.
For each type of CMO basic regulations and other specific regulations were
drafted, as well as common regulations for several CMO. The content of these regulations
changed along the years, some were modified, others were abolished.

351

The reform of the vegetables-fruit sector aims at being harmonised with the other
sectors, where the reform began in 2003. The goal is to increase the competitiveness of
European agriculture and the more determined orientation towards the market. The
essence of the mechanisms to support the farmers consists in replacing the coupled direct
payments with the single payments uncoupled with the production, stimulating the creation
of groups of producers, promoting organic products, eliminating export subsidies. The
reform measures will come into force in 2008.
The reform of the vegetables-fruit sector is based on the general norms for all CMO,
included in the Council Regulation (EC) no. 1234 of 22 October 2007 and the Council
Regulation (EC) no. 1182 of the Council of 26 September 2007 which set specific norms.
The sector specific regulations that are still valid still direct the vegetables and fruit
market (fig. 1).

Fig. 1The Common Market Organisation in the fruit and vegetable sector in the
European Union

Fres
h
veget
ables
Proc
essed
veget
ables
Producers
organisation
Produce
rs
Interprof
essional
Prod
ucers
Produ
cers
Marketing
cooperatives,
(product
F
u
n
d
i
n
g

Large
Whol
esale
Retail trade
352
The Common Market Organisation in the fruit and vegetable sector aims at
stabilising prices; ensuring an equitable standard of living to all farmers; encouraging the
improvement in product quality and in marketing techniques; organising the producers of
vegetables and fruit.
The common market in vegetables and fruit is, in essence, a free market, the
regulations target the measures to organise the producers and observe the quality norms.
The operation of CMO in fresh fruit and vegetables, set by the Council Regulation
no. 2200/96, which is maintained as structure, includes: the classification of products; the
producers organisations; inter-professional organisations; the intervention regime; the
trade system with third countries; the control system.
The products regulated within the CMO are certain fresh vegetables and fruit and
certain dry fruit. Exceptions form the CMO regulation are the following: potatoes, grapes,
bananas, sweet corn, peas, fodder beans and olives.
The community support regime for fruit and vegetables producers established in the
previous regulations suffered changes in the reform process in order to achieve the
following objectives: to improve sector competitiveness and market orientation in order to
promote a sustainable, competitive production on internal and external markets; to reduce
the fluctuations in the producers revenues as a result of the crises affecting the market; to
increase the fruit and vegetables consumption in the Community; to protect the
environment.
In implementing the regulations, the Community can take measures in accordance
with the subsidiarity principle, article 5 in the European Community Treaty, as well as with
the proportionality principle.
A fundamental role in CMO in fruit and vegetables is played by producers
organisations and inter-professional organisations.
The producers organisations aim at planning and adapting the production to the
demand, especially in terms of quality and quantity; focusing the supply and placing the
production obtained by their members on the market; optimising production costs and
stabilising product prices.
The EU member states recognise the producers organisations in accordance with
the requirements regarding the minimum number of members, production and marketing
conditions, etc. Producers associations can be set up when the member state finds them
necessary. The producers organisations benefit from support from the EUREPGAP
system (the European System of Good Agricultural Practices), through which certificates
are issued for observing the community norms by independent laboratories.
At EU level, inter-professional organisations are recognised now on the basis of the
Council Regulation (EC) no. 1234/2007, as sectoral organisations, and Council Regulation
(EC) no. 1182/2007 establishing specific norms for the fruit and vegetable sector.
The inter-professional organisations are made up of representatives of the
economic activities related to producing, marketing and/or processing the products and
aim at concentrating and coordinating the supply and at marketing the products obtained
by the members; jointly adapting the production and processing to the market
requirements and improving the product quality; carrying out surveys regarding the
sustainable production methods and the market evolution etc.
Inter-professional organisations can be recognised as inter-branch organisations.
They are recognised in the member states, with a European Commission notification.
Inter-professional organisations represent the vegetable-fruit sector in the relationship with
the Ministry of Agriculture and other state institutions, as well as with those of the
Community. The budgets of these organisations are constituted from the members
contributions (percentage of the turnover).
353
CONCLUSIONS

The forms of support for the producers of fruit and vegetables and the intervention
mechanisms are: support for the producers organisations; direct support schemes within
the CAP; compensations for the amounts f fruit and vegetable withdrawn from the market;
actions to promote the products on the market; import taxes; export reimbursements for
some processed or vinegar preserved fruit and vegetables; encouraging consumption by
distributing certain fruit and vegetable withdrawn from the market free of charge for social
or charitable reasons, for distillation, for use in feeding animals or for non-feeding
purposes, or for destruction; state support in certain situation for the single state support
granted to the tomato processing sector in Italy etc.
In order to ensure a better oriented, but more flexible support system, and to
simplify it in the new reform context, it was necessary to eliminate the previous support
schemes and to fully integrate the vegetable-fruit sector into the regime set by the Council
Regulation (EC) no. 1782/2003 regarding the single payment, with the subsequent
changes. To this end, it is necessary that fruit and vegetables producers should be eligible
for the single payment scheme during the reference period. It is forecast that the member
states will establish the reference amounts and the eligible hectares within the single
payment scheme. The areas cultivated with vegetables and fruit, including permanent
crops and nurseries are eligible for the single payment scheme.
Including fruit and vegetables in the single payment scheme leads to unifying the
direct support system. The areas cultivated with fruit trees and vegetables become eligible
for decoupled direct payment rights which apply to other sectors. All subsidies for fruit and
vegetables meant for processing will be decoupled and transferred to the single payments
per farm.
The member states will be able to be granted coupled subsidies in a transition
interval of 4 years (2008-2011), on condition that the coupled payment does not exceed
50% of the national ceiling. For perennial crops, transition payments can be applied for 5
years, on condition that, after 31.12.2010 the coupled part should not exceed 75% of the
national ceiling. The member states can postpone the distribution of bonus rights for fruit
and vegetables by up to 3 years.
Including vegetables and fruit in the direct payment system imposes the cross-
compliance standards for farmers. As a result, the producers organisations must allocate
at least 10% of the sums to environment measures. The co-funding rate is of 60% for
ecological products.
The producers organisations can include measures to promote consumption in the
operational programmes. To this end, funding will be supplemented with over 6m for the
fruit and vegetable consumption in schools and charitable organisations. Up to 5% of the
amounts marketed by the producers organisations to this end will be funded by the
Community.
The member states that implement the system of direct payment per hectare
(SAPS) will be able to grant decoupled payments to the traditional producers of fruit and
vegetables.
The regime for withdrawing fruit and vegetables from the market is applied in
case of a surplus of perishable products, so as not to affect the market. This mechanism
proved to be difficult to manage. The withdrawal from the market was partially funded, the
rest being covered through operational programmes approved by the national authorities
or by the action plan presented by the producers organisations. The part from the
operational funds allocated to the withdrawal is of maximum 30%, and the financial
support cannot exceed 4.1% of the value of the production marketed by the producers
organisations.
354
In the new reform context it is necessary to integrate all the withdrawal measures
within the operational programmes of the producers organisations. A certain support is
also allowed for the producers who are not members of the producers organisations, but
the level is inferior to that granted to the organisations.
The measures to market the fresh fruit and vegetables aim at creating a single
community market and introducing a commercial exchange system at he Communitys
borders. This system includes customs duties meant to stabilise the community market
and it is based on the commitments made within the multilateral commercial negotiations
within the Uruguay Round.
Implementing the entry price system to fruit and vegetables requires adopting
specific provisions that take into account the Communitys international commitments.
The import-export certificates are issued by the member states to any applicant,
regardless of where his headquarters are in the Community. Import certificates are valid in
all the Community. Certificates are issued based on the creation of a guarantee that
ensures the imports for the validity period of the certificate.
Import taxes are stipulated in the Common Customs Tariff. If levying the import
taxes in the Common Customs Tariff depends on the entry price of the imported lot, the
veracity of the entry price is checked using a fixed import tax, calculated by the
commission, according to product and origin. To prevent negative effects that can appear
on the community market after the import of one or several products a supplementary tax
can be levied in addition to the level set by the Common Customs Tariff.
The regulations in the CR (EC) no. 1182/2007 also provide the possibility to open
annual tariff contingents if necessary. Also, they provide certain safeguarding measures
regarding the imports to the Community taken by the Commission, in accordance with the
international agreements provisions. The safeguarding measures are communicated by
the Commission to the member states and are applicable immediately.
Export licences are mandatory in the case of decisions by the Commission for
Community exports.
The Council Regulation (EC) no. 124/2007, as well as the previous regulations in
force, stipulate marketing standards and conditions applicable in the fruit and vegetable
production sector. The regulations refer to: vegetable and fruit quality, classification,
weight, calibration, packing, conditioning, storing, transport, presentation, origin, labelling.
The product for which no marketing norms have been established cannot be
marketed in the Community. The member states verify the compliance of the products
meant to be marketed with the norms and if the case be apply the necessary sanctions.
The marketing norms apply to all marketing stages, including the import and export.
Observing the norms is not compulsory before packing and conditioning.
Derogations can be applied in the case of shortages or overproduction.
The Council Regulation (EC) no. 1182/2007 provides the marketing norms,
especially related to definition, quality, classification, size, packing, conditioning, storing,
presentation, marketing and labelling in the case of products to be applied so that they will
have a uniform and satisfactory quality when entering the market.

BIBLIOGRAPHY

1. Letiia Zahiu (coord) i colab, Agricultura Uniunii Europene sub impactul Politicii Agricole Comune,
Editura Ceres, Bucureti, 2006;
2. European Commission, Regulamentul Consiliului (CE) nr. 1234/2007 privind Organizarea
Comun de Pia pentru toate produsele agricole;
3. European Commission, Regulamentul Consiliului (CE) nr. 1182/2007 privind normele specifice
pentru sectorul legumelor i fructelor;
4. OG 37/2005 privind recunoaterea i funcionarea grupurilor de productori, pentru comercializarea
produselor agricole i silvice
355

SESSION 3 / SESIUNEA 3

ECONOMY AND AGRICULTURAL POLICIES, RURAL DEVELOPMENT,
RURAL TURISM, RURAL LEGISLATION, AGRICULTURAL EXTENSION

ECONOMIE SI POLITICI AGRICOLE, DEZVOLTARE RURALA, TURISM
RURAL, LEGISLATIE RURALA, CONSULTANTA AGRICOLA

356
STUDY ON THE NEW AGRICULTURAL ADVISORY METHODS

STUDIU ASUPRA NOILOR METODE DE CONSULTAN AGRICOL

ANGELESCU CARMEN, ALINA MRCU, ALECU I.I., ENACHE MITA

BUCHAREST

Abstract

Agricultural advisory services are a vital element of the array of market and non- market entities and
agents that provide critical flows of information that can improve farmers and other rural peoples welfare.
After a period of neglect, agricultural advisory services have returned strongly to the international
development agenda. Apart from their conventional function of providing knowledge for improved agricultural
productivity, agricultural advisory services are expected to fulfill a variety of new functions, such as linking
smallholder farmers to high-value and export markets, promoting environmentally sustainable production
techniques, and coping with the effects of HIV/AIDS and other health challenges that affect agriculture. A
number of specific formats of extension operations emerged over recent decades in endeavors to overcome
these widely acknowledged problems.

Key words: advisory services, agricultural productivity, farmers organizations, private sector,
sustainable agricultural development
INTRODUCTION

The services provided by agricultural extension have significant public-good
attributes. It is, therefore, not surprising that there are rather more than half a billion official
extension workers of various types and competencies worldwide, most publicly-funded and
most still publicly employed. The magnitude of investment in extension in most countries is
similar to that for agricultural research to which it is supposedly closely linked, so it is a
significant component of agricultural development effort, and thus warrants careful
reflection by development investors.
New approaches of providing and financing agricultural advisory services include
decentralization to lower levels of government, involving farmers associations and non-
governmental organizations, contracting-out of extension services, public-private
partnerships, privatization, embedding advisory services in other types of contracts, and
broadening the types of advisory methods applied, including the use of modern information
and communication technologies.

MATERIAL AND METHOD

In addition to changes in governance structures, a range of new advisory methods
has been developed. One approach that has been promoted in many countries is the
farmer field school (FFS) approach, which was designed originally as a way to introduce
knowledge on integrated pest management (IPM) to irrigated rice farmers in Asia.
Experiences with IPM-FFS there have since been documented and used to promote and
expand FFS and FFS-type activities to other countries and to other crops. Currently, FFS
activities are being implemented in many developing countries, although only a few
operate FFSs as a nationwide system.
A school typically educates farmer participants on agro-ecosystems analysis,
including practical aspects of plant health, water management, weather, weed density,
disease surveillance, plus observation and collection of insect pests and beneficial. The
FFS approach relies on participatory training methods to convey knowledge to field school
participants to make them into confident pest experts, self-teaching experimenters, and
357
effective trainers of other farmers. A typical FFS entails some 9-12 half-day sessions of
hands-on, farmer experimentation and non-formal training to a group of 20-25 farmers
during a single crop-growing season. Initially, paid trainers lead this village-level program,
delivering elements and practical solutions for overall good crop management practices.
Through group interactions, attendees sharpen their decision-making abilities and are
empowered by learning leadership, communication and management skills. Some of the
participating farmers are selected to receive additional training so as to be qualified as
farmer-trainers, who then take up training responsibilities (for some fee, possibly paid by
their community) with official backup support such as training materials. While there is
some debate on whether the FFS is an extension system or an informal adult education
system, the objectives of the FFS are similar to those of many extension systems.
The FFS especially seeks to rectify the problem of accountability. This aspect is
addressed in two ways:
(i) The official trainers who conduct the field school are bound by a strict timetable of
sessions within a pre-specified curriculum, which can be easily verified by supervisors; and
(ii) Continuous interaction with a cohesive group of trainees creates accountability to
the group, which is enhanced by the participatory nature of the training methods. Later,
when farmer-trainers who are members of the same community administer the training,
accountability is presumed to be even greater. These features are thus expected to ensure
the quality and relevance of the service (knowledge) provided to the farmers.
The declining costs of information and communication technologies (ICTs) are
giving farmers and rural people in developing countries much greater access to
information. The situation is exemplified by the spread of mobile telephony, instructively
surveyed by The Economist (2005): e.g., China has about 60 percent mobile coverage;
India yet only about 20 percent but expanding quickly; and in Sub-Saharan Africa about 9
percent of the population is a mobile phone subscriber. In Uganda the data are exceptional,
where the mobile phone network coverage increased from 36 percent in 2003 to 92
percent in 2005. The increased coverage, rather than the possession of individual mobile
phones, induced market participation by reducing transaction costs in crop marketing and
increasing the prices received for sales, especially for perishable goods. Foodnet, a multi-
partner public network in Uganda, collects the latest market price information for coffee
and maize, which farmers can access at very low cost through a Short Message Service
(SMS). Farmers can also use ICTs for accessing extension advice from a range of sources,
but it takes time to develop demand-driven services. While ICT-based models of advisory
services, such as online advice, have become common in industrial countries, these
technologies have great potential for developing countries. An interesting approach is the
e-Choupal model in India, which has been developed by the Indian Tobacco Company
(ITC). An e-Choupal is a village Internet kiosk run by a local farmer, which helps villagers
to access free of charge information on farm practices, weather, and prices of inputs,
services and outputs. This model was launched in 2000 and by 2005 comprised 4,000 e-
Choupals serving 2.5 million farmers in six states. Another example of using the Internet in
India. Farmers can show crops affected by diseases to a web camera and receive advice
on treatment.
Despite the huge potential of new ICTs, better use of old, low-cost, methods should
not be neglected, such as community radio, and as experience with pest management in
Vietnam has instructively illustrated. There it was found that the mass media approach to
scaling up can be highly successful when it communicates a single intervention or
message. It may also be useful to brand the new intervention for easy communication
and recall. In the campaign to reduce insecticide use in the first 40 days, it was branded it
No early spray. In the subsequent campaign to include the reduction of seeds and
fertilizers as well as no early spraying, it became Three Reductions, Three Gains. To
sustain motivation of farmers, an entertainment-education program, an IPM Radio soap
358
opera reaching two million farm households was developed, where these IPM messages
were weaved into storylines. This series of 135 episodes broadcast twice a week for 1.5
years contributed to farmers in Vinh Long reducing their insecticide use by 30%.
Policies to improve access to ICT in rural areas need to focus as much on content
and education as infrastructure. Education is one of the key factors affecting the returns to
ICT in agricultural production, together with electricity, roads, and appropriate business
models. Local content creation needs to be linked to institutional innovations to provide
farmer-responsive extension services. Such is one of the several lessons to emerge from
the World Bank-supported Agricultural Reform Implementation Project of the late 1990s in
the Russian Federation. In short, ICTs offer many exciting opportunities in development in
general, mostly depending on private initiatives but in turn relying on wise regulatory
activities of governments; and for agricultural extension in particular, the possibilities are in
principle almost boundless.
An overview of the diverse reforms under implementation around the developing
world has been made by Rivera and Alex. This compilation, which includes an instructive
table highlighting the different reform elements observed in various countries, shows that
agricultural extension systems have indeed become highly plural. The variety of
approaches being tried has certainly advantages over the promotion of a one-size-fits-all
approach, which has long dominated extension, most notably with the T&V system. Yet it
has remained a major question for policy-planners and analysts to identify those types of
extension systems that are most appropriate to meet country-specific goals and frame
conditions. To support the move from a one-size-fits all or best practice to a best fit
approach, an interdisciplinary group of researchers at IFPRI recently developed a
conceptual framework for the design and analysis of pluralistic agricultural extension
systems. The group also discussed a range of methods that can be used for design,
monitoring, evaluation and impact assessment of such systems. Yet, empirical evidence
on the comparative advantages and disadvantages and the cost-effectiveness of different
reform approaches is still scarce. The next section summarizes the evidence available to
date.
A key drawback of the farmer field school approach is its cost, which is likely to
raise problems of financial sustainability. The intense training activities are expensive per
farmer trained, so the amount of service actually delivered (the number of farmers trained)
on a national level would be small. Cost-effectiveness and financial sustainability could be
improved if farmer-trainers were to become the main trainers, perhaps with significant
community funding, and if informal farmer-to-farmer communications were effective in
facilitating knowledge diffusion. In practice, however, farmer-trainers have been a minor
factor in national FFS initiatives in Indonesia and the Philippines.
A study in the Philippines documented improved knowledge among trained farmers,
but little diffusion of knowledge from trained farmers to other farmers, presumably because
the content of the training is difficult to transmit in casual, non-structured communications.
Similarly, recent analysis of FFSs in Indonesia found superior knowledge among field
school graduates, but no significant diffusion of knowledge from trained to untrained
farmers. A related study concluded that the training had no significant impact on yields and
pesticide use by trained farmers or members of their communities.

A study by Godtland et
al. of potato growers in Peru reported on knowledge gains among trained farmers, but the
study took place at an early stage of the program and could not analyze diffusion effects.
Such findings suggest that both the curriculum and the training approach need to be
modified so as to make information simpler and easier to diffuse, and to prioritize the
content of the training in order to shorten the duration and reduce the cost.
It is commonly found that pesticide use among farmer trainees is indeed reduced
but that the intended multiplier effects do not eventuate, which can then mean relatively
high cost of service per influenced farmer. They indicate that there is yet far to go in
359
coming to a good understanding of the value (especially relative to cost) of relatively
expensive new advisory delivery models such as FFS. But the model is being adapted to
an ever-increasing range of themes and contexts, so it is likely that aspects of the
approach will be important features of the future landscape of agricultural advisory
services.The other major novelty in delivery methods concerns use of ICTs. India is
something of a powerhouse of the developing world in the development and application of
such methods, although application to agricultural advisory work came relatively late, so
there is not yet a strong body of evaluative evidence to assess the worth of achievements
to date. But the GoI (undated) is committed to proliferating recent ICT initiatives in the
sector, indicating that it is convinced of the cost effectiveness of such approaches, which
seem likely to be widely adopted in other countries as telecommunications generally, and
Internet connectivity specifically, improves in rural areas. How advisory services of various
kinds might best exploit such ICT resources is yet to be well worked out and, as for other
themes discussed above, remains as a knowledge gap seemingly well worth filling quickly,
and the longer experience of using ICTs in many more-developed countries will be worthy
of close analysis.

CONCLUSIONS

Extension investments should create the capacity to identify new, promising
alternatives at the farm level and ensure that they are supported in the right way (for
example, through NGOs, by engaging private companies or farmer organizations, or by
providing market information). This requires pluralism in service providers and
organizations that have the attitude and the ability to find the right approach in different
situations; in short, smart best-fit choices. Investments in such models will by definition be
more flexible and less defined in terms of the training needs, numbers of agents, vehicles
etc. that will be acquired. To counterbalance the risks involved in such flexibility,
governance and accountability should receive more careful attention than has typically
been devoted in the past. True to form, one of the largest training endeavors under way in
Ethiopia does not follow a plural route and involves the government establishing (with
World Bank assistance) some 25 agricultural technical and vocational education and
training colleges and some 15,000 farmer training centers.
There is clearly much yet to be done in bringing needed extension services to the
poor around the world. Understanding of what works well in the diverse circumstances of
the developing world is still far from complete and there is thus a clear need for continuing
research effort to fill these voids. Meantime, investors need to be cautious in designing
and adjusting public extension systems if they are not needlessly to re-learn the lessons of
the past. Informed by these lessons, governments should be able to increase the chance
of reaping high returns to their investment and, likely also through fostering other investors
too, successfully assist farmers (and extension workers) to boost their productivity and
income, and thereby contribute more strongly to economic growth and poverty reduction
and also foster greater consciousness and concern for sustainable agricultural
development.
BIBLIOGRAPHY

Adato, M. and Meinzen-Dick, R. (2007) Agricultural Research, Livelihoods and Poverty: Studies of
Economic and Social Impacts in Six Countries, Johns Hopkins University Press for IFPRI, Baltimore, 331-68.
Anderson, J.R. and Feder, G. (2004), Agricultural extension: Good intentions and hard realities World
Bank Research Observer 19(1), 41-60, at http://wbro.oupjournals.org/cgi/content/abstract/19/1/41
Deaton, A., Banerjee, A., Lustig, N., Rogoff, K. and others (2006), An Evaluation of World Bank Research,
1998 2005, DEC, World Bank, Washington, DC
Jock R. Anderson, Agricultural Advisory Services, background paper for the world development report 2008

360
DEVELOPMENT PERSPECTIVES IN ROMANIAN RURAL TOURISM 2007-
2013

PERSPECTIVELE DEZVOLTARII TURISMULUI RURAL 2007-2013

ARON M.


Abstract

The realities that are now in Romanian rural make us to think that some new income sources
should appear to raise the life standard of the farmers. One solution can be rural tourism or agrotourism and
because of National Rural Development Programme this can be a real opportunity for those who will want to
try something new for the period 2007-2013. We have to take like example all European countries that were
using in an efficient manner the funds, they worked hard but they reached their goals.

Key words: rural tourism, agroturism, NRDP

INTRODUCTION

What is agrotourism?
Agrotourism is the form of tourism which capitalizes on rural culture as a tourist
attraction. It is similar to ecotourism except that its primary appeal is not the natural
landscape but a cultural landscape. If the attractions on offer to tourists contribute to
improving the income of the regional population, agrotourism can promote regional
development. To ensure that it also helps to conserve diversity, the rural population itself
must have recognized agrobiodiversity as valuable and worthy of protection. There are a
range of other forms of rural tourism which are not necessarily a part of agrotourism in the
strict sense - e.g. ethnotourism, project tourism, health tourism, historical tourism, cultural
tourism or adventure tourism. The term 'agro-ecotourism' is generally synonymous with
'agrotourism'. Cultural landscapes with tourist appeal.
On every continent, farmers have developed a wealth of crop-plant species and
varieties as well as livestock breeds. They have adapted plants and animals to meet ever-
changing breeding objectives - for new sites and climatic conditions, for different purposes,
and to suit individual preferences. This has resulted in a suitable variety or breed for just
about any terrain. Small-scale, diverse cultural landscapes emerged, hand in hand with the
many distinct forms of management. In the last 150 years, this trend has been reversed:
throughout this time, diversity has been diminishing while specialized agriculture is
dominated by monocultures and uniformity. But in this process, valuable genetic
characteristics are lost, for example high fertility or robustness, disease or pest resistance.
The most effective way to put a stop to the genetic erosion process is to keep old varieties
and breeds in use. However, farmers must be given incentives for in situ conservation:
agrotourism is a way of doing so. An advantage of this approach is that rural areas are
popular destinations for holidays and excursions, particularly cultural landscapes which still
give a glimpse of how past generations lived and worked. Typical regional crops and local
breeds become a particular attraction for tourists. This generates additional income for
farmers and contributes to the conservation and development of the whole region.

MATERIAL AND METHOD

A number of conditions must be met in order to allow the development of (agro)
tourism. These include:
361
- A largely authentic natural or small-scale, richly structured cultural landscape. The
attractions of large-scale monocultures are rather limited.
- In addition to the beauty of the landscape itself, it is important to have other cultural,
historical or natural attractions.
- Good transport links, because even attractive regions can be almost impossible to
market for tourism if they are not easily accessible from the population centres.
- A certain level of infrastructure must be in place: e.g. transport, accommodation and
catering facilities.
- Stable political conditions: this is essential for marketing even major tourist attractions.
- Acceptance among the population: local people must be in favour of tourism.
Starting from those and some figures that can be seen in the tables we be sure
some new alternatives for incomes in rural areas are necessary.

Table 1. Number of unemployed persons by regions
Development region Number of unemployed persons Number of unemployed persons rural
North-East 102 32
South-East 99 31
South 142 61
South-West 74 21
West 57 20
North-East 69 25
Center 89 34
Bucharest-Ilfov 72 8
Source: NIS Romanian Statistical Yearbook 2006

Table 2. Employment structure (%) by development regions and activity sectors
Regions/Branches Primary Secondary Tertiary
North-East 75,1 11,9 13,0
South-East 69,1 15,1 15,8
South 58,5 22,8 18,7
South-West 78,8 10,9 10,3
West 50,4 29,0 20,6
North-East 58,7 21,9 19,4
Center 44,6 30,8 24,6
Bucharest-Ilfov 15,6 30,4 54,0

Table 3. The employment rate of the rural population (%)
Active
population
Regions
North-
East
South-
East
South South-
East
West North-
West
Center Bucharest
1999 76,4 70,1 70,8 80,8 75,2 72,7 63,4 61,8
2002 68,5 61,4 61,7 70,9 62,0 62,3 58,1 49,8
2004 69,4 58,1 60,6 66,4 59,3 55,5 49,0 49,9
2005 69,2 57,5 61,8 68,4 60,0 57,5 51,4 52,2

Although, rural tourism has registered an increasing, this represents a significant
potential which is not sufficient valorised. The tourism sector in 2005, as against 1998,
showed an increase of the number of accommodation structures (+35.4%) and actual
accommodation capacity (+0.95%) and the actual number of pensions reached 22,061
beds in 2005, of which 50.5% in rural areas. (NSI - Romanian Statistical Yearbook, 2006).
The development of rural tourism in pensions in rural areas, depends on the specific traits
of each region, folklore, ethnographic regions and agricultural products.
At regional level, in 2005, the development of rural tourism, depends very much on the
existence and the quality, of the tourist pensions and also by the presence of different type
of activities, by the existence of ethnographic regions and practising agriculture and
winegrowing (agro-tourism). The specific tourism for Bucovina (North East) is religious
tourism, in Maramures (North West) it is the architecture or ethnography tourism, in
362
Transylvania (Centre) the focus is on recreational and cultural tourism, food and wine, and
in the Carpathian foothills there is fishing. The mountain and forestry areas in Romania
ensure opportunities for practising of tourism, in particular eco-tourism.
Another important tourist area is the Danube Delta (East), which presents also high
natural value due to the biodiversity and offers the possibility of practising different type of
tourism (leisure activities, fishing, culinary art).
Regarding the share of number of pensions in rural area by regions, at 2005 level, is as
follow:
Bucharest-Ilfov 0.5%, West area 4%, South - West area 4%, South - East area 8.9%,
South area 10.3%, North East area 14%, North West area 14.8%, Centre area 43.7%,
which reflects a different development.
Rural tourism and agri-tourism (specific linked by the farming activities) are potential
alternative income-generating activities which offer potential for development in rural
areas, due to the unique landscapes, large semi-natural areas, and native hospitability of
rural inhabitants. Conservation of traditions, culture, and food and beverage specialities as
well as the general diversity of rural tourist resources, also offer potential for this sectors
development.
Significant modernization, development and innovation are necessary for Romanian
tourism together with the creation of modern and competitive tourism products. The sector
suffers from a general lack of organisation, promotion and dissemination of information
from the tourism centres as well as the limited number of these tourism centres at local
levels. The rural tourism is not developed in a manner to respond to the qualitatively and
quantitatively market requirements, both at national and international level, in particular,
the existence of tourism infrastructure does not respond to the tourist requirements
regarding the accommodation places and recreational infrastructure.
The need of identifying and promoting of rural tourist potential led to the setting-up
of some promoting networks (such as ANTREC).
Although, in the last period the number of accommodation places increased, the number of
promoting centres is still limited, reason for which is necessary the focus on the support of
promoting rural tourism. There are few methods for measuring the success and profitability
of tourism investments, due to the semi-informal nature of the activities, poorly developed
marketing and promoting, especially at county and local level, which makes it difficult for
the entrepreneurs/operators to enter the market and properly develop their businesses.
However, through an adequate marketing and other types of coordinated support, the
Romanian unique tourism products will have a great potential due to their diversity and
attractiveness.
In his chapters and in Axis 3 of the NRDP are some granting solutions to develop a
business in rural areas to raise incomes and the life standard of the farmers. The measure
313 regarding Encouragement of tourism activities is one of the solutions that can
develop the rural and agrotuourism in Romania.


Rural tourism, as a component of the national tourism as a whole, is a sub-sector
with special development potential, thus representing an occupational alternative for the
rural labour force, a manner to diversify the economic activities from the rural environment
and a stability factor for the rural population. Its developing could concur to reducing the
gaps between various areas, thus setting up an increasing source for the rural population
incomes.
The natural landscape specific to Romania offers excellent possibilities for
practicing rural tourism, issue that allows recreation in rural environment, experiencing
363
some novel activities, participating in different representative events or visiting some
attraction points, which are not available in the urban areas.
An important segment of the Romanian rural tourism is represented by agro-
tourism, taken into consideration the presence of a significant number of agricultural
households, situated in high natural value areas, where the old customs and traditions are
preserved. Having in mind, the necessity for reorientation of some of these households
towards non-agricultural activities and the necessity for obtaining additional incomes, agro-
tourism can be a good alternative. Agro-tourism is generally practiced by small land
owners from rural areas/rural households, as a secondary activity, involving women in an
active way. Through this tourism form, the tourists are given the opportunity to come back
to the nature, thus assuring the physical and spiritually comfort, as well as the access to
the traditional cuisine specific to each area. Taking a close look at the rural tourism, we
can notice that in 1996 there were 61 rural lodging houses with an accommodation
capacity of 332 bed places; in 2004 the number increased to 892 rural lodging houses with
an accommodation capacity of 9,405 bed places and in 2005, in the rural area, the number
of lodging houses reached 956, having a capacity of 11,151 bed places, thus representing
a considerable potential at this sub-sectors level. (Source: NSI 2005).

CONCLUSIONS

Rural tourism, more than other tourism types, is oriented towards self-preservation
so that its development shall not have a negative impact over the environment .Therefore,
supporting the actions in this measure shall, above all, focus on observing and promoting
the sustainable development principles. In this context, expanding the area of the specific
product supply, encouraging areas of high tourist potential, will be carefully monitored
meanwhile the environmental friendly measures shall be compulsory observed and the
development of tourist activities in the rural area will contribute to increasing the number of
jobs and alternative incomes as well as to increasing the attractiveness of the rural area.

BIBLIOGRAPHY

1. xxx - Ministry of Agriculture and Rural Development
2. xxx - National Rural Development Programme 2007-2013
3. xxx GTZ Agrotourism and agricultural diversity - Fact Sheets PEOPLE & BIODIV

364
RURAL ECONOMIES AS BASIC UNITS OF WORLD ECONOMY

ECONOMIILE NAIONALE RURALE, UNITI DE BAZ ALE ECONOMIEI
MONDIALE

BALTAG GR., V. SNCHETRU,

Moldovan State Agrarian University

Abstract

In the scientific article presented by the specialists of economy faculty of the Moldovan State
Agrarian University are explained the political, economical, social, historical directions of the rural national
economies.
Also here it appears a new nation in which is told that the national economy represents a complex
system of economical activities constituting in the limits of our country on the basis of the social division of
the work and which is oriented toward the objectives of development and equilibrium through the juridical
and political instruments being adequate to the world economical requirements.
The authors reflete the world economical structure according with the development level of the
countries. The authors prove that the countries advanced during their development on the superior steps
become by an inhabitant, they enlightened economical diversified structures like those of the developed
countries and they radically improved their life level. The authors point out the category of the advanced
countries and very advanced ones. The multitude of researches to which they appeal to analyse the world
structure by groups of contries, to reflete the great diversity specific situations to the national economies.

Key words: Gross Domestic Product, Net National Product, Industrial national production, World
economy, World economy phenomena, External debt degree, Geographic distribution of resources,
Countries with very high potential.

National economies are basic units of world economy.
National economy represents a complex system of economic activities historically
founded within a countrys boundaries on the basis of social division of labour and which is
oriented to objectives concerning countrys development using appropriate juridical and
politic tools.
The analysis of world economy structure organized by countries and groups of
countries requires their grouping according to certain criteria. These criteria can be of
social-politic or economic nature or connected with the geographic position. Depending on
the complexity and dynamism of international life, different criteria dominated in different
periods the literature and statistics from post war decades.
One of the greatest changes that took place in post war economy was worlds
division in two opposite social-economic systems: capitalist liberal system and socialism.
During the keen period of cold war, (50- 60) international economic relations were
strongly influenced by the opposition between capitalism and socialism. As a consequence,
in theoretical approaches predominated the ideological criterion of social-politic order
according to which the world was divided in capitalist countries, socialist countries and
countries with transition market economy. The last category involves some low developing
countries, which have a strong feudal and even tribal trace in their economy, and which
chose one of two ways of development: capitalist or socialist type.
In fact, the socialist system failed, and degenerated into totalitarianism of
communist type. Totalitarian communism breakdown collapse in 1989 in east-european
countries marks a crucial moment in worlds evolution: the end of cold war and the
opening of new perspectives in east-west relationships. At the same time, a new type of
transaction appears in the structure of world economy: from centralized planned economy
to market economy.
365
Another important change in post war world economy was colonialism breakdown
and the emergence of a big number of independent states on the world map. As soon as
the world was informed of dramatic reality of backward economic state from ex colonies,
the criterion of development level acquired leading part in theoretical analysis of
phenomena from world economy.
We can mention some of the most frequently used indices which help to estimate
the level of development:
- Gross Domestic Product (G.D.P.) which expresses the value of all goods and
services created in national economy during a determined period of time, a year, as a rule;
- Gross National Product (G.N.P.) which includes gross domestic product plus
balance of economic changes with foreign countries;
- Net National Product (N.N>P.)which is determined extracting amortizations from
gross national product;
- Industrial or agricultural national production in absolute volume and per inhabitant;
- Labour productivity level;
- Population structure employed in different branches of economy etc.
From these indices, the most synthetic, without being all-embracing and the most
frequently used is gross national product per inhabitant.
From the development level point of view, we can distinguish in the world economy
configuration the following groups of countries: underdeveloped, developing, medium
developed, developed and highly developed countries (table 1).
Table 1
World economy structure according to countries development level (in 1982)
N.
Crt.
Group of countries
Limits of GNP
per inhabitant
within the
group (in
dollars)
GNP average
per inhabitant
within the group
(in dollars)
Number of
countries
Group share
in world
population (in
%)
Group share
in world
production
(n%)
1. Underdeveloped
countries
Peste 500 310 62 56,1 8,5
2. Developing countries 501-2000 1250 56 16,2 9,1
3. Medium developed
countries
2001-3500 2950 18 9,0 13,7
4. Developed countries 3501-6000 3950 13 4,6 10,3
5. Highly developed
countries
peste 6000 8800 29 14,1 58,4
6. TOTAL - 2441 178 100 100
Source: Politic economy, vol. V.International economy, AES Bucharest, 1990, 47-48.

The category of undeveloped countries includes most of all, states that until recent
times were colonies or dependent territories. Thus this category includes the most
important number of countries (112 from 1982), in which live over 70% of world population,
they have a small efficiency in world production and commerce. All of them are placed on
inferior stages, thus they differ in income per inhabitant. They offer a very large spectrum
of situations concerning the diversification degree of the economic structure.
Undeveloped countries are those countries which couldnt escape stagnation. In
their category, the most dramatic situation exists in those 29 countries that are considered
the poorest, 20 of them are situated in South Sahara from Africa. Having the lowest
income per inhabitant and being scarce of resources, they wont go beyond the
subsistence economy stage and they dont have a real national market. Industrial activities
are still in the earliest stage, and the productivity level is very low.

Developing countries are those that subscribed and even passed the economic
start stage, recording higher rates of growth and progress in diversification of national
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economy structure and industrialization. Their export sector is dominated, essentially, by
basic products and their import sector by manufactured products.
The phenomena from world economy recorded after 1973, namely: oil shock,
external debt, progress in industrialization etc., stressed on the differentiation process of
developing countries. These differentiation elements allow to subdivide these category of
countries in subgroups according to the following criteria:
- geographical position: Countries from Asia (South-East and West), Latin America,
Mediterranean basin (The Middle East and Northern Africa) and those situated in South
Sahara from Africa;
- industrialization level: countries with rapid industrialization, with low industrialization
level and those which export raw materials (agricultural or mineral);
- external debt degree: indebted and debtless countries;
- geographical distribution of resources: countries rich in resources, countries with
insufficient resources and poop countries;
- energetic resources supply: oil exporting countries and those that dont have oil at
all.
The delimitation of these new groups of countries according to these criteria has an
analytic and methodological importance to emphasize similar characteristics and
evolutions. But they dont form new subsystems of world economy, because, in spite of
similar evolutions between countries from the same group, in most of cases the networks
are underdeveloped.
Medium developed countries include a limited number of states which passed the
stage of developing country.
They increased the income per inhabitant, built diversified economic structures similar
to those from developed countries and completely improved their level of life. But these
countries havent attained the performances of developed countries in point of productivity,
efficiency and international competitiveness.
Category of developed and highly developed countries includes: countries from North
America (USA and Canada), Western Europe, Japan, Israel, Australia, New Zeeland and
South African Republic. Although a small part of the world population lives in these
countries they concentrate a major part from world production and commerce. Most of
them have a diversified national economic complex, where industry (especially peak
sectors), high efficiency agriculture (mostly industrialized) and services where most of the
population is employed prevail. They also show high income per inhabitant (between 5000
and 16000 dollars) and they are characterized by high levels of productivity, social labour
efficiency and life quality.
These groups of states, according their potential dimension are in a close
correlation with world economy structure in keeping with their development level. Global
national potential has as principal components the following: geographical and natural
environment (surface, cultivable fields, forestry fund, hydrographic potential, natural
resources etc.), demographic, productive, technical-scientific, commercial, touristic,
financial-currency potential etc. In accordance with the dimension of potential elements in
world economy structure we can distinguish: countries with very high potential (China,
India, USSR, USA), countries with high potential (Japan, Brazil, Indonesia, Canada,
Australia, Mexico, Italy, Great Britain, France etc.), Countries with medium and low
potential. The comparison of leading countries with the opposite ones according to their
potential (table 2) show a high degree of resources concentration for a small number of
countries.

367
Table 2
First and last ten world states according to some potential indices and their
efficiency in world economy in 1988
Surface Populaia P.N.B. Exports Nr.
crt. countries share, % countries share, % countries share, % countries share, %
1. U.S.S.R. 17.5 China 22 U.S.A. 24 U.S.A. 12,8
2. Canada 7.8 India 15 U.S.S.R. 19 Germany 12,7
3. China 7.5 U.R.S.S. 7 Japan 8 Japan 8,2
4. U.S.A. 7.3 U.S.A. 6 Germany 7 England 6,6
5. Brazil 6.6 Indonesia 3,3 China 6 France 6,0
6. Australia 6.0 Japan 3 France 5 Canada 5,2
7. India 2.6 Brazil 2,7 England 4 Italy 4,4
8.
Argentina 2.2
Banglade
sh
1.8 Canada 3
Netherlan
ds
4,1
9. Sudan 2,0 Pakistan 1,7 Italy 3 U.S.S.R. 4,0
10. Algeria 1,9 Germany 1,6 Spain 1,6 Belium 3,6
Source: politic economy, vol. V, International economy, AES Bucharest, 1990, p.55.

Surface Population GNP Exports Nr.
crt. countries share % countries share % countries share % countries share %
Last ten states
1. Fiji 0,01 Mauritius 0,02 Nepal 0,001 Nepal 0,01
2. Somaly 0,01 Ghdna 0,02 Chad 0,001 Mali 0,001
3. Jamaica 0,01 Cyprus 0,02 Central
African
Republic
0,001 Chad 0,01
4. Libanon 0,01 Fiji 0,01 Niger 0,001 Rwanda 0,01
5. Cyprus 0,01 Gabon 0,01 Somaly 0,001 Burundi 0,01
6. Luxembu
rg
0,01 Somaly 0,01 Yemen 0,001 Volta
Sup.
0,001
7. Mauritius 0,001 Luxembu
rg
0,01 Volta
Sup.
0,001 Campuch
ia
0,001
8. Barabado
s
0,001 Malta 0,01 Burundi 0,001 Somaly 0,001
9. Malta 0,001 Barabado
s
0,01 Rwanda 0,001 Laos 0,001
10. Singapor
e
0,001 Island 0,01 Zambia 0,001 Yemen 0,001

The multitude of used criteria, to make the analysis of world economy structure per
groups of countries, shows the great diversity of national economies specific situations.
Each of the cited criteria emphasizes important discrepancies, differences and
asymmetries which characterize world economy, which, being unitary as a system, still
remains very heterogeneous as typology of national economies that form its structure.

BIBLIOGRAPHY

1. Marketing in Agriculture, IIIrd ed., Bucharest 2001, Croitoru C.
2. Marketing Management, ed. Teora, Bucharest 1998.
3. Law about Agricultural Enterprises Reorganizationin the Privatization Process, Law nr.392 XIV from
13.05.1999.

368
RURAL DEVELOPMENT IN SOUTH-MUNTENIA REGION AND FUNDING
OPPORTUNITIES FROM EU FONDS

DEZVOLTAREA RURAL IN REGIUNEA SUD-MUNTENIA I
OPORTUNITI DE FINANARE DIN FONDURI EUROPENE

BRAILOIU C.*,UNGUREANU C.**

*University of Agricultural Science and Veterinary Medicine Bucharest
**C.S. SERICAROM Research Department, Bucharest

Abstract

South-Muntenia region has an important economic position in Romania, by its high level of industrial
progress; in south counties like Teleorman, Giurgiu, Calarasi and Ialomita, agriculture is preponderant.
The paperwork presents some aspects regarding the funding opportunities for rural development in the
South-Muntenia region, according with the Axis 1 concerning increasing of competitiveness and Axis 3
concerning diversification of the economical activity by Structural funds (SF) for the economic units (SMEs)
and the services in the rural areas.

Key words: South-Muntenia region, rural development, European funds.

INTRODUCTION

European Union agriculture is a multi-dimensional activity, involving many different
functions, among them the majors being food and raw material production, countryside
management, nature conservation and tourism. Farming can thus be described as having
multiple functions.
The todays EU farming sector appears modern and competitive occupying a
leading position on the world markets, both as a major exporter and the worlds largest
importer of food, mainly from feveloping countries.
Europe agriculturals policy is determined as Common Agriculture Policy (CAP),
monitored by the governments of Member States and operated by the Member States. It
involves support to the farmers income and also encourages the production of high quality
products and the development of additional ways of improving the agricultural businesses.
The European legislative base, in order to implement the National Programme for Rural
Development (NPRD) is the Council Regulation 1698/2005 from 20 September 2005
regarding the support for rural development, having as finance source the European
Agricultural Fund for Rural Development (EAFRD) as domain fundamental European
legislation (from Official Journal, series L, no. 277/1). This normative document can be
seen as a continuation of Regulation 1257/99 regarding the rural development support by
the Agriculture European Fund for Orientation and Guarantee.
The European Council gave assistance to the member states experts, especially
the new ones and elaborate a document who helps to elaborate NPRD, the guidelines of
European Commission for Elaboration of Strategic National Plan (Council Decision
144/2006/EC of 20 February 2006).
The fund structure for rural development between 2007-2013 is based on Leader
axis, with the following components:

LEADER AXIS
AXIS 1
COMPETITIVITY
AXIS 2
ENVIRONMENT
AND LAND
DURABLE
UTILIZATION
AXIS 3
ECONOMICAL
DIVERSITY AND
LIFE QUALITY
369
In 1998, were created 8 regional subdivisions necessary for the coordination of the
regional development in the view of EU Accession. The development regions of Romania
correspond to the NUTS-II level divisions from EU (Statistic Teritorial Units Nomenclature).
These development regions do not have administrative powers, their main functions
being the coordination of the regional development projects and the EU funds absorption.
South-Muntenia region has an important economic position in Romania, by its high
level of industrial progress and business concentration in Arges, Dmbovita and Prahova
counties, while south counties like Teleorman, Giurgiu, Calarasi and Ialomita, are
agriculture preponderant.
The region territory has 3 relief shapes, which succeed from North to South with a
height difference of 2,500 m. The relief shape structure: 70,7 % fields, 19,8 % hills, 9,5 %
mounains.
The Region hydrologic network is close related to Danube River. Main rivers within
the Region are: Olt (615 km), Arges (350 km), Ialomita (417 km), Dambovita (286 km) and
Prahova (193 km). The hydrologic network is completed by a series of natural lakes such
as Amara, Mostistea, Suhai, Vidraru, Vacaresti and Pecineagu.
The Region infrastructure comprises railways 1,671 km (608 electrified km), the
railway network density being of 48.5 km/1000 km2. The region railway network includes 4
main routes assuring the link with Moldova, Dobrogea, Transilvania and Banat. The public
roads totalise 11,104 km from which 2,534 km of highways and national roads. The county
roads represents 78,8%; the public roads density is of 32.2 km/1000 km2.
The naval transport is assured by Danube River which is the main transeuropean
way of navigation where, within the region, are situated 4 important ports. An important
factor is the acces to international airport Henry Coanda (Otopeni) Bucharest.
The link with Bulgaria is made by 3 cross border points, the most important one
being at Giurgiu-Ruse due to the existing railway-road bridge. By this point is made one of
the main links of the Western Europe with Near Orient.
The paperwork presents some aspects regarding the funding opportunities
for rural development in the South-Muntenia region, according with the Axis 1 concerning
increasing of competitiveness and Axis 3 concerning diversification of the economical
activity by Structural funds (SF) for the economic units (SMEs) and the services in the rural
areas.

MATERIAL AND METHOD

To distinguish the access to the Structural funds in rural environment, there were
developed the following activities:
- documentary study for Practical guide for EU funding opportunities, by internet
network (www.google.com) and by the Agriculture consultation centers;
- application of Practical guide to obtain Structural funds for a HCS unit (handcraft
commercial society) in the rural area of Valcea county in order to be applied in the rural
areas of South Muntenia.


There were identified the following useful infomation source:
- for Competitiveness and Innovation Framework Programme (CIP) activities:
ec.europa.eu/cip/index_en.htm; financial instrumentes and access to: finance:
ec.europa.eu/enterprise/entrepreneurship/financing/index_en.htm; European Investment
Fund (EIF): eif.org; national contacts for ICT PSP programme:
ec.europa.eu/information_society/activities/ict_psp/contacts/ncp/index_en.htm
370
- for Structural Funds by: ec.europa.eu/regional_policy/index_en.htm; INTERACT
II Programme to reduce the gap between development levels and living standards among
the regions and the extent to which least-favoured regions are lagging behind: interact-
eu.net;
- European Social Fund website, EQUAL website:
ec.europa.eu/employment_social/esf/fields/transnational_en.htm;
- In addition to funding options of NPRD, there were identified funding instruments,
which may offer other types of benefits, such as possibilities for networking or making use
of information and other services provided:
Innovation: Competitiveness and Innovation Framework Programme (CIP) aims to
foster the competitiveness of European rural enterprises and has a total budget of over
3.6 billion for the period 2007-2013. Specific CIP programmes will promote innovation
(including eco-innovation), foster business support services in the regions and better
access to finance, with small and medium-sized enterprises (ICT), help to develop the
information society and promote the increased use of renewable energies and energy
efficiency;
Regional development: Structural Funds (SF). The purpose of the Structural Funds
is to strengthen economic, social and territorial cohesion by reducing disparities in the
level of development among regions and Member States. Among the many areas
supported by the Structural Funds are R&D and innovation. The allocation of funds in a
given Member State or region varies according to its level of development. However, most
regions will have funding available from the Structural Funds in support of RTDI. EU
investment under the Structural Funds for innovation and research in the period 2007-
2013 will be above 99 billion. For the poorer regions the co-financing and the access to
innovative experience facilitated by the governance system characteristic of cohesion
policy is crucial for this purpose.

Photo 1. Local landscape from Stoenesti village, Valcea county

Photo 2. Traditional handcrafts shop at HCS Niculescu, Stoenesti village, Valcea county

The Practical Guide to EU funding opportunities for HCS unit in the rural area of Valcea
county as exemple of complementary financing releaves:
371
- this type of SME may be receiving support for an innovative business project in
the form of a loan guaranteed by a financial intermediary approved under CIPs SME
Guarantee Facility, while other related but distinct activities, for example training to up-
grade the skills of the staff to be able to develop and implement the new business idea,
can be in receipt of Structural Funds (European Social Fund). Exemple of new business
ideas, can be develop by the HCS Nicolescu from Stoenesti village, Valcea county:
sericultural acitivities in order to obtain raw material as raw silk for traditional handcrafts,
mulberry cultivation for biomass production used to obtain biofuel (Methan gas) or
thematic agrotourism for traditional handcraft and local landcape promotion. (photo 1-4).

The European Commission strongly encourages Member States to inprove the
arrangements for cross-departmental and vertically co-ordinated preparation and use of
Community instruments to support research, innovation and cohesion at national and
regional level.

372

Photo 3. Woman weaver at HCS Niculescu, Stoenesti village, Valcea county.

Photo 4. Agrotouristic potential of Stoenesti village

In the comparason to the previous programming period, the new Structural
Fund Operational Programmes are more strategic documents that make it possible to
undertake new initiatives within the approved programme priorities according to
emerging policy needs.
Communication and information are the most important preconditions for fostering
the complemetary use of the different funding instruments.

373
CONCLUSIONS

The Common Agriculture Policy assure the synergies in funding opportunities between
competitiveness and innovation programme and structural funds.
South Muntenia region development must be based on these funds but for this to happen,
its necessary to have acces to information sources.
In the rural area, these two funds encourage the competitivess of rural enterprises with
small and medium-size. The programme will support innovative actions, (including eco-
innovation), provide better access to finance and deliver business support services in the
regions. It will encourage a better take-up and use of information society. It will also
promote the incresed use of renewable energies and energy efficiency.

BIBLIOGRAPHY

I. DONA, 2000-Economie rurala, AMC-USAMV-Bucuresti, pag133-170
I. DONA, 1999 - Politici Agricole, AMC-USAMV-Bucuresti, pag.57-78
M. Draghici, 1995- Management, USAB
L. ZAHIU, 2001-Politici agroalimentare comparate, Ed.Economica,Bucuresti, pag 70-126
European Commision, 2004 - New Persepctive for EU Rural Development Fact Sheet, EC
ww.mie.ro Ministerul Integrarii Europene
E. KIPRIOTIS, 2007 The prospects of the European Sericulture within the frame of the EU Common
Agricultural Policy, The 3
rd
BACSA meeting 18-21 September - Vratza, Bulgaria, pag 404-409

374
DEMOGRAPHIC EVOLUTION
BAROMETER FOR THE DEVELOPMENT OF RURAL ENVIRONMENT

CIGHIR E., SNTEAN I.F.

THE UNIVERSITY OF AGRICULTURAL SCIENCES AND VETERINARY MEDICINE,
BUCHAREST

Abstract

The demographic dimension is the central element of the analysis, because the population is both a
factor of action and one of consumption, as well as the beneficiary of the development. Within the analysis of
the rural space, the demographic element appears mainly as development potential. For this reason, the
population is analyzed quantitatively, structurally and evolutionary, the outcome being a set of aspects
specific to different regions of the Mures county. The significant weight of the demographic criterion is
justified by its function of synthetic indicator (a very expressive one, actually) of the characteristics of the
environment in which the population lives.

Key words: population, demographic evolution, rural development, Mures county

INTRODUCTION

In 2002
1
, the rural population counted 297,092 people, i.e. 51.1% of the total
population of the Mures county, whereas by 1 July 2004 the percentage of the population
in the rural area has decreased to 47.2%
2
.
The depopulation of the rural area between 1970-1989 can be explained due to
industrialization, preponderantly in towns and cities. The evolution between 1994-2005 of
the percentages of the population belonging to the two environments (rural and urban) will
be analysed further in this paper.

MATERIAL AND METHOD

The data used have been collected from public institutions at both central level and
Mures county level, among which the Statistic Annual of Mures County - 2006, and the
County Institute of Statistics. This information combined with theoretical aspects extracted
from the research done in the field allowed the evaluation (performed in April 2008) of the
influence of the demographic factor on the drawing up of strategies of sustainable rural
development of Mures county.


The main demographic indicators which must be analyzed are:
Population number. The medium size of a village in Romania is 3,783
3
inhabitants
and it is 10 times smaller than a medium size of an administrative-territorial unit in the
urban environment. In Mures county the medium-size of the rural space is 3,096
inhabitants (567 inhabitants/village)
4
. The phenomenon of demographic ageing and the
imbalances of the age groups which characterize the majority of the villages are
contributing to the natural decrease of population. The continuation of these tendencies is
leading towards the appearance of a process of population ageing simultaneous to the

1
The Census of Population and Homes, 2002
2
The Statistic Annual of Mures County, 2006
3
Idem 1
4
Calculation according to The Census of Population and Homes, 2002
375
reduction of the medium size of rural settlements, resulting in an increase of the
percentage of small and very small villages.
Population density. In Mures county the medium density is 86.51 inhabitants/km,
whereas in the rural environment is 44.24 inhabitants/km.
5
A minimum of this density
value has been noticed in the mountainous area.
In the rural environment, the most populated areas are the villages adjacent to the
town of Targu-Mures
6
: Sincraiu de Mures (313.2 inhabitants/km), Singeorgiu de Mures
(284.8 inhabitants/km), Cristesti (426.2 inhabitants/km), Panet (233.7 inhabitants/km)
and Santana de Mures (166.8 inhabitants/km). Among the villages with the lowest
population density rate are worth mentioning the villages: Lunca Bradului (with 7
inhabitants/km), Rastolita (with 8.2 inhabitants/km), Stanceni (with 12.3 inhabitants/km)
and Vatava (with 12.6 inhabitants/km).
Evolution between 1992-2002 is one of the most heated debate as far as the rural
space is concerned.
After analyzing different milieus of social life, in 2002 it was noticed that in
comparison to 1992 the percentage of rural population increased (from 48.9% to 51.1%)
while simultaneously that of urban population decreased (from 51.1% to 48.9%). Between
these two censuses, the population of towns and cities decreased by 8.9%, while the one
of villages decreased by only 0.5%.
The territorial distribution of the population recorded significant changes between
1992-2002 under the combined influence of the different levels of natural population
increase rate, internal migratory waves and external migration intensity
7
.
Thus there were recorded important population decreases in: Bala village (-17.4%),
Cozma village (-15.2%), Cucerdea village (-12.5%), Hodosa village (-11.5%). Increases in
population were recorded in Santana de Mures village (+18,7%), Grebenisu de Campie
(+12.9%),Bagaciu village (+12.5), Apold village (+10.2).
Factors of population increase.
a. Birth rate. The average birth rate in the rural space of Mures county in 2005 was
11.9, that is higher than the average birth rate in the urban environment of the county
(10.7)
8
. In many areas of the rural environment there is some potential for population
renewal and rejuvenation. Because of the low birth rate, in these areas population is
already old, the demographic imbalances perpetuate and accentuate themselves,
threatening and affecting the human potential of these areas.

5
Calculation according to The Statistic Annual of Romania, 2006
6
The Census of Population and Homes, 2002
7
http://www.mures.insse.ro/phpfiles/Analiza_recensamant_2002_Mures.pdf
8
The Statistic Annual of Mures County, 2006
376

Rural population according to ages
on 1 July 2005

b. Death rate. The average
death rate of the rural population of
Mures county in 2005 was 14.6,
appreciably higher than that of
urban population (10.8). In
general there is a direct connection
between the rate of mortality and
the degree of population ageing.
c. Net migration rate.
Although in the last two decades
the migratory movement in our
country from rural areas to urban
ones was clearly superior to the one the other way round (urban-rural), starting with 1992 it
has been recorded an increase in the wave of house moving from cities and towns to
villages, favored by the new legal measures with regard to property over land and
stimulated by the degradation of economic and social conditions in towns (unemployment).
d. Demographic ageing was determined by the massive migration of young
population from villages to towns, which took place during the imposed industrialization
between 1960-1985. At present, although the migration process from villages to towns has
considerably decreased, as a result of dramatic reductions in employment and the scarcity
of housing, the consequences of the migration corresponding to the industrialization period
will still be suffered and reflected by rural demographic structures in the next 5-10 years.
After that the structures according to ages will be equilibrated, as the present contingents
of people between 50-59 which are to fall into the category of elderly people, are much
more reduced, and the numbers indicating the birth rate in the rural environment are
superior to those in the urban one.
The evolution of the main demographic indicators of the period between 1992-2002
highlights the ageing tendency of the rural population in the Mures county, the population
increase rate being negative in the last 10 years and having a descendant trend (-2.5 in
2002).
A SWOT analysis of the demographic state of affairs in the rural area of Mures
county is offered below:

Strengths The relatively high level of qualification in certain fields of activity,
related to the local traditions;
The well-known hospitability of the locals;
A certain closeness to the urban poles which have an important role
in satisfying the medical assistance, social assistance , educational
and cultural needs;
A relatively small number of people who are not socially adapted;
A project designed to improve the situation of the gypsy population;
The populations receptiveness.
Weaknesses

The populations ageing;
Depopulation (negative population increase rate and the migration of
the young people towards urban centers, 3,358/3,192 in the 1992
and 2002 censuses);
A slower adjustment of mature and elderly population to the
16395
17018
16902
20875
18942
21325
21483
19586
13672
16024
15970
14958
14296
14749
13729
10873
6352
2409
0-4
05.szept
okt.14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85 i peste
A
g
e

G
r
o
u
p
s
Population
377
changes and the challenges of the modern world, in general, and to
the phenomenon of professional reconversion, in particular;
The migration of the young people towards urban centers and
foreign countries, especially of those with superior professional
qualification;
The relatively low level of educational and professional training of
the majority of village population;
The relatively low income of the local people;
The lack of social housing for families of either young or socially-
challenged people;
The low level of civic duty and responsibility;
The lack of professional training or reconversion courses in the area;
The low cultural and civic duty level of the gypsy population;
The gypsy population inability to adapt socially.
Opportunities The presence of examples of successful local people with initiative;
The existence of governmental financing programs for professional
reconversion;
High number of job vacancies, hence an important potential of the
local work force and regionally competitive wages (in comparison to
the growth poles).
Threats

The decreasing percentage of active population;
Low birth rate;
The increase of unemployment among graduates;
The increasing percentage of black market employment, which has
negative effects on the job market and on the local economy (a treat
caused by high fiscal policy).

The drawing up of rural development strategies related to the population in this
environment must take into account the following problems and deal with them by adopting
measures capable to lead to the achievement of the established goals:
a. Demography
Problems:
the accentuated aging of the population;
depopulation caused by the migration of the young people, especially of those with
medium or superior studies, towards urban centers or foreign countries.
Medium- and long-term goals:
attractive living conditions for the young, both those who are local and those who
come from the exterior (and would like to settle in the village);
the expansion of the information network for the citizen.
b. Health and medical services
Problems:
lack of sufficient medical and auxiliary staff;
inadequate and out-dated facilities and equipment in local health centers which
impede or prevent diagnosing;
difficulties with regard to access to medicines and treatment (long distances, limited
resources of the local health centers).
easy access to good-quality, prompt, and sufficient medical services;
an educated population with respect to general health condition and healthy
lifestyle;
the elimination of the factors that affect life quality;
378
the provision of medical and educational personnel, willing to settle in rural areas or
to start a business there, with financial aids
the achievement of an education on hygiene and health by the rural population by
means of activities addressed to school children and teenagers, to grown-ups, to young
mothers and to old age pensioners.
c. Employment
Problems:
the mentality towards change and professional reconversion.
the possibility to attend professional reconversion courses in fields of activities that
are on demand on the job market.
d. Education
Problems:
out-dated understructure, inadequate to the unfolding of educational activities;
financial restrictions caused by the limited budgets allotted by authorities in order to
support education;
the lack of continuous education opportunities for adults;
limited degree of cooperation.
unrestricted possibilities for individual accomplishment by means of education;
access to an educational system which is competitive, flexible and adjusted to rural
environment;
understructure and material assets which are sufficient and capable to satisfy the
needs related to education;
creating civic organizations with various specializations;
investments into the social understructure of school units with the purpose of
preliminary and continuous instruction;
the creation/rehabilitation of hospitals, health centers for old people and children;
rehabilitations/enlargements of facilities for school units (primary and secondary
schools, nursery schools, highschools);
the provision of schools with the necessary equipment (including IT) and the
founding of psychological counseling and career orientation offices;
supporting pupils in their decisions on future careers, connecting their personal
aspirations to the needs of the market, by means of a regionally integrated system
providing psychological counseling and career orientation;
developing the form teachers abilities to offer psychological counseling and career
orientation
providing opportunities for reconversion, qualification and re-qualification, as well as
for continuation of studies.
e. Culture
Problems:
lack of sufficient financial resources in order to practice and revive customs and
traditional forms of cultural expression;
impending and restricted access to sources of information (mass-media, books,
internet etc.);
abandoning traditional practices in favor of modern ones.
revived traditional practices with the capacity to be passed on unaltered to the next
generations;
highlighted and treasured traditional practices;
379
the rehabilitation of historical monuments and sites; the preservation of cultural
patrimony;
the conversion of libraries into modern centers of information;
easy access to traditional or modern sources of information
f. Sport
Problems:
the precarious state or the inexistence of sports facilities necessary in order to
practice individual and collective sports;
minor attention given to organized sports activities by the educational system.
practicing individual and collective sports within adequate sport facilities.

CONCLUSIONS

The data presented highlight beyond doubt the fact that Mures county is
characterized by an accentuated ageing of the population; however, this is a parameter
that depends on the developmental potential of a particular area.
Development strategies must be drawn up based on the demographic component
and they must be mainly aim at investments in the fields of health and medical services,
employment, education, culture, sport and the understructure of the rural areas.
At the level of Mures county the state of affairs is indeed characterized by the data
presented, with several differences according to the place where a particular rural
administrative unit is situated: in the mountains, in a hilly area, on a plain or on a river
meadow.

BIBLIOGRAPHY

1 - http://www.greenagenda.org/niraj/swot.htm;
2 - http://www.greenagenda.org/niraj/social.htm;
3 - http://www.mures.insse.ro/phpfiles/Analiza_recensamant_2002_Mures.pdf;
4 - http://www.mures.insse.ro/main.php;
5.- http://ro.wikipedia.org/wiki/Jude%C5%A3ul_Mure%C5%9F#Popula.C5.A3ia.

380
DATA ENVELOPMENT ANALYSIS AS THE MEASURE OF EFFICIENCY IN
THE AGRICULTURAL SECTOR OF THE REPUBLIC OF MOLDOVA

METODA ANALIZEI ANVELOPRII DATELOR CRITERIU DE
EVALUARE A EFICIENEI ECONOMICE N SECTORUL AGRAR AL
REPUBLICII MOLDOVA

CIMPOIE D., RACUL A.

The State Agrarian University of Moldova

SUMMARY
The objective of the paper is to identify determinants of farm efficiency improvement by analyzing
differences in technical efficiency among farms in district Comrat Republic of Moldova. Data envelopment
analysis (DEA) is a mathematical programming model applied to a set of observation for each farm
corresponding to achieved output level for given input levels. DEA provides a comprehensive analysis of
relative efficiency for multiple input multiple output situations by evaluating each farm and measuring its
performance relative to an envelopment surface composed of other farms. Farms that lie on the envelopment
surface are deemed efficient and farms that do not lie on the surface are termed inefficient and the analysis
provides a measure of their relative efficiency.

Keywords: Data envelopment analysis, technical efficiency, farm efficiency

INTRODUCTION

Studies of farm performance and agricultural transformation in the Republic of
Moldova have largely been embedded within one of two widely-used theoretical
frameworks. First set of studies have attempted to understand variations in farm
performance, particularly technical efficiency , through recourse to differences in the
internal structure of farms (especially size and legal type) and agency factors such as the
level of human capital.
The second set of studies, argue that human behavior is shaped by institutions
(formal and informal rules, regulations and laws). In this framework the unit of analysis
should not merely be the internal structure of farms but rather capture a farms institutional
embeddedness and inter-organizational relationships. Variation in technical efficiency is
only one of a number of factors that may explain structural change in agriculture and the
efficiency of a farm will be determined by both intra - and inter organizational
arrangements (Charnes A. et al.,1978).
Farm economic efficiency is mostly related to the farms ability to perform in a cost
minimizing manner, which correspond with the capability of optimizing the input
combination as given by relative prices, identifying the most efficient production scale, or
maximizing the level of production from the given set of inputs. Three measure were
developed to capture these components of economic efficiency allocative, scale and
technical efficiency.

MATERIAL AND METHOD

DEA methodology evaluates farmers productive efficiency using the methods of
mathematical programming. Within a given set of farmers, we know the obtained output
level for each farmer and the used input level. On the basis of the given data it can be
defined the space of production opportunities if only certain hypothesizes concerning these
facts were accepted. To measure the efficiency one should report the performances of
each farmer to the set frontier of possible production (Cimpoie, D., et al., 2007). In order
381
to determine the production frontier for a given number of farmers K and for which we have
the primary data concerning the number of inputs M and the number of outputs N, one can
define the space of production possibilities:

)} ... 1 ( ) , {( K k IR y x
N M k k
=
+
(1)
The distance function that evaluates the output oriented efficiency of every farmer
can be calculated as follows:

)} ( | max{ ) , ( x P y y x DF
O
=
(2)
were P(x) is the space of production possibilities.
The mathematical model which determines the relative efficiency for the set of K
farmers with the variable return to scale is:
0 ,
1
0
0
,
max

y Y
x X
I
T
T
T
K
(3)
Were
K
I
is a vector column with all other K components equal to 1. The given model
identifies the biggest growth that is equiproportional with
0
of the output
0
y
for which still
exists a convex combination of the primary set of data
) , (
T T
Y X
, that is at least as
efficient as
) , (
0 0 0
y x
. If the multitude of production possibilities has a nondecreasing
return to scale growth, then the condition
1 =
T
K
I
must be replaced with
1
T
K
I
. In this
case, if
0
is a solution of the mathematical model, for

1
0

the farmer
) , (
0 0
y x
doesnt
belong to the multitude of production space offered by the set of data
)} ... 1 ( ) , {( K k IR y x
N M k k
=
+
. If the
1
0
=
, then the farmer
) , (
0 0
y x
is an efficient
producer, and if
1
0

, the farmer
) , (
0 0
y x
is inefficient. In this case the value
0 0
y

represents the biggest output that can be obtained by equiproportional growth of the
output
0
y
, which is possible to be obtained with the input
0
x
. This point represents the
output radial projection
0
y
on the frontier of the space of production possibilities P(x).
On the basis of this methodology it can be calculated farmers technical efficiency for
the primary data.

RESULTS AND DISCUSIONS

Economic data processing has been done with the programme DEAP 2.1 (Coelli
T.J.,1996). The set of data used to estimate farms technical efficiency from Comrat district
includes the following factors:
outputs
Y1 total income, thousand lei,
Y2 net profit, thousand lei,
inputs
X1 long term material assets, thousand lei
X2 current assets, stocks of goods and materials, thousand lei
X3 - current assets, short term debts, thousand lei
X4 - current assets, financial means, thousand lei.
382
The technical efficiency analysis on the basis of obtained data gives us the possibility to
compare farmers performances during the period of 2004-2005.

Table 1. Technical efficiency value of farmers from Comrat district , Republic of Moldova

N Farm CRSTE VRSTE Scale Type
1 CAP "GERGEFLIA" 1.000 1.000 1.000 -
2 SRL "DOLU-BASAC" 1.000 1.000 1.000 -
3 SRL "MAIDAN-GRUP" 1.000 1.000 1.000 -
4 SRL "DEZGHIN-AGRO" 1.000 1.000 1.000 -
5 SRL "STOPANSCHI-PAI" 0.526 1.000 0.526 irs
6 SRL "AGROALIMAN-PRIM" 0.925 0.933 0.992 drs
7 SRL "CELEPEN-AGRO" 0.132 1.000 0.132 drs
8 SRL "MECAGRONOMIA-PLUS" 1.000 1.000 1.000 -
9 SRL "NEXOVIN" 0.210 1.000 0.210 drs
10 SA "CONGAZCIC" 0.036 0.482 0.075 drs
11 SRL "GUNEY-PRODUCT" 1.000 1.000 1.000 -
12 SRL "BESPARMAC" 0.950 1.000 0.950 irs
13 SRL "AUSFART-COM" 0.018 0.026 0.667 drs
14 II "OMUR BUJOGA" 1.000 1.000 1.000 -
15 SRL "CAFADAR" 0.525 0.937 0.560 drs
16 SRL "GRANTA BOIU" 0.191 0.392 0.487 drs
17 CAP "CAIIRIM" 0.452 1.000 0.452 drs
18 SRL "PULUCCIU" 1.000 1.000 1.000 -
19 CAP "ENIJA" 0.470 1.000 0.470 drs
20 CAP "TERTIP-COM" 1.000 1.000 1.000 -
21 SRL "VINURI DE SUD-C.M.C.P." 1.000 1.000 1.000 -
22 CAP "YENI VACITLAR" 0.731 0.810 0.903 irs
23 CAP "MAIAC-AGRO" 0.388 0.675 0.575 drs
mean 0.676 0.881 0.739

Tables 1 presents in column CRSTE the efficiency scores relative to a frontier constant
return to scale and in the column VRSTE the efficiency scores relative to a frontier variable
return to scale estimated. In the column SCALE their ratio is presented. Also, it is indicated
the type of the scale, and namely irs for increasing return to scale and respectively drs for
decreasing return to scale. According to VRS technology the farmers1,2,3 etc whose
efficiency score equals to 1 are efficient and are located on the production space frontier.
The average value of technical efficiency within the district, according to VRS option is
0,881, which is a sufficiently high index. According to this score each farmer has different
performances in input use and output obtaining (Lerman Z. et al.,2006).
For the farmer 6 the outputs deviations from the frontier are very important. By using
an advanced technology it can obtain a greater output Y2 (net profit) with 350467 lei. The
information offered in this compartment can be useful to elaborate strategies concerning
efficiency increase in two directions inputs reduction and outputs increase. For example,
the farmer 6 for the output values previously defined Y1 and Y2 can become efficient only
if it reduce the inputs X1 of long term assets by 12758351 lei and X2 - the current assets,
stocks of goods and materials by 49141 lei.
The analysis of production frontier is made up by defining the enveloping farms using
respective weights evaluation
k
. Thus, for the farm 1 which is considered efficient and

which can describe its own frontier, the technical efficiency is equal 1 and its original inputs
and outputs values coincide with recommended values of these parameters. For the farm
6, which has a technical efficiency of 0,933 the enveloping farms are 11, 21 and 20. Total
sum of weights of enveloping farms -0,007, 0,136 and 0,856 in comparison with the
reference farms equals to 1.
Results for farm: 6
383
Technical efficiency = 0.933
Scale efficiency = 0.992 (drs)
PROJECTION SUMMARY:
variable original radial slack projected
value movement movement value
output 1 1194377.000 86200.970 0.000 1280577.970
output 2 -298524.000 -21545.172 350467.868 30398.696
input 1 13117717.000 0.000 -12758351.856 359365.144
input 2 342647.000 0.000 -49141.342 293505.658
input 3 174276.000 0.000 0.000 174276.000
input 4 282.000 0.000 0.000 282.000
LISTING OF PEERS:
peer lambda weight
11 0.007
21 0.136
20 0.856

Evaluation results of the farms relative efficiency from Comrat district, using DEA
methods, on the basis of dynamic series during the period 2004-2005 show the
technological progress evolution in the agrarian sector. This method gives us the
possibility to discover the reserves technological improvement at the inputs level and to
define strategical objectives at the outputs level.

CONCLUSIONS

On the basis of technical efficiency analysis in the agrarian sector of Comrat district
we can assert that the nonparametric technics of envelopment use mathematical
programming models to built the production space frontier P(x). According to the
performed researches we can conclude that:
1. When applying radial measure
) , ( y x DF
O
to determine the farms relative efficiency
we have the possibility to make a more detailed evaluation than the one achieved with the
help of economic indices traditionally used in the national practice of economic analysis
2. As a consequence of nonimplementation of new technologies in the agrarian sector
of the district the average technical efficiency value is low
3. Taking into consideration that those two frontiers CRS and VRS are very close, we
can assert that the farms carry on an activity close to the technologically optimal scale.

BIBLIOGRAPHY

1. Cimpoie, D., Lerman, Z. (2007): Land policy and farm efficiency: the lessons of Moldova.
Beyond Transition: The newsletter about reforming economies. Vol.18, No. 3, July-September 2007, p. 13,
CEFIR The World Bank.
2. Coelli, T.J. (1996) A guide to DEAP version 2.1: A data envelopement analysis CEPA, Working
Paper 96/08, Departament of econometrics, University of New England, Armidale
3. Lerman, Z., Cimpoie D. (2006): Land consolidation as a factor for successful development of
agriculture in Moldova. 96 EAAE seminar Causes and impacts of agricultural structures, 10-11 January
2006, Taenikon, Switzerland.
4. Charnes, A., Cooper, W., Rhodes, E. (1978) Measuring the efficiency of decision making units.
European Journal of Operational Research, vol. 2, p. 429-444.

384
SOCIO-ECONOMIC IMPACTS OF LAND POLICY: THE CASE OF THE
REPUBLIC OF MOLDOVA

IMPACTUL SOCIO ECONOMIC A REFORMEI FUNCIARE: CAZUL
REPUBLICII MOLDOVA

CIMPOIE D.

The State Agrarian University of Moldova

SUMMARY
In this paper, the author considers the impacts of land reform on privatization and ownership
structure of agricultural land, as well as on agricultural and rural developments. The analysis is based on
official statistical sources, data and results of several questionnaire-based surveys. The main idea of the
paper it is necessary to flow the land from large corporate farms to small family farms, until equilibrium will
not be created between those two farm sectors, as is commonly observed in market economies.

Key words: Land consolidation, Farm efficiency, Land fragmentation.

INTRODUCTION

Over 1 million residents became landowners as a result of the land reform, which
ended between 1998 and 2000. Many of them used their privately owned land to establish
independent family farms, while others entrusted their land to managers of newly created
corporate farms (partnerships, limited liability companies, agricultural cooperatives, joint
stock companies, etc.). As of today, individual producers use 50% of agricultural land in
Moldova. This is in stark contrast to the pre-reform situation, when individuals cultivated
only 2% of agricultural land.
Meanwhile, the progress in land privatization does not led to the individualization of
agriculture. Half of agricultural land in Moldova is farmed by the corporate sector. Although
this is a positive result, comparing with other transition countries like Russia and Ukraine, it
is far from being satisfactory, while compared with market economies, where the share of
corporate farms in the total area of agricultural land is much smaller.

MATERIAL AND METHOD

In this paper, data from several surveys in Moldova are used, to support the case
for land consolidation. In general, the aforementioned surveys cover the whole territory of
the country. In this study, survey data are supplemented with transaction information from
state cadastre sources and the Department of Statistics.
In order to reveal the relationship between the farm size and farm performance, the
total factor productivity (TFP) is used for calculating the productivity, while the farm
efficiency is determined by using the method of the stochastic frontier.
The impact of consolidation on standard of living of rural families is determined by
using the multinominal logistic regression.

RESULTS AND DISCUSIONS

One of the main features of the Moldovan agriculture is its structural duality,
expressed by the existence of a reduced number of large corporate farms - at one pole,
and a large number of small and very small peasant (family) farms and rural households
at another one. Almost do not exist the so-called medium-sized family farms, the main
organization form in market economies agriculture. At the same time, the relationship
385
between the organization form and farm size is not always the same. Usually, family farms
are small farms, but some of them fall in the category of large farms. A similar picture is
observed with corporate farms, which are typically large, but not all of them. Therefore, the
structural duality in agriculture in transition will be analyzed in two dimensions: the
organizational form dimension and the farm size dimension.

Fig. 1 Increasing role of individual sector

The emergence of two well-defined categories of organizational forms as a result of
the post-socialist land and farm structure reforms has triggered an ongoing debate among
policy makers and economists concerning the efficiency and performance advantages of
corporate farms versus individual farms in transition countries. The traditional socialist
thinking believed in economies of scale and thus gave preference to large corporate farms.
The Western market-oriented thinking attaches more importance to individual incentives
and thus emphasizes the advantages of smaller family farms. GORTON and DAVIDOVA
(2004) note that, contrary to prior expectations, there is no clear-cut empirical evidence in
transition economies that family farms are more efficient than corporate farms in all
farming activities. While significant differences have been found in favor of family farms
against the average corporate farm, the best corporate farms still tend to perform as well
as the best family farms. Yet these findings clearly support the previous conclusion
(LERMAN et al., 2004) that, contrary to the economies-of-scale school of thought, large
corporate farms do not have a significant performance advantage over individual farms.
We use national statistics and survey data to examine the comparative performance of
individual and corporate farms in Moldova.
The shift of agricultural land from corporate to individual farms has led to significant
changes in the production structure of Moldovan agriculture: the output of the corporate
farm sector decreased, while the output of the individual sector shows a steady growth. At
the beginning of agricultural reforms in the early 1990s, the individual sector was
producing 20% of agricultural output on less than 10% of agricultural land; in 2003
individual farms produce three-quarters of agricultural output on half the agricultural land
(Fig. 1). The discrepant shares of the two farm sectors in land and output clearly show that
the individual farms use their land more productively than the corporate farms. This
phenomenon has persisted since 1990, as the share of individual output has always been
greater than the share of land in individual tenure.
The partial productivities of land and labour decreased over time in both corporate
and individual farms, but do not give a consistent picture: while land productivity is
definitely higher for individual farms, the results for labor productivity are
ambiguous. To resolve the ambiguity, Total Factor Productivity (TFP) has been calculated.
Gross Agricultural Product
Individual
Farms
Corporate
Farms
0%
20%
40%
60%
80%
100%
1
9
9
0
1
9
9
2
1
9
9
4
1
9
9
6
1
9
9
8
2
0
0
0
2
0
0
2
2
0
0
4
2
0
0
6
Agricultural land
Individual
Farms
Corporate
Farms
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1
9
9
0
1
9
9
2
1
9
9
4
1
9
9
6
1
9
9
8
2
0
0
0
2
0
0
2
2
0
0
4
2
0
0
6
386
A qualitative picture of TFP changes over time was obtained from national statistics by
assuming a conventional Cobb-Douglas production function with stylized factor shares of
0.7 for land and 0.3 for labour (these are the factor shares that we consistently obtained in
production functions estimated using various farm surveys in Moldova). Next figure
presents the TFP results calculated with these land and labour weights using the full time
series. The TFP for individual farms is higher than for corporate farms over the entire
period 1990-2003. The respective means for 1990-2003 are 11.5 for individual farms and
4.4 for corporate farms (the difference is statistically significant).

Fig. 2 Total Factor Productivity for individual and corporate farms 1990-2003
Notes: Inputs from national statistics aggregated using hypothetical factor shares of 0.7 to land and 0.3 to
labour.
Source: World Bank, 2005.

These results conclusively show that individual farms are more productive and
more efficient than corporate farms.
The second dimension of farm-structure duality involves farm sizes large versus
small. The optimum farm size is difficult to define because opinions about the farmers
objective function differ and because the same determinants can affect farm size in
different ways across different farms or countries (KOESTER, 2003). The optimality of farm
size for a given country is largely an empirical question (SWINNEN, 2006). In general, the
optimal farm size is a relative notion that depends on the local conditions, such as the
share of rural population and the land endowment.
In the absence of a universal optimum, average farm sizes can be meaningfully
compared only for countries with similar natural conditions. In this context, an appropriate
benchmark for Moldova is provided by the relatively densely populated and land-poor
European countries, such as Portugal, Greece, and Italy. These three countries actually
have the smallest family farms among the EU-15 5-10 hectares, compared with an
average farm size of around 20 hectares for EU-15 as a group (Eurostat data from
EUROPEAN COMMISSION (2005)). The family farms in Portugal, Greece, and Italy are thus
not dramatically larger than the average peasant farm in Moldova (2 hectares national
average, 4-5 hectares in various surveys), but they are certainly much smaller than the
average corporate farm in Moldova.
Next table presents the size characteristics and the partial productivity measures for small
and large farms in four recent surveys in Moldova. While the large farms as a group are
substantially larger than the small farms by all measures output, land, and labour, the
partial productivities show a mixed picture:
The partial productivity of land (output per hectare) is higher for small farms.
The partial productivity of labour (output per worker) is lower for small farms.
The number of workers per hectare is much higher in small individual farms than in
large corporate farms (the labour sink effect of individual farms).
Table 1
1990 1992 1994 1996 1998 2000 2002
0
5
10
15
20
25
lei output per unit aggregated inputs
Individual
Corporate
387

Size characteristics and productivity measures for small and large farms in Moldova: survey data

WB 2003 survey PFAP 2003 surveys
WB 2000 baseline
survey
Small
farms
Large
farms
Small
farms
Large
farms
Small
farms
Large
farms
Number of observations 176 22 1,166 521 170 180
Ag land (ha) 4.48 971 4.02 918 5.7 533
Workers 4.51 332 6.27 150 1.6 43.7
Ag output (000 lei) 25.8 3,230 25.3 2,038 75.4 1,642
Output/ha (lei) 6,765 2,745 9,535 2,085 6,414 3,145
Output/worker (lei) 6,857 17,135 5,145 17,824 55,304 54,393
Workers/ha 1.42 0.26 3.25 0.19
TFP 6,426 4,745 7,424 3,464 8,420 4,010
Note: All differences between small and large farms are statistically significant at p = 0.1 (except the
differences in productivity of labour output/worker in the WB 2000 survey).
Source: DUDWICK et al. (2005) for WB 2003 survey; MURAVSCHI and BUCATA (2005) for PFAP 2003 surveys;
LERMAN (2001) for WB 2000 survey.
The ambiguity in partial productivity measures is resolved by calculating total factor
productivity (TFP). TFP calculations conclusively show decreasing returns to scale: large
farms produce less per unit of inputs in the margin than small farms.
So far, I showed that for such small countries like Moldova is, small farms are more
efficient that big farms and individual (family) farms are more efficient and productive than
corporate farms.
The creation of family farms was one of the main objectives of the land reform, and
this objective has been fully realized. However, the small size of the peasant farms, whose
holdings are moreover split into 3-4 parcels, raises considerable concerns about their long-
term viability and has led to an intense public debate regarding the impacts of
fragmentation. Land fragmentation in Moldova has two characteristics: exceedingly small
size of family farms and fragmentation of land ownership into multiple parcels
(LERMAN,CIMPOIES, 2006).
Common wisdom argues that consolidation of small disjointed parcels into
contiguous holdings is preferred by farmers and landowners. This kind of consolidation
should reduce production costs and improve net income for a farm of given size. Land
consolidation that produces larger farms (keeping the number of parcels fixed) is also
believed to be beneficial, as it should reduce the ratio of fixed costs per unit of land, allow
more efficient use of technology, and ultimately increase productivity and efficiency. These
theoretical arguments, however, are difficult to substantiate empirically and world
experience does not unanimously support either position.
0
100
200
300
400
500
600
700
800
900
1000
1 2 3 4 5 6 7 8 9 10
Number of parcels
F
a
r
m

i
n
c
o
m
e

p
e
r

h
a
0
1
2
3
4
5
6
7
F
a
r
m

i
n
c
o
m
e

p
e
r

w
o
r
k

d
a
y
Farm income per ha Farm income per work day
lei/ha lei/work day
388
Fig. 3 Partial productivity measures versus number of parcels for household plots in
Moldova
Source: 2003 WB survey of household plots
Some evidence that supports the advisability of reducing the number of parcels
through land consolidation is provided by a 2003 World Bank survey of household plot
operators in Moldova. This survey shows a clear negative relationship between
productivity and the number of parcels held by the operator. The partial productivities of
land and labor are calculated from the survey data as the value of farm income (including
cash revenue from sales of farm products and value of own consumption) per hectare of
land and per work day (including family workers and outsiders). The results presented in
Figure 3 clearly show that both the productivity of land (farm income per hectare) and the
productivity of labor (farm income per work day) decrease as fragmentation (i.e., the
number of parcels) increases.
Thus, the analysis shows that consolidation in the sense of reducing the number
of parcels makes economic sense, at least for household plots in Moldova in 2003. This
conclusion is supported by the analysis of individual farms in Georgia from the 2003 HUJ
survey. The Georgian survey also shows that productivity decreases with the increase of
the number of parcels, controlling for other relevant factors (LERMAN, 2005).
Consolidation affects not only farm productivity, but also the standard of living of
rural families, where a comfortable standard of living is associated with a much larger farm
size than lower standards of living. Peasant farmers reporting a comfortable standard of
living in the 2005 WB survey have 11 hectares on average, compared with less than 5
hectares for farms in the two lower categories poverty, when family income is not
sufficient to buy food, and subsistence, when family income is just sufficient to buy food
and daily necessities (the difference between farm sizes is statistically significant at p <
0.01). The standard of living of peasant farmers is thus an increasing function of farm size,
as is commonly observed in farm surveys in CIS and other transition countries.
These results provide the ultimate support for land consolidation policies and hence
the need to encourage land market development.

CONCLUSIONS

1. Analysis based on national statistics and survey data shows that individual farms
are more efficient than corporate farms. This conclusion does not necessarily mean that
corporate farms should be eliminated and replaced with family farms. Corporate farms do
exist in market economies, which proves that they are able to compete with individual
farms.
2. Republic of Moldova needs an equilibrium farm structure, which will include a mix of
family farms (the dominant majority) and corporate farms (a small minority) determined by
resource availability, managerial capacity, and personal preferences of farmers and
investors.
3. Analyzing the dichotomy between small and large farms, we conclude based on
several surveys that small farms are more productive and more efficient than large farms.
4. Small farms do better than large farm not because of a size effect, but because
individual farms (which happen to be small) outperform corporate farms (which happen to
be large).
5. Land consolidation affects positively both farm productivity and the standard of
living of rural families.

BIBLIOGRAPHY

1. COELLI, T., RAO, D. S. P., BATTESE, G. (1998): An Introduction to Efficiency and Productivity Analysis,
Kluwer, Boston.
389
2. DSS (2004a): Agricultural Activity of Households and Farms in the Republic of Moldova in 2003
(Results of the Statistical Survey). Department of Statistics and Sociology, Chisinau, Moldova.
3. DSS (2004b): Agriculture in Moldova 2004, Department of Statistics and Sociology, Chisinau,
Moldova.
4. DUDWICK, N., FOCK, K., SEDIK, D. (2005): A Stock-Taking of Land Reform and Farm Restructuring in
Bulgaria, Moldova, Azerbaijan, and Kazakhstan, World Bank, Washington, DC (unpublished).
5. GORTON, M., DAVIDOVA, S. (2004): Farm productivity and efficiency in the CEE applicant countries: a
synthesis of results. Agricultural Economics, Vol. 30, pp. 1-16.
6. KOESTER, U. (2003): A revival of large farms in Eastern Europe? How important are institutions?
Plenary paper presented at the Conference of International Association of Agricultural Economists, Durban,
South Africa, 16-22 August 2003.
7. LERMAN, Z., CSAKI, C., MOROZ, V. (1998): Land Reform and Farm Restructuring in Moldova: Progress
and Prospects, World Bank Discussion Paper 398, World Bank, Washington, DC.
8. LERMAN, Z. (2001): Moldova Baseline Farm Survey October-November 2000. Part I: Survey of
Corporate Farm Managers and Peasant farmers; Part II. Survey of Rural Families with Household Plots,
Draft analytical report, World Bank, Washington, DC (unpublished).
9. LERMAN, Z., CSAKI, C., FEDER, G. (2004): Agriculture in Transition: Land Policies and Evolving Farm
Structures in Post-Soviet Countries, Lexington Books, Lanham, MD.
10. LERMAN, Z., CIMPOIE, D. (2006): Land Consolidation as a Factor for Rural Development in Moldova,
Europe-Asia Studies, Vol. 58, No. 3, pp. 439-455.
11. MURAVSCHI, A., BUCATCA, A. (2005): Agricultural Policy in Farmers Opinion. PFAP - Private Farmers
Assistance Program, East-West Management Institute and USAID, Chisinau, Moldova.
12. WORLD BANK (2005): Moldova Agricultural Policy Notes: Agricultural Land, Draft analytical report,
World Bank, Washington, DC (unpublished).

390
SUSTAINABLE DEVELOPMENT OF THE RURAL COMMUNITIES BY
PROMOTING THE AGROTOURIST ACTIVITIES

DEZVOLTAREA DURABIL A COMUNITILOR RURALE, PRIN
PROMOVAREA ACTIVITILOR AGROTURISTICE

CREU DANIELA, NEAGU CECILIA *, CONSTANTIN DUMITRA **

*USAMV BUCURETI FACULTY OF MANAGEMENT, CLRAI SUBSIDIARY
** SANDU ALDEA AGRICULTURAL COLLEGE CLRAI

Abstract

Sustainable development of the rural communities by promoting the agro tourist activities will
provide the premises for the promotion of the agro tourist activities in the area of the Danube terraces in
Calarasi county for the harmonious economic development of the area by increasing the level of information,
education and awareness of the rural community members in Chiselet, Dorobanu, Mnstirea, Cscioarele,
Chirnogi, Ulmeni, Borcea localities, on the exigencies of the unique European market regarding the
competitiveness of the products and services, the ways of affirming the competitiveness for the clients and
competitors. The development of the business sector in the rural area cannot be made without massive
investments in human capital, respectively, the qualification and re-qualification of the human resources for
jobs which meet some new exigencies, to discover new methods of reaching on the European Union
extended market, to fight with new competitors in their old field of activity.

key-words: agro-tourism,. Rural tourism, sustainable development, informational infrastructure,
tourist product.

INTRODUCTION

The rural tourism and implicitly the agro tourism are considered as a strategy of the
future as regards the economic development of the localities in the rural areas. The rural
tourism is based on three coordinates: space, people, products, because:
space without peoples existence cannot be the support of the cohabitation,
a space without products do not answer to all the needs of the tourism consumers;
people in absence of the space or of the products have only a reduced
capacity of receiving;
products that do not have as base the space and the people, but only an
ephemeral existence and cannot ensure the sustainable development on local level.
Under economic aspect, the agro tourism activity presents as one of the existence
modalities, a complementary form of optimal use of the resources in the rural household
and in area combined with a complex of services, inside and outside the household,
orientating the agricultural production in order to achieve efficient and modern agro
tourism. So, agro tourism situates itself in the more general topic of the rural areas
development, and in particular this is a complex activity, with economic and social
implications aimed to ensure the functioning of the territorial balance and stop the rural
exodus.
From agro economical point of view, the agro tourist activity can develop under
the form of simple housing when a peasant household rents rooms unused by the owner ,
of his own patrimony, without offering in an organized, coordinated or continuous way
another form of services (meal, visits and trips surrounding) inside or outside the
household.
The agricultural tourism can take the form of organized agro tourism, when to the
housing is added a complex of services especially within the household. Such an activity is
contained in a strategy oriented to the development of the entire system of agro zoo-
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technical production and using some factors specific to an activity specialized in the field of
rural tourism.
In conclusion, the agro tourism activity represents a complex social-economic
process, developed by the agricultural producer, within his household, in order to obtain
some supplementary incomes needed for his family. The activity developed, which can
contain the accommodation, food, pleasure time, etc, constitutes a unitary whole and can
find itself in the components of the tourist product. In this case, it is mandatory to ensure
an adequate correlation between the quality of the equipment and of the general aspect of
the accommodation spaces with those for food and pleasure time.

MATERIAL AND METHOD

In selecting the target group by the applied questionnaire, which contains questions
regarding the agro tourism activities and infrastructure arrangements, accommodation
services and food, occupations of the persons in the area, was aimed to find answers
which can serve as indicators for the base and identification of the needs and constraints
of the target group.
In selecting the target group, in needs and constraints identification, at the
level of the agro tourist household, the main sides of the investigations referred to the
following:
Identification of the house: situation and distances until the civic centre, and
other neighbouring houses, the form of infrastructure in the are and the practicable means
of transport, the space related to the house.
The accommodation conditions from the point of view of practicing the agro
tourism referred to the elements such as: the capacity of the house accommodation
(number of rooms, annexes and utilities, beds), their systematization, food products that
can be offered and their providence, persons involved in the tourism activity (from the
family and/or employed), the training of this staff, other services provided.
Attractions offered by the geographical, historical, cultural background of the
area, aims especially the natural elements (landscapes, lakes, rivers, natural reservations
in the area), together with the ancient elements (monuments, monasteries, churches,
memorial houses).
Attractions offered by the local community, that refer to the multitude of
cultural-religious attractions, as well to different events and ethno folk and rural traditions.
Activities which are possible to be achieved in the neighbouring areas, aimed
activities with seasonal character which can be included as pleasure activities (sports,
fishing, hunting, etc).
In this context, structurally, the questionnaire represented a source of investigation
which answers to the topic of agro tourist activity, and to the needs of professional training
of the human resources in the rural environment, for these activities.


The rural household which materialize the accommodation offer and agro tourist
activities, can create the motivation of the householder to prepare and arrange the interior
and exterior of the household in order to obtain incomes, stimulating at the same time the
owner in the rural environment to invest in his own household, to develop activities related
to his preoccupations. In this way the householder who will enter the competition will
develop his activity in a competition environment and will be obliged to become
competitive, to raise the own services and products qualities in order to be requested.
The research made considered the following constraints specific to the region:
unbalances related to the economic development in the agro tourist territory; low level of
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investments in infrastructure; low access and circulation of the information; major
differences of economic, social and cultural level between the urban environment and rural
one; the tendency of decline of the craftsman industry; absence of some consultancy
services for the potential investors in the rural tourism; big difficulties in obtaining loans
and financial aids; low promotion of some areas of real interest and with high agro tourist
potential.
In this regard, the research offers pertinent solutions for the needs specific to the
area: development and increase of the competitiveness of the Romanian village by using
the agro tourist and cultural-spiritual potential; the identification of the offer of the
geographical environment and tourist flow of frontier, orientation of specific strategies for
the improvement of the marketing for the services and products in the region (including
agro tourism) and using the information technology, amplification and diversification of the
economic activities of the village development of the rural tourism and especially the
agro tourism; encouraging the local and craftsman non agricultural economic activities,
crafts, wood processing, etc, increasing the incomes of the inhabitants in the area with
agro tourist potential.
Actions specific to the research made, which answer to the target group
needs and final beneficiaries:
- information seminars regarding the promotion of the agro tourist activities in the
rural environment and direct and indirect benefits of accessing and implementing the
Structural Funds for the rural communities for 100 householders in the area of project
development;
- Qualification courses in the profession of worker in the agro tourist
household, for 40 beneficiaries who will receive certificate of competence in the field,
recognised at national level;
- elaboration of an useful instrument of orientation on the opportunities and
advantages offered by practising the agro tourism - Guide Creation and leading the agro
tourist household, by which 400 persons will benefit freely;
- the achievement and administration of a web page in order to promote the agro
tourist activities in South-Muntenia area; and the establishment of the County Association
of Agro Tourism, rural and ecological tourism;
- Counselling the 40 beneficiaries of the course of worker in the agro tourist
household for starting and developing this business.
Target group is represented by 100 persons in the rural environment, in South-
Muntenia area , who want to maintain and develop agro tourist activities, respectively,
potential employees of the rural tourism units; 40 beneficiaries of the course of worker in
the agro tourist household.
Final direct beneficiaries:
- 100 direct beneficiaries of the information seminars regarding the promotion
of the agro tourist activities in the rural environment and of the direct and indirect benefits
of accessing and implementing Structural Funds for the rural communities;
- 40 direct beneficiaries, of the qualification course in the profession of worker
in the agro tourist household who will receive certificate of competence in the field,
recognized at national level;
- 400 direct beneficiaries of the Guide Creation and leading of the agro
tourist household.
Final indirect beneficiaries:
Householders in the area with agro tourist potential, who will benefit by the
information developed under the project and good practices in the field of agro tourist
activities.
Rural communities in South-Muntenia area, that will benefit on long term by the
development of the agro tourist activities in the area of project development, thus
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contributing directly to the increase of the level of economic, social and cultural
development of these communities.
In this regard, the research proposes concrete modalities of identifying the
opportunities of promotion and development the agro tourist activities for the householders
in the area with agro tourist potential, both at the level of general information on the
business opportunities, and at the level of mentalities and business behaviour, which will
develop the business sector in the rural area, leading to the economic, social and cultural
development in this area.
As a result, by organizing and developing qualification courses in the profession of
worker in the agro tourist household, the householders in South-Muntenia area in
Calarasi county will be able to initiate and to develop agro tourist activities based on some
firm knowledge on the business sector where they will act. Also, WEB page within the
project will allow both to the target groups and to the final beneficiaries to generate and
obtain information on the tourist attractions of the area, thus speeding the attraction of
tourists in this area.
The seminars organized will allow to the householders in South-Muntenia area to
go beyond the economic, social and cultural barriers, by a better information on the
business opportunities in the rural environment, of the specific needs and behaviour in the
business. In this way, on long term, it is estimated the creation of a new trend favourable
to the commercial changes between the urban and rural environment, based on the mutual
understanding of needs and cooperation. Also, at the level of the target groups and of the
beneficiaries in South-Muntenia area will increase the level of information, education and
awareness on the aspects regarding the competitiveness of the products and services in
the European Union. By the seminars organized within the project, the representatives of
the target group will know and identify the steps to be made in order for the Romanian
village to comply with the European Union exigencies and norms regarding the
competitiveness.
They will be able to initiate, develop and implement together concrete modalities of
increase the level of competitiveness which will allow to enter and maintain on the
European unique market. The Guide Creation and leading of a agro tourist household will
allow to the householders in South-Muntenia area to improve their own strategies of
business promotion, by adopting new, modern instruments, compatible with the practices
in the European Union , but adopted to the needs and constraints of the rural business
environment.
The partnership developed within the project between the Faculty of Management,
Economic Engineering in Agriculture and Rural Development, - Calarasi subsidiary and
the two partners, respectively the Direction for Agriculture and Rural Development
Calarasi and S.C. Holding S.R.L. Fetesti, corroborated with the creation of the County
association of agro tourism, rural and ecological tourism and the creation of WEB page will
develop in the benefit of the rural communities in the area contained by the project a viable
informational infrastructure, to support and promote the agro tourist activities and creation
of a number of tourists in 3 South-Muntenia space.
The main problems which must be solved refer to : the identification of the
attractions offered by the geographical, cultural and historical background of the area,
respectively natural elements and ancient elements; identification of attractions offered by
the local community, respectively, cultural-religious attractions, as well different events and
ethno folk and rural traditions; activities possible to be achieved in the neighbouring areas,
which can be included also as pleasure activities (sports, fishing, hunting, etc). In
identifying the needs at the level of the agro tourist household, the following can be
mentioned: Identification of the house, regarding: the situation and distances until the civic
centre and other neighbouring houses, form of infrastructure found in the area and
practicable means of transports, the space of the house; The accommodation conditions
394
from the point of view of practicing the agro tourism, food products which can be provided
and their providence, the persons involved in the tourism activity (in the family and/or
employed), the training of this staff, other services provided.
The development of the tourism of rural type generically agro tourism aims at
least two important objectives in the organization and development of activities.
The first objective refers to the achievement of the conditions for the necessary
comfort and first of all ensuring accommodation and food conditions.
The second objective, with a more complete connotation refers to the training of
the staff, respectively to the measures of education and training necessary for learning
notions and rules of behaviour, serve and management, for a good development of the
tourist activities.
The fragmentary offer as well the agro tourism one cannot be promoted and cannot
conquer a segment of the tourist market but by adhesions and associative initiatives.
The association gives the possibility to provide a certain communication which
compete for the development of common initiatives, having a strategic and commercial
character.
The main ways and forms of association, as well their characteristics are:
1. The companies that from juridical point of view have legal status and have
as aim exercising some commercial activities which lead to a profit that will be distributed
between the association members.
2. Associations in which the participant members propose themselves to
increase their efforts in order to reach a benefit aim for the associated members. Those
who adhere are interested first of all in increasing each the profit of their own activity by
saving the costs or by a better organization of some certain phases of the working
process.
The association in the agro tourism sector is needed to solve the following
problems:
organizational fragility of the activity;
fructification of the sequential economies;
stimulation of small entrepreneurs who operate in this sector;
joining the competences between the activities which constitute the tourist
organization (companies, associations).
The main functions of these forms of association can be resumed on the following
sectors:
activity of promotion;
solving the problems of the associated members;
guaranteeing the services quality;
improving the use of the resources for entering the tourist market.

CONCLUSIONS

By the developed activities the research made determines a change of attitude, of
approaching the topic related to the impact of the Romanian village integration into the
European landscape that is imposed by the accession of Romania to EU.
Using all the range of information, training, situation methods of the entrepreneurial
spirit, the project determines an impact also at the level of the rural community members
behaviour in the relation employee-employer, entrepreneur entrepreneur. In this regard,
the research made within the project with the same title, will be the element of starting the
cooperation actions between the rural and urban economic environment, between the
organizations of the educational system and the development of the rural business
environment, contributing thus to the sustainable development of the rural communities.
The activities contained in the project development promote an active attitude of the final
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beneficiaries, by creating an active approach of learning and promotion of an own
business.

BIBLIOGRAPHY

1. BRAN F., MARIN D. Rural tourism European model, ed. Economic, 2001.
2. CRCIUN . Agro-tourism organization and efficiency , ed. Mirton, 2003.
3. EMILIAN R. Management of sustainable tourism in the countries near the Black Sea, ed.
All 2002.
4. MITRACHE T. And collaborators.Rural agro tourism, ed. Fox Press 2000
5. NISTOREANU P. Rural tourism a small business with big perspectives, ed. Didactical
and pedagogical 2002

396
MONITORING OF AGROTOURIST RESOURCES IN THE CALARASI
COUNTY

MONITORINGUL RESURSELOR AGROTURISTICE DIN JUDEUL
CLRAI

CREU R.C., ADELAIDA HONU *, CREU RALUCA FLORENTINA **

* University of Agronomic Sciences and Veterinary Medicine Bucharest
** Academy of Economic Studies Bucharest

Abstract

Many specialists state that the Calarasi County will never become a developed region from a
tourists point of view, due to the fact that the natural and anthropic tourist resources are not as numerous as
in the Brasov, Maramures, Suceava, Tulcea or Constanta counties. It is a fact that this county does not
comprise neither mountains, nor the sea or famous monasteries. However, the hereby study tries to identify
despite all a few natural and anthropic resources that could be interesting for the eventual Romanian and
foreign tourists planning to visit this area.

Key words: agrotourist resources, Calarasi County, the natural and anthropic tourist resources.

INTRODUCTION

At a first view, the Clrai county does not seem to be a very attractive one from a
tourists point of view.
Neither landscape, nor infrastructure is helping it.

MATERIAL AND METHOD

However, if a deep analysis of the natural and anthropic resources in the area is
carried out and if imagination is put into practice, we can propose attractive programs to
potential tourists.


NATURAL RESOURCES
LAKES:
THE IEZERU MOSTITEA (sport fishing) (ClraiBoneagu) Natural lake. River
haven on the inferior course of Mostistea river with a 18,6 km2 surface and a 16 mil. m3
volume (derived from the irrigation setting up works). It is used for irrigations and
pisciculture. Ichthyologic fauna: carp, cat fish, gold fish, bass, bream, tench, fry, etc.
THE FRASINET LAKE (ClraiFrsinet) Anthropic lake. Anthropic lake formed on
the middle course of the Mostistea river in the area of Frsinet and Valea Argovei
communes. It has a 1.460 ha surface and it is used as a fishy basin (ichtyologic fauna:
carp, pike, cat fish, gold fish, bass, etc) and for irrigations.
THE VALEA ROIE LAKE (ClraiMitreni) Natural lake. It has a 14 ha surface, with
salt water (6,3 g/l mineralization), sodic, sulphuretted and with sapropelic mud on the
bottom of the lake, with therapeutic values.

RIVERS:
THE ARGE (Clrai) river situated in the S-SE part of Romania, affluent of the
Danube at Oltenia. It has 350 km and the surface of the hydrographic basin amounts to
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12.550 square kilometers. It flows from the central-western part of the main crest of the
Fgra Mountains by two affluents: the Buda and the Capra.
THE DMBOVIA (Clrai) river in the southern part of Romania (268 km). It flows
from the northern versant of the Iezer Mountains, from a 2240 m altitude. First it glides on
SV-NE direction until it meets the neighbourhood of the Ppua peak where it suddenly
changes its direction to S-SE and crosses the southern extremity of the Piatra Craiului
Mountains.
THE DANUBE (Clrai). The Danube is the second river in Europe in length and
debit, after the Volga. It has 2860 km with a surface of the hydrographic basin of 817
thousand square kilometers, out of which 221,7 thousand square kilometers are situated
on the Romanian teritory. It flows from the Schwarzwald Mountains (The Black Forest) in
Germany by the Breg and Brigach creeks.
NATURAL RESERVATIONS:
THE CAIAFELE FOREST (ClraiFundeni) Natural reservation (woodsy). Secular oak
forest.
THE CIORNULEASA FOREST (ClraiMitreni) Natural reservation (woodsy and
venatorial). The Ciornuleasa woodsy reservation (75,2 ha), established in 1954 protects a
field forest with numerous southern elements, made up of oak, grey oak, hornbeam, little
hornbeam, lime, white ash, Turkish cherry, elm, etc.
THE FUNDENI FOREST (ClraiFundeni) Natural reservation (woodsy). Deciduous
forest of venatorial interest (hares, pheasants).
THE TMDU FOREST (ClraiClrei). Deciduous forest (oak, black-jack,
hornbeam, lime, etc.). It is a natural reservation.
THE VRTI FOREST (ClraiBoneagu). Natural reservation (woodsy). Secular oak
forest.

ANTHROPIC RESOURCES
HISTORICAL MONUMENTS:
THE CHURCH OF THE FORMER NEGOETI MONASTERY (ClraiNegoeti)
Religious architecture and historical monument. The church was founded between 1648-
1649 by the ruler Matei Basarab and his wife Elina. It was re-built in 1777 (windows, the
surrounding wall and dwellings were renovated). It was rehabilitated in 1850.
THE CHURCH OF THE FORMER PLTRETI MONASTERY (ClraiFundeni).
Religious architecture and historical monument. The monastery was founded in 1642 by
Matei Basarab, his wife and others. It comprises the Saint Mercurie Church built between
1642-1646. It is a remarkable monument by the clear composition of the architectural
elements.
THE CHURCH OF THE FORMER COBIA (CORNEL) MONASTERY Clrai.
Religious architecture and historical monument. The church is patronized by Saint Nestor
and it was built in 1571-1572 by Badea Boloin Stolnicul. It was rebuilt in 1680 by Prvu
Cantacuzino and after 1723-1724 when the arcades had fallen. It was rehabilitated in 1938.
THE SAINT ANDREI CHURCH (in FUNDENI) (ClraiFundeni). Religious architecture
and historical monument. The church was built in 1732 by Radu Dudescu, former high
clerk and his son, Constantin. It was renovated in 1890.
THE SAINT NICOLAE CHURCH (in POPETI) (ClraiVasilai). Religious architecture
and historical monument. It was built in 1660 by Radu Popescu and others, probably also
Antonie Vod from Popeti. It was rehabilitated in the XVIII century and 1864.
MUSEUMS: THE VILLAGE MUSEUM (in CLREI) (ClraiClrei) Village museum.
Profile: history, etnography. It exhibits documents, objects that show the un-interrupted
continuity in these regions.
MEMORIAL HOUSES: THE ALEXANDRU SAHIA MEMORIAL HOUSE
(ClraiMnstirea). Memorial house. It was open in 1957 in the writers native house.
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Profile: memorial, history of literature. History of literature: the writers library, magazines
and newspapers where the writer has collaborated. Memorial: pictures, documents that
used to belong to the writer.
ETHNOGRAPHY AND FOLKLORE:
THE TRADITIONAL FOLKLORE FEST (in CLRAI) (ClraiClrai) Traditional
folklore fest. The Brgan flower international contest-festival is annually organized in
September.
THE VILLAGE MUSEUM (in CLREI) (ClraiClrei) Village museum. Profile:
history, ethnography. There are exhibited documents, objects that show the un-interrupted
continuity in these regions.
ARCHITECTURE AND POPULAR TECHNICS: THE ETHNOGRAPHIC CENTRE (in
LEHLIU-GAR) (ClraiLehliu-Gar). Popular art. Popular art: wicker netting, ceramics
centre.
OTHER ANTHROPIC RESOURCES:THE DOR MRUNT STUD (ClraiDor Mrunt)
Breed horses stud.

CONCLUSIONS

SURVEY: BUILDING A RURAL TOURIST PRODUCT SPECIFIC FOR THE
CLRAI COUNTY

Short presentation of the accomodation place:
The CASA ALB Pension Borcea locality
Category: 3 margarets; No. of rooms: 10; Capacity: 20 places
Facilities: Heating: own central heating, Hot water permanently, Kitchen, Grill, TV set,
Telephone, GSM network, Conference room, Yard, Orchard/Garden.

The Borcea channel existing fish (of piscatorial interest): carp (huge), cteno, bream (in
industrial quantities, a lot of it weighing around 1-2 kg and seldomly 4-6 kg); big gold fish
(1-2 kg), big roach. Other fish (prey): bass, pike perch, pike, cat fish.

Building and presentation of the tourist product Rural tourism and fishing in
Clrai:

Day 1
- Arrival at the CASA ALB pension
-Check-in
- In the afternoon, the fishing tools will be checked and the potential of the Borcea channel
is tested by a short fishing play. The best fishing places will be picked-up and they will be
baited with corn.
- In the evening: traditional dinner based on fresh fish caught in the lake.

Day 2
-Fishing on the Borcea channel
- the reproduction carp will be caught, photographed and set free. Only 1-2 carps and the
gold fish will be kept for dinner which is going to be made up of fish soup and souse carp.
Everything will be well basted with dry white wine.

Day 3
- Trip to the Dor Mrunt breed stud. Riding lessons.
- Lunch will take place at a local pension. In the evening: venatorial dinner at the pension
(deer and boar cooked on a special recipe known only by the host).
399

Day 4
- Boarding in Oltenia on a passenger ship and cruise on the Danube 7 hours
- Lunch on board the ship. In the evening: dinner polenta with cheese and fresh cream;
chicken cooked in the pan.

Day 5
- Fishing on the Drvari Lake. Location: the Tmdu commune/the Drvari village.
Fishing can be done all year, with the exception of contests. Existing fish in the lake: carp
weighing 10-20 kg, cteno, gold fish, pike perch, bass, cat fish, cornel. Picnic on the lakes
bank.
- In the evening: fish caught in the lake will be cooked.

Day 6
-Visit to the Ethnography Centre (Lehliu-Gar). Popular art: willow netting, ceramics centre.
Baskets and other objects hand-made by the folk masters can be bought.
- Visit to the Ciornuleasa Forest Natural Reservation (Mitreni)
- Midday: visit to a rural farm and lunch there
- In the evening: camp fire and grilled buck

Day 7
-In the morning: fishing on the Sruleti lake so that the tourist would not leave empty-
handed.
Estimated cost for the services package amounts to 540 RON/person.

BIBLIOGRAPHY

1. CREU ROMEO CTLIN, 2005, Resurse agroturistice, Editura Cartea Universitara, Bucureti,
pg.127.

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LEGAL ESTABLISHMENT OF CYCLING TOURISM, OPPORTUNITY FOR
DEVELOPING THE RURAL TOURISM IN ROMANIA

ORGANIZAREA LEGAL A CICLOTURISMULUI, OPORTUNITATE
PENTRU DEZVOLTAREA TURISMULUI RURAL N ROMNIA

CREU R.C.


Abstract

Presently, the National Authority for Tourism is willing to promote a law to introduce in our country as
well a form of tourism successfully practiced in western countries, namely the cycling tourism. We can state
that cycling tourism is even nowadays practiced in Romania, but on an un-organized basis and on routes
that are not homologated. The development and promotion of this form of tourism can constitute for some
rural and agricultural pensions in the country new possibilities of attracting customers, due to the fact that
tourists going on cycling tours will need hosts to rest and taste the traditional Romanian food.

Key words: cycling tourism, rural tourism, legal establishment, cycling trails.

INTRODUCTION

It is established the National Network of Cycling Routes in Romania hereby referred
to as RNTCR, made up of all the terrestrial means of communication in Romania which
are marked for the traffic by bike in a tourist purpose, hereby known as cycling routes.
Cycling routes are classified as follows:
according to the geographical extension criteria, into 3 ranks: national, regional and
local.
according to the type of the means of communication used, into 2 types: road type
and mountain type.
depending on the difficulty level criteria, into four levels: easy, medium, difficult and
expert.
MATERIAL AND METHOD

Cycling routes are developed on existent means of communication, accessible by
bike, as picturesque as possible from a landscape point of view and with as little motorized
traffic, chosen depending on the rank, type and level of the route. The runway surface of
the means of communications used as cycling routes is asphalt boarded or its equivalent
for the road type and as un-modernized as possible for the mountain type, with as little
roughness in all cases with the exception of mountain cycling routes of expert level.
The medium and maximum slope and the total difference of level as well as for
each up rise of the cycling routes are in accordance with:
a) level augmenting from easy to expert,
b) type possibly more reduced to the road type than the mountain type,
c) rank more reduced at the national and regional ranks, possibly high at the local one.
The national and regional cycling routes are also accessible to mountain bikes
loaded with luggage, during damp weather. The communication means used as cycling
routes have widths and curving rays adequate to double way cycling and tourist traffic,
under safety and comfort conditions, taking into account as well the overtaking needs and
the eventual existence of the luggage and trailers up to 1 m width attached to bicycles.
The road cycling routes mainly cross well-known tourist areas and other regions of
the country which are touristically interesting from the point of natural, cultural, historical,
401
landscape tourist attractions and connect these regions between them and with the big
cities and communications knobs. The mountain cycling routes are predominantly crossing
the country mountain regions as well as the regions which by the nature of their relief from
a landscape and communications means point of view can be assimilated or looking like
mountain regions, mainly the well-known tourist areas or with a tourist potential and which
by their relief and existing communications means are adequate for mountain cycling and
connect these areas one to another, as well as respectively to other means and
communication knobs. Tours on earth itineraries stretching along rivers or their barrages in
the field area or in the per urban forests can be assimilated to mountain cycling routes.


In case of portions inside urban or rural localities which are interesting from a
cycling and tourist point of view, the itinerary of the cycling routes will be picked up so that
it crosses as much as possible the central, commercial, administrative and services
providing areas, perimeters directly or indirectly interesting from a tourist point of view,
green areas and quiet residential districts. The urban itinerary of a cycling route will be
picked up without too big sinuosities, easy to follow and developed on communication
means as adequate as possible for bike traffic, under the condition of meeting the criteria
stipulated at paragraph (1).
The configuration of cycling routes will abide by the continuity and directivity
principles. The length of cycling routes will be selected so that the usual riding interval
should be: 5-12 days for the national ones, 2-5 days for regional routes and maximum one
day for the local ones. The shape of cycling tours can be of two styles: linear or circuit.
National cycling routes are of linear type and regional and local ones are of circuit type.
Each cycling route has one riding way, which is conventionally attributed. Marking and
riding will be done both ways, with the exception of some local mountain cycling routes of
expert level which could have only one way from a marking point of view and riding
admissibility.
Each cycling route is conventionally attributed a departure and arrival point (which
are the same in case of circuit cycling tours), possibly also a secondary departure and
arrival point. The departure and arrival points of a cycling route are accessible by public
means of transport. All cycling routes in Romania are connected to the others and are
organized as a hierarchic network, with sub-networks corresponding to the type and rank
of cycling tours and with joining each local and regional cycling route with an immediate
superior rank route of the same type which will comprise the departure and arrival points of
the cycling route joined and eventually parts of it. The national road cycling routes are
multiply crossing each other, connecting to cycling routes in the neighbour countries and
make part of international cycling tours including the trans-European cycling tours in the
EuroVelo network and forming a sub-network which is the fundamental structure of
RNTCR, on which the other cycling tours are constituted. The departure and arrival points
of the national road cycling routes are placed at the state border crossing points which are
open to international highway and passenger traffic. RNTCR is integrating with the other
transport networks in Romania passenger, highway, railway, naval, air traffic thus
ensuring inter-modality and taking part in the national transport system.
The number, type and level, density and territorial assignment of cycling routes will
be adequate to the needs and available resources, enframing for each country region
between a minimum and maximum value for each type and level of tour considering the
regional characteristics, the tourist attraction and the number and type of potential users
on the local area, environment protection criteria and other factors. For identification,
administration and promotion purposes, each cycling route is attributed a theme, name,
logo and indicator. For marking, description and administration purposes, each cycling
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route is conventionally divided into up to three successive sub-divisions: laps, sections and
segments.
CONCLUSIONS

The establishment of new cycling routes or the significant modification or the
liquidation of existing ones, from an itinerary as well as marking and facility point of view, is
authorized by the county commissions for cycling tours which are organized within the
local councils. The modification as well as rebuilding and maintenance works of cycling
routes are authorized by the county commission for marked cycling tours. Cycling routes
are considered authorized if they have been approved in conformity with the stipulations
under paragraph (1) and if the marking/setting up works have been finished and
undertaken. The reception is carried out based on the notice of the county commission(s)
for cycling tours, given in accordance with the evaluation report of the persons delegated
or agreed by the commission. Homologation can be suspended by the county commission
for cycling routes if the marking/setting up quality or possibility of adequate use by cycling
tourists of the respective route are negatively inflicted on a relevant portion and interval. In
case of duration of the inconveniences leading to homologation suspension, this can be
withdrawn by the county commissions for cycling routes. The records of the cycling routes
are kept locally by the county councils. Starting from homologation, cycling routes are
considered communication means of public interest open to cyclists public access, without
consideration to the owner and administrator of the communications means used as
cycling route. Restriction of cyclists access on a cyclist route can be only temporarily and
reasonably set up by the public safety bodies or those assimilated to them, as well as by
the owner or the administrator of communication means, for the purpose of rehabilitation
works, disasters, special events or other causes which make the cycling traffic impossible
or unacceptable. In all restriction cases, these will be notified in due time and will stipulate
alternative solutions. Cycling tours will be appropriately evidenced in the urban and
territory setting up documentation, in the tourist cadastre, in the inventory of tourist
resources and in other documents in conformity with the laws in force. Cycling markings
signs, indicators, panels with their accessories - and other setting up specific elements
such as traffic and information special signs for cyclists are under public property and are
consequently protected and administrated.
Design, marking, surveillance and maintenance of cycling routes will be done by
funds allocated in this purpose from the county councils budget and, complementarily,
from other public or private funds, internal or external, by diligence of central and local
public authorities, relevant non-governmental organizations, economic units acting in
tourism and other interested factors. The use of cycling tours is free and can not be the
subject of access or transit taxes.
Cycling routes are marked by placing a sequence of graphic signs named cycling
trails along the communication means where the route is stretching, at some intervals,
branches and cross-roads. Depending on the complexity and technical conditions, cycling
trails are done by direct painting on the substratum or by indicators and cycling marking
boards. Cycling trails have a specific standard design and are made up of basic graphic
elements known as signs of cycling trails which can be supplemented by other text and
graphic elements, making up five combination types of increasing complexity named range
of cycling trails. The signs of cycling trails are the cicloturism pictograph for the road and
mountain types as common signs and the C symbol as an individualizing sign. The
supplementary signs which can be met on the cycling trails are the route indicator, the
route logo, the GPS coordinates of the location, the destination (main, closest, others)
indicating distances to these; name of the route, sponsors logo, map of the area, other
elements.
403
Cycling trails have as basic colours the dark green on a white background. In order
to easily distinguish the cycling trails, the C symbol within the markings will be filled in a
different colour, that is red for national cycling routes, yellow or blue for regional ones and
in two colours (combinations between red, yellow and blue) for local routes. For easy
visual identification of the difficulty level of cycling routes, their indicator will be inserted on
indicators and boards in conformity with the level corresponding colour code: blue for easy,
red for medium, black for difficult, yellow/black for expert. Distances on the cycling tours
will indicate a main destination or a close one. The information will be given in kilometres,
adjusted to kilometre in case of distances over 10 km and to hectometre for distances
below 10 km.
From the fabric and used technologies point of view, the painted marking signs are
manufactured and maintained in conformity with the legislation applicable to mountain
passenger tourism and the indicators and boards are manufactured and maintained under
the rules applicable to highway indicators.

BIBLIOGRAPHY

2. CREU ROMEO CTLIN, 2005, Legislaie n alimentaie public i agroturism, Editura CERES,
Bucureti, pg.18.
3. AUTORITATEA NAIONAL PENTRU TURISM, 2008, Proiect de Hotrre privind organizarea
reelei naionale de trasee cicloturistice.

404
STUDY ON IMPROVEMENT OF EUROPEAN RURAL TOURISM

STUDIU ASUPRA DEZVOLTRII TURISMULUI RURAL EUROPEAN

DARAGUS A.

BUCHAREST

Abstract

In recent years the role of tourism in the context of the sustainable use of natural resources has
become more recognised. This recognition has been achieved in 1997 by the European Conference in
Luxembourg where tourism was identified as the key to activating growth processes in rural agriculture
thanks to the principles of integration and multifunctionality of several economic and non-economic sectors.
On this basis, a European rural model was developed based upon the definition of rural tourism in terms of
any tourist activity within the rural areas. However, this definition is broad and each of the EU countries has
issued its own specific legislation, so that today rural tourism appears to be a heterogeneous activity across
the EU countries. In recent decades, Europe has experienced a growing interest towards rural tourism that
has progressively led to the increase of demand and supply of infrastructure and services.

Key words: rural tourism, rural environment, tourist accommodation, natural resources, agrotouristic
firm.

INTRODUCTION

A European overview on rural tourism is given both in terms of a law perspective
and also from different experiences within some of the Union countries, namely: France,
Great Britain and Italy. In recent decades, Europe has experienced a growing interest
towards rural tourism that has progressively led to the increase of demand and supply of
infrastructure and services. Nowadays, this phenomenon, once marginal and spontaneous,
is characterised by a segment of tourism demand and supply having a great economic and
financial impact within the rural areas.

MATERIAL AND METHOD

Tourism literature has greatly focused on tourism demand and the consumer, as the
consumer is the one who identifies with and purchases the tourism product. The means of
transportation, type of accommodation, cultural services and so on can be considered as
tourist supply if their main economic drives is aimed at satisfying leisure and business
actives, (from the definition of tourism according to the World Tourism Organisation
(WTO)). On the other hand, the tourist supply approach emphases the role of goods and
services offered by private and public sectors without which a certain geographical area
could not experience a growth in tourist demand. As Markandya et al. (2003) point out, the
three main linkages between tourism and sustainable development are: economic, social
and environmental. This recognition has been achieved in 1997 by the European
Conference in Luxembourg where tourism was identified as the key to activating growth
processes in rural agriculture thanks to the principles of integration and multifunctionality of
several economic and non-economic sectors. On this basis, a European rural model was
developed based upon the definition of rural tourism in terms of any tourist activity within
the rural areas (Pierini, 2003). However, this definition is broad and each of the EU
countries has issued its own specific legislation, so that today rural tourism appears to be
a heterogeneous activity across the EU countries.
405
As emerged in the European Congress on Rural Tourism, approximately 200,000
entrepreneurs are recorded within Europe that offers more than 2,000,000 bed-places.
The annual expenditure in rural tourism is about 12 billion EUR and taking into account
added value and multiplier effects, this brings to the revenue upon 26 billions. Furthermore,
an estimated 500,000 jobs are created by rural tourism (Jakovica, 2003).
The European Commission has put in place legislative acts since the Eighties aimed at
reducing the economic divergence amongst the European regions, and given financial aids
to disadvantaged rural areas (CEE 2052/88, CEE 4253/88 and CEE 1260/99). However,
an important step forward was taken in 1996 with by the Cork Declaration (1996) where
the main policy strategies for rural tourism and its sustainability were assessed. The
integration between agriculture and other productive sectors, such as tourism, is regarded
as a vital strategy for the development of a rural system characterised by agricultural,
environmental, historical and cultural opportunities that can create innovative and
sustainable economic activities, as well as a new attraction for tourism demand.
Rural tourism was first developed in France and dates back to 1951. In 1969 the
French Government defined a new type of tourist accommodation, "Chambre d'Hotes",
that were characterised by a diversified supply of services and leisure activities. In a 1992
survey, French farmers declared that rural tourism is acquiring an increasing role and
economic impact within their agriculture activity. From the analysis it also emerged that
rural tourism is mainly practiced by female operators. From a French legal perspective,
rural tourism is not classified as an agricultural activity, as an activity can only be defined
as agricultural if there is a long-term production from the land. Given this definition rural
tourism cannot therefore be regarded as agriculture. In France, rural tourism operators
have to enroll in a commercial register in order to guarantee fair competition and
consumers' rights.
In Great Britain, rural tourism has been developing since the Seventies and was
seen as a response by citizens from polluted and industrialized urban areas in search for
uncontaminated and unspoiled environments. A supply of accommodation and
infrastructure was planned and delivered by both public and private sector to fulfill the
tourists' needs. The demand for "green tourism" is the basis to sustain the economy of
British rural areas. This objective is reached by integrating and differentiating the
traditional agriculture activity and a sustainable use of the existing natural resources. Rural
tourism is regarded as an instrument to protect the rural environment. However, tourism
demand is highly sensitive to security and health shocks, as the recent past events have
demonstrated: Gulf War in 1991, Kosovo conflict in 1999, September 11 terrorist attacks
(Blake and Sinclair, 2003). In the UK, the foot and mouth epidemic in 2001 resulted in a
sudden and unexpected decrease of tourism demand in the countryside. This crisis has
highlighted the existence of inter-dependency between healthy farming, the environment
and the economic effects on tourism and, more generally, rural activities.
Within European legal framework rural tourism of Italy represents a unique example.
If rural tourism and agro tourism are considered as a synonymous in all European
countries, in Italy the two concepts are distinct. Two separate legislative acts define "rural
tourism" and "agro tourism" that are characterized by distinctive administration,
commercial and fiscal disciplines.
Rural tourism, in Italy, is defined as a tourism activity having in mind the protection
of rural areas and all their cultural, historical, crafts, gastronomy resources that these
areas are based upon. Rural tourism dealers might not be agriculture operators since the
law does not require a connection between tourism and agriculture activity whereas the
latter connection is the foundation for running an agro touristic firm. In Italy, national laws
give only policy directions and each region issues specific regulations on this topic. The
Sardinian Region, for example, declares that one defines "rural tourism" as the numerous
activities of accommodation, restoration, organisation of tourists' recreation and any other
406
service aimed to satisfy tourism demand within extra-urban areas (Art. 8, L.R 27/98). On
the other hand, the agrotouristic activity can be regarded
as a special case of rural tourism. In the next section, the definition and legislative actions
in regulating agrotourism in the region of Sardinia are discussed.
The Sardinian Region, for example, declares that one defines "rural tourism" as the
numerous activities of accommodation, restoration, organization of tourists' recreation and
any other service aimed to satisfy tourism demand within extra-urban areas (Art. 8, L.R
27/98).
Sardinia is an Italian region that represents 8% of the total Italian surface and
counts one million and six hundreds inhabitants representing 2.9% of the Italian total
population. It is mainly characterized by a warm temperate climate with some differences
along the south coast, that sees a sub-tropical climate and the inner areas with a sub-
continental temperate climate.
The region of Sardinia is divided into four administrative provinces: Cagliari (in the
South), Nuoro (in the East), Oristano (in the West) and Sassari (in the North). Oristano
was the first province to have developed forms of rural tourism since the Sixties by a farm
cooperative (Cooperativa Allevatrici Sarde) sponsored by the European Organisation for
the Economic Cooperation. During the Seventies agrotouristic farms were activated also in
the Sassari province. The aim was to offer a differentiated tourist products based upon the
re-evalutation of the traditions and cultural heritage of the local and provincial territories.
This was the answer given by the farming sector to a new type of tourism demand that is
becoming more interested in the knowledge of the local culture, traditions, folklore and the
use of an unspoilt environment.
The first Sardinian Regional law was issued in 1986 to regulate the agro touristic
activity. A regional list was introduced to register the entries and cancellations of agro
touristic operators. A definition of agro tourism was also given as follows: "Accommodation
and restoration services are identified as agro tourism if they are provided by agriculture
operators and the tourist activity can be regarded as connection and complementary to the
agriculture activity" (L.R.1986).
As Macellari (2003) points out, this legal act has enhanced and promoted
agrituristic activity in Sardinia. It revealed to be a multi-sectoral policy based on an
integrated approach that encouraged the differentiation of the services supplied: the
enhancement of environmental functions, the promotion of
culture, local knowledge and traditions, sport activities and recreation. However, the years
following its introduction saw the law presenting an excess of bureaucracy and lack of
regulation on the quality of the agroturistic goods and services supplied.
In 1998, a new law was issued presenting innovative aspects. It emphasized even
further the condition of connection and complementarity of agro tourism with agriculture
activities (Art. 5). New limitations were introduced in terms of quantity and quality of goods
and services supplied by agro touristic firms, in accordance to the tourist-consumers' rights
and satisfaction. Accommodation infrastructure can be supplied according to the farm
dimension. However, they cannot exceed the maximum limit of 12 rooms and 20 bed-
spaces within the agro touristic accommodation and they cannot exceed the maximum
limit of 10 tent-spaces and 30 guests within an agro camping accommodation. Limits have
also been fixed for the restoration activity for a maximum of 80 seats per meal. The
legislation has also integrated the provision of own-farm food and drinks produced by other
local agriculture firms. The aim is twofold: to guarantee the quality, the differentiation and
the availability of restoration products; to develop a "network" of agriculture firms within the
local territory that are able to benefit from economic multiplier effects, commercialization of
own products and promotion of local traditions. Finally, the law has issued specific
structural requisites that fulfill the legal lack of regulation on the quality of agro touristic
firms.
407
At the regional and national level, rural tourism and agro tourism are proving to be
successful with higher levels of demand. In 2002, as reported in ISTAT (2003), the total
number of arrivals in Italian agro touristic firms reached 1 million units and the number of
nights of stay counts more than 5 million tourists, denoting an average of 5.5 days of
staying. On average, foreigners spend around 6.8 days and Italians stay for only 4.3 days.
On the supply side, in Italy there are around 8,600 enterprises and 102,000 bed-spaces.
Toscany confirms its historical investment in agrotourism with the highest quota of firms
equal to 29.3% and Sardinia shows a quota of existing firms equal to 0.5% of the national
supply. Very similar results are reported in terms of bed-spaces, Sardinia, together with
Valle D'Aosta and Molise, denotes a quota of 0.4% with respect to the aggregated datum.
ISTAT (2003) also indicates some problems for this economic activity and some signs of
maturity in many areas that need some prompt actions in terms of services, promotion and
professional training to improve the quality of the "product".
For the future the Region should induce a "re-orientation stage" by encouraging
new entries and the existing enterprises to operate for a longer span of time by adopting
policies for higher investments in professional training, marketing policies and, most
importantly, by activating a tourist supply network within the Sardinian territory. These
policies should be combined with a quality classification of the firms, not issued yet, in
order to assure better information and protect touristconsumers' rights leading to improved
customer satisfaction.

CONCLUSIONS

Agriculture is seen as the economic sector able to revitalize European rural areas
that are today characterized by a progressive depopulation, as new generations tend to
leave in search of better opportunities and alternative sources of income. However, the
European legislation is very broad and gives each of the European members the
legislative discretionary to adopt their own specific acts in accordance to the main legal
Union directives. Hence, European rural tourism appears to be heterogeneous and EU
countries experience different legal frameworks.

BIBLIOGRAPHY

Butler, R.W. (1980), The Concept of a Tourist Area Life Cycle of Evolution, Canadian Geographer, 24, 5-
12.
ISTAT (2003), Rapporto sul Turismo Italiano, Mercury.
Jakovica, A. (2003), Rural Tourism - A New Trend in Europe, Summary of the 1st European Congress on
Rural Tourism, October 22th, Spain.
Domenica Giovanna Dettori, Antonello Paba, Manuela Pulina (2004) - European rural tourism:
agrotouristic firms in Sardinia and their life cycle, Working papers, Centro Ricerche Economiche Nord Sud.
http://www.eurogites.com.

408
AGRICULTURAL POLICIES MECHANISMS IN POST ADHESION PERIOD
AT NATIONAL LEVEL WITH IMPACT ON AGRICULTURAL MARKET

MECANISMELE DE POLITIC AGRICOL N PERIOADA DE POST
ADERARE LA NIVEL NAIONAL CU IMPACT ASUPRA PIEEI
AGRICOLE

DRAGOMIR V., SBDEANU V., OLTEANU V., SIMION L.

Institutul de Cercetare pentru Economia Agriculturii i Dezvoltare Rurale

Abstract

In the European Union Adhesion treaty was established that Romania will have the possibility to
choose for direct payments system and after a period of transition to proceed to unique payments for farm.
Romania will benefit of a Union support for market stabilization likeness direct payments and market
measurements, in addition with the rural development allocated sums. All these ensure the conditions for
agricultural competitivity growing and complex development of rural economy.

Key words: direct payments, unique payment on farms, rural development, agricultural policies
mechanisms

Based on the agreements signed within the accession negotiations in Chapter 7
Agriculture, the CAP implementation in Romania implied taking strategic decisions about
selecting the payment scheme for the measures to support revenues directly, additions to
payments based on area, means of payment, transfers between budgetary allocations and
defining the eligibility criteria.
The main reasons at the basis of Romanias decision to choose the SAPS direct payment
allocation scheme were mainly those of technical and budgetary nature (lower
implementation and management costs, control only in terms of observing the good
agricultural and environmental conditions). In addition to these reasons, in taking the
decision, the possibility for the support to be granted to eligible businesses mattered as
well.
Observing the EU procedures, in order to be eligible, a farmer must fill in an application
which must be recorded by the Integrated Management and Control System (IMCS). The
Government of Romania decided that in order to benefit from direct payments per area
each farmer must use an area larger than or equal to a hectare and this area should be
grouped in lots of at least 0.3ha.
Another requirement to be met is the one related to maintaining the agricultural
terrain in good agricultural and environmental conditions
9
.
Although this decision affects over half of the agricultural businesses in Romania
(according tot RGA, 49.5% of the 4.5 million agricultural businesses in Romania use less
than 1 hectare of agricultural terrain) practically eliminating them from direct support, the
high costs of the financial management of granting support for such small areas dominated
in taking this decision. Also, the possibility for these small businesses to undergo a
dynamised reorganisation process simultaneously with the absorption of a significant part
of the rural development funds contributed to this decision up to a certain extent.
If in the past the productive potential of the terrains was erroded by the aggressive
agrotechnics used to obtain record crops, after 1990, against exhibiting an
environmentally friendly behaviour and implicitly friendly with the land, there intervenes
another factor with an even stronger negative potential, namely the poor economic power

9
Good Agricultural and Environment Conditions.
409
of the new land owners. Thus, the data obtained within the National System for monitoring
the soil quality showed that an area of 12 million hectares of agricultural land is affected by
several factors restricting the agricultural production capacity. According to the MADR
estimates the umber of applications for support that should be processed and managed
could be of 1.5 million (number of eligible businesses according to RGA).
According to the methodology applied in the new member states, Romania will
correlate the national ceiling for direct payments with the single payment scheme, starting
with 2007 until 2016.
The national ceiling set by the Community for the crops on arable land, dairy milk, beef,
mutton and goat is set so as to be able to introduce gradually the single payment per
business scheme. For Romania and Bulgaria, direct payments are introduced in
compliance with the next calendar of percentage increase (table1 and figure 1).

Table 1
The calendar of allocating the amounts from the community budget and national
budget for direct payments, in the interval 2007-2016

Specification 2007 2008 2009 2010 2011 2012 2013 201
4
201
5
201
6
annual growth % of the direct
payment ceiling from the EU
budget
25 30 35 40 50 60 70 80 90 100
annual growth % of the direct
payment ceiling from the national
budget
30 30 30 30 30 30 30 20 10 0
Total annual payments % 55 60 65 70 80 90 100 100 100 100
Source: Bulgaria and Romanias EU Accession Treaty, Monitorul Oficial al Romniei Publishing House, 2005

The direct payment per hectare, set on the basis of the Council Regulation EC no
1251/1999 can be applied by Romania and Bulgaria only five years after the accession,
but the single payment scheme can be introduced gradually even earlier. In this period of
progress from the SAPS to SPS, it I necessary to create the market behaviour of the
producer who benefits from community and national support.
Figure 1.
The evolution of the subsidies (SAPS + CNDP) in the interval 2007-2016
The direct payments granted to farmers can be completed by Romania with
supplementary payments from the national budget (the top up mechanism) up to 30%
over the level granted by the Community. But, these amounts can be allocated, on no
conditions, temporarily and on the Commissions approval until the full allocation of the
amount from the EU.
The direct payments from the EU (both in the vegetal and in the animal sector) can
be allocated without being restricted by the production, within the limit of the national basic
area negotiated with the European Union and the number of animals and the national
0
20
40
60
80
100
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
SAPS
TOP UP
410
ceiling that were negotiated.
The national basic area and reference production (average of productions per hectare in
the interval 2000-2002) were negotiated by each country and stipulated in the Accession
Treaty in order to allocate the direct support from the community budget.
Romania negotiated a basic area for which direct payments can be received of 7,012,666
ha with a reference production of 2.65t/ha. The community support for the agricultural
sector (direct support for the crops on arable land, milk and dairy products, beef and veal,
mutton and goat) for Romania, in the interval 2007-2016, observes into the following
ceilings (table 2.9, figure 2.6).
Table 2
The financial ceiling allocated to Romania from the community budget for the interval
2007-2016
Million
Calendar
year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Romania 441,9 527,9 618,1 706,4 803 1059,6 1236,2 1412,6 1589,4 1766
Source: Bulgaria and Romanias EU Accession Treaty, Monitorul Oficial al Romniei Publishing House, 2005

Figure 2
The allocation of the financial ceiling allocated to Romania from the Community budget for
the crops on arable land, milk and dairy products, beef, veal, mutton and goat in the
interval 2007-2016
Upon its accession to the EU, Romania informed the European Commission about
the size of the agricultural area in use, which is of 7,822,260 ha. This area is to be
approved by the Commission as well, because, according to the General Agricultural
Census in 2003 where the total useful are of the country was of 14,852,300 ha, or
declared, it was much smaller.
The arguments brought in by Romanian in favour of this decrease consist in taking into
account the influences caused by: the introduction of the eligibility threshold of 1 ha per
farm for subsidies to be paid; the introduction of the eligibility threshold of 0.3 ha per lot for
subsidies to be paid; the state of the farms recorded in the farms and corresponding areas
register; the state of the communal pastures; other arguments.
If the European Commission accepts the useful agricultural area proposed by
Romania, then the financial package negotiated is divided to the respective area and the
maximum value of the subsidy per area is obtained.
441,930,000
Namely:
______________________
= 56.5 /ha
7,822,260 ha
In this sense, we use the phrase maximum value because this amount has an
informative, temporary character, the final value being known after we know the total area
declared by farmers and the rebates that will apply.
The value of the payment per hectare can fluctuate in two possible situations:
a) APIA receives applications for support for an area which exceeds the useful
0
200
400
600
800
1000
1200
1400
1600
1800
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
411
agricultural area communicated to the Commission. In this case, the payment per hectare
is decreased by a uniform decrease coefficient. Suppose that in 2007, Romania receives
applications for 8,500,000 ha. In this case, the final payment per hectare will b smaller,
namely:
441,930,000

______________________
= 52.0 /ha
8,500,000 ha
b) APIA receives applications for support for an area which is smaller that the useful
agricultural area communicated to the Commission. In this case, the payment per hectare
remains constant, but Romania will absorb a total amount hat is smaller that the one
stipulated in the financial package. Suppose that in 2007, Romania receives applications
for only 6,000,000 ha, in this case the total amount absorbed would be:
56.5/ ha * 6,000,000 ha = 339,000,000
The calculations above start from the premise that all the applications that are submitted
are payable at the requested value, namely they do not contain sanctionable errors (the
reduction of the areas for which payment is accepted).
If we suppose that the eligible area recorded for payment of 8.5 million ha, the entry
percentage is of 57% of the total eligible are at national level.
For this reason, the estimate of the direct support from the community budget, as well as
the complementary support that can be allocated from the national budget for the vegetal
and livestock husbandry sector, as compared to the used agricultural area, would be the
following (table 3).
Table 3
The estimate of the direct community support and of the complementary amounts from
Romanias budget for the interval 2007-2016

Specification 2007 2008 2009 2010 2011 -- 2016
Direct payments according to the results of
the negotiations with the EU (million euro)
441,9 529,8 619,9 708,3 884,9 1766
Maximum support from the national budget
(million euro)
527,9 527,9 527,9 527,9 527,9 -
Total amounts allocated from the community
and national budget (million euro)
969,8 1057,7 1147,8 1236,2 1412,8 1766
Amounts calculated annually per eligible
hectare for direct payments (euro) of which:
Community support euro/ha:
National support Euro / ha

80
50
30

90
60
30

102
72
30

116
86
30

133
103
30

200
-
Source: estimates based on the information from APIA IACS Direction

The revenues obtained by farmers depend mainly on the market competitiveness of their
products. The community and national support is only a part of these revenues, namely
certain amounts that support the expenses made. On the other hand, the support from the
national budget depends on the availability and priorities set for the crops on arable land
and livestock husbandry.
In 2007, about 1,500,000 farmers recorded in the farms Register will benefit from
community 50/ha, amount which will be completed by 30/ha from the national budget
through the National Direct Complementary Payments. In order to benefit from this support
amounting to a total of about 2.8 thousand/eligible ha, farmers have to submit their
applications for support, and these rights will be granted starting with 1 December 2007-30
June 2008 and will be paid into each farmers account.
As it result from table 3, only in 2016 the direct support entirely from the European Union
could reach 200/ha. Until then, the evolution of prices and market are difficult to estimate.
The SAPS application is useful for a period of time in order to ensure the reorganisation of
agricultural businesses, the creation of a viable commercial sector and the development of
412
the agricultural producers relationships with the market. The progress to the single
payment scheme implies an advanced level of development and stabilisation of the
production and the diversification of the activity to favour the Romanian agriculture. If this
process is not achieved before the deadlines set for each member state, the businesses in
Romania will be penalised by reducing the allocated amounts. But if we progress to the
SPS mechanism, without the necessary training, there is the risk of decreasing the interest
in achieving efficient productions per hectare, especially in the small peasant households.
Thus, the period for applying the SAPS will have to accelerate the process of creating the
economic dimensions of European type.
The role of direct payments in solving the problems of the agricultural income does not
have to be overestimated. The direct payment schemes of SAPS type can ensure a
certain stability to the income and reduce the risk for the revenue of agricultural producers
by guaranteeing a minimum revenue from agriculture. But the direct support schemes
cannot replace the need for increase in the productivity and competitiveness of Romanian
agriculture. The increase in productivity and competitiveness remains the sustainable long-
term solution in solving the agricultural revenues problem. The agriculture support
schemes that aim at specific needs for sectoral adjustment, such as merging agricultural
businesses, the investments at the level of agricultural business for the increase in
competitiveness or productivity, was better achieved within pillar 2 of the CAP.
Similarly, the applications of a revenue direct support scheme cannot replace the
implementation of the measures within pillar 2, for example, an (anticipated) retirement
scheme for the agricultural sector.

413
ECONOMIC AND SOCIAL DIAGNOSIS OF RURAL COMMUNITIES FROM
ROMANIAS DEVELOPMENT REGIONS
THE MOUNTAIN AREAS -

DIAGNOSTIC ECONOMICO-SOCIAL AL COMUNITILOR RURALE DIN
REGIUNILE DE DEZVOLTARE ALE ROMNIEI
- ZONELE DE MUNTE -

DONA ION, MIRON CARMEN

Abstract

The rural communities in the mountain area have tried to find own solutions, own adequate means,
specific to the common development, which would generate economical and social rebalances and
modernization. The main objective of the study is: facilitating the understanding of the role of the non
agricultural sectors dynamics in increasing the occupational degree and diversifying the opportunities which
generate incomes as well as promoting the adequate mechanisms needed for the integration of the results of
the researches in an efficient rural policy. A second objective is setting the main ways for the modernization
and diversification of agricultural activities. The study was performed on the three bearings: (a) rural areas
with mountain status; (b) the countys a more profound analysis was performed in: Neamt, Suceava,
Brasov; (c) the rural commune and household: the communes Vanatori and Pipirig in Neamt county; the
communes Sadova and Panaci in Scueava county; the communes Sinca Noua and Poiana Marului in Brasov
county.
Key words; economical and social diagnosis, rural communitis, Romanias development regions

INTRODUCTION

The rural communities in the mountain area have tried to find own solutions, own
adequate means, specific to the common development, which would generate economical
and social rebalances and modernization. The backfire of agricultural activities, the
economical decline of urban centers, the modification of the status of polarizing centers of
the cities have determined essential changes in the mountain rural evolutions, in their
models of common development.
The main objective of the study is: facilitating the understanding of the role of the
non agricultural sectors dynamics in increasing the occupational degree and diversifying
the opportunities which generate incomes as well as promoting the adequate mechanisms
needed for the integration of the results of the researches in an efficient rural policy. A
second objective is setting the main ways for the modernization and diversification of
agricultural activities
In the case of common rural studies, due to its methodological fidelity, the definition
from a territory (spatial) perspective has been used, an ERNA based on activities
considered local such as (A) the activities developed in the household and (B) the
activities developed in the vicinity of the household, which consists of three sub-
categories: activities in the rural environment; activities in the vicinity of the rural towns;
activities in the vicinity of big cities.
Referring to the way the households share their report resources of workforce
between different types of non-agricultural activities, the economical theory emphasizes
the special influence of the attitude towards risk. As such, the households neutre towards
risk will share their work resources between the activities inside their household and
outside it, so as their marginal incomes of all the activities to be equal. In the case of
households with aversion to risk, as in the case of most transition economies, these with
either allocate less time to risky activities (if the expected incomes of the activities are
414
equal) either they will accept other jobs, paid worse, but in a safer environment. The
activities outside the household can be looked at as a measure of reducing the total
variation of its incomes; this doesnt mean that the risk associated to the opportunities
outside the household is smaller, independent or inverse proportionally with that of the
activities within the household, most of the times it happens that the latter are very limited.

MATERIAL AND METHOD

The study was performed on the three bearings: (a) rural areas with mountain
status; (b) the countys a more profound analysis was performed in: Neamt, Suceava,
Brasov; (c) the rural commune and household: the communes Vanatori and Pipirig in
Neamt county; the communes Sadova and Panaci in Scueava county; the communes
Sinca Noua and Poiana Marului in Brasov county.
The economical and social analysis used statistic and sociological data gathered
through specific quantitative and qualitative methods. This way there were processed
primary and secondary data, diagnosis type analysis were performed, to statistically cut
out the main tendencies at a rural area, community and household level.
For the study of rural communities that theoretical-empiric model was used focused
on the economical rehabilitation and the modernization/development of local communities,
a multi criteria approach which starts from evaluating the resources, the local problems,
and generally is based on unique criteria (demographic, economical, social and
sociological aspects) to determinethe general and specific objectives of the development.
After evaluating the local, regional availability referring to the human, economical and
natural resources one can establish the dimensions of the endogenous development plans.
One of the essential premises of the strategies of liable to local and regional development
consists of evaluating the regional reality as a sub-used potential than needs are not being
satisfied or because the resources are not sufficiently exploited. The lack of financial
resources and the poor professional training of the workforce are generally explaining the
sub-using of certain available natural resources or perhaps this can be explained by the
fact that some activities of transforming agricultural products are not elaborate enough.


I. Qualitative study of the investigated rural communities
Vntori commune, Neamt county
General data. Situated at about 45km away from the county residence, the
Vanatori commune includes four villages: Vanatori Neamt (the former village commune
residence), Lunca, Nemtisor and Manastirea Neamt. The nearest locality is Targu Neamt
(6km). The access to the Romanian Railway infrastructure (CFR) is done through Targu
Neamt where a PECO station is located. There is no direct link with the county residence
town: buses and microbuses which run with the frequency of 30 minutes but towards
Piatra Neamt city. In the commune there were 12 registered taxis. The accessibility
between its component villages is very good, the connecting roads being modernized for
the most part.

Common capital and common problems. The people interviewed have identified
as main problems of the commune the following: low salaries, the lack of current water and
natural gasses feeding system. The parties which have a permanent activity are the
following: PNL, PSD, PD, PRM, PE and PNG. The other parties exist too, but they
reactivate themselves only around elections. In the commune there are two NGOs
(nongovernmental organizations) which activate in social counseling. The role of the
415
church in the communes life is important: collecting funds and various products to help
needy people, counseling young people. The City Hall workers are periodically called for
meetings in the county to be informed of different themes. In Vanatori Neamt commune
were developed several SAPARD projects which were focused on constructing some
agro-boarding houses and constructing roads. There were also implemented the following
projects: a) implicating the members of roma ethnic community in environment non
polluting activities (The foundation for partnership Miercurea Ciuc); b) Its time for action
(planting by members of the roma ethnic community of 500 locus tree wild seeding). By
the appreciation of authorities there are neither inter-ethnic conflicts nor confessional ones.
Alcoholism is present especially with men who dont have a job. Although the number of
doctors and professors is extremely low compared to the established norms still the
education and health systems are perceived as fields which dont create products.
Comuna Sinca Noua
General data. Situated at about 40km away of the city of Brasov, Sinca Noua
includes two villages: Sinca Noua the commune residence and Paltinu. Closest town is
Zarnesti situated about 20km away, and the closest commune is Sinca Veche. In the
commune there arent any train stations or PECO stations. Towards Zarnesti there are
daily losses and microbuses which run at a 4 5 hours interval. The accessibility between
villages is relatively good, but the communes roads are made of dirt fact which makes the
peoples traversing difficult especially in winter time. Situated in the mountain area the
Sinca Noua commune, reformed in 2002, is confronted with landslides. There are no
pollution or landslides problems. In the commune is situated part of the natural reservation
Sambata.
Common capital and common problems. The interviewed people have identified
as main problems of the commune the following: i) the lack of jobs for young people and
also the lack of services destined to young people; ii) the lack of sales markets for
agricultural products. In the commune works the ProSinca Association which has fought
for the reforming of the commune and has also assumed a series of social programs. The
role of the church is an important one: the priest is implicated strongly in the social and
cultural actions. The represented parties are PSD, PNL, PRM, PNTCD, PD and PC. The
decisions regarding the problems of the commune are made in monthly or extraordinary
meetings. The authorities say that maintaining the communes goods is done by attracting
extra budgetary funds or by participation of the population. The City Hall workers are
periodically called to the county for meetings on different themes and this way they are
informed. At the commune level works a local TV station which transmits information
linked to the commune and the activities developed at the countys level. In the Sinca
Noua commune there are developing several projects financed by budget funds PHARE or
SAPARD. The authorities appreciate that there are no inter-ethnic or confessional conflicts.
Alcoholism is a present phenomenon, but it is not more striking than in other parts.
II. Qualitative analysis focus-group
Vanatori rural community, Neamt county, mountain area
-There is a positive perception of local problems and resources. The main resource is the
touristic one.
-The opportunities are generated by the economical resources, especially by the touristic,
institutional ones; the restrictions: the quality of rural life and the corruption phenomenon.
-The strategies developed up until present are destined for the modernization of the
locality.
-The organizational forms or imagined in associative profile, and for non agricultural
activities, as small and middle industry units.
416
-The strategies the local leaders proposed themselves are focused on the development of
tourism, and rural industry. A special place is occupied by social strategies for not favored
groups and for amplifying the institutional capital.
inca Nou rural community, Brasov county, mountain area
-The perception of resources and of problems is generally positive; elements which can
facilitate the sustainable development of the locality are value.
- The microeconomic level strategies are a mixture of those specific to peasant economy
and those defining for the transition period.
-There are strategies which determined the modernization in European terms of the
community and specific strategies for the rural development.
-A strong point of view of the strategies was conferred by the high degree of rural
participation. There are forms of viable partnership.
- The strategies the community proposes: continuing the sustainable development and the
economical, urban and cultural development.
-The strategic demarches referring to public safety and high risk factors attenuation
occupies a significant place in the preoccupations of local authorities.
-The degree of economical and social efficiency of local authorities in monitoring and
managing the entire locality is very high.
III. Quantitative study of the investigated rural households
From the quantitative sociological study of the investigated rural communities
resulted the following conclusions:
- at the level of mountain areas, in peri-urban communes, the average dimension of the
household is smaller than in the rural ones. It is negatively correlated with the level of
economical development expressed by GNP per inhabitant. As such, and Paris and
between the communes in the mountain area of Moldavia shows the higher level of
economical development of the county which is correlated to a smaller dimension of the
household (the communes in Suceava county) and with an average higher number of
people per household in the communes of Neamt county characterized at a lower level of
economical development.
- the household of the communes in the counties of the historical province of Moldavia
have many more children to support and are less exposed to the risks of workforce
renewal. On the other end there are the communes in Brasov county where the share of
households with children to support is under the average of the mountain area. In other
words, a higher share of the households in these last communes is subjected to risks of
not being able to renew their workforce in the future and to have a lower degree of
tolerance and opening towards innovation because of the lack of its young contingencies
of active population. There is a negative correlation between the peri-urban communities
status and the average number of children the household supports ( the correlation
coefficient Pearsons is 0,199). As such, the active populations of the peri-urban
communities in the mountain areas are subjected also to a higher risk of losing their
occupational vitality and mobility because the average number of children per household is
small in the average.
- generally, the populations in peri-urban mountain areas have a level of education and to
not value the advantage of the position towards the urban centers which would allow them
a more easy access to the higher level educational infrastructure. The populations of rural
communes in the mountain areas value education as a chance to obtain a better paid job.
The populations with a higher degree of education in rural communes can have better
chances on the work market and a higher capacity to accumulate new technical and
specialty knowledge. The specialization in the agricultural field is extremely reduced.
-the degree of occupation of the active population is higher in peri-urban communes given
the vicinity to the urban centers which offers them occupational opportunities.
417
- generally, in mountain areas, the economical dependency of the population in the peri-
urban communes is more emphasized, the number of inactive people and who are
unemployed is higher than in rural communes (the correlation coefficient between the peri-
urban commune status and the ratio of economical dependency being Positive 0,31). The
populations of the mountain communes are mostly occupied in the second and third
sectors.
- the peri-urban communes populations complete their incomes and/or their sources of
living from secondary occupations, due to the vicinity of urban centers on whose work
market day activate on and the active peri-urban population and which offers higher salary
benefits. The dominant secondary occupation is agriculture in all mountain communes.
-the occupational mobility by accessing the work market outside the rural community is a
characteristics of the typical rural areas which are not in the polarizing area of the cities,
existing a direct significant correlation between the status of rural commune and a number
of households which people temporarily left for a job. Analyzing the structure of the
occupational migration by comparison between the two types of communes rural, peri-
urban one notices the existence of a rule: the shares of the people left for a job in
another locality are higher in peri-urban communes than in rural ones. So, the populations
of the typical rural communes in the mountain areas have a higher opening towards the
fluxes of the long term occupational migration, being more disposed to assume greater
risks, but having in the same time the opportunity to benefit from knowledge, techniques
and new business ideas from the destination places of the migration.
- at a peri-urban and rural level, one notices that the agricultural activities drop as
importance proportionally to the vicinity with urban localities (by reducing the surfaces of
agricultural terrain, the number of animals and through a more visible land leasing
process). That this revision of households according to dimension show to the
predominance of the smaller households in the peri-urban communes, their surface
growing in the rural communes. the majority of the household owners taken into study
are relatively old, give their land for lease, and live with their children and their families.
- the majority of those who give or give/take land for lease in rural communes dont do this
based on the contract, except for the communes where there are associations for; the
frequency of contract leasing is higher in peri-urban communes.
- rural communes are oriented towards crops which produce raw materials for animal
breeding which is the main agricultural activity in the mountain area. They concentrate a
large number of animals compared to peri-urban communes.
- in the households of peri-urban communes there is a higher share of vegetal agricultural
products sales although the crops in the mountain areas are destined almost entirely for
animal breeding and not selling.
- in peri-urban communes (Sadova, Vanatori, Panaci) and the number of people using
season workers is higher than in rural communes (Pipirig, Poiana Marului, Sinca Noua);
- the most commonly met form of payment for season employees and is the daily salary for
the both types of communes. The apparition and development of salaried work in
agriculture are the promises of the development on the principles of the market economy.
The number of days fees and employees work is larger in rural communes and then in
peri-urban ones. The current status of the occupational diversification of the active
population is more emphasized in the typical rural communes where the share of the
occupied people in the second and third sectors is of 53.13% as compared to only 42.86%
in the peri-urban communes. The respondents in the peri-urban in the mountain area are
more disposed to get hired if they were offered this opportunity compared to the
respondents in the typical rural communes. The majority of the respondents in the peri-
urban communes regard, in case they were hired, fields of activity situated outside the
exploitation of local resources while respondents in rural communes prefer the agri food
sector as a main field they would like to work in. but they are not limited to only two
418
processing agricultural products but in an almost equal proportion they would be disposed
to work in other fields too. In the case of the categories of communes is manifested an
important opening towards the occupational opportunities which are not linked to the
exploitation of rural resources, over 30% of the respondents intending to get hired in other
activities too.

CONCLUSIONS

1. The investment strategies of the households also offer important information regarding
the capacity of the rural communities to generate new occupational opportunities on the
work market as long as the investments regard the development of agricultural and/or non
agricultural businesses. Of the total households in the sample, 54,33% did not invest in the
past year, 35,67% registered the family, accomplishments as investments, 15,33% have
invested in the agricultural exploitations and only 3,33% have invested in the development
of a non agricultural business.

2. Between the households of the two categories of communes, the entrepreneur spirit is
manifested differently, the highest share belonging to the households which have made
investments in the previous year registering in peri-urban communes. So, the largest share
of the house and which didnt invest is in the typical rural communes (61,33 %) while in
mountain peri-urban communes 47,33% of the households didnt make any investment.

3. The typical rural communes households have a smaller capacity to contribute to
increasing the offer of jobs in the rural space because the share of those which invested in
agriculture were in developing a non agricultural business is of only 12,67% and
respectively 2%.

4. The peri-urban communes in the mountain area are characterized by a relatively better
local economical dynamics favorable to the development of the work market because a
higher share of their households have invested in agriculture 18% and in developing a
non agricultural business 4.67%.

5. The share of the households which intend to invest in the future is higher; as much as
1/5 of the households declare that they want to invest compared to the number of those
who previously invested. It is noticed the reversing of investment tendencies between the
two categories of communes; in the future, a higher share of the typical rural commune
households manifesting the intention to invest as compared to a smaller share of the peri-
urban commune ones. Still, in intention, there is a decrease of the share of households
which do not invest compared to the previous period in both categories of communes.

BIBLIOGRAPHY

1. Archer, R., Pigalle, F., (1998), Choix de territoires pour une politique, n Gestion des territories
ruraux. Connaissances et mthodes pour la dcision publique, Editions Cemagref
2. Bulai, A Focus Grup, Editura Paideia, colecia tiine social, 2000
3. Chirca C. and Teliuc E. From Rural Poverty to Rural Development, World Bank and National
Commission for Statistics, 1999;
4. Davis Jr. and Gaburici A. The economic activity of private farms in Romania during transition,
Europe-Asia Studies, 1999 ;
5. Davis Jr. and Pearce D. The Rural Non-farm Economy in Central and Eastern Europe. Discussion
Paper, 2000, Natural Resources Institute, UK;
6. Reardon T., Taylor JE., Stamoulis K. Effects of non-farm employment on rural income inequality in
developing countries : an investment perspective, Journal of Agricultural Economics, 2000.
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7. Rioux, C., Utli, B., Michaud, J., C., Gosselin, L., Proulx, C., (1998), Planification et gestion du
dvelopment local l aide d une mtodologie multicritere , n Gestion des territories ruraux.
Connaissances et mthodes pour la dcision publique, Editions Cemagref
8. Rizov M., Gavrilescu D., Gow H., Mathijs S. and E. Swinnen Transition and Enterprise
Restructuring: the Development of Individual Farming in Romania, EU PHARE and The World Bank,
1999;
9. *** Dezvoltarea rural n Romnia. Carta Verde, 1998. Ministerul Agriculturii i Alimentaiei, PHARE
RO 9505-04-03, Bucureti
10. *** Recensmntul General Agricol, INS, 2004
11. *** Ancheta structural n agricultur, INS, 2006

420
RURAL DEVELOPMENT WITHIN THE HEALTH CHECK OF THE CAP
REFORM

DEZVOLTAREA RURALA IN CONTEXTUL CONTROLULUI DE
SANATATE AL REFORMEI PAC

ENESCU CARMEN

Ministry of Agriculture and Rural Development

Abstract

CAP today is fundamentally different from the one of the past, notwithstanding the often paradoxical
gap between the results of its reform process and some perceptions about it (most of them relevant to its
pre-reform period). But for the CAP to continue to be a policy of the present and of the future, it needs to be
able to evaluate its instruments, to test whether they function as they should, to identify any adjustments
needed to meet its stated objectives, and to be able to adapt to new challenges.
The Commission suggests in its Communication to the Council and European Parliament - "Preparing for the
Health Check of the CAP reform" a broad outline of adjustments to several elements of the CAP. These
adjustments do not constitute a fundamental reform, but prepare EU agriculture to adapt better to a rapidly
changing environment.
Within the context of an accelerated process of transformation, of challenges due to globalization and
enlargement of EU to 27 Member States, the Commission considers that simplification and modernization of
CAP is mandatory.

Key word Health check of the CAP reform, rural development, new challenges, risk management,
modulation, financial perspective.

INTRODUCTION

The European Commission launched on 20 November 2007 a public consultation
regarding the process of adjusting the Common Agricultural Policy (CAP), in order to
identify the deficiencies in functioning and the their corrections just to increase the
efficiency of the European agricultural sector, following the changes introduced in 2003
reform, the enlargement of EU and the recent evolutions on world market.
This process under the name Health Check of the CAP reform, currently under way, is a
mid-term review of the EU Common Agricultural Policy after the reform in 2003.
Within the context of an accelerated process of transformation, of challenges due to
globalization and enlargement of EU to 27 Member States, the Commission considers that
simplification and modernization of CAP is mandatory.
The 2003 Reform was the first step to make the CAP suitable for the 21st century.
Consensus on all the elements of the 2003 reform could not be reached in one step.
Indeed, this is why a number of review clauses were already foreseen in the final
agreement, as were in other subsequent reforms since 2003 (sugar, rural development,
fruits and vegetables, wine).
These review clauses, without implying a fundamental reform of the existing policies, allow
the possibility of further adjustments in line with market and other developments.
The aim of Health Check is to address three main questions:
how to make the Single Payment Scheme more effective, efficient and simple?
how to render market support instruments, originally conceived for a Community of
six Member States, still relevant in a more and more globalised world and an EU of twenty-
seven?
421
how to master new challenges, from climate change to growth in bio-fuels and
water management and ongoing ones such as biodiversity by adapting to the new risks
and opportunities?
The purpose of the present article is to analyse the aspects related to rural development
approached by the Commission in its Communication.
Taking into account the underlying financial principle for this Communication - that no
additional EU funding will be available for the first and second pillar of the CAP in the
period 20072013, the Commission finds and proposes some solutions to certain
problems in the second Pillar rural development.

MATERIAL AND METHOD

The main aspects identified by the Commission and raised for the consultation of the 27
Member States are analysed in the present chapter in relation with rural development. The
Commission identifies some solutions for mitigating the negative aspects or for providing
financial support.
1. Potential implications of further decoupling
Decoupling
10
leaves producers at least as well of as before and most likely better off, as a
result of production flexibility, market orientation and major simplification. However, it is
true that adjustments in production may represent a challenge for the agri-food chain.
Cases where decoupling could have a negative economic or environmental impact should
be better addressed in a regional context.
The potential risks and possible alternatives in the regions should be identified before
deciding to which extent and until when partially coupled support should remain. Farmers'
adaptation to other market realities can be also encouraged through Rural Development
measures.
Strengthened Rural Development measures can be important in ensuring that production
can meet industry demand in those areas most affected by decoupling where agriculture
plays a positive role on the environment.
2. Abolish set-aside
11
; strengthen environmental benefits
The foreseeable demand and supply situation for cereals, including the demand linked to
the fulfilment of the bio-fuel target set by the EU, argues for mobilising land which is
presently kept out of production through the compulsory set-aside scheme.
However, the permanent abolition of set-aside will require steps to preserve the
environmental benefits accrued from the present scheme. One possibility would be to
replace it by locally targeted Rural Development measures, taking into account that agri-
environmental conditions are heterogeneous in space.
In order to keep and further enhance such benefits, the aim would be to strengthen Rural
Development support to environmental forms of land, water and ecosystem management,
such as environmentally managed set-aside, the protection of riparian strips, afforestation
and measures linked to climate change adaptation and renewable energy policy like
biodiversity corridors.
3. Preparing the "soft landing" of the dairy quota expiry
In general terms, it is expected that the phasing-out of milk quotas will expand production,
lower prices and increase the competitiveness of the sector. At the same time, certain
regions, especially but not exclusively mountainous regions, are expected to face
difficulties in keeping a minimum level of production.

10
Decoupling is the process of cuting the link between the subsidy a farmer receives and the production or
price of a specific farm product. This was a key principle of the 2003 CAP reform.
11
Set-aside is the temporary removal of arable land from production in response to policy requirements
rather than agronomic considerations. Since 1992, it has been obligatory, and producers are required to set-
aside a certain percentage of their declared areas in order to be eligible to receive direct payments.
422
Some of these problems could be addressed with Rural Development measures aiming at
developing added value for dairy products. However, since Rural Development policies are
not designed to keep production in place, another solution for mountainous areas to
accommodate the "soft landing" of quota expiry is needed. Measures that would mitigate
the expected negative impact in specific regions are needed.
4. Managing risk
Decoupled producer support, by de-linking the level of farm payments from the quantity
produced, allows farmers to adjust better to expected risks, for example by redirecting their
production from low-price markets towards those with a better return. Decoupling also
allows producers to mitigate unexpected risks.
However, changes in traditional market instruments and the shift towards direct producer
support have prompted discussion on different ways of managing risk, with price risk and
production risk (e.g. weather-related or sanitary) identified as the two main sources of
variation affecting income.
The March 2005 Commission Communication, which looked into this question, included
three discussion options (subsidies on insurance premiums, mutual funds, basic coverage
against income crises) for a common framework at EU level, financed by one percentage
point of modulation. However, Member States are exposed in different ways to risk,
especially to climate change risk. Also, big differences in the legal, social, and economic
background of MS render an EU-wide scheme difficult to implement and manage.
But Commission analysis and expert opinion indicate that the list of risks and their extent
vary, and include so many uncertainties that, at this stage, at least as long as intervention
as a safety net continues, an EU-wide solution (based on a one-size-fits-all approach)
would not be appropriate.
In addition, Member States should be encouraged to use Rural Development tools
because it is exactly the second pillar that is more apt to provide targeted solutions. Not all
Member States, not all sectors, and more importantly not all regions and sectors even
within the same Member States, face the same market risks or weather risks. It is
preferable to allow Member States, regions, or producer groups, via second pillar
measures, to assess better their own risks and their preferred solution.
Therefore, the Commission considers that in the Health Check it would be appropriate to:
extend the use of part of modulation savings to allow risk management measures in
the framework of Rural Development policy, provided that they meet "green box" criteria;
examine on a case-by-case basis the need for additional measures in the context of
future adjustments in market mechanisms and carry out, at a later stage, a more general
examination of risk management for the period after 2013.
5. Responding to new challenges: climate change, bio-energy, water management
and biodiversity
There is a range of possibilities to deal with these challenges in the Health Check.
For mitigation and adaptation to climate change, for better water management and for
providing environmental services in the area of bio-energy, and for biodiversity protection
incentives could be provided through the strengthening of existing Rural Development
measures.
Research and innovation are crucial to address new environmental and productivity
challenges, including second generation bio-fuels. Furthermore, incentives for developing
second generation bio-fuels should be reinforced within Rural Development measures.
Climate change and agriculture's contribution of the Kyoto Protocol have been introduced
among the strategic guidelines for Rural Development for the programming period 2007-
2013. Current Rural Development plans include measures aiming at adapting agriculture
to climate change, as well as at contributing to meet the Kyoto Protocol. Rural
Development measures aiming at favouring the development of bio-energy as well as
improving water management and biodiversity exist already within Rural Development
423
Programmes. Climate change and water management could also be pursued through the
inclusion of these issues in the scope of cross-compliance. The feasibility of new
instruments will be examined.
6. Strengthening the second pillar; Modulation
12

The new challenges raised from the issues identified in the Commission Communication
make a further strengthening of the second pillar necessary, in particular in the light of the
current constraints that Member States are facing due to the cut in their expected Rural
Development support after the 2005 decision on the Financial Perspectives. Such
reinforcement is also necessary in order to respond to the need for increased efforts in
innovation to address those new productivity and environmental challenges, including
second generation bio-fuels.
With the CAP budget now fixed until 2013, strengthening Rural Development funds can
only be achieved through increased co-financed compulsory modulation. Such a decision,
which will in time affect all Member States, once they reach the 100% EU support level,
needs to respect the current distribution of modulation funds among Member States and
take into account existing rules. To achieve this, it could be envisaged to:
increase by 2% annually in budget years 20102013 existing compulsory
modulation;
analyse appropriate ways to take account of the implied compulsory modulation in
EU-10, whilst respecting the current distribution of Rural Development funds between
Member States.


Following the Commission proposals, the present chapter intents to present some opinions
and expectations related to the relation between Pillar I and Pillar II and to the
strengthening Pillar II by modulation.
In a recent speech, the Commissioner for agriculture stated that most probably Pillar II will
represent future of CAP, but in her opinion this could be strengthened by compulsory
modulation. CAP Health Check proposals aim to increase the level of compulsory
modulation from 5% to 13% during the period 2008 - 2013 (with an annual increase rate of
2%). Estimations shows this annual increase will determine a transfer of appreciatively
500-600 millions Euro/year to Pillar II.
Voluntary modulation hasnt been mentioned until now because its not very clear if the
Commission will support the initiative of UK who is using today this instrument to transfer
important amounts to Pillar II.
An important number of agricultural ministers, like those from France, Ireland and Spain,
stated their support for consolidation of Pillar I in that way being against of a high rate of
compulsory modulation. Other Member States, as Denmark and UK, made themselves
understood that they will support this measure.
As their objectives converge, the desirability of maintaining the two separate Pillars of the
CAP requires critical assessment, as compared to an alternative scenario that postulates a
radical change in architecture for 2013 and beyond. The relative simplicity of Pillar I and its
reach in terms of the leverage it creates on almost all farmers confers it with certain
advantages, and it could, in principle, be re-coupled to new objectives. Many Member
States are attached to the symbolism of Pillar I and may be more comfortable with a
reform that retains this envelope and the tradition of 100 percent EU funding, even in the
wake of dramatic change in policy content. Since Pillar I reaches almost all farmers, it
provides an entry point for pursuing EU policy objectives such as sustainability that could

12
Modulation is the mechanism by which EU farm spending is transferred from direct payments to rural
development policy measures (i.e. from Pillar One to Pillar Two of the CAP).
424
be lost if it were replaced by a more selective system based on voluntary agreements, as
in Pillar II.
A counter argument is that the clear objectives that have been built up in Pillar II are now
absent under Pillar I, particularly with respect to the environment. It lacks the discipline of
the programming approach, the prior assessment of needs, a system of monitoring and
evaluation, regular review periods, national contributions to costs and other attributes of a
more targeted approach. Pillar I is rooted in an historical logic less attuned to the future
agenda, and this is set to increase further if we enter a period of high commodity prices, as
seems likely. Furthermore, it is directed solely at agricultural producers, unlike Pillar II,
which, in principle at least, reaches a wider rural community. Pillar II also brings together
agriculture and forestry in a way that is helpful in an era when climate change concerns
suggest a more integrated approach to land use.
There is a more and more increased tendency which aims the extension of CAP objectives
in such a way a big number of issues will be included in Pillar II. Agriculture and forestry
are within the policy centre but with a weaker focus on goods production.
The debates which aim the horizon 2013 will have to be more and more attentive to the
needs of rural areas and the expectations of those areas from the rest of the society.

CONCLUSIONS

Rural Development policy seems to be the best way to answer to the specific needs and
the particularities of each country and region.
Under existing programmes, Member States have the possibility to include measures
aimed at restructuring physical potential and promoting innovation which can help farmers
to mitigate natural disasters and climate risk. In addition, the new Rural Development
Programmes include several measures which may be used for risk management, such as
on-farm investment or measures to prevent floods, drought or erosion. Whatever
programme will be set up, a precondition for EU-financing will be its Green Box
compatibility in WTO terms.
The underlying financial principle for this Communication is that no additional EU funding
will be available for the first and second pillar of the CAP in the period 20072013.
Modulation gives European Union Member States more flexibility on how to support
farmers. Transferring money from the Direct Aid budget chapter to the Rural Development
budget chapter allows Member States to contribute national budgetary spending to Rural
Development programs in the form of co-finance.
It remains to be seen how far this could go, but European Union Agriculture Commissioner
Mariann Fischer Boel indicated that compulsory modulation could increase as part of
additional Common Agricultural Policy reforms in a speech at the Agra Europe Outlook
Forum in March 2007. If the current methodology of financing continues, more of the
spending on Rural Development programs will be derived from individual Member States
budgets.
Critics have noted that this could represent a re-nationalization of the Common Agricultural
Policy if the decoupling trend continues and market-driven supports are reduced and direct
payments compensate for the offset.
Finally, the strengthened Rural Development policy supports the protection of the
environment and rural landscapes and creates growth, jobs and innovation in rural areas.
Although a growing number of EU rural areas will be influenced by factors outside
agriculture, areas which are remote, depopulated or heavily dependent on farming will face
particular challenges as regards economic and social sustainability. Thus the role of the
agri-food sector, which still represents more than 4% of total GDP and 8% of total
employment, remains critical in many rural areas.
425
One conclusion raised is that CAP Health Check has as principal objective increasing the
level of performance. By adopting CAP Health Check, the Commission proposes to
improve the instruments available and also to verify if EU agriculture is connected to the
needs and expectations of the society.

BIBLIOGRAPHIE

1. Communication from the Commission to the European Parliament and the Council - Preparing for the
"Health Check" of the CAP reform, Brussels, 20.11.2007, COM (2007) 722 final, pg. 3-10;
2. The CAP "Health Check": Relevant questions and their short answers, MEMO/07/476 Brussels, 20
November 2007;
3. Dr. MARIOARA RUSU (coordinator), Dr. DANIELA GIURC, Drd. LUCIAN LUCA, Study The analysis of
CAP evolutions and orientations from Romanian perspective, Bucharest, December 2007, European
Institute from Romania, pg. 40;
4. TAMSIN COOPER, DAVID BALDOCK, and MARTIN FARMER, Institute for European Environmental
Policy (IEEP), Toward the CAP Health Check and the European Budget Review, The proposals, options for
reform, and issues arising, A Report to the German Marshall Fund of the United States, October 2007, pg.
27, 37, 38.

426
IMPACTUL ASUPRA AGRICULTURII ROMANESTI A ASPECTELOR
PRIVIND BILANTUL DE SANATATE AL PAC SI REFORMA BUGETULUI
UE

IMPACT ON THE ROMANIAN AGRICULTURE OF THE KEY ISSUES ON
THE DEBATE: REVIEW OF THE COMMON AGRICULTURAL POLICY
AND EU BUDGET REFORM

FINTINERU GINA, FINTINERU A.


Abstract

The European Union's policy agenda is in a phase of profound modernisation. Globalisation has brought
about new challenges and issues like climate change, energy and migration have come to the centre of the
European debate. Innovation, skills and the right business environment are more than ever at the core of the
growth and jobs strategy. Enlargement has reinforced the need to promote social, economic and territorial
cohesion. In the meantime, in The European Commission raises the idea to make the Single Payment
Scheme simpler and more efficient, to adjust market support instruments to make them relevant for an EU of
27. These are key issues on the debate today whose importance for the Romanian agriculture we try to
analyze in this article.

Key words: financial frameworks, common agricultural policy reform, Single Payment Scheme, intervention
mechanisms

INTRODUCTION

The European Union's policy agenda is in a phase of profound modernization. The
European Commission Health Check communication raises the idea to make the Single
Payment Scheme simpler and more efficient, to adjust market support instruments to
make them relevant for an EU of 27.

The forthcoming review of the European budget, due to be concluded in 2009, and the
ratification of the EU Reform Treaty are also important factors to be considered. The
Budget debate is likely to precipitate a comprehensive discussion on the totality of EU
spending, of which the CAP is allocated the largest share.

Globalisation has brought about new challenges and issues like climate change, energy
and migration have come to the centre of the European debate. Innovation, skills and the
right business environment are more than ever at the core of the growth and jobs strategy.
Enlargement has reinforced the need to promote social, economic and territorial cohesion.
These are key issues on the debate today whose importance for the Romanian agriculture
we try to analyze in this article.

MATERIAL AND METHOD

This paper discusses the prospects for Romanian agricultural sector arising from the 2008
Health Check of the CAP and the review of the European Budget, due to be completed in
2009. Its aim is to locate the expected proposals of the Health Check in recent and
potential future evolutions of the CAP; to review the proposals and situate them in a
broader context of concurrent political processes and EU policy priorities, and to discuss
the extent to which they will frame the nature and trajectory of the debate.
427


A better performing policy
During the last 15 years, the common agricultural policy (CAP) changed radically in
response to pressures from European society and its evolving economy. The 2003/2004
reforms marked a new phase in this process, introducing decoupled direct payments in
most sectors of the first pillar of the CAP and strengthening Rural Development (RD)
policy as its second pillar.

The overriding aim of the 2003 reform was to create a more competitive, market
responsive agricultural sector founded on the principles of high environmental and animal
welfare standards. The 2003 reforms created a new mode of payment delivery, the Single
Payment Scheme (SPS), introduced in 2005 in some Member States and in 2006 in others.
A simplified system applies in most of the new Member States, known as the Single Area
Payment Scheme (SAPS).

Producer support is now to a large extent decoupled from production decisions, allowing
EU farmers to make their choices in response to market signals, to rely on their farm
potential and their preferences when adapting to changes in their economic environment,
and to contribute to improving the competitiveness of the agricultural sector.

Furthermore, the CAP increasingly contributes to heading off the risks of environmental
degradation and to delivering many of the public goods that our societies expect. Producer
support is now dependent on the respect of standards relating to the environment, food
safety and quality and animal welfare. Finally, the strengthened rural development policy
supports the protection of the environment and rural landscapes and creates growth, jobs
and innovation in rural areas.

But for the CAP to continue to be a policy of the present and of the future, it needs to be
able to evaluate its instruments, to test whether they function as they should, to identify
any adjustments needed to meet its stated objectives, and to be able to adapt to new
challenges.

The aim of the Commission paper is to address the following topics:
Adjustments to the Single Payment Scheme (SPS), to make it more effective,
efficient and simple, and associated measures, including cross compliance, along with
consideration of the scope for further decoupling;
Proposals covering the main market regimes, including dairy policy and arable set
aside;
Issues concerned with modulation, expenditure and the budget, and the respective
roles of Pillar One and Pillar Two of the CAP;
Adressing new challenges, in relation to climate change, the growth in biofuels and
water management, through adaptation to risks and opportunities.

These are discussed in more detail below.
1.1. Simplifying the Single Payment Scheme
While new Member States (MS) can make use of the simplified Single Area Payment
Scheme (SAPS) until end of 2010 (for Bulgaria and Romania end of 2011), EU-15 MS had
to implement the SPS by 2007.

428
They could apply a historic SPS model (payment entitlements based on individual
reference amounts), a regional model (entitlements based on regional reference amounts)
or a mix of the two approaches. However, the individual level of support in both
approaches, albeit to different extents, is currently based on past levels of production and
as time goes by it will become more difficult to justify differences in this support, especially
in the historic model.

It is thought that the Commission favours an adoption in all Member States of the regional
average model which involves flat rate payments per hectare for all farms in a region. The
proposals are expected to include calls for Member States to move towards a flatter rate
of support from 2009 2013. Most of the old Member States (EU-15) have opted for the
historic model, the important exceptions being Germany, Finland and the UK. This
reflects a desire to maintain continuity in the amount received by the farmer since
payments are based on historical receipts. Flat rate area payments are the favoured option
of the twelve new Member States which joined the EU in 2004 and 2007. In principle, the
regional model is easier to justify, not least because it promotes a more equitable
distribution of payments on the basis of an objective criterion.

It seems therefore appropriate for Romania to chose to continue applying the SAPS until
2013.

1.2. Qualifying the scope of cross-compliance
The system of cross-compliance, which reduces payments to farmers who do not respect
EU-standards associated with agricultural activity, is and will remain an essential element
of the CAP.

Most cross compliance measures consist of mandatory measures in environment, animal
health and animal welfare which will apply to all farmers irrespective of whether they
receive the SP or not. Cross compliance is contentious and some pressure are expected
to reduce its impact and simplify the process, largely on administrative grounds. As such,
there is likely to be strong resistance to any proposals to expand the list of Statutory
Management Requirements (SMRs) or broaden the scope of Good Agricultural and
Environmental Condition (GAEC).

Simplification will be further advanced under the Health Check proposals which will
consider increased and improved targeting as a way of making cross compliance more
effective.

1.3. Partially coupled support
Full decoupling leaves producers at least as well off as before, and most likely better of as
a result of production flexibility, and it eliminates the complexity and administrative costs of
running two systems in parallel. This is clearly the case in the arable crop sector.

The principle of full decoupling is generally perceived as positive. Viewed through the
trade liberalisation prism of the WTO, it is regarded as more equitable, and in general,
results in less pressure on the environment as the incentive to maximize production is
removed.
However, partially coupled support may retain some relevance, at least for the time being,
in certain regions where the level of production is small overall, but important economically
or environmentally (such as suckler cows in extensive beef producing regions).

1.4. Upper and lower limits in support levels
429
The issue of distribution of support is not new for the CAP, but has recently been
highlighted by the transparency initiative for the publication of beneficiaries of EU funds.
However, this is expected to be one of the most controversial elements of the proposals,
due to intense opposition from key Member States, including the UK and Germany.

The introduction of the SPS has made the distribution of payments more visible than
before, thus raising new calls for limitations to the level of support received by the small
number of large farmers. In addition, the implementation of SPS made evident that, among
the large number of farmers that receive small amounts of payments, often below the
administrative cost of managing them, are recipients who are not genuine farmers.

In Romnia suprafea minima eligibila a fermei fost deja limitata la 1 ha i parcela minima
eligibile la 0,3 ha. Creterea acestor limite ar conduce la o diminuare drastic a numrului
de beneficiari de plai directe. Cat despre limitarea superioara a a sprijinului, aceasta ar
putea s determine o divizare a exploataiilor mari.

1.5. Market regime
The context of globalisation and of an EU with 27 MS requires a reflection on the future of
the remaining "old CAP" instruments (e.g. quotas, public intervention, price support and
refunds), in particular given the current medium-term outlook for markets, especially
favourable in cereals and dairy. The Commission intends to examine whether the existing
supply management tools serve any valid purpose now, or whether they simply slow down
the ability of EU agriculture to respond to market signals.

High cereal and oilseed prices boosted by poor harvests, rising global demand, and the
boom in bioenergy driven by EU energy policy, remove the economic rationale for set
aside and have received support from farming organizations.

The Commission propose the end of milk quotas by March 2015. The pathway would be
smoothed by transitional measures, for example, a progressive increase in the quotas of
all Member States in advance of this date so that they become less binding. This would
allow milk production to move between Member States and between regions in those
Member States that have prevented this in the past. This is likely to result in greater farm
level and regional concentration of production, and a reduction in dairying in the Less
Favoured Areas (LFAs), with significant social and environmental implications.

Under the Health Check proposals, the Commission recognises the challenge of retaining
a minimum level of production in mountainous areas, and suggests that rural development
measures could provide a means to add value to these products. Some form of more
specific support may also be required, and Article 69 of Council Regulation 1782/2003
could be amended so that money is targeted at certain production areas within a Member
State rather than at the sector as a whole.

1.6. Responding to new challenges
Three crucial new challenges for EU agriculture lie in the areas of climate change, bio-
energy and water management. Climate change is the pivotal challenge of the three,
influencing developments in the other two areas.

2. The health check in a broader political context: EU budget review
The document entitled Reforming the budget, changing Europe, presented by the
Commission on September 2007, considers the policy challenges facing Europe, and
whether these are adequately reflected in spending priorities. A number of fundamental
questions are raised about the added value of European spending, and the effectiveness,
430
efficiency and transparency of budget delivery. The consultation paper opens the way for
considerable scrutiny of the rationale for all EU expenditure, and not least, the amount
allocated to the CAP and the value for money it provides.

The budget is an important lever for the EU to deliver existing policy goals, to bring about
change and to maximise the long-term impact of EU action. In the same time large in
absolute terms (over 100 billion per year) and small as a percentage of total EU public
expenditure (less than 2.5%), it has been acted as a vector of stability for the
development of the EU, framed over successive financial frameworks since the 1980s.

Given that the CAP absorbs the greatest proportion of EU expenditure, it is likely to come
under considerable scrutiny during the Budget Review and the subsequent negotiations for
a post 2013 financial framework.

During the forthcoming negotiations, it is fairly certain that pressure is likely to be exerted
to significantly decrease direct aids to farmers.

CONCLUSIONS

The Health Check and the European Budget Review will stimulate a wide ranging debate
which will set the framework for future CAP reform. Substantive changes to the CAP are
widely anticipated following the conclusion of the current financial perspective in 2013.

The CAP will be in competition with other demands on the EU budget, with some
stakeholders assessing the pros and cons of supporting farming as opposed to the
environment more directly, or whether innovation, research, job creation and
competitiveness emerge as the overriding focus of EU level resources.

The total CAP budget is likely to be reduced in real terms in 2013 as Europes agriculture
sector continues on its trajectory of greater market orientation.

431
Unless there is a significant shift in funding from Pillar One of the CAP to Pillar Two
through higher rates of modulation coupled with co-financing from the Member States, EU
spending on agriculture will experience a downward trend.

The farm incomes, the viability of farm businesses of different sectors and sizes, and the
volume and intensity of production will each be affected, with concomitant environmental
and social impacts. The impact on the competitiveness and viability of farm businesses will
be differentiated and small, marginal farmers will be most vulnerable.

The burden of adjustment to a changing market and less well resourced Pillar One can be
expected to fall most heavily on smaller farms, livestock producers and those outside the
area of good arable land. These are the producers who are less influential in the
agricultural lobby but who are most sensitive in social and environmental terms.

BIBLIOGRAPHY

COMISIA COMUNITILOR EUROPENE, 2007, Comunicare A Comisiei Ctre Consiliu i Parlamentul
European: Pregtire n vederea verificrii eficienei reformei PAC, Bruxelles.
COMISIA COMUNITILOR EUROPENE, 2007, Comunicare a Comisiei Reforma Bugetului Pentru O
Europ n Schimbare Document De Consultare Public n Vederea Revizuirii Bugetului 2008/2009
TAMSIN COOPER, DAVID BALDOCK AND MARTIN FARMER, 2007, Towards the CAP health check and
the European budget review: The proposals, options for reform, and issues arising

432
ASSESSING THE SOCIO-ECONOMIC IMPACTS OF EXTENSIVE VS
INTENSIVE FARMING SYSTEMS TO THE DYNAMICS OF A RURAL
REGION IN GREECE: AN INPUT-OUTPUT APPROACH.

GIANNAKIS ELIAS

Agricultural University of Athens

Abstract

This paper analyses the role of different farming systems in the local economy of a Greek rural area
Trikala. The Generation of Regional Input Output Tables (GRIT) technique is applied to the estimation of the
socio-economic impacts of different farming systems of agriculture through the estimation of an input-output
table. This is followed by an agriculture-centred multiplier analysis. The results suggest that intensive crops
have stronger backward linkages from extensive ones while for the rest of the economy, the sector of trade
has the greatest Type I and Type II Output multiplier. In general, the different farming systems appear to
have rather low Type I and Type II Income and Employment Multipliers due to high direct income and
employment effects they create. Finally, the paper assesses the impacts of the shift of land resources from
intensive to extensive farming systems, due to the Mid-term Review of CAP, by exogenizing the agricultural
farming systems with the use of the mixed endogenous and exogenous method.

Key words: intensive vs extensive farming systems, dynamics of rural areas, input-output analysis, CAP

INTRODUCTION

The recent reform of the CAP (2003/2004) has introduced decoupling, modulation and
cross-compliance, while environmental protection and land management has become a
key policy objective (Axis 2) of the EU rural development policy. These significant changes
have initiated restructuring in rural areas and have introduced reallocation of land
resources from intensive to extensive farming systems. It is the purpose of this paper to
analyze how this shift affects the regional economy in terms of income and employment
and to assess this impact through an Input-Output multiplier analysis and by exogenizing
the agricultural farming systems.

This analysis is carried out for the study area of Trikala, a NUTS III area (predominant
rural according to OECD criteria). Trikala depends heavily on agriculture as agricultural
employment accounts to 30% of total employment, while GVA in agriculture contributes to
16% in its GDP formation.

METHODOLOGICAL ASPECTS OF THE INPUT-OUTPUT ANALYSIS

(a) Input-Output Multiplier Analysis
Input-output analysis is a quantitative technique for studying the interdependence of
production sectors in an economy. An input-output table identifies the major industries in
an economy, the financial flows between them and the sales to other industries and to final
demand (household consumption, government consumption, capital formation and
exports). Thus, by disaggregating the total economy into a number of interacting sectors,
input-output systems provide an effective tool for sectoral and impact analysis.

An input-output model can be used to estimate the indirect effects of a change in the level
of final demand for the output of a particular sector (impact analysis). These effects may
be measured as output, income and employment changes, calculated by using sectoral
multiplier coefficients which express the ratio of total effect to the initial change in demand.

433
For any one sector, a high level of purchases of domestically produced inputs leads to
strong linkages, and creates significant indirect effects in the output of supplying sectors.
These effects are measured by Type 1 multipliers for each sector:

direct and indirect effects
Type 1 multiplier =
direct effects

Directly and indirectly generated employment due to household endogenization leads to
additional household spending. Thus spending and its effects (induced effects) are
captured by the Type 2 multipliers:
direct, indirect and induced effects
Type 2 multiplier =
direct effects

Both these multipliers have value greater than 1.0, with their magnitude depending on the
strength of the indirect and induced effects (Psaltopoulos, 1995).

The various approaches to determining the necessary information for the regional input-
output tables can be broadly categorized as survey and non-survey ones (Richardson
1972). The survey approach attempts to determine the regional input-output table by
collecting primary data through various survey methods. The advantage of this approach is
that it does not assume similarity between regional and natural production functions. On
the other hand, it is extremely expensive and time-consuming.

The non-survey approach involves the representation of the regional economy through
the modification of national technical coefficients. The need for such modification is the
fact that a regional economy is normally less diverse and more import-dependent than a
national economy (Flegg and Webber, 1997). A number of methods have been developed,
from the simple method of unadjusted national coefficients to more sophisticated
techniques. However, none of these non-survey methods provide satisfactory substitutes
for the survey approach as the constructed regional tables are not free from significant
error (Richardson, 1972). In response to this problem, a hybrid approach involves the
application of non-survey techniques to estimate an initial regional transactions table.
Then, survey-based estimates or other superior data replace some of the entries. One of
the most well-known hybrid techniques is GRIT (Generation of Regional Input-Output
Tables).

(b) The GRIT approach
The GRIT technique was developed and originally applied for the estimation of input-
output tables for the regions of Queensland (Jensen et al., 1979) as a variable-
interference non-survey technique. A mechanical procedure (application of location
quotients) is initially applied to adjust national tables. Then, the analyst can determine the
extent to which he interferes by the insertion of superior data from survey or other
sources. As a result, GRIT includes the advantages of both survey and non-survey
techniques.

In summary, the GRIT method estimates the flows (million euro) of the regional
Intermediate Demand and Primary Inputs quadrants by applying regional-to-national
employment ratios and Cross-industry Location Quotients to the corresponding flows of
the national quadrants. The regional final demand quadrants are estimated by multiplying
the national quadrant by the regional-to-national employment ratio for each industry. The
434
Consumption column of the Final Demand quadrant is further adjusted through the use of
location quotients. Exports are taken as the residual (Efstratoglou & Psaltopoulos, 1999).

At this point, the full form of the generated regional table may contain a number of
industries which are insignificant to the regional economy. A suitable aggregation scheme
to reduce the sectoral detail may be determined by the objectives of the study. However,
the application of location quotients must take place before sectoral aggregation, because,
as employment by industry data becomes more aggregated, quotients tend to unity. As a
result, regional imports will be underestimated and regional multipliers overestimated. After
aggregation, superior data can be inserted, but should be fully compatible with the
definition of the aggregate sectors.

(c)Theoretical aspects of exogenizing sectoral outputs

This section describes how the basic form of a demand-driven Leontief model can be
modified so as to make the gross output of one of the production sectors exogenous to the
system (the derivation of the mixed-variable input-output model is described also in detail
in Miller and Blair (1985)).

The Johnson and Kulshreshtha (1982) procedure to exogenise a given set of outputs is
given here. The basic equation of Input-output analysis is:

X = AX + F (1)

Using subscript 1 to denote the sectors whose outputs are to be exogenised and subscript
2 for the rest, with matrix partitioning (1) can become:
1 11 12 1 1
2 21 22 2 2
X M M X F
X M M X F

= +

which represents a system of two matrix equations. The unknowns now are X
2
and F
1

while X
1
and F
2
are exogenously determined. Solving the second equation yields:

X
2
= (I-M
22
)
-1
(M
21
X
1
+ F
2
) (2)
Given the levels of X
1
and F
2
(or their change), the level of X
2
(or its change) can be
estimated from (2). Inserting this value in the first equation of the system gives the new
value of F
1
or its change:
F
1
= (I-M
11
) X
1
M
12
X
2
(3)

If the interest is only in the impact of exogenous changes in outputs, on other outputs, one
can assume the change in F
2
to be zero and the suggested multipliers matrix from (2) is
(I M
22
)
-1
M
21
(4)
If k sectors are exogenised, the matrix is of dimension (m-k, k) and the ijth element shows
the change in sector is output due to a unitary change in sector js output.

ANALYSIS AND RESULTS

(a) The construction of the Trikala Input-Output Table
The construction of the Input-Output Table for Trikala was based on the GRIT approach.
Primary data from a survey of enterprises of the most important industries of the study
area including agriculture were collected and inserted as superior data in the Input-Output
Table. The I/O Table constructed consists of 17 non-agricultural sectors while agriculture
435
is disaggregated into 4 farming systems: Extensive arable, Extensive livestock, Intensive
arable and Other agricultural system as a residual. The I/O base year was 2004.

(b) Output multipliers

Table 1 indicates the Type 1 output multipliers which express the regional significance of
the backward linkages of each industry. The multiplier for the farming system of intensive
crops is amongst the highest (3
rd
in rank) while for the other farming systems are low,
indicating weak linkages with other sectors. The highest backward linkages amongst the
non-agricultural sectors are created by the sector of trade (1,781) followed by the sector of
metal products (1,66) and tourism (1,573).

Table 1. Output multipliers for Prefecture Trikala (2004)
Industries Type 1 Type 2
Extensive arable 1,444 2,165
Extensive livestock 1,548 2,682
Intensive arable 1,653 2,570
Other agr system 1,567 2,597
Mining
1,157 1,647
Food manufacture
1,298 1,684
Textile
1,524 2,182
Wood and paper
1,458 2,182
Chemical and plastic products
1,484 1,914
Non metal products
1,430 2,254
Metal products
1,660 2,289
Machinery and equipment
1,197 1,551
Electricity, gas and water
1,204 1,943
Construction
1,433 2,114
Trade
1,781 4,648
Tourism
1,573 2,099
Transportation
1,397 2,590
Banking-Financing
1,360 1,933
Public administration
1,345 3,564
Education
1,062 3,543
Other services 1,256 2,648

(c) Income coefficients and multipliers

Table 2 shows the income coefficients and multipliers. Income coefficients indicate the
total increase in incomes generated by a unit increase in the output of a particular sector.
Direct income coefficients (DICs) for extensive livestock is amongst the highest while
capital-intensive industries such as Trade, Food Manufacture, and Tourism have low
coefficients. Type 1 income multipliers for the farming systems are rather low with the
highest appearing to the farming system of extensive arable. The sectors of trade (1,781)
and tourism (1,573) have the largest income multipliers amongst the non-agricultural
sectors. The Type 2 multipliers follow the same pattern as the Type 1 multipliers.

Table 2. Income multipliers for Prefecture Trikala (2004)
Industries DIC DIIC Type 1 DIIIC Type 2
Extensive arable 0,139 0,223 1,601 0,292 2,098
Extensive livestock 0,265 0,351 1,326 0,460 1,737
Intensive arable 0,191 0,284 1,489 0,372 1,951
Other agr system 0,234 0,319 1,363 0,417 1,786
Mining 0,131 0,152 1,161 0,199 1,521
Food manufacture 0,085 0,119 1,401 0,157 1,836
436
Textile 0,133 0,204 1,530 0,267 2,005
Wood and paper 0,159 0,224 1,412 0,294 1,850
Chemical and plastic
products 0,074 0,133 1,789 0,174 2,344
Non metal products 0,191 0,255 1,336 0,334 1,750
Metal products 0,112 0,194 1,739 0,255 2,278
Machinery and
equipment 0,086 0,110 1,271 0,144 1,665
Electricity, gas and water 0,199 0,228 1,147 0,299 1,503
Construction 0,151 0,211 1,396 0,276 1,830
Trade 0,066 0,238 3,594 0,311 4,709
Tourism 0,085 0,163 1,921 0,213 2,518
Transportation 0,303 0,369 1,219 0,484 1,597
Banking-Financing 0,124 0,177 1,426 0,232 1,868
Public administration 0,637 0,687 1,077 0,900 1,411
Education 0,757 0,767 1,014 1,005 1,328
Other services 0,385 0,430 1,117 0,564 1,464

(d) Employment coefficients and multipliers

The employment coefficients and multipliers are shown in Table 3. The agricultural sectors
are labour-intensive and therefore have high direct employment coefficients. An additional
1 million euro of extensive livestock and intensive arable outputs create 63 and 52 jobs,
respectively. Type 1 employment multipliers indicate weak backward effects for the
farming systems. Direct, indirect and induced coefficients indicate the total effect of
increased output in employment. The total number of jobs created in extensive livestock
(94), and intensive arable (79) farming systems by increasing output in each is relatively
high. Type 2 multipliers follow the same pattern as the Type 1 multipliers.

Table 3. Employment multipliers for Prefecture Trikala (2004)
Industries DEC DIEC Type 1 DIIEC Type 2
Extensive arable 32 50 1,550 58 1,807
Extensive livestock 63 81 1,287 94 1,491
Intensive arable 52 68 1,321 79 1,523
Other agr system 23 36 1,568 48 2,077
Mining 4 5 1,505 11 3,041
Food manufacture 6 10 1,724 14 2,517
Textile 10 17 1,630 24 2,352
Wood and paper 15 23 1,554 32 2,103
products 3 7 2,125 12 3,535
Non metal products 9 15 1,603 24 2,624
Metal products 10 17 1,807 24 2,558
Machinery and
equipment 6 8 1,398 12 2,090
Electricity, gas and water 6 8 1,419 17 2,867
Construction 18 24 1,322 32 1,743
Trade 13 48 3,718 57 4,395
Tourism 14 24 1,728 30 2,162
Transportation 20 27 1,312 40 1,979
Banking-Financing 10 15 1,468 22 2,104
Public administration 26 33 1,244 58 2,209
Education 38 39 1,023 67 1,769
Other services 27 31 1,141 47 1,731

(e) Farming systems Endogenous-Exogenous Multipliers
437
To assess the impact of the farming systems on the local economy from the supply side, it
is necessary to exogenize the output of the farming systems based on the mixed
endogenous-exogenous method described above. In the Table 4, the set of endogenous
and exogenous multipliers of each farming system to the rest economy is presented. Each
element shows the output change of the i sector due to the exogenous change of the
output of the corresponding farming system. The sum of the columns elements shows the
total impact on the local economys output due to exogenous change of the output of the
different farming systems by 1 unit. In other words, if the output of extensive arable
increases by 1 million euro, the output of the other sectors of local economy will increase
by 0,425 million euro. The highest impact is created by intensive arable farming system
(0,591).

Table 4. Endogenous and exogenous multipliers of different farming systems to the local economy
Industries Extensive
arable
Extensive
livestock
Intensive arable Organic
Farming
Other agr
system
Extensive arable - 0,054093 0,013835 0,011997 0,009744
Extensive livestock 0,193504 - 0,107698 0,093389 0,075856
Intensive arable 0,037329 0,160112 - 0,032151 0,045229
Other agr system 0,003637 0,004473 0,009143 0,007928 -
Mining 0,001200 0,001874 0,002660 0,003693 0,004083
Food manufacture 0,000160 0,000151 0,000361 0,000357 0,000317
Textile 0,000112 0,000136 0,000278 0,000247 0,000211
Wood and paper 0,001394 0,001676 0,003442 0,003076 0,002796
products 0,002776 0,003249 0,006508 0,006607 0,006022
Non metal products 0,000070 0,000079 0,000155 0,000171 0,000263
Metal products 0,000310 0,000384 0,000727 0,000757 0,000845
Machinery and equipme 0,002132 0,002529 0,005106 0,004938 0,004470
Electricity, gas and wate 0,019974 0,036376 0,042464 0,070944 0,084480
Construction 0,000613 0,000694 0,001359 0,001506 0,002330
Trade 0,140607 0,172905 0,353464 0,306501 0,248958
Tourism 0,000227 0,000159 0,000469 0,000511 0,000473
Transportation 0,012167 0,006945 0,024265 0,026904 0,021174
Banking-Financing 0,003398 0,001936 0,004624 0,009401 0,038287
Public administration 0,000000 0,000000 0,000000 0,000000 0,000000
Education 0,000011 0,000010 0,000022 0,000028 0,000067
Other services 0,000949 0,001023 0,002240 0,002112 0,001998
Total 0,425651 0,455055 0,591597 0,583223 0,556603

(f) Impact assessment of the land reallocation due to the CAP Reform (2003-2004)
The implementation of the Mid-term Reform of CAP has resulted in significant changes in
the agricultural sector of the Prefecture Trikala as well as on national level. Specifically,
4000 ha were moved from intensive arable to extensive arable crops. This reallocation
represents 13,7% of the intensive cropping land. Also, the exceptional increase of
agricultural prices of cereals in 2007 by 87% was taken into consideration in the estimation
of the value of output of the extensive arable farming system. This land reallocation and
change in prices resulted in changes in the value of output of extensive arable by
6.825.000 euro which accounts for 2% of the total agricultural gross output. Replacing in
equation (2)
1
= 6.825.000 euro, total output generated in the economy is about
2

2.905.000 euro. On the other hand, the output of the intensive arable farming system is
decreased by 1.425.000 euro and as a result the total output of the local economy is
reduced by 843.000 euro. So, the net output generated for the economy is positive and
amounts to 2.062.000 euro.

CONCLUSIONS

Input-Output multiplier analysis shows that only farming system of intensive crops creates
strong backward linkages with the other sectors of economy. In general the income and
438
employment multipliers are rather low for the farming systems with the sector of trade and
tourism to have the highest amongst the non-agricultural sectors. The Mid-term Reform of
CAP (2003/2004) and the implementation of the Single Farm Payment regime have
initiated changes in rural areas and have introduced reallocation of land resources from
intensive to extensive farming systems. From the above analysis it seems that the net
output generated from these changes is positive for the rural economy. However, the
process of land reallocation seems to be at initial stage and it is expected to go on. So, this
should be taken as indication and there is need for further analysis.

BIBLIOGRAPHY

EFSTRATOGLOU, S. AND PSALTOPOULOS, D. (1999), Structural Policy Effects in Remote Rural
Areas Lagging behind in Development: The Case of Evrytania (Greece). Department of Agricultural
Economics, Agricultural University of Athens, Athens, 1999.
FLEGG, A.T. AND WEBBER, C.D. (1997), On the Appropriate Use of Location Quotients in
Generating Regional Input-Output Tables: Reply. Regional Studies 31:. 795-805.
JENSEN, R.C., MANDEVILLE, T.D. AND KARUNARATNE, N.D. (1979) Regional Economic
Planning. Croom Helm, London.
JOHNSON, T. G. AND KULSHRESHTAH, S. N. (1982) Exogenising Agriculture in an Input-Output
Model to Estimate Relative Impacts of Different Farm Types, Western Journal of Agricultural Economics, 9
(1), 1-11
MILLER, R. E. AND BLAIR, P. D. (1985) Input-Output Analysis: Foundations and Extensions,
Prentice-Hall, London.
OECD (1994), Creating Rural Indicators for shaping territorial policy, Paris.
PSALTOPOULOS, D. (1995), Input-Output Analysis of Scottish Forestry Strategies. Unpublished
Doctoral Thesis, University of Aberdeen, Aberdeen, 1995
RICHARDSON, H. (1972) Input-Output and Regional Economics. Weidenfeld and Nicolson, London.

439
THE SWOT ANALYSIS REGARDING OPPORTUNITY OF FACTORS OF
ENVIRONMENT FOR DEVELOPMENT IN AGROTOURISM IN THE
BIOSPHERE RESERVATION OF DANUBE DELTA

ANALIZA SWOT PRIVIND OPORTUNITATEA FACTORILOR DE MEDIU
PENTRU DEZVOLTAREA AGROTURISMULUI IN REZERVATIA
BIOSFEREI DELTA DUNARII

HOANTA DANIELA PAULA

University of Agronomical Sciences and Veterinary Medicine - Bucharest

Abstract

In order to structure material presented in this study, I have used the following section headings:
For the fist time, I have proposed to identify the most important strenght, weakness, opportunity and
thears from the most young European landscape Danube Delta;
For the second time, I quoted these factors with synopsis from 1 to 5, concerning opportunity of each
of them for development in agrotourism;
For the last part, I have calculated Cost of opportunity index and draw conclusions based on
acquired result.

Key - words: SWOT analysis; factors of environment; natural and man-made factors; cost of opportunity
index; eco-systems; agrotourism; accommodation; The Biosphere Reservation of Danube Delta; natural and
man-made resources.

INTRODUCTION

Material presented in this study, was elaborated through a research of this area and
through reading specialty literature and documentation.

MATERIAL AND METHOD

The SWOT analysis will evaluate and appreciate factors of environment concerning their
opportunity for development in agrotourism, as follows:
1 point unfavorable; 2 points satisfactory; 3 points medium; 4 points good; 5 points
very good.
Then I will calculate the cost of opportunity index by arithmetical average of aquired results
from marking analized factors.


Factor
Strenghts Weaknesses Opportunitie
s
Threats
Synopsis

Clima-
tic

factors
Temperate
continental
climate with sea
influence;
Not hot
summers and
not cold winters;
The annual
average
The
temperature is
distributed
unequal on the
surfaces of
Delta; suddenly
translation from
winter to
summer;tropical
The high level of
temeperature is
permissive for a
long touristic
season and to
practice
agotourism from
spring to
autumn;
Increase of
average of air
temperature
and summers
extreme;
increase of
solar
radiations;
lose of tourist
4,5
440
temperature is
11C; 96 days
with 25C
annual; the air
humidity
registered the
biggest value
from the whole
Romanian
territory; the
precipitations
are quantitative
reduced; the
sun brightness
is high (70 days
with clear sky);
the solar
radiation is
biggest (125-
135 kcal/cm);
NE winds
without storms.
days with
maximum
temperature of
30C (27 days
annually);
attenuation of
intermediate
seasons (spring,
autumn);
Floods in 2006,
drought in 2007.

development of
some modalities
for spending
spare time;
windy and solar
energy can be
used for
generate power
supply and
heating water in
establisments.

categories
who like
spring and
autumn
holidays;
floods;
drought.

A
I
R

Annual
emissions of
CO2 are very
weak; there are
no gases with
negative effects;
There are no
critical areas
concerning air
pollution;
Radioactivity
non-existed.
There are
movable
sources of air
pollution;
incidental
pollution with
reeks and
pending particle
in town areas;

keeping and
increasing of air
qualities;
minimize of side
effects for
incidental gases
and odors.

Incidental
emissions of
gas; air
pollution with
reeks and
particle in
suspension
diffused by
wind.
4,5
S
O
I
L

Support for
growth of plants
and breeding of
animals; unique
landscapes-river
marine dunes;
use of products
with low level of
toxicity; there
are no soils
affected by
organics
residue;
34% of soil is
unused; soils is
quoted II class
of quality; lost of
humus from soil;
increase of salt
quantity from
soil; deflaion;
pollution
because of
external factors.
Aplication of
DELTASOL 2
program;
growing forest
for
environmental
protection ;
stabilizing of
sandy soils with
specific
plantations;
regaining of
ecological
function.
lost of humus
from soil;
salinization;
deflation;
pollution;
increase of
arid areas;
landfalls.
3
W
A
T
E
80% from
surface is
covered by
water; Danube
Water resorces
of lowest level
have
inadequate
Aplication of
POLDANUBE
program for
Danube and
Incidental
stream
pollution that
affects
4,5
441
R

water and lakes
are quoted like
second class of
quality and they
are a good
support for
touristic
activities and
biodiversity;
Danube Delta is
a reserve for
wetlands; there
are no fixed
sources with
decisive role for
water pollution.

attributes;
scarceness of
centralized drain
system for
collecting of
worn sewage;
25,6% from
inhabitants dont
have optimum
conditions for
drinkable water
supply; 10
contingent water
pollution in
2006.
MARPOL 73-78
convention;
keeping of
stream qualities
in good order;
drought and
flood
premonition;
implement of
integrated
program for
pursuit in
Danube Delta;
construction of
sewerage
system and
expurgation
stations.
biodiversity;
floods;
drought
losses of
Danube
stream level
with
affectation of
river
navigation;
Degradation
of Danube
beaches;
There is no
system for
drinkable
water in rural
area;

B
I
O
D
I
V
E
R
S
I
T
Y

Danube Delta is
a biosphere
reseve since
1991; 20.000
birds are
protected by
RAMSAR
accord; there
are 18 strictly
protected areas
and 30 types of
ecosystems; a
really heritage
of biodiversity
with the high
density of many
species that are
rare or missing
in other areas;
great value of
biodiversity and
natural bank of
genetic
elements; here
is living 98%
from aquatic
species of
plants and
animals; most of
European
population of
white pelican,
60% of world
There are 14
unsafe species;
pollution of
areas with
affectation of
biodiversity;
floods from
2006; the
signpost for
signaling of
protected areas
are in shading;
destruction of
wild vegetation
from protected
areas by
domestic
uncommitted
animals;
8,8 ha. from
forest area had
been eradicate
for sending
back;
unauthorized
fishing and
poaching; the
forests
economic sector
assume a low
part of active
workers.

Aplication of
Berna and Bonn
conventions for
biodiversity
protection;
international
programs for
researching and
detecting
species
(European
Birdwatch
2006);
deployment of
campaigns for
marking wild
birds with
colaboration of
SOR and
INCDD Tulcea;
renewal for
protection of
protected areas;
protection of
forests;
establishing of
wood
plantations for
fire nearly
willages.
Poaching;
exccesively
hunting;
stress
provoked by
sustained
tourism;
incidental
pollution;
incidental fire;
drought;
floods;
inadequate
wood sawing;
carving of
forests;
larceny of
woods;
function of
Bastroe
canal.

5
442
population of
pigmy
cormorant;
specific type of
aquatic
vegetation-Plaur
Relict forests
Letea and
Caraorman (oak
trees, climbing
plants); The fish
fauna is rich
(150 species)
and the
sturgeons;
Danube Delta is
the largest
compact area
with reed in the
world (240.000
ha); the Bern
convention
protects 3.448
species; there
are not
registered
genetic modified
cultures of
plants; Area
with forests
15.377 ha; 73%
from forest
surfaces has
protection
function; 239,6
ha.- area with
man-made
forest.
Man-
made
factors

Infra-
struc-
ture
Delta is easily
accessible by
plane, train, car
or by ship;
Danube
shipping
channels and
base of river-
marine
transport.
System of
sewerage;
system of refill
with drinkable
water; ways of
accession from
inside and
outside of
localities.
Renewal of
sewerage
system and
construction of
expurgation
stations ;
renewal and
development of
drinkable water
system.
Contiguous
degradation
of ways /
routes;
degradation
of refill water
system.
4
A
C
C
O
Accommodation
for touristic and
agrotouristic
activities; rural
There are a few
rural pensions
quoted with 4 or
5 daises; some
Constructing of
accommodation
especially high
class, but with
Degradation
of hoses and
accommodati
on;
4
443
M
M
O
D
A
T
I
O
N

pensions for
agrotourism,
quoted from 1 to
5 daises, hotels
and floating
hotels, boarding
houses, row
boats, and
bases of aquatic
sports; touristic
programs;
ANTREC.
of the buildings
not respect
specific
architectural
style from this
area; floods and
excessive
humidity were
affected some
accommodation.
observance of
architectural
style from this
area.
degradation
of fields;
practice of
illegal agro
tourism.
Histo-
ry

culture

archi-
tecture

gastro
nomy

Historical,
cultural,
architectural
monuments; life
stile of
fishermen and
specific of living
in delta;
specialties from
the fish, cooked
in all sorts of
types after
traditional
recipes.
Demotion of
some of the
historical
monuments and
cultural edifices;
unconsideration
of some
traditional
aspects;
precarious
hygiene for
cooking of food.
Restauration of
cultural and
historical
patrimony;
maintrance and
perpetuate
Delta inhabitans
life style; editing
gastronomy arts
quidebooks in
foreign
languages.
Lose of
tradition
because of
global
phenomenon;
decreasing of
fish
resources;
Bastroe
canal.
5
H
U
M
A
N

resour
ce

The major
Romanian of
population and
22 other
nationalities;
lowest level of
population
density from
Romania; tourist
information and
ecological
education
centers.
Privation of
knowledge for
some of the
rural pensions
owners.
Programs for
informing and
specialization
for agrotouristic
pensions
owners.
Migration of
active
workers
towards other
localities or
other areas;
3
S
W
E
E
P
I
N
G
S

Integrated
programs for
wastes; there
are no
radioactive
sweepings.
Just 24% of
population are
beneficiary of
sanitation
utilities;
76% of rural
population
arent
beneficiary of
sanitation
utilities; quantity
of dump goods
increasing
Arrangeing and
sustenance of
Danube
riverside;
maintrance of
road cleaninig
and green
spaces;
sweepers
storehouse;
ecological
education;
programs for
Practice of
touristic
activities with
begetting of
dump goods /
sweepings;
absence of
projects for
storage of
dump good;
propagation
and
dissipation of
1
444
because of
tourists;
eliminated of
sweepings is
making without
differentiation;
visually
inconvenience;
storage of
sweepings
directly on soil ;
absence of
sewerage for
worn water;
there are no
concreted and
connected of
water and
sewerage
system dais for
rubbish.
produce of
compost into
establisment;
sweepers
separately
collecting,
accordind to
European
normatives;
closing of
existing
storehouses
and constructing
others
according to
ecological
normatives.

pathological
factors and
their vectors.

CONCLUSIONS

After the SWOT analysis concerning the opportunity of enviromnents factors in
development of agrotourism, these factors were quoted with synopsis from 1 to 5, like that:
Climatic factors: 4,5;
Air: 4,5; Soil: 3; Stream / Water: 4,5; Biodiversity: 5;
Infrastructure: 4; Accommodation: 4; Elements of history, architecture, culture,
gastronomy: 5; Human resource: 3; Wastes / dump goods: 1
Based of these results, I will calculate the Cost of opportunity index of the environment
factors researched for development of agrotourism:
15 + 34,5 + 24 + 23 + 1 = 33,5 = 3,72
9 9
Based of the obtained result, factors of environment have been quoted from MEDIUM to
GOOD.
Conclusion : some measures must be taken for bringing the result to the highest
level VERY GOOD .
BIBLIOGRAPHY

BERCA MIHAI, 2000, General ecology and protection of environment, Ed. Ceres, Bucharest, pag. 79-81;
BERCA MIHAI, 1998, Strategies for protection of environment and management of resorts, Ed. Grand,
Bucharest, pag. 65-66;
MUNTEANU I, 1996, Map of soils from Biosphere Reservation of Danube Delta, Ed. Cartea pentru toi,
Bucharest, pag. 20-25;
Danube Delta Touristic Guide, 2004, Tulcea, pag. 5-14, 19;
Touristic Dobrudja, 2001, Constana, pag. 75;
The report concerning status of environment from Biosphere Reservation of Danube Delta for 2006, Internet
www.ddbra.ro.

445
STUDY AND RESEARCH ON THE CONSERVATION, RENOVATION AND
REAHBILITATION OF BUILDINGS IN HISTORICAL SITES

STUDII I CERCETRI PRIVIND CONSERVAREA RENOVAREA I
REABILITAREA CLDIRILOR N SITURILE ISTORICE

HONU ADELAIDA CRISTINA


Abstract

Cities are autonomous bodies developing according to their own laws whose knowledge and use is the
source of the scientific approach to issues of urbanism in general, and urban renovation in particular. The
long-term change in mentality regarding the concept of beauty is adding new life principles in the perception
of the old to the scale of values. Time brings along not only the physical dereliction of architecture but it also
erodes the particular role of a building at a given moment.
Restoration principles, considered in their evolution, should be confronted with the corresponding practice
which results in a critical assessment of the various theoretical orientations in order to identify the
progressive issues and their limitations. The practice of stylistic completion or, on the contrary, the limitation
of the architects intervention according to actual documentation emphasizes the nature of stylistic unity and
the historic restoration principle.

Key words: historical centre, urban restoration, conservation, reconstruction, urban reintegration, historical
monuments

INTRODUCTION

Like the Athens Charter, the new document considers restoration as an operation that
should have an exceptional nature. It is aimed at conserving and emphasizing the
historical and aesthetic value of the monument, and is based upon respect towards the
works of the past and authentic documents. It ends where doubt begins; beyond this, any
complementary work, considered indispensible, will be understood as an architectural
composition and will have to bear the mark of our age.
The Charter accepts the employment of all modern means of conservation and
construction to provide the consolidation of a monument when the tradictional techniques
prove inadequate.
The Charter claims the valid contributions of differents epochs, and rejects the
return to stylistic unity. It accepts the elimination of certin stages only when the removed
elements are minor, and their removal emphasizes archeological, historical or aesthetic
aspects.
The Charter claims that the elements destined to replace the missing parts (...)
should integrate harmoniously into the landscape, and yet be different from the original
parts so that restoration should not falsify the art and history document.
From the viewpoint of creation itself, human being generates a unit that is singular, both in
form and style. Like nature, both create distinct individualities, since we do not build ruins,
and a new house with peeling plaster and darkened with dirt gives the observer a bad
mood.... Thus, one can identify old value from two points of view: location in the historical
time, and carelessness to the object/group of objects (qualitative degradation).

MATERIAL AND METHOD

The principles of historical value are aimed at the conservation of the monuments in their
current state and, as much as possible, at ceasing their normal dereliction by natural
446
agents. It results from this that, in the conservation of the monuments, the interests related
to old age and historical value are fundamentally opposed although both are recollection
values.
The conclusion is that, irrespective of the type of human intervention, the historical values
decrease proportionally with its intensity; consequently, they eventually disappear, and the
documentary importance of the monument becomes irrelevant and atemporal.
Reintegrating the historical centre presupposes both its rehabilitation and revitalization,
and its inclusion into the tourist routes, its opening to the city.


The variety of urban settlements is based on two types according to their establishment:
Fortified development cities and towns that have developed surrounded by
protection walls.
Unfortified development with no artificial barriers.
Irrespective of the above types, the historical centre is the area in a city or town which
concentrates its historical value and functionality, urban architecture and memory.
The historical centres are often recognized owing to their street texture and structure
which raise traffic and hygiene problems to contemporary urbanism. They are at the core
of the urban architectural heritage and integrated conservation.
The concept of historical centre can be defined in its complexity when the study
approaches a different type of settlements with a different historical development resulting
in no clearly delimited area, e.g. Suceava, Trgovite, Iai, Botoani, Craiova and even
Bucharest (highly complex). In their case, one cannot talk about a historical centre, but
about a main historical area within which there is a central nucleus, and secondary
historical areas.
Integrated conservation involves the treatment (conservation, restoration, rehabilitation) of
the old buildings and groups of buildings for the purpose of rendering them useful to
modern society, and integrating them in the urban and rural improvement plans.
The integration of the old heritage into the present urban life and, consequently, in the
contemporary planning schemes is taking place nowadays in the architectural heritage in
the historical groups of buildings that pose more complex problems, compared with the
isolated monuments, and that can hardly be replaced by museum-based conservation.
For the Romanian historical centres, the specific intervention techniques are determined
by certain characteristics of the architectural heritage, as follows:
the existence in the historical centre of a historical monument or group of
monuments paramount for the respective urban identity through the multiplying effect of its
rehabilitation upon the environment (spin-off effect);
gathering the architectural heritage of the historical centres into groups
(heritage concentration) or its spreading (heritage diffusion) within the area of the historical
centre, by its influence upon the executants organized intervention and commitment;
the specific heritage report, together with the stylistic homogeneity, of the
juridical or technical status of the heritage provides an operational justification of either the
building-after-building interventions, insulated operations or general operations on the
entire intervention area.
The concept of renovation is improperly used to refer to pulling down a building, an urban
district occupied by flats, activities or both: we should replace it with demolition-
reconstruction, and use the term renovation for rehabilitation.
Actually, the concept of urban renovation, unlike urban reconstruction, refers to urban
actions and operations precisely destined to modernization. Urban renovation expresses
the continuity of the modernization process occurring in most human settlements.
447
Urban renovation is a difficult operation which requires massive intervention of public
power:
institutionally, an improvement organization that purchases and pulls down the
buildings, reinstalls the occupants, improves the land, and gives back the buildings;
juridically, in order to allow expropriation;
financially, most frequently and particularly at the beginning of the operation, for
the purpose of infrastructure expenses and inevitable delays between the purchase and
the first transfers.
The initial meaning of the concept of rehabilitation refers to the action of restoring
someone to his/her own rights. This law term is figuratively employed to refer to the action
of restoring self-esteem and respect.
Thus, by metonymy, the concept has come to refer to the action/s aimed at changing the
moral status of a building or architectural heritage that has long been disconsidered and is
now the topic of an economic, practical and aesthetic study or evaluation. Therefore,
rehabilitation involves the improvement of an unused or inadequately used structure with
the aim to provide its suitable use. Unlike restructuring (changing the structure),
rehabilitation attempts to make as little change in structure as possible.
In conclusion, rehabilitation claims interventions upon the built resources, of different
complexity, for the purpose of eliminating the consequences of moral and/or physical wear
of the buildings. The amount of novelty introduced by rehabilitation is determined by the
functional concerns, financial resources and demands of heritage protection.
The rehabilitation of the historical centres is based on the policies of safeguarding the
built heritage, conserving the urban features of the group of buildings, and presupposes
the improvement of living and increase in comfort, and revaluation of the historical group of
buildings.

Case study: Sibiu
Planning: Historical centre

Fig.1 Passage of the Stairs Fig.2 Fortification wall

Initial situation: four parts of the wall (about 50 m in total length), as well as parts of the
supporting wall are in great danger of crumbling, as most stairs are damaged as a result of
the sewage system.

Short-term measures
reparation of the Passage of the Stairs and the Stairs of the Goldsmiths
Square.
consolidation of the support walls in the Liars Bridge area (City Hall, Ministry
of Culture, buget: 48,000 Euro)
448
consolidation of the town walls, town limits I-III, Goldsmiths Square Stairs
area
restoration of the Asylum Church (165,000 Euro)
restoration of the Brukenthal Museum, 4 Large Square
attic building, Astra Museum, 11 Small Square
restoration Reformed Church facade
restoration, headquarters of the City Hall, 2-4 Brukenthal St.
Summer Academy The International Week of Architectural Restoration
(Bucharest University-GTZ, CCIA; budget: 30,000 Euro)
"facade plastering to old buildings (Mihai Eminescu Foundation)
planning of the public areas: street-lamp renewal in the Small Square and on
Cetate St (project S.C. ELECTRICA S.A., Sibiu City Hall; budget: 12,100 Euro)
improvement contest for the Large Square

Medium-term measures
detailed urbanization plan for the following squares in the historical centre:
Large and Small Squares, Huet Square, Goldsmiths Square (Sibiu City Hall, budget:
9,000 Euro)
Current measures
reconstruction of the Thalia Theatre (C.J.S., budget: 410,000 Euro)
restoration of the Roman-Catholic Church, Large Square
the new City Hall headquarters (Emil Cioran St.) will become partly functional
(car parking)
the new Sibiu District Council building is under construction
apartment-building restoration 16, 22 Small Square
professional training in rehabilitation-related jobs (CCIA, FRG; budget:
25,000 Euro)
artisans training for the rehabilitation of the historical gates (GTZ)
university training in restoration (Lucian Blaga University)

Long-term measures
improvement works on the County Council Tower (Sibiu City Hall, budget: 82,000
Euro)
repair of some important school buildings: Brukenthal High-School and the Art
College
redirection of tranzit traffic from the upper town, i.e. closing-down the lower town for
heavy traffic and improvement of the Turnu St.
establishment of a gastronomy school in Sibiu (FRG; budget: 40,000 Euro)
building consulting services for restaurants, cafes and pubs (improvement of guest
rooms, facades, companies, terraces, outside areas, etc.) according to the historical town
architecture and monument protection laws
establishment of a workshop belonging to the Mihai Eminescu Foundation
study on the establishment of a pedestrian area Nicolae Blcescu St. (Sibiu City
Hall, budget: 10,000 Euro)

Project ideas
introduction of certificates for special knowledge and achievement in
renovation and restoration
development of special offers promoting and financing artisan companies
active in the rehabilitation of the old buildings according to the norms of monument
protection
449
promotion of the old town as a unique trading place for local, national, and
international investors
provision of consulting services for retailers (e.g., in shop-windows and
advertising places, higher quality and specialization)
water and sewage network renewal on important streets and squares,
compelte renewal of water and sewage networs in the historical centre.

CONCLUSIONS

There is a tight connection between the typology of the urban-architectural heritage and
the intervention modes. The economy of urban intervention results in certain similar
intervention on certain characteristics of the urban-architectural heritage.
Urban restoration involves the recovery of some lost values, the reintegration of some
objects or groups of objects into the circuit of living values by reestablishing
communication with the cultural messages of history.
Reconstruction presupposes the recovery of some partially or totally destroyed elements
by employing modern, old or mixed materials. It should be based on precise archeological
and architectural documents and proofs, never on supposition. It can be an adequate
strategy following natural disasters. However, its validity is debatable when it is used as a
measure to improve the presentation of some heritage sites.
Urban reintegration is an operation aimed at recovering some groups of buildings or areas
of a town or city.
The reintegration of the historical centre involves both its rehabiliation and
revitalization, and its inclusion into the tourist routes, its opening to the city or town.
For the Romanian historical centres, the specific intervention techniques are determined
by certain characteristics of the architectural heritage, as follows:
renewal and strengthening of the historical centre as place for the artisans companies
avoiding such negative effects upon other urban functions as habitat, culture or education, and the autonomy
preservation of the various areas in the old town
therefore, it is recommended to identify areas for the artisans and small producers only after a detailed check-
up of the urban plan drawn for the respective area
revitalization of the traditional handcrafts that require no special living or working areas
provision of support, particularly for the handicraft companies whose activity does not distrub the lower town
no provisional working or noisy activities are admitted in the protected areas;
the mouments shall not be hidden by new buildings;
the urban certificates for new buildings around the old ones shall include a street
area of at least three houses on the left and right of the respective monument;
rehabilitation, replacement, and extension of the technical infrastructure networks
in view to avoiding new construction problems and providing the foreseen consumption per
capita;
access to new financing sources for the required investments;
introduction of a new taxation method according to the consumption volume;
intensified efforts to identify and eliminate the pipe breaks
planning and change in the household inlets according to the features and
architecture of the old town
reactivation of silted fountains and drainage;
more attractive tourist offer, considering the total commitment and demands of an
environmentally-friendly cultural tourism which is also socially responsible and
economically profitable;
larger and improved services, particularly:
- the creation/establishment of a tourist information centre;
- diversification of the hotel and gastronomy offer in the historical centre, according to
the severe criteria imposed by monument protection;
450
- drawing up of a detailed concept of tourism, promotion of handicraft and traditional
crafts, and their integration into the general concept of tourism.
improved conditions for the tourists by establishing additional tourist routes,
recreational places, and a large range of tourist information;
further development of the multilateral cultural offer;
raising the inhabitants awareness to the value, beauty, and the resources of their
historical town;
preservation of multicultural and multiconfessional customs and traditions.

BIBLIOGRAPHY

1. Charta de la Atena, art. 9
2. ALOIS RIEGEL, Cultul modern al monumentelor,esena i geneza sa,Ed. IMPERSS, Bucureti, 1999
3. SANDA VOICULESCU, Centrul istoric. Definire i delimitare revista Arhitectura nr.4/1978
4. F.CHOAY, P.MERLIN, Dictionnaire de lurbanisme et de lamenagement, Paris, Ed. Presses
Universitaires de France, 1988
5. PETER DERER, Locuirea urban, Ed.Tehnic, Bucureti, 1985
6. RODICA CRIAN, Reabilitarea locuirii urbane tradiionale, Ed. Paideia, Bucureti, 2004
7. NISTOR SERGIU, Protecia patrimoniului cultural n Romnia. Culegere de acte normative, Bucureti,
Editura Universitar Ion Mincu, 2002

451
STUDY AND RESEARCH ON THE DEVELOPMENT AND PROMOTION OF
RURAL TOURISM AND AGROTOURISM IN RNOV

STUDII I CERCETRI PRIVIND DEZVOLTAREA I PROMOVAREA
TURISMULUI RURAL I AGROTURISMULUI N RNOV

HONU ADELAIDA CRISTINA, CREU R.C.


Abstract

In the contemporary world, tourism is undoubtedly one of the dominant phenomena, one of the most
profitable segments in the worlds economy through its remarkable dynamics, multiple motivations, and high
diversity.
In Romania, rural tourism has always been practised, although spontaneously, sporadically, casually and
especially in unorganized forms. Its actual manifestation was recorded in the 1920s-30s, as accommodation
provided to the occasional visitors of some rural settlements.
Starting with the year 1990, the interest in rural tourism is revived. Numerous associations and bodies are
established whose objectives are to promote and develop rural tourism. Among them, the Romanian
Federation for Mountain Development (1990) aims at promoting, under any form, the inhabitants of the
mountains. Including by promoting, organizing, and developing agrotourism. The Federation was followed by
the Romanian Agency for Agrotourism (1995), aimed at introducing Romanian agrotourism into the
international system, and the National Association for Ecological and Cultural Rural Tourism (ANTREC)
1994, member of the European Federation of Rural (EUROGITES), etc.

Key words: rural tourism, agrotourism, touristic house, tourist, natural and anthropic resources

INTRODUCTION

The city of Braov, the tourist centre of the county, is itself a settlement of high tourist
interest endowed with monuments from various historical periods; justly called "a museum-
city", it is also one of the most visited tourist centres in the country.
The city is a starting point for the entire network of resorts and chalets that has
developed in the extremely attractive landscape of the neighbouring mountain area.
Braov is also a spa, owing to its remarkable curative qualities resulting from the specific
weather condition of the contact area between the Brsa Low Land and the Mounts
Postvaru and Piatra Mare.
The settlement recorded an extraordinary evolution: in the Middle Ages, it was a
highly developed village concentrating the entire economic life of the entire
Brsa Region.
Today, Rnov encounters its fully economic regeneration according to the new
market demands. Its geographic position, landscape, and a little interest from the local
authorities may turn Rnov into a tourist attraction that could thus become a famous
tourist area like Bran.
Tourist services are a variety of activities aimed at meeting the tourists needs
during and related to their travel, such as some common demands (rest, food) on the one
hand, and specific characteristics of tourism itself, on the other.

MATERIAL AND METHOD

The paper is based upon an inventory of the natural and man-made resources of the area,
studies on the tourist development and promotion in the area, as well as case studies in
already existing B&Bs.

452

Emphasizing the main characteristics of tourist services is important to identify and delimit
them from the other components of the economic and social activity. Tourist services have
a series of specific features that are determined by the particular nature of the tourist
supply and demand, their correlations, and the conditions provided by the purchase-selling
atcitivites.
By its nature, tourist services should provide conditions for the recovery of the workforce,
as well as pleasant and instructive passtime; they must also be conceived of in such
manner as, following tourist consumption, the individual should acquire additional
information, knowledge, and even skills. Under the present-day conditions provided by
Romania as a country committed to noew development, such an orientation of the services
provided render tourism an important instrument in increasing the quality of life.
Another demand of tourist consumption, that should be effectively met by tourist services,
is the provision of the tourists active rest a modern procedure of relaxation and
treatment that eliminates the negative consequences of overwork and nervous stress.
Starting from these premises, tourist organizers should be interested in planning holidays
and tourist arrangements that offer multiple possibilities for recreational activities: cultural,
artistic, sports, handicraft, hobby-stimulating, etc., aimed at diversifying traditional
entertainment and increase attractivity according to the active rest criteria.
Although there is close similarity between the tourist demand and consumption, the two
concepts cannot be juxtaposed. Thus, the official definitions reveal the different content of
the two categories:
tourist demand consists in the total number of persons who manifest their wish to
travel periodically and temporarily outside their own residence, ofr other purposes than
carrying out paid activities at destination;
tourist consumption is made up of the expenses incurred by tourist demand to
purchase new services and good related to the tourist motivation.
Therefore, tourist demand is the total demands, either expressed or not yet
expressed, regarding the appropriation of tourist products whereas tourist
consumption is the material form of demand.
The town of Rnov is also favoured by its location near Braov which is famous for its old
architectural monuments and top tourist buildings and endowment.
The town is recommended for active rest (sports and leisure), as well as for its
therapeutical action upon the central nervous systems with positive influence upon all the
vital functions.

Case study: The Valea Cetii B&B

The Valea Cetii B&B is a new three-star accommodation place, recently included
in the tourist circuit, located at the foot of the Rnov Fortress (Photo 4.1).
A few minutes walk provides access to the centre where there are several
important buildings of the town: the Town Hall, Culture Club, Evangelical Church, etc. The
B&B is located on the road that connects Rnov to Poiana Braov, an extremely visited
resort.
The building style is a mixture of rustic and modern, as the B&B is built only in fir
wood on concrete pillars, which creates an atmosphere of privacy; nevertheless, it
provides all the necessary modern facilities (Photo 1).

453

Photo1. Valea Cetii B&B

The Valea Cetii B&B is privately owned by the TEFNESCU IMPEX trading
company, a limited liability company with its main office in Rnov, 3 Cetii St. The
company was founded in 2002, certified by the Romanian Trading Register J08/1309/2002,
and has the unique registration R7475465. At present, its social capital is 24,830 RON
(Source: Company balance, December 2005).
The activity of the medium-sized B&B is carried out by 14 full-time employees, and
additional staff during summer or holiday time.
Staff structure:
- two receptionists;
- one accountant;
- two chefs;
- two sous chefs;
- two bartenders;
- one waiter;
- two housekeepers;
- two maids.

History

The idea of building a B&B in that location belonged to the tefnescu couple
who spent a holiday in Bran and wanted to visit the surroundings One of the places
they visited was Rnov, both town and fortress. On their way to the fortress, they
noticed a land strip and a disused tennis playground. The couple was so impressed
with that isolated location, surrounded by marvelous beech and fir wood, that they
decided to make an investment; at that time, their best idea was to modernize the
tennis playground.
Thus, in 2002 they started constructing the four tennis playgrounds which are used
as such during summer; in winter, the courts are covered with water and turned into
natural skating pools (Photo 2).
Photo 2 Tennis playground

454
After the playgrounds became functional, the owners thought about building a B&B
nearby since tourism in Rnov was at the beginning and they had noticed an acute lack
in meeting the tourists accommodation demands. Therefore, a year later, the Valea
Cetii B&B was inaugurated, its name being inspired by the homonymous area.

B&B structure

The Valea Cetii B&B consists in the groundfloor, first floor, and attic.
On the groundfloor there are two entrances: the main one and one from the bar. The main
entrance leads to a small hall which connects with the inner staircase (leading to the
landing of the first floor) and the reception.
The reception makes the connection with the restaurant or the dining hall and bar.
Also on the groundfloor there are: the kitchen, lavatories, the sports equipment storeroom,
and a wardrobe room.
The restaurant has an area of 100 sq meters and a capacity of 70 tourists. During
the summer there is also an outdoor terrace hosting 20 persons. The furniture is massive
wood combining the rural and modern styles.
Food is top quality, the wide range including both traditional and international
specialties from well-known dishes to refined delicacies. The cooks create true works of art,
as the savoury food is completed by an impressive presentation.
The first floor provides accommodation for 28 tourists in the 12 rooms, as follows:
six rooms in the West wing of the B&B, with a view to the tennis playgrounds, while the
other six rooms are located in the East wing, with a view to the Rnov Fortress and the
road that leads to the town. All the rooms are decorated in a rural-modern style, and 11
rooms have the same facilities:
- their own bathroom (toilet, shower, hair drier, towels);
- massive wood furniture (night tables, double beds with orthopedic mattresses,
wardrobe, small table and two stools, luggage support);
- TV set;
- minibar;
- Internet connection;
- four rooms have their own balcony (two on the East and the other two on the West
wing);
- there is one special room providing two single beds.
In the attic there is a conference room.

Prices of Valea Cetii B&B:
Accommodation: 30 EUR / double room, no terrace / night
32 EUR / double room and terrace / night
41 EUR / two single beds room / night
The price also includes breakfast. Lunch, dinner and other snacks are paid either
when ordered or when checking out. The price of lunch and dinner is not standard as it
depends upon the type of food ordered.
Tennis: ticket - 7 EUR / hour;
equipment 5 EUR / hour.
Skating pool: ticket 4 EUR / hour;
equipment 5 EUR / hour;
- for groups larger than 10 students, prices are 50% lower

CONCLUSIONS

Rnov is an increasingly attractive town, both to the Romanian and foreign tourists.
The town has extremely valuable natural and man-made resources. Owing to its particular
455
charm, Rnov provides great leisure possibilities: fresh air, quiet life, amazing landscape
all over the year.
Basically, Rnov is a tourist receiving area. Romanian tourists can come from the
large urban centres of the country, as they practice a season-based tourism (especially in
summer and winter), sports tourism, weekend tourism, and business tourism.
Generally, the tourists who spend their spare time at the Valea Cetii B&B are not
organized in groups as the time length of their stay is very short (normally on weekends).
The organized groups come for a longer period of time, usually up to a week, in
order to spend their Christmas, Easter or summer holidays.
Since the B&B is located in a mountain area, it does not depend very much upon the
season, compared with the Black Sea Coast. The afflux of tourists is constant all over the
year, mainly motivated by entertainment, followed by sports and, last but not least, rest.
As seen from the calculations and conclusions of the present papers, both Rnov
as a tourist town and the B&B under analysis, Valea Cetii, need several improvement
measures in order to attract more tourists.
The town itself needs:
an updated infrastructure, as the existing one is very old or even absent in certain
places;
a tourist information centre to offer information on: locations, museums, cultural
events, or to organize cultural and artistic events in order to attract tourists, etc.;
renovated buildings, in order to recapture the medieval atmosphere of the town;
well-developed and modern accommodation places for the tourists who wish to
spend their spare time in this town;
a well-developed and modern public feeding service;
participation in tourist fairs and exhibitions both in Romania and abroad, for the better
promotion of the town.
As results from the above, measures can be taken to improve all the factors related to a
better development of tourism and, subsequently, the increase in the number of tourists in
Rnov, as well as at the Valea Cetii B&B.

BIBLIOGRAPHY

1. GH. BARBU (coordonator). Turismul n economia naional, Editura Sport-Turism, Bucureti, 1981.
2. V. GLVAN, Turism rural, Agroturism, Turism durabil, Ecoturism, Editura Economic, Bucureti, 2003
3. MINCIU RODICA, Economia Turismului, Editura Uranus, Bucureti, 2001
4. ADELAIDA HONU, Amenajarea agroturistic a teritoriului, Ed. CERES, Bucureti, 2005
http://www.ruraltourism.ro/bran/pensrasnov/rems/html/remsro.html

456
MITOC VILLAGE - A SOCIAL-ECONOMICAL ANALISYS

COMUNA MITOC- COORDONATE SOCIO-ECONOMICE

IORGA ADINA

BUCHAREST

Abstract

Changes in family structure and functions are due to changes which occured at society level. In order to
understand the organizational variety of rural families a close analisys of society itself is required.
This study is a close social-economical analysis of the countryside households of Mitoc village. Mitoc
community is located in a plain area, near the north-west border of Romania, Botosani County.
Considering that human resources is the main factor in developing and moderinization of rural space, this
study is aimed to investigate as well, the posibility of diversify inhabitants occupations according to
psychological, social and economical resources.

Keywords: human resources, rural space, diversification of occupation, rural family.

INTRODUCTION

Research of Romanian agricultural households revealed their change potential concerning
dimensions of land in property. Small, subsistence households, assuring day-to-day living
for many rural inhabitants, will be comprise into bigger ones, more effective economically.
This tendency in Romanian agriculture will transform the existing households into farms
more alike with those west-european ones. One of the outcomes of those structural
modifications will be that a large number of manpower will remain without its main income
source. Indeed, a huge negative impact will suffer expecially the most necessitous
households. A possilbe solution for this excess manpower might be engaging it into non-
agricultural activities.
Considering that in rural areas of Romania, concealed unemployent is wide-spread and
increasing, the developing of non-agriculture economy in rural areas is crucial. For this
reason, in order to encourage agricultural households to unfold non-agricultural activities,
economical policies are focused on improving standard of living in rural areas by investing
in education and infrastructure.

RURAL NON-AGRICULTURE ECONOMY

The theory which best explain the existing characteristics and tendencies of Romanian
rural space is called Rural Non-agriculture Economy.
Rural Non-agriculture Economy may be defined as comprising all those activities, for
which an individual might be paid or is self-employed, associated with rural areas
excepting agricultural activities.
According to David and Pearce, there are some exemples of non-agriculture activities:
- processing of agricultural products;
- developing of a small business;
- obtaining incomes such as: pensions, interests and dividents;
- obtaining revenues from engaging yourself in temporary jobs within urban areas.
According to N. Islam, there are 5 main non-agriculture activities which generate income:
- non-agriculture activities developed within agricultural households;
- activities developed into small towns located in urban areas ;
- activities unfold in big cities which imply seasonal migration of manpower;
457
- permanent activities developed into big cities;
- activities unfold overseas.
Furthermore, specialists are trying to indentify potential income sources for rural
households (as illustrated below in Chart 1.1). A suplimentary parenthesis is needed:
traditional income source for rural househols is generated by agriculture activities
developed on lands in property; the main purpose of agriculture activities is to acquire
agricultural products and fibres.
Potential income sources of rural households
Chart 1.1.
Source: Davis&Pearce, 2000

Non-agricultural potential income sources can be divided into 3 groups:
wages for labor developed within non-agriculture sector;
businesses developed within other sectors (except agriculture);
incomes obtained overseas or received from overseas.

Methodology

Multiple criteria aproach takes into consideration demographical, economical, social and
sociological criteria to identify general and specific objecives of development. Only after a
close appraise of human, economical and natural resources at a local, regional level,
endogenous development plans can be outlined.
Reasearch units are township and rural household.

HOUSEHOLD
INCOME
AGRICULTURAL
INCOME
NON
AGRICULTURAL
INCOME
OTHER
INCOMES
Revenue obtained from
agriculture activities on
household land
Wages for labor developed
for other households
Wages for non-agriculture
activities
Businesses developed within
non-agriculture sector
Overseas income
Pensions
Dividends
Interests
458
For this sociological dissection due to manifold requirements the following research
instruments were used:
- village file;
- household questionnaire;
- focus group.

MITOC TOWNSHIP, BOTOSANI COUNTY

A) Qualitative analysis

Fig. 1 General data

Located about 80 km from the county seat and 12 km from the closest inhabited place
(Avrameni) this township is made up of two villages: Mitoc and Horia. Having only
backroads at their disposal and the closest railway station and gas station at the adjacent
town of Saveni (30 km), the town dwellers without personal transportation are left with a
bus twice a day in order to reach the capital of the county.

459

Opportunities and Obstacles for Development
Chart 1.2.
Opportunities Obstacles

Diversifying traditional occupations into modern
ones
Spatial Isolation Long distance to
town, close community, poor roads
Animal husbandry It is very hard nowadays to
get a return on investment from animal raising,
thats way the livestock is dwindling.
Economic Foreign Investors come
but go away after facing the reality, No
market is available
Cattles:Raising bovines is growing in popularity
because it gives the most benefits
Political Many peasants are upset
when they see how little they get in
return for their hard work
Sociological factors
Habits the old traditional methods are
ingrain, they are reluctant to new

B) Quantitative analysis

A main factor toward diversifying the rural economy is population age. While median
household age is 41.25, it is only 35.24 for Mitoc.
A sign showing the chance for demographic increase is the number of under-15 year old
children per household (40% percent in Mitoc)
In Mitoc the average family has a higher than average number of members. This shows
that despite a countrywide shifting from the traditional family model, Mitoc still follows it.
One of the reasons of higher than average number of children per family is a very practical
one: they are used to help with the manual labour without being paid.
Active occupational structure is almost balanced at the sample level: 26.9% of the active
population percent is involved in agriculture, the same percentage involved in services with
the remaining 23.3% involved in industry and other type of activities.
Mitoc township has its occupational structure dominated by agriculture.
Occupational mobility is a sign of diversifying the economy and increase the number of
income sources. According to sociology studies we can say that the advent of innovation
on rural communities is done especially by migrants. The mobility affects 15.6% of the
households included in the sample, Mitoc being a township with reduced occupational
mobility.

CONCLUSIONS

1. The main characteristic for perception of the community and personal status is a
negative one and is related to the economic development.
2. Obstacles in the township development are isolation, the lack of investors and
markets, price policy, mentality, reluctance regarding novelty, traditional thinking
3. The number of animals per household is growing significantly in Mitoc, confirming
the importance of live stock in terms of personal consumption in rural households.
Townships located in the vicinity of towns tend to have less land and animals than the
ones that are further from cities, so they have to rely on agriculture and animal husbandry.
4. The Mitoc workforce has scant job options while choosing to work in non-
agricultural activities: a timber yard, one forge and milk storage, a corn mill and several oil
presses. There are also 23 shops and the same number of bars.
460
5. The main problems as seen by the people of Mitoc are: poverty, poor educational
infrastructure along with a precarious informal process
6. The change in traditional occupations is seen in modern terms: raising bovines is
about to become a profitable activity, corn and sunflower cultures are starting to be done
on big surfaces, more and more one animal type farm: only cattles, only sheeps.
7. In terms of ooccupational mobility Mitoc can be seen as having a low one: only
15.6% of the households are affected.
8. Mitoc has workforce surplus, thus a high unemployment. This is related to the low
median household age (35.3) characterized by a poor skill set. The majority of them have
no higher than an 8 grade diploma: 36.5% have graduated the gymnasium while 22.8%
finished only primary school.
9. The non-agricultural choices are showing up due to existence of natural resources
quarry extraction, manual wicker furniture, honey as an ecologic product, industrial fishing,
textile industry, meat processing.
10. Most of the investments in Mitoc are in the agricultural field (vegetal, animal, and
equipment) while trying to get the most out of existing resources (land, peoples). In
contrast investments that require a good infrastructure are limited (rural boarding housing,
industry) .
11. In Mitoc the majority is involved in agriculture (44.44%), 27.77% are retired while
11.11% are home-keeping. The ones that work in non-agricultural jobs (trade, construction,
services, administration) are only 11.10% showing a weak development for the secondary
and tertiary sector.
12. The two organizational types which may contribute to diversification of inhabitants
occupations in rural areas are associative and co-operative ones.

BIBLIOGRAPHY

1. Bdescu Ilie, Cristea Darie, Elemente pentru un dicionar de sociologie rural, Editura Mica Valahie,
Bucureti, 2003;
2. Bdescu Ilie, Sociogeografia i etnografia comunitii rneti studii de caz, vol. 1, 2 i 3, 2000;
3. Boiangiu Florentina, Sociologie rural repere teoretice i metodologice, USAMV, Bucureti, 2005;
4. Chelcea S, Mrginean I, Cauc I, Cercetarea sociologic- Metode i tehnici, Editura Destin, 1998;
5. Costaforu Xenia, Cercetarea monografic a familiei, Editura Tritonic, Bucureti, 2004;
6. Davis Jr. and Pearce D. The Rural Non-farm Economy in Central and Eastern Europe. Discussion
Paper, 2000, Natural Resources Institute, UK
7. Fulea Maria, Coordonate economice i socio demografice ale satului romnesc n tranziie, Editura
Academiei Romne, Bucureti, 1996;
8. Voinea Maria, Sociologia familiei, Universitatea Bucureti, Facultatea de Sociologie- Psihologie-
Pedagogie, Bucureti, 1993;

461
ESTIMATION OF AGRICULTURAL SITUATION IN A TYPICAL
MUNICIPALITY OF THE KOLUBARA DISTRICT, REPUBLIC OF SERBIA
13

JELONIK M., ARSI SLAVICA, VELIBOR POTREBI

Institute of agricultural economics Belgrade, Serbia

Abstract

Knowing the current problems and issues connected to production and final realization of basic agricultural
products is crucial for real evaluation of producers position in agriculture, as well as agriculture in total
economy of Republic of Serbia. Creators of agrarian policies should constantly listen opinions, also, they
should have more adequate aproach to problem overcoming and needs satisfaction of agricultural producers
in everyday business. Here, especial retrospective should be given to problems, needs and limitations of
producers who are in the category of developmentalyy oriented households, category which can be
considerd as basis of survival and future development of Serbian agrar.
The above stated is more serious if we take into consideration actual, decisive, moment in which we analyze
the ability and possibility of our agrar and the entire country to accept inevitably technical, technological and
organizational changes, so that they could join to large European family and its agricultural production
models.

Key words: developmentally oriented households, The Kolubara District, agriculture,
multifunctionality, Republic of Serbia

INTRODUCTION

According last registration of population (2002.) in Serbia (without data for Kosovo) were
about 750,000 agricultural households, or around 31% of all husbandries. Farms with 4 or
more persons are dominant (about 312,000). In this sum there are little number of family
farms, which we can characterized as real farms, whith production dedicated strictly to the
market, and with vision and capability of future development which put them in class of
developmently oriented husbandries.
Expressed effect of Serbian village aging, is best pictured with the fact that in sample of
3.3 million people which live in rural areas, 38% are older than 50 years. Also is not
negligible number of villages which are without young people (in about 4.3% villages in
Republic there is no teens). Fast tempo of demographic evacuation toward urban areas,
highly marked phenomenon of depopulation (about 26,000 inhabitants per year) and aging
within rural areas, can be serious and limited factor of future agricultural production in
Serbia. In other words, about 1,000 villages are dying, and rest of them are characterized
with bad educational structure of laboure force, slow break through of technical and
technological innovation, old fashioned mechanization and tendency of decreasing of
cattles.
Having in minds that agriculture is important part of whole Republic economy (in structure
of GDP 12% is from agriculture, or about 2.3 billion of USA $), concept of future
development of domestic agriculture should be stand on stimulation for strengthening of
commercial agro-husbandries, which have to be enabled for profitable agricultural
production, parallel with support for building rural and market infrastructure, control and
elimination of monopol in agro-sector, as with rising of agro products quality.


13
Paper work is part of the project research Multifunctional agriculture and rural development in the function of accession of Republic of
Serbia into EU - no. 149087, financed by the Ministry of Science and Environmental Protection of Republic of Serbia.
462
During the period 2007-2008., was done estimation of condition of agriculture,
based on questionary analysis which was directed to developmently oriented husbandries,
on the territory of Kolubara district. As represent is chosen one typical rural community
from this District, Mionica municipality. By analysis is got an property picture, list of current
problems, as general attitudes of farmers, based on questions connected for their
agricultural production. How total number of inhabitants in this part of Kolubara district,
according the registration (2002.), was 16,513, survey included sample of about 10% of
total population from this territory. Questionary is carried out in 323 husbandries, located in
33 settlements (mostly villages) in mentioned municipality. All conclusion are results of
analysis of questionary sample.


Developmently oriented agricultural husbandries Family household is defined as
indipendant organizational unit in agriculture, which primarily use laboure of its own family
members, avails necessary agricultural ground (in its possession, or rent it) and other
needful means for continous production processes, so bears all consequences of its own
bussines.
We make difference between two types of family households: a) mainly natural which is
by bigger part oriented to meet the alimentary needs of its own members and b) real farms
- which production is basicly directed to markets. Just in frame of real farms we can seek
for those one which are developmently oriented.
Structure of used agricultural areas Total agricultural surface which is used by polled
husbandries is 3,470 ha, in average 10.7 ha per observed farm. Total arable land which is
used by surveyed households is about 3,298 ha, or 10.2 ha per observed farm, what is by
cadastral data, about 17% of all arable land in Mionica municipality. As an example, one
ordinary husbandry in Serbia handle with 2.46 ha of arable land, what is considered as
unadequate capacity for starting a serious agricultural production (in EU this average is
about 27 ha).
Ploughland areas which are cultivated by polled husbandries in amount of 2,483 ha, or 7.7
ha per observed farm, relatively 72% of total agricultural areas, in biger portion are in farm
possession (69%), while other 31% of used ploughland areas are hired in rent. Orchards,
in structure of used agricultural areas, are included in amount of 8%, while meadows are
presented with around 15% of areas. Small part of soil areas under the meadows, about
6%, are taken in lease by the analysed agricultural producers. Rest of agricultural surfaces,
around 5%, are mostly used for cattle pasture.
Structure of agricultural production: a) Cattle breeding production the most
presented branch of cattle breeding in polled husbandries is cow raising. In the frame of
cow raising, accordind the number of heads in ordinary process of production, the most
important production is bullock fattening (2,594 heads, or 8 heads per observed farm). By
number of heads on farm, next line of production in cow raising is milk and calves
producton (presence of milk cow is 2,094 heads, or 6.5 heads per polled farm). Milk is by
production quantity, dominate product of cattle breeding in this part of Republic.
Next branch of cattle breeding by incidence and production potential is hog raising. On
farms is usually done porker breeding (according the survey is determined number of
2,251 porkers and 1,052 sows, or 7 porkers and 3.3 sows per observed farm). This
production is on qualitatively low level (small number of heads in one production circle).
The most often model of this line of production is that husbandry has one pair of sows for
propagation, and borned progeny is used for porker fattening and as simple exchange of
basic herd.
Except sporadic breeding of poultry heads, what means that husbandries have mostly
reduced flocks, and that they use produced meat and eggs for its own alimentation, with
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serious broiler and egg production have dealed relatively small number (16) of surveyed
households.
Majority of analyzed husbandries, parallel with other lines of cattle breeding production,
raise certain number of sheep (3,041 heads) and pretty much smaller number of goats
(70 heads). Farms which raise sheep, in average have herd of 10 heads, however,
according the statements of polled producers, sheep breeding in this region has
perspective. Goat breeding could be, by number of raised heads, excluded, so it is present
attitude of agricultural producers that more intensive goat raising is not planned.
By bee keeping is dealing relatively small number of polled farms (around 8.4%), with
production capacity of 530 hives. Does not exist bigger interest for intensifying of bee
keeping in near future, how this branch of agriculture has big laboure requests, carry high
risks, and according that, carry out small profits.
Crop, fruit and vegetable production the most wide spread cereals with expressed
production perspective are corn and wheat, and in less volume oat, barley and rye. At the
side of fodder crops, as mostly perspective cultures are marked alfalfa, silage corn, clover,
and partly livestock pease, livestock savoy, red clover and grass mixtures. Oil plants
usually are not raisen. There where are presented in production programme, mostly are
raisen soya been as fodder. Sugar beet and tobacco are not presented in sowing structure
of this region.
In the sphere of vegetable production, mostly is presented production of all kind of fresh
vegetables and plantlets in green and plastic houses. At the open fields usually are raisen
potatoe.
In the structure of the fruit production, with perspective at first place are underlined plums,
and after them apples, walnuts, cherries and apricots. From berry fruits dominant are
raspberries and blackberries, but in proportion with semple size (number of polled
husbandries), they are not often presented as production.
Outfitting with means of mechanization level of equipment with means of agricultural
mechanization and tools on the observed husbandries is marked as relatively satisfying.
According the survey data, farms operated with 434 tractors and 75 combine harvesters,
or in average 1.34 tractors and 0.23 combine harvesters per each farm. Significant
problem is recognized in obsolence and bad functionality of mostly all prime and working
machines, as in their unadequate structure refered to engine power, ground configuration
and optimal needs of dominant lines of agricultural production for mechanization. This
should be corrected in near future with education of farm carriers, with concept that is not
always priority pretention that each farm posses individuall means of mechanization. In
other words it could be made cooperation based on agreement at the village level, for the
purpose of joint usage of necessary means of mechanization.
Realization channels of agricultural products and services Products which are
dominant in offer of developmently oriented husbandries, according the produced quantum
on farm, and sell volumes to market are: fattened bullocks, porkers, milk and dairy
products (usually cheese and cream), broilers, egges, fruit and fruit products (mostly
spirits), vegetable (usually from green houses), sporadically mushrooms, honey and meat
products. Agricultural producers from the polled husbandries, which live and
work on the territory of Mionica municipality, mainly stressed for themselves that they are
oriented to market.
Realization of live animals and animal products, as row material (milk, eggs and other)
is usually with continous character and for known buyers, while some categories of animal
products of higher level of processing (cheese, cream, honey and meat products, etc.) are
realized, mostly through green markets, or through interpeasant (farm) exchange.
Most often and the biggiest forestallers of live stock breeding products, that gravitate to
this region are:
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- milk as row material: Imlek, abacs dairy, dairy Ub, dairy Milk Valjevo, small
private milk factories in surround (for example dairy Vraevi), etc;
- fattened bullocks and porkers: Stoar Ub, Stokopromet Valjevo, slaughter house
Divci, slougter house Sjenica, slougter house Kosti, slougter house Luki-Ljig,
Agropromet-Ljig, local butchers (usually from Valjevo and Belgrade), etc.
- broilers and eggs: private retailers (usually from Valjevo), live stock markets in
wider surrounding, slougter house Boljevci, etc.
- Cheese and cream: local bakeries, private retailers in wider surrounding, green
markets in wider surrounding (including Belgrade and Novi Sad markets), etc.
Generally, crop farming products (cereals, which are presented in almost all
husbandries on significant surfaces, fodder crops, oil plants and industry crops) are as
inputs (fodder) spent on polled husbandries in the frame of live stock production. Some
categories of underlined products are in use in small amounts for alimentation of family
members on the farms, or they are realized in interfarm exchange and by selling on the
green markets.
Basic products of fruit production (plum, apple and raspberry) and vegetable
production (potatoe) are partly realized to known buyers:
- fresh plum: Srbijanka Valjevo, Agranela, local retailers, etc.
- fresh raspberry: Agranela, Promet Valjevo, local coolers, or coolers in near
surrouding, etc.
- fresh vegetable: local retailers and restaurants - during and after season of their
coming (in quite a lot number is existed green house production).
Most often the selling of this products is done through middle man (interloper from various
parts of Serbia and bordered countries), as through green markets in surround, or through
Belgrade wholesale market (in the period of coming), and negligible part through inter farm
exchange, or through natural consumption on husbandries. Fruit products of higher level of
processing (spirits, dried plums, and partly jams, nectars, preserved fruit and etc.), usually
are realized through green markets, inter farm exchange, or through natural consumption
on husbandries.
From other agricultural activities most presented are extension of services with
mechanization (soil cultivation, harvesting, transport of products, etc.) to the rest farms.
From the analyzed semple small number of husbandries, (9), is pronounced that at this
moment gives an services of rural tourism, with statement of 50% of all polled
husbandries that it occurs perspectives for development of this activity in Mionica
municipality.
In observed semple is detected 27 mini industrial agro-food processing
factories, and by the estimation of polled people it should be existed much more, at first
place mini dairies and mini slaughter houses, plum dryers and facilities for fruit processing.
When we are talking about extension of service (trade and handicraft) industry, most
often it is extended carpenter and auto mechanic services, as transportation services too.
Estimation of price stability on the Serbian market about 98% of polled
agricultural producers estimated price flow in agriculture on domestic market as extremely
oscilate or non-stimulative for further investments in agricultural production. Negligible is
the statement of the rest (2%) of polled farmers, who are considered that present flow of
prices in agriculture is stable and predictable.
Membership in production association polled agricultural producers usually are
not members of professional association connected for their agricultural activity (in around
90% of polled cases). This fact is often excused by the statement that in near surrounding
does not exist cooperative farm, union or cluster of their interest.
Polled persons which belong with their membership to certain association (31 polled
husbandry, or about 10% of the semple), as an advantage of cooperation usually see in:
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easier approach to subsidies, easier administration, easier products selling through
association, education and other.
Informatical equipment of husbandries and approach to data about 78% of
polled persons does not have personal computer on farm, in other words informatical
illiteracy of rural population and agricultural producers is really expressed.
Most often channels of approaching to the relevant informations from agriculture,
published by the authorized Ministry are: talk with friends, media (official journal of the
Ministry of agriculture, radio, newspaper and TV, internet, direct communication with
Ministry and middleman companies of agricultural products.

Aplication of measures of Ministry of agriculture More than 95% of polled agricultural
husbandries is registered in the Ministry of Agiculture. About 60% of polled subjects used
one or more support measures of Ministry of agriculture. The most common are the
following measures: subsidies for milk, fuel and fertilizer, regresses for heifer, short - term
and long - term low interest credits of authorized Ministry (for new mechanization, cattle
purchasing, financing of auxiliary goods for sowing, building and reconstruction of
production facilities), as well as the latest measure of the Ministry of agriculture 100
euro/hectar, etc.
About 56% of polled persons are partialy satisfied with the support of the Ministry to their
production, while there are 34% of unsatisfied and only 10% of analyzed semple which
are totally satisfied with the support of the Ministry of Agriculture.
During 2006. and 2007. about 19% of polled households are used credit lines of
commercial banks, althought credit terms were not favourable. Gained assets usually
have short-term and mid-term character, and are being used for: purchase of new and
maintenance of old mechanization, cattle purchase, various chemical goods, building and
reconstruction of production facilities (mostly stables), land purchase, etc.
Business problems and sugesstions to the Ministry of Agriculture as the largest
problem in their production and bussines polled farmers recognized in bad parity
(disparity) of input and output prices in agriculture. It is also notable an complaining on low
redemption and selling prices of agricultural products, in compare with much higher input
prices in agricultural production. Sporadicaly as problems are stated: selling insecurity of
the agricultural products, bad measures of agrarian policy especialy in sphere of
subventions, bad credit policy, lack of labour force, old fashioned and non-quality
mechanization, old fashioned rural infrastructure, etc.
As prevailing suggestions and proposals to the authorized Ministry usually apeared:
solving of prices disparity problem in agriculture, promotion of credit support to agriculture
and rural areas, improvement of comunication between the authorized Ministry and
agricultural producers, establishing better set of agrarian policy measures (especialy
related to subventions and regresses), simplification of administration in agricultural
production, etc.
Planned investments in short - term time horizont analysis of planned individual
investments by the producers, which are related to the polled husbandries, shows the
following:
- 323 huseholds are polled (semple). From that number 108 households did not
express possibility, as well as desire for investments in near future.
Total number of planned investments on polled husbandries is 231. Their structure looks
like this:
- The largest number of investments is related to the live stock production,
about 24% of all planned investments is for purchasing of bullocks for fattening, as for
reconstruction and building of facilities for them.
- About 17% of total number of investment plans is related to the purchase of
heads of milk cows, as for reconstruction and building of facilities for their living.
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- Around 17% of total investments is related to the purchasing of new
mechanization.
- About 12% of investment plans is related to building and outfitting of objects
for poultry farming, as well as for purchase of young broilers and layers.
- Rest of the investment sugesstions (30%) is related to: land purchase,
building of blackberries and plums plantation, investments in hog raising, building of new
green (plastic) houses, etc.
Potential sum of all planned investments in polled households is about 4.03 milion of Euro.
The structure of values of all planned investments, looks like this:
- The largest amount of assets is planned to invest in objects, facilities and
process of bullocks fattening, about 26% of totally planned assets.
- By the size of planned investments, next are the investments in poultry
production, with about 23%.
- Approximately 15% of total planned investments are related to purchasing of
milk cows and for building stables and facilities for them.
- Total investments in purchase of new and for maintaining of present
mechanization is about 13% of totally planned investment means.
- Other 23% of investment assets are for smaller investment proposals.

CONCLUSION

Developmently oriented agricultural husbandries must be the basis of agricultural
production in the Republic of Serbia. Growth of agricultural production and increment of
average of arable land area in agricultural households, represent conditions for further
village development as in Kolubara District as well in entire Republic. Analysis of current
state of agricultural production at developmently oriented agricultural husbandries in
Kolubara District is showed, that dominant branch in live stock breeding is cattle breeding,
while in plant production the most dominant are crop farming products, at first place corn
and wheat.
Husbandries are facing with large number of limiting factors, but as the most significant
business problems are marked prices disparity, realization of agricultural products and
unfavourable credit lines. Great importance should be given to agricultural producers
education about importance of their mutual communication and cooperation, in the aim of
their production performances and market position improvement.
This paper work is wanted to underline the main business problems of observed
husbandries, as possible paths for agrarian politics action, with the main goal in achiving of
better business results of developmently oriented households.

BIBLIOGRAPHY

1. Internal documentation of IAE Belgrade, Questionary, IAE Belgrade, Serbia, 2007-2008.;
2. Cvijanovi D., Hamovi V., Popovi V., Subi J., Kati B., Paraui V. Multifunkcionalna poljoprivreda i
ruralni razvoj u AP Vojvodina, Monograph, IEP, Belgrade, 2007.;
3. Kati B., Popovi V., Subi J. - The government support to rural areas development in Serbia. Conferina
internaional Dezvoltarea complex a spaiului rural, Volumul I Diversificarea activitilor economice din
mediul rural i creterea competitivitii agriculturii, Bucureti, Academia de Studii Economice din Bucureti,
Facultatea de Economie Agroalimentar i a Mediului, Institutul de Economie Agrar din Belgrad, Institutul
de Economie Agrar din Bucureti, pag. 273-289;
4. Development strategy of Serbian agriculture, Official journal of Republic of Serbia, No. 78/2005.

467
JURIDICAL AND TECHNICAL STATUTE OF THE QUALITY OF FOOD
GOODS IN THE SPACE OF THE EUROPEAN UNION

STATUTUL JURIDIC SI TEHNIC AL CALITTII MRFURILOR
ALIMENTARE N SPATIUL UNIUNII EUROPENE

LIVIU MRCUT


Abstract

The work is axed on the analysis and studying of juridical and technical frame of the quality of foods in the
space of the European Union, of the trend of harmonization of legislation and standards, of the present
mechanism with respect to the systems of inspection and certification in the field of imports and exports of
foods, the protection of food consumer in the space of the European Union and the inocuity of goods in
relation with the consumers safety and the impact on economic and social plane of the process of
integration.

Key words: the quality of the food, food produce, goods, world commerce, commercial agreement, food
policies, agridultural-food integration, harmonization, consumer protection, inspection, directives

Observing the contemporaneous goods, becomes necessary the knowledge of the
consumption phenomenology, tied to needs, interests, to processes of exchange, of value,
through the focusing of attention, particularly, on the analysis of the status of needs and
the mode in which is being achieved the value transfer. Referring to this phenomenology
of goods, S.J. Levy (1959) attributes a psychologic significance to the modern goods, in
the wish that these to respond better to the personal and social needs of the consumer,
that establishes himself certain life patterns and aspiration levels () things that people
buy seem to hold, besides certain functions, also personal and social significances. The
modern goods are recognized as psychological objects, as objects that symbolize
attributes and purposes, as symbols or social patterns and aspiration levels.A special
importance is granted to the definition of the requirements of the society referring to the
quality. These represent obligations that devolve from laws, regulations, rules, codes,
statutes, etc., and thay aim mainly at, the protection of life, health of persons and of the
environment, the corresponding valorizing of natural resources, the energy conservation.
In order to better understand the legislation one must know the juridical and technical
frame of the international commerce with food goods, the main multilateral commercial
agreements for goods, the institutional frame of international politics of agricultural-food
integration and the implications of the World Commerce Organization.
The general Agreement for Tariffs and Commerce (GATT) has been signed at Geneva at
October 30-th, 1947, by 23 states, on basis of a protocol of temporary application, entering
into force at January 1-st, 1948. The final act that incorporated the results of negotiations
from Uruguay Round, as well as the Agreement from Marrakech regarding to the
constitution of the World Commerce Organization have been signed at April 15-th, 1994 by
the representatives of the 125 participating states, among which also Romania. The
Agreement regarding the OMC is the main juridical instrument of the results of Uruguay
Round. Attached to this Agreement and being integrating part of it are all the other
agreements and memoranda of agreement that include the results of negotiations on
specific domains. The OMC Agreements have the role to guard that the exchange of
goods to progress freely and that the possible conflicts to be solved by the parties
interested by means of the OMC methods of arrangement of differences. The most
important domains covered by the agreements in the framework of OMC refers to the
circulation of goods, circulation of services, defending of the rights of intellectual ownership,
468
regulation of commercial aspects connected to investments, the protection of environment,
loyal competition, sanitary and fitosanitary measures, the measures of commercial
defense (antidumping, measures of retorsion, measures of safeguard), the procedures of
difference regulations, the agreement with respect to agriculture, etc. The standards, trade
marks and other insignia of quality put at disposal of producers, merchants and consumers
represent common and objective criteria for the quality appreciation.Within the European
Union, in the context of the preoccupations with respect to the facilitation of economic
exchanges between countries, has been put the problem of establishing some common
rules of protection of industrial ownership, including of trademarks. In the domain of
trademarks measures have been taken of harmonization of national legislations regarding
to trademarks, of institution of a communitary trademark and of definitive forbidding of the
import, within the EU, of products with counterfeited trademarks.
Other insignia of quality utilized at the level of the European Union are: the protected
geographical indication, denomination of protected origin and attestation of specificity.
These have been defined through communitary arrangements for the purpose of
identifying and protection of agricultural or food produces coming from certain reknown
geographical areas, as well as those whose specificity is tied to the omposition, mode of
production or traditional mode of procession.
The recent legislation of the European Union recommend the applying of the management
systems of quality based on HACCP in the countries that wish to export food products to
the EU. Three key systems of quality control are utilized: The Guide regarding tp the Good
Practices of Production (GMP). This refers to the best manufacturing conditions and
procedures for the ensuring of production safety and quality. The adhesion to the
standards established by the International Standardization Organization (ISO 9000) and
European Standards (ES 29000) ensure that the industrial processes, the collectivities and
the food industry are conformable to a well determined and established procedure. The
efficiency of this program is revised periodically by independent experts. As such, the
activities of ensuring the quality of food goods for export-import, carried aut by public and
private institutions and organizations for the purpose of offering to internal or external
consumers products of guaranteed quality include: standardization, certification, analyses
and tests, inspection, training of personnel and promotion.
The UE 178/202 Directive, that establishes the general princkiples and requirements of
legislation in the domain of foods, establishes as the first obligativity for the countries
members the ensuring of the free circulation of secure and healthy foods. The protection
against deceiving is, besides the protection of health, one of the purposes of the food
policy. The consumer must be offered sufficient information, so that to make the decision
of buying. The well known slogan of the information philosophy, followed by the European
Union, has led to a great emphasizing of the legislation of labeling.The most ample and
efficient efforts for the ensuring of the stability and innocuousness of foods are those to
elaborate legislative and normative acts at the national level. The problems regarding to
the stability and hygiene of food goods are solved by the competent bodies of population
health protection and of sanitary-veterinary bodies that, for the apllying of the national
normative framework have created various administrative instruments, for the purpose of
supervision, control and sanction of deviations from the normatives of innocuousness
ensuring.

BIBLIOGRAPHY
1. http://www.ciaa.bel
2. www.en-droit.com Publicite et promotion: Les denrees alimentaires

469
SUSTAINABLE TOURIST DEVELOPMENT OF
THE NATIONAL PARK FRUKA GORA SERBIA
1

PREDRAG VUKOVI, NATAA CECI, LANA IVANOVI
2

Institute of agricultural economics, Belgrade, Serbia

Abstract

Fruka gora is one of five National parks in the Republic of Serbia. It is located in northwest in region of
Vojvodina. National park has vast number of various natural and antropogenic resources and preserved eco-
system in them, along with, high potential for rural tourism development, multiethnic communities, old trades,
etc. can be offered as extra services in these areas. Tourism itself and its multiplied effect will have positive
influence on the economy in these areas. The concept of sustainable development must play an important
role in that process, and it should also be the pre-condition for all future plans and activities.
The aim of this paper is to show the directions and possibilities for future sustainable tourist
development in National park Fruka gora based on eco-tourism, keeping in mind, above all, its highly
preserved and respectable resources.

Key words: tourism, sustainble development, rural area

INTRODUCTION

Regarding the fact that tourism is incorporated in all the economic and social spheres and
their interdisciplinarity, the need for its influence reviewing from the point of environment is
placed. The main target of suistanable development researching is to focus on economic
and total social growth and it influence toward ecological processes and the quality of
surroundings.
Sustainable tourism represent the way for fulfilling the needs of the contemporary
generations and its needs, regarding the tourists and residents, without interpreting
abilities of the future generations for its needs fulfilling.
National park Fruka Gora with its natural and geographical advantages offers a lot of
possibilities for sustainable development. Important role must play all plans, programs and
actions and their direction in the same way.
The base for rich tourist offer of this area one may find in various natural and geographical
units, their preserved eco-system and the rich cultural and historical inheritage.

MATERIAL AND METHOD

This paper is pointing toward potential startegic directions of the Fruka Gora future tourist
development as a tourist destination regarding the sustainable development. IN this way
big potentials and resources of the tourism future development might be practically,
revalorized. The policy of undifferentied marketing has given no results untill now.
Strategy of the focusing on the market, integral marketing with clearly precised touristic
apsects, using consistent implementation must be the base to insist on in the future
development.
Methods used in this paper are:
Inductive and deductive method
Qualitative method
Quantitative method
Comparative method


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Sustainable tourist development must recognize the rights and needs of the
householders, accept their resources, lifestyle, culture and the right for this people to make
an influence on the local resources and their destiny.
Using all principles of the sustainable touristic development we place in the primar focus
these questiones:
Understanding values and the force influence of the big number of factors toward the
environment;
Keeping, preserving, promoting of the quality of the existing natural, cultural,
historicall and other resources;
Planned regional development ant its potentioning;
Rigorous standards for the touristic infrastructure;
Good balance of economic, social, environmental and other targets.

Succesfull implementation of all ecological components, tourist and environment
protection, giving advantages to those products organized according to ecological
standards in the future development of the tourism marketing activities, must be the
imperative.
At this very moment in the Republic of Serbia 6,59 % of its total land represents so
called protected area, and untill 2010. it is planned to be protected approximately 3,41 %
of its teritory. Vojvodina has, regareded as the unit, preserved it`s natural ambient.
Fruka Gora has been proclaimed in the year 1961. as the National Park, and with
adopting suitable Law and Plan for the Area it has been affirmated as the area with
particular natural and cultural and historic values. 25.400 h.is protected by the state. It is
place among other four National Parks of Serbia, along with Djerdap, ar-planina,
Kopaonik and Tara. Available and preserved antropogenetic resources of Fruka Gora are
based on the very rich history of this area, and might be regarded as the basic
presumption for planning its further touristic development. Regarding the fact that the
tourism and its problems were not taken into the consideration in the suttable way untill
now, the condition for the furher touristic development must take investments, its
adaptations and accommodation to its future purpose into the focus.
One might divide cultural and historic inheritage using following aspects:

) Areal cultural and historic units:
Urban centres located on the Fruka Gora: Sremski Karlovci, Sremska Kamenica,
Beoin Petrovaradin etc.
A lot of rural areas covering all destination.
Seventeean monasteries ,
Numerous cultural and historic monuments like Irig, Strailovo, and many others.

b) Folclore inheritage and manifestational values
Cultural and spiritual richness of numerous nations living for centuries on this area is
unmeasurable. It might be the subject of various tourist interests coming from highly
industrialized countries. Etno - contents, as the investigations are showing, are giving very
exotic offer for tourist coming from all round the world. Various manifestations typicall for
Vojvodina and its inhabitans are playing and might play simultaneosuly enrichening
cultural content of numerous cultural locations. It must be taken into the consideration
while planning future development.

) Archeological sights
Roman Empire and its traces might be found almoust everywere. Among other things, for
its locating it is best to use important roman road, in its remains, leading from Zemun via
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Novi Banovci (Burgunac), Surduk (Rittium), Slankamen (Acumicum) and Banootr (Malata
Bononia), along with the right bank of the Danube river to the top of Fruka Gora

2.3. Possibilities of the various touristic aspects and its development

Serbia has regulated relation toward environment using numerous acts. Among others the
most important is Law on the environmental protection
4
, followed with numerous acts like,
Act protecting natural rareties
5
, or Act placing under control use of wild flora nad fauna
6

and many other acts directly regulating relatin toward environment.
Aspecting tourism and its role in the environment protecting and preserving among all the
Low on tourism
7
must be mentioned, followed by numerous legislative acts.
This is extremely important question concerning the wish and need for gaining tourist
valorization of numerous natural and antropogenic resources of the Fruka Gora National
Park. This represnts the only way to be usefull for the tourists.
The characteristic of the modern touristic restructure is placing effective ecological
component in the total touristic product and its promotion, treating it as the very important
link for concurency position and condition for the new touristic demand. Reason extra for
implementing ecollogical component as the priority for the process of envolving in the
modern touristic streams and its compatibility strenghtening.
a) Village or rural tourism it is very important to make a distinction between rural and
village tourism. Rural consider wider aspect, including, among other, tourist activity in the
agriculture on the farm. The reason for this distinction practicaly comes out from the
tourists themselves, and their needs and wishes for intefering in such activities. Of
course,that these tourists consider those from the highly developed countries.
Agriculture, as the highly developed part of the economy has the longlasting interests for
complementary coopertaion with all economic sectors. This, of course means tourism as
well. Numerous villages are base for further planning, particlarly concerning the fact
western trends and so called root turning concept of the healthy food old habits and
crafts, greater popularity of typicall etno contents music, folclore, naive painting etc. In
that contents local. Regional, and natoional are promoted more often. This is of course,
according to the fact that by the end of the last decade as the act of the political
determination the model of the rural development (CAP) was promoted placing
multifunctinal nature of european agriculture and its developing role in the economiy and
social life in generall.
A lot of people living in this area is directly or indirectly involved with agriculture.
Some of the very important aspects of development concerning this specific sort of tourism
would be:

Experted choice of the households for dealing with the village tourism, followed by
clearly precised of all conditions and standards one household has to fullfill in order to deal
with toursim

ducation of local population toward offering suitable level and quality of touristic
offer represents and base for the future development. This is taghtly connected with all
activities of the tourist organization acting the prestiguous role. Important place must be
taken by other state and expertized organisations.

4
.135 /2004
5
. 50/93
6
31/2005 45/2005
7
45/2005
472
Making qualitative programe for visiting the village might not be given to the local
people. It has to be serious analyze topic covering all levels, expecting development and
effects from this kind of tourism. The accent is on the Tourist Organisation of Serbia.

Defining suitable urban conditions for developing this kind of tourism, using state
and local authorities.

b) Wine tourisim these areas are characetrised with rich tradition of wine grape growing
and wine producing. During the last period suitable amounts of money coming from
numerous tourists visiting the grape picking period, and various manifestations connected
with wine gloryfing. Benefits are gained, as based on the sale, and on the wine
consumation, as collected from all the payments tourist might have while on the
destination.

Sremski Karlovci are offering the great potential for the development. Today, in Wiena
there is an existing name of the Ruica wine, protected, famousKarlovaki tovjan, the
most famous, also are dry grape made wines suka, particularly from the red grape. This
grape is used for producing famous "ausbruch" (samotok) "cypres wine ", "bermet droping"
(tropfwermut) and "pelenea", ordinary bermet.

c) Danube tourism From its north side, with part near Beoin, Sremska Kamenica and
Sremski Karlovci, is framing Fruka Gora. With its presence it is offering this natural and
geographic advantage, concerning of course sustainable development of the total natural
environment. Developing of the nautical tourism filled with all programes of sports and
water represents natural consequence. River with its banks offer numerous beaches,
suitable for all kind of gastronomies and all following contents connected with all kinds of
services while staying on the river.

d) Hunting and fishing tourism Generally Vojvodina has a long tradition concernig
hunting. Still it preserve a good realtion toward flora and fauna. During the last fifteen
years the most important hunting places were neglected. Plavna, Morovi, Karakua,
Karaorevo, Forest of Sombor, Apatin, Deserts of Subotica and Deliblat and, probably,
the greates hunting potential Fruka Gora. Fruka Gora was dyplomatic hunting spot on
the highest level. With its natural beautyies it offers ideal conditions for wild animals
settling, particularly boars, deers, roes and small animals too. According to the suitable
legal acts taking care about sustainable development and respecting all ecological
standards followed by suitable investings this might represents big touristic potential.

e) Photo - saphary Various animal and plant species on this destination like conifers,
orchidee, roes, rabbites, eagles and deers are making this destination interesant for
tourists with this kind of needs. The most diverse plant species represents unspoiled
nature ideal for the lovers of nature.
Setlements rich of bird species, mostly rare. Some of thema are: black stork, (cicconia
nigra), redbilled swan (cugnus olor), whitetailed eagle, (haliaeetus albicilia), black byrd
(milvus nigranis), (hucticorax), big white heron (egretta alba) small white heron (egretta
garyetta), etc.

f) Monastery tourism with its seventeen monasteries Fruka Gora has a great potential
to offer in this tourist domain: Beoin, Basenovo, Diva, Gregateg, Jazak, Kruedol,
Kuvezdin, Mala Remeta, Velika Remeta, Novo Hopovo, Satro Hopovo, Petkovnica,
Rakovac, Prvina glava, iatovac, Panek i Ravanica. These monasteries represent
cultural, historicall and religious jewell, socalled often second serbian Mont Athos. With
its priceless cultural and historicall value they are specific rarity. Very often during the
473
historical period burned and ruined and, according to the long lasted financial criysis and
neglection of these monasteries, the primar imperativ must be their adaptation and
reconstruction. This is the state priority, cultural and spiritual. It is important to underline
that for this tourism type the Serbian Orthodox Churc must give its permission. All kinds of
visitors must obbey the rules of our churc, its principles. Good example might be
surrounding countries like Bulgaria, Greece, Russia etc.

CONCLUSIONS

Rapid industrialization leads toward enormous use of all kinds of natural resources. This
caused natural environment damaging. Regarding the concept of mass tourism dominant
in the second half of the 20
th
century one might characteristic for this area also above
mentioned facts. Fruska Gora offers great potentials for sustainable tourist development,
though preserving antropogenetic and natural resources. Different rural environments
represent a base for future planning and action in these fields. Approach must be based
on planned and selective fundaments. Creativity must be presented covering all levels of
the education tourist activities, horizontal and vertical. Wide spectrum of tourist activities
with particular interests represents a big chance, underlying in the future development.
Important point of tourism is that he is offering as much as it is invested. This is placing the
problem of finance and economic benefits as one of the priorities in the future tourist
development. This is very important fact to consider for.
Concept of sustainable development is an imperative. It is in the general interest, domestic
people and tourists, coming from the domicile country or from the highly developed
industrial countries. Those tourists are showing a big interest in our country, lately.

BIBLIOGRAPHY

1. Ognjen Baki Marketing in tourism, The Faculty of Economy, Belgrade 2003.
2. Predrag Vukovi Strategic base of tourst development in Novi Sad,The Faculty of Economy,
Belgrade 2006.
3. Predrag Vukovi, Marija M. Nikoli Wilage wimen population as support of multifunctional
development, proceeding Multifunctional agriculture and rural development, Institute of agricultural
economic, Belgrade, Belgrade 2005.
4. Unkovi Slobodan, Zeevi Bojan conomic of tourism, The Faculty of Economy, Belgrade 2005.
5. www.npfruskagora.co.yu
www.vojvodina.com
www.selo.co.yu

474
SELLING POSSIBILITIES OF ORGANIC FOOD ON INTERNATIONAL
MARKET
14

PUSKARIC ANTON, DJURIC IVAN, BOJANA BEKIC

Institute Of Agricultural Economics

Abstract

The goal of organic production is to satisfy the consumers needs for safe food, to provide additional value
which organicaly produced agro-food products have in compare with conventionaly produced agro-food
products but also to respect criteria of sustainable development.
Added value which will be achieved through organic production can be significantly increased by export on
international market.

Key words: organic food, export, international market

INTRODUCTION

International market demand for organic food products is increasing. According with the
increasing trend of consumption of safety health food, there is a demand for food which is
naturally produced.
It is necessary to make attention on new trends on healthy food markets for assuring that
ecologically certified food, made in rural areas, makes its own way to the foreign buyers.

SELLING POSSIBILITIES OF ORGANIC FOOD ON INTERNATIONAL MARKET

Present trends on international markets for organic food are:

- Increasing demand for health safety, biologically more valued and ecologically cleaner
food.

- Demand for high quality and fresh products that is why distribution is very significant
factor for market supplying.

- Demand for products which are recognized and with trade mark brand.

- Demand for practical, well designed packaging which should be made of environmentally
friendly materials.

There are several factors that have influence on certified food export. Those factors are:
demand, quality, certificates (eco sign), export regime, price, and concurrence. Offensive
export concept means structural adjustment of quality and competitiveness of organically
made product. Today, markets are dominated buy refined products made from fruit,
vegetable and meat. Developed countries are importing row materials and from them they
are making final products which they export (Babovic and associates, 2005).
Non developed countries, such as Serbia, dont have capacities to make final products, out
from prime materials, for which demand is very high on international markets.

14
This paper is a part of research project 149007 of Ministry of Science of Republic Serbia, named:
Multifunctional agriculture and rural development in function of Republic Serbia's accession to
Europe Union.

475
Nevertheless, for ecologically correct products production it is necessary to use optimal
conditions which exists in rural areas, and then to export primer agricultural products, in
other words to export products which are on the low finalization level, unless there is a
possibility to make final products on the high finalization level.
From mass distribution point of view, in individual rural households it is possible to produce
small amount of organic made products. But, with association of producers which have
certificates for organic production, it is possible to solve this problem.
The precondition of stabile and competitive placement of products on international
market is certainly the creation of producers associations. Most important is that every
producer accepts very strict quality standards.
These cooperatives have big influence on integral development, effective sales and
profit (Babovic and associates, 2002). These cooperatives are established on local level
with aim of managing the production process by finding cheep row materials and effective
market appearance (only one seller).
Cooperatives are significant factor of rural development and production of eco food.
They have to be modern business organizations which are capable to make business.
Managers should organize production according to the market needs and for the well
known buyer. That is why cooperatives must have highly qualified personnel who knows
what market needs and how to produce it. Cooperatives must make collaboration with
processing industry which has significant financial result for international food export.
As it was mentioned before, distribution is one of most important factors in
satisfying customers need for fresh products. According to Jovic (2002) traditional
configuration of distribution channels refers to the connection: producer big market trade
small market trade consumer. But, because of change made by world economy this
configuration of distribution can be used only with regard and it depends of market
conditions.
There are two types of distribution actors. First are direct actors such as producers and
dealers. Second are institutions such as banks, transportation companies, etc., which are
assuring movement of goods.
Beside consumers, between active participants in international distribution channels,
there are others which are included in distribution of concrete products. In international
distribution channels, beside consumers, there are merchant middlemen who represent
independent companies which are dealing with trade and distribution. Also, there are
agent middlemen who represent middleman who represent the producer and manage the
negotiations and make connections between producers and consumers.

Most usual types of middlemen which are present on international markets are:

-Distributors - trade middleman who has rights to sell in his country. He has strong
connections with producer.

- Managing agents - he is making business on foreign markets by the contract with the
company who is exporting.

- Import jobbers - they provide products directly from producer and they are selling it
directly to the big and small shops.

- Wholesalers, retailers they are dealing with direct import.

Besides mentioned distribution channels there are several other models of middlemen
which are significant for successful marketing of ecologically certified food products on
international market (Jovi, 2002):
476

- Export merchants they are buying products directly from producers end they are selling
them on other markets with their own risk. This is very significant channel of distribution for
certified eco food products.

- Webb association association of producers which is dealing with all international
business in the name of their members.

- Manufacturers export agent he has special agreement with the producer. He is finding
customers and he deals with all necessary details for distribution. This is also significant
way of selling certified eco food products.

For increasing export of organically made products, next steps should be done (Vlahovi,
2003):

- Stimulation of production it is necessary to economically stimulate the organic
production which represent the precondition of export process.

-Redefinition of agricultural policies it is essential that agricultural policy is expertly
oriented. That means: price policy, land policy, tax system and export/import protection.

- Stabilization of primer production instability in production can be very easy moved to
trade instability. It is important to secure enough products for export and also to satisfy the
quality standards.

- Change of production structure the aim is to export certified eco food products which
are on the highest level of manufacturing process. This is the only way of increasing the
profit.

- Obtaining high quality

- Segmentation of international market concentration on the market which already have
significant demand for these products. It is necessary to adjust the products according to
the market needs.

- Creation of trade mark - made in/product of which will guarantee high quality product.

- Export stimulation it is usually defined by state export policy.

- Harmonization of standards and procedures with the regulations in exporting countries.

- Marketing approach research of foreign market, defining final product (quality,
assortment, packaging, design, etc.). It is necessary to combine all elements of marketing
mix: price, product, promotion, and place.

CONCLUSION

In highly developed countries, conventional production is based on advanced
technological processes, which provides high production. Nevertheless, in the same
countries there are les and les soil suitable for organic production, due the intensive soil
manipulation with chemicals that are not allowed in organic-ecological production.
Consumption of organically produced food, in developed countries, is increasing, and still
477
the offer can not satisfy the increasing demands of market. Exactly these fact offers the
development countries the possibility to increase production of organically produced food,
in their rural areas that have optimal ecological conditions, and to direct it to the
international market, where they cud gain bigger profit in comparison with export of
conventional produced food. Marketing concept of production should be dominant in
conceptualisation of export, so that needs of foreign market cud be satisfied and certain
profit cud be gained.

BIBLIOGRAPHY

AKHTER S.H (1994): Global Marketing, South-Western College Publishing.
BABOVI, J., LAZI, BRANKA, MALEEVI, M., GAJI, . (2005): Agribusiness in ecological food
production, Scientific Institute for cereals and vegetables, Novi Sad.
CZINKOTA, M.R., RONKAINEN, I.A. (1996) : Global Marketing, The Driden Press-Harcourt Brace
College Publishers.
GULISANO, G., PRIVITERA, D. (2000): Strategies of marketing of a traditional vegetable product: the
red onion in tropea, Acta Horticulturae 536, XIVth International Symposium on Horticultural Economics.
JOVI, M. (2002): International Marketing, Institute of economy sciences, Belgrade.
SHEPHERD, A. (2005): Associations of market traders: their roles and potential for further development,
Agricultural management, marketing and finance services, FAO, Rome.
VLAHOVI, B. (2003): Agro-food market, special part II Book, Agricultural faculty, Novi Sad.

478
CASE STUDY CONCERNING SUSTAINABLE RURAL DEVELOPMENT IN
MALU CU FLORI - DMBOVITA

STUDIU DE CAZ PRIVIND DEZVOLTAREA RURAL DURABIL N ZONA
MALU CU FLORI-DMBOVITA

ROBESCU VALENTINA-OFELIA

Valahia University of Trgovi te, Faculty of Environmental Engineering and Biotechnology

Abstract

In this paper we try to find a solution for problems that appear in rural area, in our case Malu cu Flori, which
is a village situated in the north of Dambovita County, at almost 40 km from Targoviste. Without sound
infrastructure, a rural community cannot provide the basic services required to ensure a good quality of life or
encourage sustainable economic development.
Rural communities, especially the smallest rural communities, like Malu cu Flori, are facing serious drinking
water issues as they work to meet increasingly stringent quality standards. These communities often lack the
resources to find better water sources. Rural communities must maintain the services necessary to attract
commercial businesses with good jobs in order to slow the pace of out-migration.
Key words: rural development, infrastructure, economic development

INTRODUCERE

Development of rural communities represent a complex activity with very high importance
because of big dimension of rural area and the number of population that lives and work in
rural area. In Romania rural areas represents 87.1% of territory and 45.1% of population
(according to the national definition). If the standard OECD definition is used, to allow
comparison with other MS, Romania is seen to have a significantly higher rural population
than average.
In which concerning the agricultural sector is more important than in most other MS,
with 32% of the population employed in agriculture and forestry, contributing 12.1% to
GDP in 2006 (13.6% to total GVA). However, productivity is very low (as indicated by the
labour to land ratio of 63 AWU/100ha), and the negative trade balance in agri-food
products continues to widen (1.3 billion in 2005).
Rural areas are typified by a scattered population and very low quality infrastructure
(only 33% of rural residents are connected to a water supply network, only 10% to a
sewerage system and only 10% of rural roads are of adequate standard). Basic social
infrastructure (health and education systems, finance and credit provision etc) is also
much less developed than in urban areas. These factors affect the quality of life in rural
areas, hamper economic development, increase outmigration, and exacerbate health and
environmental problems. The rural economy is highly dependent on agriculture and
forestry, with low development of alternative activities, and lower incomes than urban
areas.
The area that we study is situated in north-west of Dambovita county and from
geographic point of view it is like a depression. The area are cross by parallel of 45
9

north latitude and meridian of 25
13
east longitude. From geographic point of view the

area it is made of five administrative territorial units: Malu cu Flori; Miclo enii Mici; Capu
Coastei; Copceni; Miclo anii Mari. The willage Malu cu Flori are neighbouring with: on
north part with village Pucheni; at north-west with Cet eni; on west part with village
Vleni Dmbovi a; on east part with Brbule u; on south with the village Voine ti.

479
Malu cu Flori territory is part of Carpathians of Curbure. Hydrographic network is
dominated by Dambovita river, which split up the village in two equal parts. The brooklets
Valea Larga and Valea Tunului represent natural risk for intravillan areas because in the
spring when the snow melt and are strong rains there are frequent floods.
From climatic point of view in that area are typical next value:
Annual average temperature of air + 8-9 C
Minim absolute temperature - 22 C
Maxim absolute temperature + 37.2 C
Annual medium precipitation 356 mm/mp
Dominant winds from NE-SV and NV-SE
Maxim depth of frozen 0.85 m
The village has direct connection with towns Campulung and Targoviste, Campulung is
situated at 36 kilometers and Targoviste is situated at 37 kilometers.
The rate of population like principal force of capitalization of geographic environmental we
can observe the fact that the peoples number was changed negatively from 1999 until
2006. So, if at level of 1999 the peoples number was 3094, at level of year 2002 was 2798
and at level of year 2006 was 2731 (from which 1345 women and 1368 mens). The
principal factor of this negative trend was given by out migration.

Development of rural economy-stand by

The hole area of the village is 2271 ha from which 551 ha are situated in intravillan and
1721 ha in extravillan. There we meet a lot of richness, like: forest, orcharding, rivers,
pastures which represents the basis of sustainable development of area and the growth of
financial recourses.
Economical dimension is typical for an mountain area. The big percentage of a lands
covered with forest and pasture (415 hectares with forest, 431 hectares with pastures and
291 hectares with grasslands) represents an advantages for agroturistical development in
zone.
Agriculture land occupy almost 1530 hectares, from which arable land cca 82 ha, hectares
with pastures, 291 hectares with grasslands and 729 hectares with fruit growing.

Economically the area is very low develop. Industry is represented by small units of
production, and here we met small shops, small units of wood manufacture, micro farms,
small units that makes alcohol (tuica), units of plants protection.
In this area operate upon 20 economical agents (SRL and FA) that works in principal in
commerce.
Agriculture in this area is represents by fruit growing (figure 1)and porcine and
sheep growth (figure 2).
480

Figure 1 Figure 2

In this rural are, number of job opportunities outside agricultural activities is low what is
aggravated by the fact that employment within the agricultural decreased and the people
that are work in farms are the members of family. The employment situation in the rual
area is more unfavourable than the nationwide average (unemployment is higher). The
agricultural wages are the lowest within the sectors of the national economy and the
difference is increasing to disadvantage of the agriculture.
For the purpose of mitigating and reversing the mutually intensifying processes of the
territorial confinement and the social-economic break-away, it is appropriate to pay special
attention to assisting the deprived areas assigned to development due to their social,
environmental and economic disadvantage. It is necessary to enhance the
competitiveness of the areas falling behind, to revitalize the local economy.
Eco-tourism may creates important job possibilities, especially in our where 60% of the
local population are unemployed. It is in the interest of the locals to protect the natural
resources of their surroundings, if they want to attract visitors. But we are confronting here
with a big problem, majority of the village accommodation places is characterized by the
relatively low service level and exploitage of capacity, on the other hand, popularity of the
village tourism and thus, also the number of guest-nights at the accommodation place is
continuously increasing according to the statistical data.
The tourism-related offer of the rural areas is of low level, it is not always adjusted
to the demand of the target groups and presentation of the local landscape, natural and
cultural values is behind the possibilities. The coordinated presentation of attractions, the
creation of their standardized regional offer is missing. The tourism has a considerable
multiplying effect since it grows the number of consumers in the specific region, as a
consequence, it can foster the expansion of direct distribution of products of the local
small-scale producers, vitalizes the turnover of the local markets. . It involves special
significance for the townspeople increasingly spending their leisure time with active
481
relaxation and learning the local products, cultural values, folkways in the rural areas. The
development of tourism-related services contributes to the economic restructuring of the
rural areas. The income from tourism strengthens the local economy, thus contributing to
the improvement of the quality of life and to mitigation of the regional-economic
disadvantages.

CONCLUSION

In conclusion, rural area are dealing with some complex problems regarding their economy
and the environment. For improvement of this problems we are recommend :
a better information of peoples about the opportunities offered by UEs programs
in rural development;
streamline and increase funding for programs to enhance rural health care and
other public services that are vital to our rural communities;
rehabilitation and reconstruction of infrastructure (Without sufficient infrastructure,
rural communities struggle to maintain basic services and an appropriate quality of life for
rural residents. Rural communities often face serious drinking water issues, limited
resources for first responder services, and difficulty attracting broadband Internet
providers. Rural communities must maintain the services necessary to attract commercial
businesses with good jobs in order to slow the pace of out-migration. Additionally, many
rural residents live in remote or outlying areas, making it more difficult for them to access
needed services. For example, extended travel times for ambulances and long distances
to reach emergency rooms can literally mean the difference between life and death in the
critical moments following a health emergency.);
consolidate the legislative authorities for certain rural development programs to add
more flexibil.

BIBLIOGRAFIE

1. Anuarul Statistic al judeului Dmbovi a, Direcia Judeeande Statistic Dmbovi a, 2006;
2. Economie agrar i dezvoltare rural, Anul 2, nr.7, 2005;
3. www.usda.gov
4. www.primariamalucuflori.ro

482
FORMATION OF VEGETABLE COMPETING MARKET IN THE REPUBLIC
OF MOLDOVA

FORMAREA PIEEI CONCURENIALE LEGUMICOLE N REPUBLICA
MOLDOVA

SNCHETRU VERONICA


Abstract

In the suggested article it is mentioned the agroalimentary products exportation that is the principal
source for obtaining of the necessary currency for the import realization. In the authors opinion in the
conditions of the market economy for the autochthonous producers they were created certain possibilities to
penetrate to the new sale markets. Taking into account that the market of the Moldova Republic is limited for
the offer absorbtion of those ones it appeared the necessity of the orientation to the exportation. Starting
with 90 years the exportation relations of our country were considerable spreaded the principal weight
belonging to the agricultural food products. Due to the agricultural specialization of our Republic, explained in
the article, the principal components of the Moldavan exportation are the agricultural food products starting
with 1995 years the agriculture contribution the exportations made up the limits of 15 20 percent but the
agricultural food sector reached the quota of 60 75 percent annually.

Key words: Market economy, Export components, Agro-alimentary products import, Financial crisis,
Value expression, Deliveries growth, Export evolution dynamics, World export.

The export of agro-alimentary products

Export plays the leading part in external commerce, because it is the main source of
necessary currency to sustain the import. In the period when the purchase capacity of
internal market is reduced, when there is a lack of technologies and insufficient
investments, the external commerce becomes more and more important (export of goods
and services). One of the methods to straighten out the crisis that fell upon countrys
economy is the development and promotion of external commerce.
In the conditions of market economy, new opportunities have been created for local
producers in order to get into new sale markets. Considering that the Republic of Moldova
is too restricted to accept and enforce all these offers, the necessity to orient towards the
export sector becomes indispensable. At the beginning of 90s, countrys export
relationships considerably expanded, agro-alimentary products being the main items.
Due to agricultural specialization of the country, the main components of Moldovas
export are the agro-alimentary products. Beginning with 1995, agricultures contribution in
total export was between 15 and 20%, and the agro-alimentary sector attained about 60-
75% annually (Diagram 1). The import of agro-alimentary products holds a smaller share
in moldavian total imports and it constitutes about 6-15%annually (on average during the
period of 1997-2004).
483

Diagram1. Agro-alimentary products export in total export of the Republic of
Moldova
Source:
Statistical annuals concerning external commerce of the Republic of Moldova

Customs department

Agro-alimentary goods export in 2004 amounting to $605,1 mil. (USA), constitutes 61,3%
from total export of the Republic of Moldova recording an important increase in
comparison with 18,4% in the previous year and in comparison with 95,1% in 1999.
After countrys declaration of independence, the share of agro-alimentary products
export constantly increased attaining 74% in 1997, but decreased till 66% in 2002 and
2003. In expression of value the agro-alimentary products export recorded a considerable
reduction during a short period of two years (from 1997 until 1999) from $640mil.(USA)
until less than $300mil.(USA). This radical decrease was motivated by financial crisis from
Russia in 1998, because at that moment about 2/3 from agro-alimentary products export
from the Republic of Moldova were oriented towards Russian Federation market. In 2002
total value of agro-alimentary products export of Moldova made up $406 mil. (USA), and
in 2003 increased till $488 mil. (USA).

Table 1
Year
Year 2004 for %
acording to: Goods name
2000 2001 2002 2003 2004 2000 2003
Animals and products
of animal origin: total
22793,6 18274,6 15286,7 28598,1 20152,8 88,4 70,5
Vegetal products 65857,0 79098,4
106067,
5
91243,4
119977,
1
182,2 131,5
Fats and oils: total 3868,1 8587,6 16819,7 28897,4 41185,9
de 10,6
ori
142,5
Food products: total
198433,
4
251683,
3
267363,
6
314337,
8
345937,
4
174,3 110,1
Raw leather 13056,7 11457,4 23353,6 44768,1 77887,9
de 5,9
ori
174,0
Total agro
alimentary production
304008,
8
369101,
3
428891,
1
507844,
8
605141,
1
199,1 119,2

874,1
649,8
631,8
470,4
463,4
310,1
471,5
304,0
568,1
369,1
643,9
428,9
790
507,9
986,3
605,1
0,0
100,0
200,0
300,0
400,0
500,0
600,0
700,0
800,0
900,0
1000,0
mil dolari SUA
1997 1998 1999 2000 2001 2002 2003 2004
year
Etotal - export Agro alimentary products export
484
Agro-alimentary products export according to the main categories of the Republic
of Moldova during the period of 2000-2004, thousand dollars USA

To the export level increase in 2004 contributed deliveries increase in comparison
with the previous year of the following categories of goods:

- vegetal products with 31,5 %;

- alimentary products with 10,1%;

- raw leather with 74%;

- fats and oils 42,5%.

To the export volume increase of agro-alimentary products with $78,9 mil. (USA) in 2003
in comparison with 2002, a great influence had agro-alimentary products export increase
with $46, 9 mil. (USA), animal products with $13,26 mil. (USA), raw leather with $21,4
mil. (USA) and fats and oils with $12,1 mil. USA.
Taking into account all these positive aspects in export evolution dynamics, a
negative aspect of reduction constituted the export of animal origin products with 29,5%
in 2004 in comparison with 2003.
Recent structure of agro-alimentary products export from Moldova is dominated by
the category processed food products, beverages and tobacco, followed by vegetal
products, while the categories animal products and fats and oils hold a relatively small
share each of 4%.
Agricultural and agro-alimentary products export of the Republic of Moldova
constituted an important share from the countrys total export, balancing from 10% till 15%
from total export or 40-50% from food products export (including beverages and tobacco
products) during the period of 1997-2004. Annual values of agricultural exports had a
similar tendency as the one of agro-alimentary exports: Russian crisis from 1998 lead to
an agricultural products reduction which continued until 2000, but began to restore slowly
in 2001. Thus, Moldovas export decreased from $110 mil.(USA) to only $54 mil. (USA),
and increased in 2002 by $65 mil. (USA). Agricultural export share in total food export was
sufficiently unstable recording great fluctuations from 40% in 1997 to 53% in 2000 and
then 43% in 2002. The reduction of agro-alimentary products export wasnt as important
as in the case food products. But this growth wasnt so rapid. As a consequence,
Moldovas share in world export of fruits and vegetables decreased from 0,16% in 1997 till
0,09% in 2001.

Export relationships of the Republic of Moldova during 2004 traditionally were
oriented towards three directions:

- countries of Independent States Community with 65,9% from total export of agro-
alimentary products export;

- European Union countries with 21,9% from total export of agro-alimentary
products;

- Central and Eastern Europe with 6,6% from total agro-alimentary exports for the
485

reference period.

Diagram 2. Structure of agro-alimentary products export in the Republic of Moldova
per groups of countries in 2004

The main export sector still remains to be the Independent States Community
where agro-alimentary products export constituted $396,5 mil.(USA) in 2004. Analyzing
the situation of agro-alimentary products export for the same period in EEC which
constituted $39,6 mil. (USA) and respectively $131,8%mil.(USA) in EU countries.

Member states from CIS, especially Russia, Ukraine and Byelorussia continue to be
the most important markets for our countrys export.
Their efficiency from total export of agroalimentary export of the Republic of
Moldova constituted 74,3%, 13% and 12,2%.

Table 2
2002 2003 2004
Spcification
CSI UE ECE
Alte
ri
CSI UE ECE
Alte
ri
CSI UE ECE
Other
countrie
s
Total
2852
55,1
4916
9,2
6021
1
3425
5,7
3430
01,1
8822
2,4
4977
6,1
2687
3,8
3964
87,3
1317
88,5
3960
4,1
33661,2
1. Animals,
animal
products
7632,
8
1219,
5
4731,
2
1703,
2
2007
6
1630,
7
2104,
2
4787,
2
9509,
5
651,2
4380,
3
5611,8
2.Vegetal
origin
products
3342
4,8
2414
5,5
2242
6,6
2607
0,5
4295
2,1
2147
5
1453
3,7
1228
2,6
5719
7,2
2989
2,7
1585
7
17030,2
3. Animal
or vegetal
fats and
oils
4309,
5
6,6
1145
7,1
1046,
5
1057
2,5
5850,
4
1233
6,5
138
2419
8,3
1195
6
3563,
4
1468,2
CIS
65,9%
EU
21,9%
EEC
6,6%
Other country
5,6%
CIS
EU
EEC
Other
country
486
4. Food
products,
beverages,
tobacco
2397
87,6
8983,
8
1443
1,0
4161,
2
2692
31
2776
7
1381
1,6
3528,
2
3087
53,2
2557
8,9
8255,
6
3349,7
5. Raw
leather,
tanned
leather
furs.
100,4
1481
3,8
7165,
1
1274,
3
159,6
3150
0,6
6970,
1
6137,
8
429,1
6370
9,7
7547,
8
6201,3

Agro-alimentary products export in the Republic of Moldova during the period of
2002-2004, thousand USA
Source: Department of Statistic and Sociology of the Republic of Moldova;
Customs Department.

Being the country with the greatest number of population from CIS and having a
stable growing rate of the economy, Russian Federation is the basic export partner of the
Republic of Moldova which attained the value of $212,3 mil.(USA) from the afro-alimentary
products export.
Export volume share on the Russian market decreased in 2002 in comparison with
2001 with 7,9 percentage points, as a result of some measures taken by Russian
Government concerning budgetary and tax policy.
Comparative analysis of the period 2000-2001 proves that Moldovas export share
in Ukraine and Byelorussia increased.

The information processed and exposed in Diagram 13 characterizes export
orientation by groups of agro-alimentary products, allowing taking some perspective
decisions concerning stable partnership relations. Thus, its evident that a continuous
development of export relationship, taking Russia as example, where the food products,
beverages and tobacco export constitutes 77,9% from total agro-alimentary export. A
similar situation was noticed in Romania and Germany, where the main share of agro-
alimentary export is oriented towards EU and EEC.
487

Diagram 3. Structure of agro-alimentary products export of the Republic of Moldova,
per groups of countries, in 2004

Exporters task for this kind of products is to maintain these sale markets as
strategic ones, even if the respective branch is characterized by reduced profitability and
decreased redressing of technological capacity.

Analyzing exports situation for 2000-2004, per categories of goods, we observed that the
main share is hold by food products followed by those of vegetal origin.
Food products export amounting to $345,9 mil. (USA) recorded a 10% exceeding in
2004 in comparison with 2003, and in comparison with 2002 29,3%. In the analyzed year,
the stated increase was determined by export volume increase at alcoholic beverages by
14,8%, at fish products by 20,3%, at residue and waste from food industry by 24,9%,
at cereal based preparations by 19,3%.

BIBLIOGRAPHY

1. The strategy of socio-economical development in the Republic of Moldova.

2. Strategical orientations of socio-economical development in the Republic of Moldova.

3. Government decision of the Republic of Moldova from 13.08.1997 Regarding mechanism improvement of
external commerce regulation and the modifications from 22.01.1998, 30.06.1998 and 21.08.2000.

1,5 0,5
11,1
16,7
14,4
22,7
40,04
50,6
6,1
9,07
9,0
4,4
77,9
19,4
20,8
10,0
0,1
1
48,3
19,1
18,4
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
%
Living Animals
Animal products
Vegetal
products
Animals or
vegetals
fats anf oils
Food
products
beverages,
tabacco
Raw leather,
tanned
leather, furs Community
CIS EU EEC Other countries
488
THE AGRICULTURAL MARKET, THE COMPETITION AND
AGRICULTURAL PRICES.

PIAA AGRICOL, CONCURENA I PREURILE AGRICOLE

SNCHETRU VERONICA, MOVILEANU P.


Abstract

The authors in the exposed material present us both personal and statistical observations of the two
types of competition that express the difference both between the degree of rivality of the participants to the
goods exchange and the conditions of confrontation on the market. The modality of the state intervention in
the prices domain both through its actions on the price determination essentially on the demand and offer of
goods and services and through the control of the prices. It is dreamt new actions in the branch of the offer
and demand as for example the stocking of te products, the discharge of the exportation primes, the
detaxation and others. These economical phenomena in the authors opinion involve the increase or
decrease of the power of money buying that affects variously the economical agent groups. The producer
and buyers, the creditors and debtors in the measure in which the prices levels of different products do not
parallely vary each with others. From here it results that the crops products market and food ones is
characterized by an instability much more accentuated than the market of the raw materials.

Key words: types of markets, intrasectoral trade, standardized system, producers consolidation, partial
strategy, nominal finances, gross incomes.

According to the number of sellers and buyers (the competition), we can distinguish the
market with the perfect competition and the market with the imperfect one (table 1).

The influence of the demand and offer on the market competition

Offer Great number
Great number of
sellers
Small number of
sellers
One seller
Of buyers Market with a
perfect competition
(free)
Market of type
oligopoly
Market of type
monopoly
Small number of buyers Market with a
perfect competition
(free)
Market of type
bilateral
oligopoly
Market of type
monopol
conpary
One buyer Market of type
monopol
Market of type
contrary
monopoly
Market of type
bilateral
monopoly

As it is remarked, it exists two types of competition expessing the difference both of
reality degree of the participants at the exchange and of confrontations conditions on the
market: the perfect competition and imperfect one. The perfect competition or pure
(purified of any monopoly element) suppose that all the firms to be capable to sell all the
production that they have at market price without influencing it in some kind, and all the
buyers to purchaise at the market price how much they wish without affecting it.
The perfect competition is the synonym of a free market. The imperfect competition
designates the situation in which the firms are capable to influence by their competition the
actions, products price and services.
489
The demand and offer, respectively the relation between these ones are the major
determinatives of the prices movement on the market imperfect competitive. Influencing
the price deviation of the goods value and in a great measure the dynamics of this one, the
relation between demand and offer expresses eventually the market situation on the one
or more its segments, respectively the absence, insufficiency or plenty of production
factors that are recorded by price.

The extension of the market of a certain product at the expense of another one
respectively the replacement of this one in the consumption represents the vertical
competition. From this competition it is remarked that a part of actual consumers of
some product change their wishes to anothers product avantage.
This competition may occur within the market of the same enterprise when takes
place a stimulation of the general consumption but may also have place between different
enterprises when we are present at the market redistribution between the respective
enterprises.
The horizontal (direct) competition between the enterprises supposes the attraction of the
buyers in the conditions of offering the same categories of products. This type of
competition has as an effect the redistribution of certain segments on the market of its
product or to the enterprise, between the competitive enterprises.
The basic competitive criterion is represented by the products competitivity that is
appreciated by quality and price.
The intervention modality of the state in the area of prices is diverse and different
from country to country. Thus the state interferens both through action over the prices
determinants essentially over offer and demand of goods and services and over the price
level and also through price control. The action regarding the offer and demand can be:
direct (products stock, discharging, exportation primes, detaxation and others) and indirect
(through the revenue rate, the credit policy, fiscal one, labour policy). The state fixation of
the price level can be made through taxation measurement (establishing a minimum and
maximum price), the price arbitration (price fixation within the framework of a zone where it
can be moved), the price purification (establishing a desired price from an economical and
social point of view ). The price control by the state can be made by generalized taxation,
partial and total price blocking, etc.
As a result of prices moving the movement that can not be dissociated by the
general evolution of economy, can appear two distinct phenomina: inflation and deflation.
The inflation is manifested by the fact that the general level of the prices presents an
increase more or less rapid in according with the goods volume and offered services by
the married: the deflation is manifested by continuing decrease, more or less rapid of the
general level of prices according to the goods and services volume.
These economic phenomena involves the increase of decrease of the purchasing
power of money that affects in a different way economic agents groups manufactures and
consumers, creditors and debtors in a measure in which the price level of different
products do not parallely vary one to another.

On the market the inflation appears in three forms:
- offer inflation, that corresponds to offer increase of goods and services that can not
be satisfied by the demand, and can be insufficient for different reasons (lack of
productions capacity penury of some factors of production, the impossibility to resort to
imports etc.) and determines the raise of price.

- Costs inflation produced by production cost increase not accompanied by an offer
excess, caused on the other hand or by the wages increase or by the pressures of some
raw materials prices (from import or not), of some food products or services obligated
490
expenses, to maintain the products at the technico scientific requirement level, and
others.

In this way, the price raise could occur even in recession and economic condition,
though the price increase is considered to be specific only in the economic expansion
period;

- Structural inflation is generated by the conditions of prices formation on certain
markets and sectors of the economy. For the economists that sustain such an inflation,
the fixed prices by the decisions of the capitalist corporation( in order to ensure some
profits to permit the accomplishment of the firms goals, of autofinancing, of expension) the
controlled prices or settled by the state for some reasons than those ones depending on
the offer and demand evolution, can release pressures and inflationist processes.

Monetary theory conceives the inflation as a monetary phenomenon by excellence,
and supports the monetary mass control in other to equilibrate the ration between offer
and demand of many, by actions that make the credit more expensive (the increase of
profit rate), by the excessive and restructive budget policy (the liquidation of the scarcity,
the reduction of social cultural expenses and social transfers, etc.) though exchanges
control, through prices stopping, by rationalization. It is known that the inflation -
unemployment phenomenon and further the production inflation unemployment
decrease (or slowing down the growth recession) it is also known as stag flation.
On the world plan with all the registered progressed due to the influence climatic
conditions the level of world food production records frequent fluctuations and changes in
production - consumption balance, generating great oscillation of world prices as well as
some adopted measurements by different countries regarding the restrictions of imports or
their rapid growth.
As a result the food and agricultural products market is characterized by the instability
that is more emphasized than raw material market.
This pronounced instability of global market influences the actual and long-term
organization of agricultural production, raises the investments uncertitude in agricultural
domain and the risk of fluctuation income fluctuation from export or the expences for basic
food products import..
Market strategy of agricultural enterprise is the result an option from a multitude of
variants. The market strategy must take into account the main sizes and features of the
market.

1. Enterprise position towards the market dynamics, situation in which the strategic
variants can be:
- The strategy of activity increase (development) of the market;
- The strategy of market activity maintenance;
- The strategy of market activity limitation known as surviving strategy that is
not recommended, being in contraction with the market concept.
2. The enterprise position towards the market structure (by segments).

The not differentiated strategic (unsegmented marketing) the case in which the enterprise
is addressed to the global market;
- The differentiated strategy (segmented marketing) case in which the
enterprise is addressed to some market segments;

- The concentrated strategy, that suppose the choice of a single segment
or a limited number of segments (selective marketing).
491
3. The enterprise position towards to the market exchanges. The strategies (named
and alternative) of behavour:
- The active strategy, when the enterprises consider the renewing, the
retechnologization and perfecting of its activity

- Passive strategy, that suppose a compartment of exanges expecting,
the adaptations being made much later.

4. Enterprise position towards the market exigency concerning the quality of
agricultural and food products.
Agricultural enterprise can be adopted either the strategy of a high exigency or of a
medium or reduced one. They were recommended the first two variants, while the
strategy of reduced exigency is not recommended being specific to the reglemend market,
dominated by suboffer.

5. Entreprise position towards the competition level expresses the agricultural
enterprise attitude towards others competitors. In this case the unit can adopt one of those
two variants:
- Offensive strategy (sometimes even aggressive) or growth strategy of the large
market share of the corresponding enterprise;

- Defensive strategy that is subdivided into the strategy of maintaining the large
market share and the strategy of restricting it correlated with the maintenance of the same
value level of the market activity.

These strategies of competitiveness can be divided into two groups:
The competitive strategy by price and the competitivity strategy without the price influence.
They are considered strategies of competitiveness those that do not have as a final
element the price, but they have other elements and some of them are mentioned below:
product quality, package publicity delivery promptness, etc. by which is differentiated the
agricultural enterprise by other competitors.
These strategies are named competitive strategies of differentiation.
An agricultural enterprise orientated to a market economy can adopt the following
strategies:
The growth, differentiated active , high exigency and offensive strategies.
Agricultural enterprise manufacturing more products can adopt world strategy
(unique) or distinct strategies adequated to which product. Also the agricultural unit can
adopt strategies that are specific to the local or international market.
For random situation it is recommended the elaboration both a basic strategy and of
one reserve strategies.
Price formation at agroalimentary products and state control on them. The price ca be
defined, in a large sense as a payment of the firm/enterprise efforts. Among the elements
of the mix and marketing, the price is only that is concentrated in the incomes
accomplishment; all the other elements (product, distribution, promotion) contain some
expenses.

By the price, the agroalimentary enterprises follow realization of some objectives
among which the must important are:
- Obtaining a profit corresponding to the aims that these ones wish to reach;

- The conquering of a certain market segment;

492
- The profitabilization of the wide activity;

- A better positioning of a product or service;

The costs represent an essential element in the process of the price fixation. A product or
a service that will be sold at a price not covering occasional cost by its realization will lead
the registration of some losses at the firm knowing the is indispensable but a detailed
analysis advertises the use of some information referring to the market.
The price of agroalimentary products are differentiated depending on the specific of
the respective products: perishable or non perishable products, rare or common products,
required or less required products by the consumers, products for consumption in fresh
estate or for industrialization, etc;
The price level is strongly influenced also by the dimension of products offer. Also,
the price of agroalimentary products have an influence an the dimensions of the population
offer for non alimentary products and, obviously, the greatest part of the added value on
agroalimentary branch is distributed in the favour of the superior links of it, agrarian
producers being this time, disfavored.

The establishment of a certain price level has to keep a remarks on: costs level; the
existing ratio at a given moment between the offer and demand of agroalimentary
products; the price level of non alimentary products (especially of the utilized in puts in
the agro feeding sector); the price of the competitive products; legislative restrictions, etc.
Further on is presented the model of calculation of the crop price (for instance: the
maize), regarding the indexes of quality specific to these. Thus, per one cereal exchange,
the maize with the following indexes of quality (corresponding to STAS): hectoliteric
weight: 75 kg; humidity; 14%/ foreign bodies: 2% breaches: 3% is coted to 120 $/t. in
these conditions the exporting firms will establish a minimum export price beginning from
practiced quotation at a given moment and commercialized and quality STAS. For
exemplification, in the case when a firm offers for sale maize with the following quality
indexes: hectoliteric weight: 78 kg; humidity 16%; foreign to dies: 5%; breaches: 2%, price
determination that this one will receive, will be made using the following scheme of
calculation:

Quality indexes
Hectoliteric
weight
Humidity Foreign
bodies
Breaches
STAS indexes
effective indexes
qualitative differences,
expressed
in %
75
78

+3%
14
16

-2
2
5

-3
3
2

+1

As a result of summarizing the quality differences, expressed in per cents, results
that the commercialized maize is inferior to STAS with 1 per cent. With this value is
corrected the cotation practiced by the respective exchange:

The exchange quota 120 $/t

The diminution corresponding to quality difference:
120 $/t x (-1%) = -1, 20 $/t
493

The citation of the effectively commercialized maize: 118,80 $/t

The exchange citations are frequently utilized different raw materials of agricultural nature
commercialized with the help of these market categories.

BIBLIOGRAFIE

1. The order regarding the Agrarian Reform and social economical development of the state nr. 55 from
06.03.1997
2. Bilateral agreements regarding the social economical co-operation between Moldova and those 26
European contries.

494
SYRIAN AGRICULTURAL POLICY IMPACT ON SOIL

IMPACTUL POLITICILOR AGRICOLE SIRIENE ASUPRA SOLULUI

SHHAIDEH AKRAM

BUCHAREST

Abstract

The paper is highlighting the impact of Syrian agricultural policies on soil. These policies were forced
by social and economic factors to achieve self-sufficiency through supporting the prices of the final product of
crops for food (wheat) and as a cash crop (cotton). The impact is presented by both negative (different levels
of soil degradation and desertification) and positive (land rehabilitation and reclamation) effects. Syria is a
dry and semi dry country with limited soil resources, the population number has increased from 9.046 million
in 1980 to 18.138 million in 2005, which increased pressures on natural resources, especially soil and water,
and obviously on AL-Badia (steppe and rangelands land) that forms (55%) of the total country with an annual
rainfall around 200 mm. Land degradation increase has been attributed to cultivation, over grazing,
deforestation, soil salinity and forest fires and increased more than 59% during the last two decade,
specifically in the steppe and rangelands.

Key words: Agricultural policies, soil, water, degradation, salinization, impact.

INTRODUCTION

Syria is a dry and semi dry country with limited water resources, the population growth rate
has increased from 9.046 million in 1980 to 18.138 million in 2005, which increased
pressures on natural resources, especially soil and water and obviously on AL-Badiah
(steppe and rangelands land) that forms (55%) of the total country area (10.2 million ha
out of 18.5 million ha) with an annual rainfall around 200 mm. Land degradation increase
has been attributed to cultivation, over grazing, deforestation, soil salinity, and forest fires.
Land degradation in Syria increased more than 59% during the last two decade,
specifically in the steppe and rangelands (National Action Plan, Ministry of environment,
Syria, 2006).The ambitious Syrian agricultural policies (force by social and economic
factors) to achieve self-sufficiency (to keep independent national decision away from the
main food producers who have relation with the historical conflict in the area between
Arabs and Israel) through supporting the prices of the final product of crops for food
(wheat) and as a cash crop (cotton), where they concentrated mainly in the northern and
eastern part of Syria (the most damaged part), have led to an increasing pressure on soil
and water resources. These policies accompanied with sever droughts during the last
decade and inefficient water management practices, resulted in different levels of soil
degradation, desertification and water shortage. The Syrian Government realized this fact
in the last three decades and put environment protection and rehabilitation as one of the
most important priorities for the future. Therefore, a joint efforts between Syrian Local
Authorities, Regional, International organizations and the neighboring countries were
followed to reduce the danger of soil and water degradation and rehabilitate the damaged
areas to introduce them again in the formula of sustainable use of natural resources for
agricultural production, biodiversity, and reducing the effect of drought on the stability of
human livelihoods.
This paper will try to analyze the current situation of the Syrian land, the efforts done by
local or other regional and international authorities to reduce the danger of soil degradation
and to improve the existed resources, and an evaluation of the positive and/or negative
impact of the Syrian agricultural policies on soil.
495

2. AGRICULTURAL POLICY IMPACT ON SOIL MANAGEMENT AND CONSERVATION
Agricultural policies were designed for the sake of increasing agricultural production and
reduce rural poverty. Some policies affected negatively and directly soil resources such as
price polices, while others influenced soil resources indirectly like input policies. Other
policies that caused positive impact on soil and water resources are investment promotion
policies, agricultural research, and agricultural extension policies. The importance of
agricultural sector emerges from the vital share of agriculture in the GDP around (30%),
the use of (92%) of the total cultivable land resources.
To improve agricultural production by increasing its productivity, expanding irrigated
agriculture was the only way to fulfill the increasing demand for food staples, especially in
the historically plains for crops in the northern and north-eastern of Syria. This expansion
took place through establishing one big dam and many medium and small dams on
Euphrates and Al Khabour rivers. The establishment of the public irrigation networks
permitted farmers to go beyond the traditional lands to cultivate more areas. Large portion
of farmers had been involved in the cultivation process to gain more profit from production
support price that the Government was offering for specific crops named Strategic Crops
like wheat, barley, sugar beet and cotton. This intensification of the above mentioned
crops accompanied with inefficient water and soil management and the extraction of water
through illegal wells led to the appearance of many environment problems. These
problems are very clear in the grazing lands that categorized with weak vegetation cover
and soil sensibility, the policies followed in the sense of environment protection and
keeping the numbers of herds not exceeding the grazing ability to stand, the uncontrolled
movement of the different machines, the non provision of heating and cooking materials
and the permission of land cultivation during the 80s had resulted in the disappearance of
plants in large area of the steppe (Al-Badia). The FAO estimates of the different levels of
land degradation in Syria are covering the total lands of the country (FAO, 2000).

Table 1. Soil degradation levels in Syria
Total
area
None Light Moderate Severe Very
Severe
'000
km
'000
km
%
'000
km
%
'000
km
%
'000
km
%
'000
km
%
Cause Type
187 0 0 9 5 64 35 78 42 33 18 A,O W,N,C
Source: World Soil Resources Report, FAO, 2000
Cause: A = agriculture; O = overgrazing
Type: W = water erosion; N = wind erosion; C = chemical deterioration
Table 1 shows that there is no land in Syria without some type of soil degradation, and
resulting from two main causes, agriculture and overgrazing. The types of soil damage are
primarily water erosion, wind erosion and chemical deterioration. Moderate and sever soil
degradation form up to 77% of the total lands of the country, while light and very sever
degradation form 23%.
Regarding water use, the random use of irrigation water also accompanied with several
droughts had resulted in water shortage, especially the underground water in all basins
except the Al-Badia and the coastal basin. Beside this and because of the drought many
farmers were forced to use the less quality water (high salinity) to irrigate their crops.
The Syrian Government in the last decade with the cooperation of different bodies,
national, regional and international agencies acted with more reality to overcome the
problems of soil and water through implementing many projects to reduce the erosion of
soil caused by water in the coastal mountains, establishing protected areas in the steppe
to help vegetation cover to recover and preventing the cultivation of the marginal lands to
reserve its fertility and to be used as grazing lands.
496
The objectives of Syrian agricultural policies regarding soil and water can be summarized
as follows: Maintain the productive capacity of the soil, prevent soil erosion, improve the
efficiency of on-farm water use, maintain the overall use of water within the sustainable
capacity of the basin and Prevent salinization of soils and ground water.

2.1 Soil degradation evolution
Table 2 represents that soil degradation of all types has increased during the period (2000-
2005) in comparison with the period of (1990-1999). The total average growth rate in all
types of land degradation was extremely high (around 33%). Wind erosion (which usually
happened in Al Badia and open cropping lands) was the land degradation type which was
mostly increased (70.2%), reflecting the fact that Syrian authorities were not able to control
this phenomenon may be due to different climatic, technical, economical, social,
administrative and financial factors. The pressure on the natural resources because of the
population growth, some years of severe droughts, lack of monitoring for the illegal wells
and inefficient water practices had led to this result.

Table 2. Degradation level comparison between (1990-1999) and (2000-2005) in Syria
1990-1999 2000-2005
Type of
degradation 000 ha
% of the total
area
000 ha
% of the total
area
Growth
rate
Water Erosion 1056 5.70 1081 5.83 2.3%
Wind Erosion 952.50 5.14 1620 8.75 70.2%
Salinization 118.78 0.64 125.84 0.68 6.3%
Total 2127.28 11.48 2826.84 15.26 32.9%
Source: Ministry of Environment and Local Administration, 2006
According to the estimations of the World Bank in 2001, the damage cost of environmental
degradation in Syria concerning water and soil formed 2.7 4.3% from the GDP.

2.2 Impacts of price subsidy policy in irrigated lands
The main problem in the irrigated areas is the chemical deterioration represented in
salinity phenomenon. In the natural lands, salinity is not found because of the compatibility
between the evolution of the soil structure and the annual rainfall and the natural drainage
system, while it is clear in the irrigated areas under the same climatic conditions with more
water and the absence of the efficient drainage system.
Salinity is the clear evidence of applying over-irrigation in the dry and semi-dry areas, and
also an obvious clue of the impact of input and output price subsidy policy that pushed
farmers to invest the most vulnerable lands. Salinity and water logging are extensively
present in relation to irrigated agriculture in Syria. It is estimated that 532000 ha or about
40 percent of the present total irrigated areas are salt-affected soil by varying degrees. At
present 60000 ha of previously fertile soils have been excluded from production and
100000 ha have only 50 percent of their potential production. Examples of salt-affected
soils are 125000 ha salt-affected soils in the Euphrates Valley extending as a strip from
Helebia-Zalabia in the west, down to the Iraqi border in the east; 150000 ha salt-affected
strip along the Khabour river from Ras el Ain in the north, down to Sowar town near Deir-
Ezzor city in the south; 13800 ha in the Ghab Valley and 21000 ha in the Jabool area, 25
km south of Aleppo city.
There is a strong relation between the secondary Salinization and gypsum availability in
the soil surface and subsurface. The Gypsum lands are estimated to reach 20 percent of
the total country area. Insufficient irrigation with poor quality of water contributes to soil
salinization. Ground water at the end of the cotton seasons was at 1.75 m causing salinity
because of capillary rise in heavy textured soils. In uncultivated areas of plateau, the
ground water levels are 15-20 m deep (FAO, 1971). The increasing salinity is related to
497
presence of the sub-terraces, parallel to Euphrates River at its southern edge (few meters
to 10 km distance), irrigation methods and quality of ground water. (ICID, 2003)
The same can be said in the coastal area of the Mediterranean Sea. Over pumping to
irrigate fruit trees and other crops and vegetables, water wells that have become salinized
due to seawater intrusion to the groundwater have subsequently resulted in soil salinity
and decreasing productivity. The dominance of Gypsum-ferrous soils along the water
resources in the Euphrates, Balikh and Khabour rivers cause pollution and Salinization of
fresh waters. The scarcity of water resources in some areas calls also for the use of
available drainage, saline water or treated wastewater for irrigation (in Ghab Valley)
without proper soil and water management practices causing expansion of salt-affected
soils. (FAO, country reports, 2003).

2.3 Impacts of rangeland policy on the soil
The impact of the current agricultural policies on Al Badia can be summarized as follows:
The lack of property rights over the land in Al Badia provides no incentive for long term
management and leads to a classic case of tragedy of the commons.
The provision of increased numbers of wells enables sheep to remain on Al Badia
longer into the summer, and to return earlier, than was historically the case. Studies of the
biology of plant-animal interactions in Al Badia suggest that the impact of early summer
grazing is extremely harmful to the perennial shrubs in the area. It is also clear that these
shrubs play an important role in maintaining the grazing resource. There is currently no
policy signal to the herders encouraging them to leave Al Badia earlier in the year.
The provision of subsidized feed enables the maintenance of stocking densities above
that which could be supported by the natural environment alone. The Provision of
concentrate feed enable herders to keep more sheep than would be the case in the
absence of concentrate feed. The current policy signal to herders is that keeping many
sheep must be a good thing, otherwise why would the Government provide subsidized
feed.
Establishing the grazing protectorates sent a clear policy signal that the Government
felt there had been degradation of Al Badia. However, opening these protectorates to
grazing a few years after their establishment sends the signal that these protectorates
were probably not that important after all, and the Government cannot have been that
concerned about rangeland degradation. This signal was reinforced by the low level of
fines for entering the protectorates when they were functioning, and the simultaneous
weak enforcement of even these low levels of fine.
Re-vegetating large areas of Al Badia with native shrubs sends the signal that there
had been degradation, and that the Government wanted to reverse this degradation.
Banning the cultivation of Al Badia sends the signal that this was an environmentally
damaging activity.
2.4. Summary of policy impact on soil
Policy name Objectives Impact on soil
Food
production
Food security
Soil degradation
Soil erosion
Soil salinity
Crop price
subsidy
Self-sufficiency
Farmers social stability
Food security
Soil degradation
Soil pollution
Salinity
Input subsidy
Reduce agricultural production costs

Salinity
Soil degradation
Environmental Protect natural resources Soil rehabilitation
Land
reclamation
Remove the natural constraints, to increase the
cultivable lands
Some level of soil
degradation
498
Irrigation
policy
Expand irrigated areas
Increase food production
Use modern irrigation methods
Conserve water resources
Salinization
Soil degradation

3. SOIL RECLAMATION AND REHABILITATION EFFORTS
3.1 Increase the area of the cultivable land through reclamation projects
The main problem of the Syrian lands is the shallowness lands, where it covers more than
35% of the total land of the country, especially in the internal and southern parts (FAO,
2000). Therefore, many projects were established to remove rocks and stones from the
soils and to introduce new agricultural land. Indeed, this contributed obviously in the
increase of agricultural production, especially vegetables and fruits.
Table 3 shows a comparison between two periods regarding the achievements in land
reclamation at the national level.

Table 3. Average reclaimed land during the period 1997-2004
Item
Average
1997-2000
(ha)
Average
2001-2004
(ha)
Difference
(ha)
Planned
target
(ha)
Difference
(target vs. avr.
2001-2004)
%
achieved
to planned
fruit 24,549 16,588 -7,961 24,000 -7,412 69.1%
crops 3,287 6,121 2,834 9,000 -2,879 68.0%
Source: Ministry of Agriculture and Agrarian Reform,, 2006

3.2 Rehabilitation of damaged areas
The rehabilitation of the damaged lands of different types human made or natural made
through reforestation of the main highways and around the cities to fix the soil, create
beautiful sights, increase the soil content of water and modify the hot climate in the
summer time. The rehabilitated lands has increased from 76,000 ha in (1990-1999) to
172,603 ha in (2000-2005) with growth rate of 125.2%. On the other hand, the important
rehabilitation took place in the degraded steppe with a growth rate of 277.1 for the same
mentioned periods (Table 4).

Table 4. Lands under rehabilitation in Syria (1990-2005)
Lands under rehabilitation (ha) 1990-1999 2000-2005 Growth rate %
Degraded lands 76,638 172,603 125.2
Degraded steppe 480,000 1,810,000 277.1
Degraded forests NA 9,370
Source: Ministry of Environment and Local Administration 2006

3.3 Grazing protectorates
There are currently 33 grazing protectorates designated within Al Badia, comprising 400
000 ha. The aims of the protectorates are to rehabilitate grazing, to protect biodiversity,
and to reduce soil erosion. They may also act as a grazing reserve for times of drought.
These protectorates are marked in some way, such as with an earth fence, in order to
enable herders to exclude sheep from them. When the protectorates were established, it
was intended that grazing would be permitted twice a year (April and October) after three
years of no grazing. However during the time of the study (2000/2001) none of the
Protectorates were closed; rather, all were open in order to help the herders in a time of
drought. Even when they are closed, the fines on grazers for entering protected areas are
very small, at SP5.
CONCLUSIONS

499
The general picture of land and soil situation in Syria is dark despite the huge efforts that
local authorities are doing. The main point here that the Government so far is trying to
implement and correct the faults of the past with direct contribution of the local
communities. As a result of this behavior, the degraded lands area have increased,
especially that located in Al Badia with growth rate around 70% from the 90s till 2005. This
reflects the fact that the Government was not able to implement its vision centrally away
from the real needs and desires of the local beneficiaries. On the other hand, and
regarding the soil salinity, the increase was fair, but the economical cost (loses) were very
high (around SP 13 billion) during 10 years. In addition, the rehabilitation of the salinized
lands will require more water, money and efforts to correct the situation.
Modernizing irrigation system is a very nice target, but this cannot be achieved through
regulations. It can be achieved through the right diagnosis of the problem and convincing
the people who will be targeted to this, that this will be economically for their benefits and
then for the whole society. The pricing policy of some crops like wheat and cotton which
are mainly produced in the degraded areas helped farmers (especially large farms) to gain
lot of money on the expense of natural resources. In addition, the decision of the 90s
which permitted farmers to cultivate the marginal areas with barley affected the rangeland
for long time and caused the soil degradation and sand dunes formulation.
In order to maintain the productive capacity of the soil and to prevent soil erosion is
recommended to:
Develop cropping patterns that minimize soil erosion through using non-cropped stripes
and windbreaks in cultivated areas to reduce soil erosion.
Redirect resources from forestry and land clearing to combating desertification.
Improve the drainage in existing irrigated regions and ensure that all new irrigated
areas have adequate, sub soil drainage systems.
Improve trials on best methods of rehabilitating salinized land.
Monitoring of soil degradation through establishing a network of monitoring sites for soil
quality and erosion across all agricultural systems in Syria. Some good data are available
for certain areas of Syria, but these tend to be undertaken as part of fixed time-scale
projects and/or by external agents such as ICARDA and ACSAD. Consistent long term
data are needed to guide management.
Regarding Al Badia, the large portion of the country, it is recommended to do the
following actions:
To divide Al Badia into many protected sectors with fences according to the level of soil
degradation and water scarcity and to prepare the needed roads for the movement of
machines and people taking into consideration that the huge movement of herds and
machines on the already sensitive soil should minimized to its limits, after the negotiation
to guarantee that they will respect the new arrangement- and then to organize the grazing
rights for each community according to grazing ability of each sector. On the other hand, it
may be possible for the Syrian Government to prohibit grazing after holding the
agreement with the local communities for one year as an example, on the base of
providing with fodder quantities enough to keep a specific number of the herd as a settled
raising. This will permit the supervisors to evaluate the improvement happened and to take
the next step.
To provide the local community with the proper source of heating for the purposes of
daily life needs, instead of letting people depend on the annual and elder plants as very
close and cheap source of heating forgetting the consequences of acting like this toward
the environment around them.
To introduce another solutions for local communities rather than cultivating the poor
lands for surviving. Such alternatives may include offering credits to raise specific local
races of camels, ostrich, and to focus on the plants with minimum water needs such as the
local medicine plants.
500

BIBLIOGRAPHY

1. MINISTRY OF AGRICULTURE AND AGRARIAN REFORM; Syrian Annual Agricultural Abstract;
Different years; Damascus; Syria.
2. A. J. BOT, F.O. NACHTERGAELE AND A. YOUNG; 2000; Land Resource Potential and
Constraints at Regional and Country Levels; FAO; Rome,.
3. CONSUELO VARELA-ORTEGA & JUAN ANTONIO SAGARDOY; 2001; Study on Agricultural
Water Use; Syria National Agricultural Policy Center; Damascus, Syria.
4. FAO;2006, World reference base for soil resources; World Soil Resources Reports; 103; Rome.
5. GARETH EDWARDS-JONES; 2001; Study on Agricultural policy and the environment in Syria,
Syria National Agricultural Policy Center; Damascus, Syria
6. MINISTRY OF ENVIRONMENT AND LOCAL ADMINISTRATION; 2002; National Action Plan to
Combat Desertification in the Syrian Arab Republic; Damascus; Syria,.

501
SYRIAN WHEAT PRODUCTION POLICIES (1997-2005)

POLITICILE AGRICOLE SIRIENE ALE GRULUI (1997-2005)

SHHAIDEH AKRAM

BUCHAREST

Abstract

The paper focuses on presenting the instruments which led to achieve and maintain Syrian Agricultural
Policies objectives in being self sufficiency of wheat production and stock availability, which was reached in
the mid-1990s. Wheat is considered one of the important strategic crops, occupies more than 34.8% rain-fed
and 57.7% irrigated from the total crop area in the country and it is mainly used for flour in bread production,
although low quality wheat is used for animal feed. Different instruments, as market price support and input
subsidies which are nearly 1.25% of the Syria GDP, were developed for a wide range of farms, therefore the
production level increased and allowed significant export since 2000-2001. The main marketing organization
is a state owned company - the General Establishment for Cereal Processing and Trade (GECPT) - which is
responsible for purchasing, milling and marketing of wheat products and other crops.

Key words: Agricultural policy, wheat, production, consumption, export, import.

1. SYRIAN AGRICULTURE POLICY DEVELOPMENTS AND REFORM
Objectives
The Syrian Government has defined the following major agriculture and food policy
objectives:
Enhancing self-sufficiency and improving the trade balance by reducing agricultural
imports and increasing exports.
Promoting the integration of the agricultural sector into the economy.
Increasing the contribution of the agricultural sector to GDP and employment.
The Domestic Market Policies has witnessed many developments since 1986, moving
gradually from centrally planned system to a mixed public/private environment. On the
other hand, and while food marketing and processing of cotton, wheat, sugar beet and
tobacco still dominated by the public sector, the private sector provides these functions for
most other commodities. Increasingly, agricultural production inputs, such as fertilizer and
chemicals, are provided by the private sector firms.
With regard to Trade Policy has also been modified significantly through simplifying the
system of entry duties into a systematic tariff schedule, unifying the exchange rate
system, abolishing export tariffs and the linking payments for imports to the availability of
exports. In addition, export licenses were abolished for most agro-food products, while
import bans on agro-food products were removed for imports originating from countries
that joined in the Arab free trade agreement. Syria, one of the founders of the GATT in
1948, withdrew, and now has applied for membership in the WTO. Also, Syria is
negotiating Turkey and Iran for a preferential trade agreement
Input subsidies were reduced during the 1990s for many of the agricultural production
inputs such as chemicals and fertilizer, and the subsidy for seeds is limited to the strategic
crops. Subsidies remain for credit, electricity and fuel (across the whole economy), and
water.
Market Price Support mainly for purchase programs and consumer/export subsidies for
wheat, cotton, sugar, and tobacco. Producer prices have remained relatively unchanged,
and so the level of support has varied significantly by commodity. For wheat in 1999, the
subsidy represented about 64 percent of the local equivalent of the world price(FAO
(2003), p.147). International prices especially for wheat have increased since 1999, but
502
domestic prices would appear to remain well above world levels(FAO, International
commodity prices).. Wheat production has increased and Syria is now a small net exporter
(49 thousand tones, average 1999-2002), depending on climatic conditions.
Consumer subsidies includes bred subsidy, Sugar and rice consumer subsidies operate
by means of ration cards (1.5 kg of sugar and 0.5 kg of rice per capita per month).
Consumers receive their ration card sugar at 45 percent of the equivalent world sugar
price.
While some commodities in the agriculture and food sector receive support, others are
effectively taxed. These include numerous taxes, fees and direct charges, although many
of these have been reduced or eliminated in recent years, such as the 9.5 percent export
tax in many commodities (e.g., chickpeas, lentils, barley), in 2001. There are a number of
restrictions on the production of various commodities as a result of the planned areas.
Thus, producers are restricted from taking advantage of potentially more profitable
alternative commodities. Syria provided negative market price support during the 1990s for
a number of agricultural products. These products include apples, apricots, oranges,
potatoes, olive oil and poultry.( Wehrheim, 2001, p. 58)
Syrian Agricultural Trade confirms to be more and more important for the Syrian
economy. In the period from 1997 to 2004, agricultural trade has been growing at an
average annual rate 0f 3.8%. The share of agriculture from GDP recorded its peak in 2002.
But, it started to go down reaching 23% in 2004 compared with 29.4% in 1998. This could
be explained by the growing share of other sectors like industry, services and tourism in
the last few years. (Syrian Agricultural Trade, NAPC, 2005)

2. THE STRUCTURE OF WHEAT COMMODITY CHAIN

Syria became self-sufficient in wheat in the mid-1990s and has subsequently produced an
export surplus, other than 99-02 years when production was severely affected by drought.
Government establishments are involved in the marketing of wheat, where around 70% of
production is still sold to the General Establishment for Cereal Processing and Trade
(GECPT). Recently, the Syrian Government has modified the wheat purchasing price up to
30% of the old price to keep farmers delivering the production.
The importance of wheat: Wheat is Syrias major staple food commodity, considered one
of the important strategic crops (Strategic crops are defined as crops for which the
Government sets prices at which government establishments will purchase from farmers
or their cooperatives -Westlake, 2001). Wheat is mainly used for flour in bread production,
although low quality wheat is used for animal feed. Bread consumption is increasing at
about 3% per year, in line with the increase in Syrias population growth.
Due to the national security situation, a major objective of the Government is to ensure
that Syria is self sufficient in wheat. Since 1994, the last year of major wheat imports, this
has been achieved by a combination of :
a) the accumulation of national strategic stocks
b) the planting of sufficient land to wheat to ensure that national production is
approximately sufficient to meet domestic needs, even in a drought year. During 2001-
2005 Syrian wheat production share from the world production achieved to up 1%. Other
wheat indicators are presented in table 1.
Wheat occupies more than 34.8% rain-fed and 57.7 irrigated from the total crop area in the
country, and nearly 1.25% of the GDP is dedicated to subsidize wheat farmers. Wheat
cultivation is using the most fertile lands in the country; therefore, what result from the
agricultural activities will reflect positively or negatively on the urban and rural population.

503
Table 1. Syria wheat indicators compared to world indicators (1997-2005)

Item/Year 1997 1998 1999 2000 2001 2002 2003 2004 2005
World wheat
prod. (000
ton)
612348.76 592337.27 587081.74 585675.62 588787.25 572091.27 557953.15 632140.33 625150.98
area harvest 1760.8 1721.41 1603.02 1678.8 1683.78 1679.35 1796.02 1831.23 1903.83
% 0f the
world
0.49% 0.69% 0.46% 0.53% 0.81% 0.83% 0.88% 0.72% 0.75%
Prod. (000 t) 3031.09 4111.63 2691.5 3105.49 4744.62 4775.44 4912.99 4537.46 4668.75
From world
prod. (%)
0.5% 0.7% 0.5% 0.5% 0.8% 0.8% 0.9% 0.7% 0.8%
Food cons.
(000 ton)
2555.26 2574.34 2605.69 2572.9 2571.64 2647.33 2726.84 2835.16 2970.99
Feed and
Seed
(000 ton)
482.07 592.34 488.33 538.53 382.6 590.38 685.57 686.83 622.22
consumption
(000 t)
3037.33 3166.68 3094.02 3111.43 2954.24 3237.71 3412.41 3521.99 3593.21
Imp. (000 t) 23.4 22.19 61.39 61.12 21.66 566.05 279.05 138.32 283.96
Imp. value
(000 US
$/ton)
3665.98 2978.31 7129.69 7422.5 2889.84 71869.45 36300.62 21405.29 39041.47
Exp. (000 t) 819.27 438.31 78 89.07 138.31 655.08 712.51 721.26 544.47
Exp.value
(000 US
$/ton)
181755.48 87654.75 16248.56 15118.25 22750.96 109135.29 121360.51 124012.66 88043.86
Trade
Balance
(000 US $)
2211.82 3673.32 2613.5 3016.42 4606.31 4120.36 4200.48 3816.2 4124.28
Source: FAOSTAT, 2007

The pricing and support policy: Wheat producers have been heavily protected,
receiving prices from the General Establishment for Cereal Processing and Trade
(GECPT) that have been more than 60% above parity. The Syrian Government followed
the Market Support Price MPS method to guarantee that farmers will have enough
incentives to produce the desirable quantity of wheat to assure the food security situation
of the country.These prices are all set on the basis of unit costs of production.
The objective is to ensure that a farmer who employs recommended agricultural practices
is able to cover his costs and make a specific level of profit. Price setting explicitly does
not take account of unit market value. Indeed, one explicit aim of government intervention
in pricing is to isolate farmers from market forces and to provide prices that will encourage
farmers to produce certain crops.
For wheat, farmers can also sell to private buyers. However, farmers reportedly do on
occasion sell to traders at less than the official price because the trader is able to offer a
purchase package that the farmer finds more attractive than the alternative offered by the
Government, due for example, to more attractive payment terms.
The following table illustrates the official Government wheat prices accompanied with the
cost of kg from wheat conducted by the specialists of the Directorate of Agricultural
Economics (DAE) in the Ministry of Agriculture and Agrarian Reform (MAAR).

504
Table 2. The Official Price and the Cost of Kg of Durum and Soft Wheat in SP and US$
during the period (1997-2004)

Year 1997 1998 1999 2000 2001 2002 2003 2004
Irrigated.
Durum Wheat./
Official price
11.8 11.8 11.8 11.8 11.8 11.8 11.8 11.8
In US $* (cent) 23.6 23.6 23.6 23.6 23.6 23.6 23.6 23.6
Cost SP/kg 10.54 10.71 12.26 12.28 11.03 10.46 11.04 10.24
In US $ (cent) 21.08 21.42 24.52 24.56 22.06 20.92 22.08 20.48
Rainfed Durum
Wheat Official
price
11.8 11.8 11.8 11.8 11.8 11.8 11.8 11.8
In US $ (cent) 23.6 23.6 23.6 23.6 23.6 23.6 23.6 23.6
Cost SP/kg 9.8 10.91 15.17 15.18 11.52 9.23 9.28 8.69
In US $ (cent) 19.6 21.82 30.34 30.36 23.04 18.46 18.56 17.38
Irrigated. Soft
Wheat Official
price
10.8 10.8 10.8 10.8 10.8 10.8 10.8 10.8
In US $ (cent) 21.6 21.6 21.6 21.6 21.6 21.6 21.6 21.6
Cost SP/kg 9.82 9.99 11.48 11.5 10.92 10.27 10.73 9.99
In US $ (cent) 19.64 19.98 22.96 23 21.84 20.54 21.46 19.98
Source: MAAR, 2005
The calculations made in US$ according to the exchange rate that each 1 US$=50 SP.

The table shows that the government did not change the prices officially issued even the
cost in some years exceeds the official price. This can be noticed clearly in the years
1999-2000, where a hard drought hit the country, especially for the rain-fed wheat, where
the difference between the real cost and the official prices was large. This reflexes that
the fixed price that the Syrian Government followed is not flexible enough to respond to the
urgent cases like drought or similar natural phenomenon. Finally, despite government
price support, the profits of farmers are highly unstable from year-to-year due to sharp
variations in yield. Furthermore, the yields employed in the annual review of producer
prices have been above national mean levels, leading to official producer prices that are
insufficient to meet the declared objective of providing a profit above the mean level of
costs (Mike Westlake, 2001).
Production and Consumption: Figure 1 shows the evolution of wheat production and
consumption through (1997-2005). The highest production level was in 2003 (around 5
million tones) due to the increase in the irrigated area, high rainfall and high productivity,
and it can be seen from the figure that wheat production tended to be stable starting from
the year 2001 and no less than 4.5 tones per year. Conversely, the lowest level of
production and the highest level of consumption were in 1999 due to the severe drought
that hit the country, and in 1997 and 2000 were the only two years where production
almost equal consumption. (FAOSTAT, 2007).

505
Figure 1. Syrian Wheat production and consumption (1997-2005)
Syria Wheat production and consumption
1997-2005
0
1000
2000
3000
4000
5000
6000
1997 1998 1999 2000 2001 2002 2003 2004 2005
years
Q
u
a
n
t
i
t
y
Production (000 t) consumption (000 t)


Marketing: The main marketing organization is the (GECPT), which is responsible for the
public marketing of wheat and other crops. The GECPT is an establishment of the Ministry
of Supply and Internal trade (MSIT) and is financed through the Ministrys budget. Two
state-owned companies under the GECPT are responsible for milling and for baking: the
General Company for Mills (GCM) and the General Company for Baking (GCB). These
companies are financially independent in terms of accounting, but their annual budgets
must be approved by the GECPT, and ultimately by the MSIT. Transfers to cover the
companies losses are made directly to them by the State Treasury. Public wheat storage
is undertaken by the General Company for Silos, Feed Mills and Seed Plants (GESILOS),
an establishment of the MSIT.
Export and import: Syria is self-sufficient in wheat production. Wheat and wheat flour
imports by the private sector will be limited to relatively small quantities for pasta or for
milling. Most of the imports come from close by sources due to relatively cheap prices and
low freight cost. Figure 2 illustrates that Syrian wheat exports started to be significant since
2000-2001 agricultural season because of the farmers depending more and more on
irrigated wheat, while the export peak happened between 2002-2004 due to the stable
rainfall rates and the Government taking out from the stocks. The lowest imported quantity
of wheat was in 2001, and the highest was in 2002 accompanied with a high exports,
where the Government of Syria followed a policy of exporting durum wheat and to import
soft wheat to mix with the local production for processing purposes. (The main destination
of wheat exports are the Arabic countries and some European countries, while the main
destination of imports was from Europe and Iraq - Syrian Agricultural Trade, 2005, NAPC)
Figure 2. Syrian wheat export and import (1997-2005)
Syria Wheat export and import 1997-2005
-200
0
200
400
600
800
1000
1997 1998 1999 2000 2001 2002 2003 2004 2005
Years
Q
u
a
n
t
i
t
y
Import (000 t) Export (000 t)


506
CONCLUSIONS

In the year 2005, wheat production in Syria was mainly gained from irrigated areas (53%)
of the production of total irrigated field crops, and around 40% of the production of total
rain-fed field crops. By summing up the previous percentages, it can be up to 93% of the
production of the total field crops. This reflects the importance of this crop in the cropping
pattern system in Syria. Adding up the fact that Syria is suffering from water shortage due
to the limitation of water resources and water traditional practices, the recent agricultural
policies should seriously follow the concept of modernizing the irrigation system beside the
sustainability of natural resources.
Many studies (Jones, 2001- Ortega and Sagardoy, 2001 - UN, 2005) pointed out the
negative impact of the subsidizing policies on the sustainability of natural resources,
specifically soil and water. Therefore, the Syrian official monitoring system should be more
effective in this regard despite the huge number of legislations and decrees issued to
reduce the impact of the random use of the natural resources, especially water.

BIBLIOGRAPHY

1. BRUCE HUFF; 2004; Report on Options for Reforming Syrian Agricultural Policy Support Instrument
in View of WTO Accession, Syria National Agricultural Policy Center, Damascus, Syria.
2. GARRY CUMMINS; 2000; Report on Livestock Sub-Sector, Syria National Agricultural Policy Center,
Damascus, Syria.
3. MIKE WESTLAKE; 2001; Study of Strategic Crops Sub-Sector, Syria National Agricultural Policy
Center, Damascus, Syria.
4. NATIONAL AGRICULTURAL POLICY CENTER; 2005; Periodical Report Syrian Agricultural Trade,
Damascus, Syria.
5. SAMIR AITA; 2005; Syria Country Profile, The Road Ahead for Syria, Economic Research Forum,
Egypt.

507
THE DEVELOPMENT OF AGROTOURISM AS AN IMPORTANT
GUIDENCE OF THE RURAL DEVELOPMENT

DEZVOLTAREA AGROTURISMULUI CA IMPORTANT DIRECIE A
DEZVOLTRII RURALE

SIMION P.L.


Abstract

Starting from the complicated character of the space of the rural universe marked out by his economical,
social , ecological and socio - cultural components, it is necessary that, on this background to decode his
problems , the action and interdependence factors.
Considering the relation of interdependence and complementarity of the economic processes, commonly ,
the research of the rural space as a phenomenon starts not from a sequential vision , but from his global
evaluation that has as components all the aspects and close relationships and from the integrated image in
the way of reflecting the functions cohesion to the endogenous and complete spectrum of all the forces and
internal resources, having as purpose to put them in action in a proper way.

Key words: rural space, agrotourism, ecotourism

INTRODUCTION

The rural space defined by The European Chart is based upon the concept of local
and global development, long lasting, that involves both a solid rural component and an
important agricultural component. The problem of local, global and long lasting rural
development is the quintessence of social and economic policies for the good
development of local (rural) communities.
International organizations took the issue of environment seriously and treated it in
its relationship with the global products, such as commerce. It is to expect that such an
approach will be carried on under the aegis of global management institutions.
Until 2050, world population, today estimated to over 5.9 billion, will range up to 7.7
and 1.2 billion. The latest medium prospect is of 9.37 billion. Population growth is the main
pressure on the environment and it is inexorable. The imperative survivability is translated
in the obligation of meeting the needs of this huge population. The humankind is growing,
so do the needs and the offer should also grow. Instead of being disarmed in this effort, by
endless accusations to modernization, societies need to be urged to find new solutions for
the economic growth, to continue, under the new form of geo-modernization, to increase
the wealth required both for human needs and for ecological requirements.

MATERIAL AND METHOD

In Romania, for over three decades, by identifying and promoting some rural localities,
with folkloric and cultural values, within their picturesque natural environment, were named
tourist villages, thus creating the prospects for the official development of agro tourism.
There is a definition, also accepted in other countries, according to which tourist
villages are rural picturesque settlements, well constituted, situated in an environment not
polluted, that keep the traditions and have a rich historic past. Apart from their own political
and administrative, social, economic and cultural functions, they also carry out the function
of receiving and accommodating tourists for spending an undefined period.
As for other countries, the agro tourism is a form of tourism that has accessible
prices, thus being accepted by a larger number of people. Agro tourism can be done
508
during all four seasons, thus contributing to avoiding crowding. We can consider that the
agro tourism is an alternative that can satisfy tourists bored with the industrial tourism.
Another aspect regarding the development of agro tourism in Romania is the fact
that its evolution was also determined by the specificity of the traditions, mentalities and
culture of the Romanian village. If night comes, one can find hospitable accommodation
anywhere in Romania. Hospitality is a tradition and a characteristic of Romanians; it is a
means of knowledge and communication. Under these circumstances the peasant invites
you into his house, serves the best food he has, gives you the best room, and he does all
these out of the desire to help a traveller, being convinced that he does a good deed.
Rural households near resorts are frequently required to accommodate tourists and
the people who come to the resorts for different types of treatment. This is due to the fact
that the accommodation in the resorts cannot always meet the demands. Another factor
that favors the expansion of this type of tourism is the tourist budget that cannot afford the
price of the hotels.
In Romania, the agro tourism is a chance for the rural household whose general
characteristic is the subsistence economy. And, if we take into account the growing
demands of Europeans for this type of tourism, we have another reason for practicing the
agro tourism.
The geographical position of Romania is factor that attracts tourists: we are
situated at the intersection of the Central Europe with the Eastern Europe, at the gates of
the East. Most rural farms and households have an extra living space. We consider that
Romanian agro tourism will constitute a priority form of developing Romanian tourism in
Europe.
Another form of tourism is the ecotourism or the green tourism that started to
develop as a science in the last decades of the XX century, meant to show the new
coordinates for the development of global tourist industry. Although in its beginnings it was
applied only for the tourism in the natural protected areas, it expanded to the other major
forms of tourism.
The idea of protecting the nature emerged in the USA in 1872, when the first law in
the world was promoted to protect a federal territory in order to keep it untouched by the
continuous aggression of civilization thus being created the Yellowstone National Park.
After that, following this example, many countries created their own network of
natural reserves and parks, to prevent the disappearance of some species of flora and
fauna or to preserve some forms of passage Serengeti Park Kenya, Tatra Park
Czech Republic, Cevennes Park France, etc.
Ecotourism or the green tourism proposes, by founding the Institute Of Agriculture
in Italy in 1981,:
- Promoting and developing the activities in agriculture and rural tourism in the
agricultural areas by any means possible, by providing a high quality of the agricultural and
craftsmanship goods;
- Launching the initiatives for the establishment of a close relationship between
towns and villages, by creating a preliminary conscience for protecting and controlling
exploitations and for protecting the environment ;
The first official issue of the relationship between environment and tourism, by
ecotourism, was made at the OMT Congress on the Bali Island (Indonesia), on 28-31 April
1994. In April 1995, at Lanzarotte (The Canary Islands Spain), there was the first World
Conference on sustainable tourism. On this occasion, The Charter of the sustainable
tourism was issued and adopted, in 18 points that became important landmarks in
affirming and developing tourism.
Subsequently, in November 1995, in Djakarta (Indonesia), the problem of the
relationship between tourism and biodiversity was discussed, by issuing some
international regulations to allow the compatibility of tourist activities with the environment
509
protection requirements. These concerns were continued by other international
manifestations centred upon the same topics the Tourism and Environment Protection
Seminar at Heidelberg, Germany, on 16-18 May 1996 under the OMT aegis, and
the European Forum for Sustainable Tourist Circulation in Salzburg, Austria, on 9-11
December 1998.
This interest was translated by organizing an International Conference on the
balance between biodiversity and tourism, in Berlin, between 6-8 March 1997. In the end,
the Berlin Declaration was adopted, pointing out the consensus between sustainable
tourism and environment protection, by some guidelines:
- Sustainable tourism, especially by ecotourism, allows for the rational use of
biological diversity and contributes to preserving it;
- The development of tourist activities needs to be achieved in a balanced,
efficient manner, that can be controlled;
- Giving special attention to the forms of tourism practiced in the frail ecological
and cultural areas, where mass tourism is to be avoided;
- All the partners interested, both in the private and state sector, need to be
involved in supporting sustainable tourism, by producing quality tourist products and codes
of conduct for all participants (tourists, employees, local inhabitants) ;
- Attracting the local population and institutions in implementing these ecotourism
principles to be the main beneficiaries of ecologic tourism.
The 14
th
General Assembly of the World Tourism Organization did not hesitate in
selecting this years topic for the World Tourism Day: Ecotourism: the Key to Sustainable
Development. It was meant to support the General Assembly declaration in 2002, as the
international year of ecotourism, an unprecedented name that reflects the recognition by
the international communities of the tourism and ecotourism potential to contribute to the
process of sustainable development.
The activities organized by the Tourism World Organization and other international
agencies, national agencies, associations, academic institutions, NGOs during this year
confirm the importance of this sector. The level of participation and involvement of so
many different types of supporters is, by far, recognition of the impact that the ecotourism
has on the communities, areas and ecosystems, as well as the interesting growth of
number of tourists in the natural spaces, thus contributing to preserving and supporting
local communities.
The International Year of Ecotourism proves to be an excellent opportunity to clarify
the intent and significance of the enhancement of this market sector, to disseminate the
principles and criteria for sustainable planning, development and management, to highlight
the inappropriate techniques and to identify the risks that can emerge in the rural area, to
stress upon the need for cooperation between stockholders and to make sure that these
benefits are evenly distributed.
Tourism and particularly the ecotourism have the potential to contribute to the
reduction of poverty in isolated rural areas in the developed countries.
In the developed countries, ecotourism can be the best instrument for environment
education, for increasing public awareness and the need for protecting frail ecosystems,
for stopping the abandon of rural areas and traditions.
This potential can be obtained by planning and management efforts with the
adequate surveillance tools in order to avoid excess in many traditional tourist destinations.

The Ecotourism World Summit was designed to introduce durability in tourism.
Ecotourism can lead to positive ecological effects, among which we anticipate diminishing
the destructive effects resulted from economy or the uncontrolled tourist circulation;
limiting mass tourism in sensitive ecologic areas; increasing the activity of tourist
resources; developing the ecologic awareness of the population; a better living on Earth.
510
Most practices need validating and implementing in the entire sector of tourism and
in this respect, for the tourism to be successful, as the engine of sustainable development,
they should be regarded with responsibility by the governments, local authorities and
private tourism.
CONCLUSIONS

We can conclude that, for the long term, rural tourism and agro tourism will represent an
opportunity for many areas in Romania. The conditions for success include: the level and
profitableness of investments in the area, professionalism in hospitality, integration into
local and national tourist networks, developing new tourist activities in connection with
other local networks.
According to these desiderata, the agro tourism can be considered a means for completely
using the rural areas with their agricultural, forest, tourist, human and technical-economic
potential and it can contribute to the development of the rural space.
At the same time, consolidating the Romanian village by means of the different forms of
rural tourism needs to be based on a macro stability of the rural space, on three categories
of policies: structural, adjusting, and environmental. By the analysis of these policies one
can establish the most adequate development strategies for the rural tourism in Romanian
villages.

BIBLIOGRAPHY

BRAN FL., SIMON T., NISTORESCU P. Ecoturism Editura Economic, Bucureti 2000
CRISTUREANU CRISTINA, NEACU NICOLAE, BLTREU ANDREEA Turism internaionalEditura
OSCAR PRINT, Bucureti; 1999
DONA ION Economie rural Editura Economica, 2000
DONA I., DRGHICI M., ROLLET PHILIPPE Managementul dezvoltrii rurale, Editura Economica, 2002
ISTRATE I., BRAN FLORINA Perspectiva dezvoltrii durabile a turismului romnesc, Tribuna
Economic nr. 20,21/1995
NISTOREANU PUIU Ecoturism&Turism rural Editura Biotera, Bucuteti; 2000
TEFAN MITRACHE Dezvoltarea durabil rural Editura Planeta, 2000

511
THE NATURE AND THE CHARACTERISTICS OF RURAL TOURISM
SERVICES

SNTEAN I.F., CIGHIR E.


Abstract

Rural tourism services are viewed as a system of utilities in which the beneficiary buys and uses a
product, which means that they represent activities, benefits or utilities offered on the market or carried out in
association with the sale of a material asset.
The rural space is a means of financing agricultural activities, as it offers the possibility to obtain direct
additional income necessary for every peasant household. In the structure of non-agricultural activities,
tourism is considered a lucrative form of enhancing the value of local natural and anthropological resources.
This form of tourism becomes a socio-economic factor of demographic stability and an alternative meant to
decrease the touristic pressure in the nearby touristic resorts.

Key words: rural tourism, agro-touristic services, agro-touristic pension

MATERIAL AND METHOD

The research method is based on the study of specialized works in the field of agro-
touristic services, both of those with reference to our country and the services offered in
other European countries.

RESEARCH RESULTS

Rural tourism services, similarly to the whole sphere of services, are viewed as a system
of utilities in which the beneficiary buys and uses a product, which means that they involve
a certain utility. According to the definition given by the American Association of Marketing,
services represent activities, benefits or utilities that are offered on the market or carried
out in association with the sale of a material asset. This definition brings to discussion an
essential element of services the concept of activities. Moreover, it also includes in the
sphere of services the so-called commercial services (carried out in association with the
sale of a material asset).
The characteristics of services which are valid for the services and the activities involved in
rural tourism are the following: intangibility, inseparability, variability and perishability.
a. Intangibility is unanimously considered by specialists as the essential
characteristic of services, which evidently include rural tourism as well. The intangibility of
the services specific to rural tourism forces potential consumers to pay attention to the
tangible and visible parts of services. The consumers of agro-touristic services can notice
different tangible aspects associated to them. They can see, among others, the facilities
offered to customers, the personnel of the rural touristic pension, the communication
network, the level of prices etc.
The ambience is the space in which the rural tourism service is carried out, especially the
natural environment which offers the opportunity to create a first image of the service. For
example, in agro-tourism the landscape of a particular area, the conduct and the local
tradition may determine a behavior/reaction of rejection, of avoidance of that particular
territory. Similarly, the human component of that environment and the personnel of the
rural touristic pension cannot be omitted, as they have a tremendous importance in
shaping and visualizing the service.
512
Communications within services represent another way of highlighting these. They may
come either from the rural touristic service provider or from other touristic agents, who
have a great influence on the decision to purchase.
b. Service inseparability refers to the fact that their production (provision) takes
place simultaneously with their consumption. The service cannot exist separately from its
provider, irrespective of the latter being a person or a material object. Consequently, the
quality of the service is inseparable from the quality of the provider. This connection is
even tighter when it comes to some of the services provided in the rural space, such as
those agro-touristic, cultural, folkloric, educational etc.
The seasonality and simultaneity of the production and consumption of the majority of rural
services implies at the same time the participation of the consumer to the carrying out of
the service. The role of the consumer in the process of service provision has both a
positive aspect (that of getting to know the service, of getting involved and sharing
responsibilities with the provider) and a negative effect: this makes modernization, change
or the introduction of a new service difficult, as it implies a change in the consumers habits
as well.
c. Service variability, also known as heterogeneity, signifies the impossibility of
repeating services in identical ways, as they depend on the person who provides them, as
well as on the place and the time they are provided. For instance, the consumers of agro-
touristic food products expect the food to be the same or expect to visualize the same
household image every time they go to that particular agro-touristic unit. In real life,
however, such a situation is difficult to achieve.
d. Service perishability represents the incapacity of services to be stocked and
inventoried. As a result of the multitude of rural services as well, these cannot be stored or
used later, during high season. For example, when the agro-touristic pension has
vacancies, rooms that have not been occupied, a corresponding loss occurs, as those
particular vacancies cannot be stocked to be offered for sale afterwards. In this particular
context, a consequence of this characteristic is the synchronization of the demand with the
offer.
As it is well known, the demand varies during a day (services of catering, of transport etc.),
during a week (services of tourism, cultural events etc.) and during a year (tourism,
transport etc.). Consequently, an essential goal of service marketing is represented by
synchronizing service offer with service demand.

Rural service specialization and diversity

Service specialization as a distinctive field of the tertiary service has been accomplished
and is part of a process characteristic to the aggregate formed by the other branches of
material production.
The unquestionable development of rural services is characterized by an increase and a
permanent diversification of services offer according to a similar evolution of a territorial
need specific to the rural space.
The contemporary economic and social dynamism has caused difficulties to the
development of the service sector in rural areas in the EU countries, especially in the last
few years. The tendency to vary these services was a consequence of the extension of
agricultural production processes, of the amplification of activities in private farms and of a
new way of managing the rural space. In the first phase there have resulted three main
courses of action:
Rural commerce, meaning a better provision for villages with a varied range of
products necessary in the household and their own family. The development of this
segment was stimulated in the EU countries by granting fiscal facilities and installation
513
bonuses, by offering the necessary locations and subsidies for the transportation of goods
and raw materials.
Rural tourism as a form of services can develop in any geographical region which
has maintained its natural landscape untouched, a way of living specific and original and
has been preserving its historical monuments, traditions and customs. Principally, this form
of tourism encourages small hotel business, public catering and the development of
specific entertainment sustained by the local people.
Public services are activities essential to providing a decent standard of living and
the stability of the rural population. Primary understructure equipment is essential to the
development of all economic activities (roads, public supply of water, electricity, methane
gas, waste disposal); in addition to these, there are also the ones related to education,
health and housing. The apparition and the development of these services implies the
creation of strong cooperation between the representatives of local economic units and of
the local people who own the financial means necessary to start such investments needed
by the local population.
Thus the many-fold activity of the rural space represents a means of financing agricultural
activities, allowing the achievement of direct additional income useful for every peasant
household. Within the structure of non-agricultural activities, tourism is considered a
lucrative form of enhancing the value of local natural and anthropological resources.
Hence this form of tourism becomes a socio-economic factor of demographic stability and
an alternative meant to decrease the touristic pressure in the nearby touristic resorts.
In agro-tourism, the concept of global product includes new elements, such as: agro-
touristic resources (namely natural, cultural and other attractions) and the general specific
understructure.
The cultural and folkloric field enhances the value of the product, within which the
participation of the customer is considered inconceivable, but it occurs indirectly and has a
particular specificity. In this type of services the product consumer can contribute by their
attraction force and their urban conception to the optimal unfolding/capitalization of these
services bringing a specific form of cooperation.
For this reason the majority of the methods, techniques and concepts used in the
marketing of services has a twofold purpose: to justify the existence on its own of this type
of marketing and to raise the attention towards the fact that putting the conception of
marketing into practice in one particular case forces the specialist to identify with and to
use (mostly as a supplement) adequate methods for the rural space services.
According to the research in this field, a distinction can be made between a traditional
marketing of the rural space (advertising, public relations etc.), which influences the
customer and which later specialists have developed as the concept of external marketing,
and interactive marketing, which occurs once a contact is established between the
personnel who provides the service and the customer. The rural area activities specific to
the second type of marketing mentioned above are so intimately connected to the
production function that it is practically impossible to be coordinated by a traditional
marketing department. Thus the marketing of the services and the management have an
innovating character, reflecting to an even higher degree their interdisciplinary character.

CONCLUSIONS

Tourism, which belongs to the sector of services, places a bigger and bigger emphasis on
human capital and it has an evolution determined by its characteristics.
The nature and the characteristics of the services offered in the rural space are shaped
into forms which give a certain specificity with the following aspects:
- the objectives and the evolution of the way different kinds of services unfold in the
rural space, through diversity and complexity
514
- the elements of intangibility, inseparability, variability and perishability have the
same validity but are restricted by the nature and the characteristics of rural tourism
- the specialization and diversity of the Romanian rural services are connected to the
three elements rural commerce, rural tourism and public services, characterized by a
permanent increase and diversification
- between the market of services and the one of goods there are rapports
characterized by specific forms of competition, of mutual stimulation or of indifference.

BIBLIOGRAPHY

Marketingul serviciilor. Bucuresti: Expert Publishing House, 1994
Turismul rural romanesc. Iasi: Performantica Publishing House, 2005

515
RURAL DEVELOPMENT. STUDY ABOUT OPENING AGRO TURISM
PENSION

DEZVOLTARE RURALA. STUDIU DE CAZ PRIVIND INFIINTAREA UNEI
PENSIUNI AGROTURISTICE

STEFAN MARCELA

Faculty of Agro-food and Environment Economics
Academy of Economic Studies, Bucharest

Abstract

Romania, as a UE member, will bring the contribution to a solid development of the European
agriculture.
Tourism represents an economical and social part of the modern civilization; being link to the social life it is
very influenced by that.
Addressing to wide social segments and answering to all their needs, tourism can stand out at a national and
international level.
Through his character and complex content, tourism is using material and human potential, having an impact
on the economical and social development.
Opening an agro tourism pension in a mountain tourist area, represent an opportunity and a profitable
business for the potential investors because you can take advantage of all the resources provided by the
nature. You can capitalized all the resources in an efficiently way if you take in consideration the interest of
the foreign and local tourists for sightseeing.

Key words: rural development, agro-tourism, rural space, agricultural sector, regional development,
agro-tourist guesthouse.

Each country, regardless of its level of economic and social development is faced with
issues related to the well-balanced economic development of the territory, caused by a
series of objective and subjective factors which lead to the unequal development of
economic regions.
Romania, as an EU member state, will contribute, by means of its agricultural sector, to
the sustainable development of European agriculture, which involves regional
development directly. This is a complex process of harmonious development of all the
regions in a country, or of the common European area able to reduce the territorial
disparities and to strike a relative balance between the levels of economic and social
development of various regions, taking into account the sustainable management of
natural resources and the protection of the environment.
An important aspect of regional development is represented by agro-tourism and rural
tourism, both being considered an alternative activity which will continue to develop in the
Romanian rural space, due to the beauty of the rural landscapes, which are still in a
natural state.
Setting up a tourist guesthouse in a mountain area is an opportunity and a profitable
business for potential investors, because the natural beauties and landscapes can be used
under maximum efficiency, taking into account the foreign and Romanian tourists interest
in leisure.
The idea of setting up an agro-tourist guesthouse appeared in 2007, as a family type of
business. The capital for setting up a guesthouse is half private, the rest being provided
from SAPARD funds, meant to support the entrepreneurs in the rural environment.
The location which is to be built is placed in the Brasov county, in the Trei Brazi area, on
an area of 1,600 mp. The guesthouse has running water and sewage systems with septic
tank, the heat is provided by a central heating unit operating on gas, the guesthouse has a
516
total of 8 rooms, each equipped with its own bathroom. Each room has a TV set, cable TV
and modern furniture.
The building is made of durable materials in the traditional style of the region. The
guesthouse has a reception room and a dining room. In front of the guesthouse there is a
private car park.
In order to improve the facilities it provides and the customers comfort, the guesthouse
has a phone line and internet connection. In the yards, there is a playground for children
and a barbecue area.
The family members are directly involved in the business, having responsibilities for
providing supplies, for the financial aspects, the customers reception and accommodation.
In terms of employees, the guesthouse has a maid and a cook.
Upon the customers request, festive dinners can be organised.
In the guesthouse one can organize training and leisure activities. The tourists lodged here
have the opportunity to spend their spare time going on trips in the surrounding areas and
to the tourist objectives in the region.

THE BUSINESS PLAN FOR SETTING UP AN AGRO-TOURIST GUESTHOUSE

Description of the activities and technologies implemented in the project:
The entrepreneurs of this guesthouse have forecast that the financial investment will be
recovered in 5 years.
Buildings which can be built within the project (Table no.1)
Buildings in the project (thousand RON)
Name of the
building
Initial value Cumulated
amortisation
Outstanding
value
Annual
amortisation
Maintenance
quota(2%
per year)
Tourist
guesthouse
315,61 6,312 0,126
Total 315,61 6,312 0,126

The list of purchases and the supplies sources for the assets that are the object of the
project (Table no.2)
No. Supplier Address Product Estimated
value RON
Percentage
of the total
eligible
value %
1 Local supplier Braov
County
Building tourist
guesthouse
310399,00 74,43
County
Machines
(Central heating
unit)
5212,00 1,25
County
Guesthouse
equipment
42779,00 10,26
Total 358390,00 85,94

The current prices for raw materials, materials and utilities (sanitation, electrical power,
etc.) used in elaborating the operation expenses forecasts are average prices.
The suppliers are representative for the Trei Brazi area market.
The payment deadlines for the raw materials will be established on the basis of a contract
with competitive suppliers, so as to observe the legal limits (30 days).
The terms of delivery for the raw materials will generally be under 10 days, and they will be
differentiated according to specific orders placed with suppliers.
517
There are no risks and difficulties identified in connection with the raw materials supply.
Because it has access to DN 1, it is estimated that there are no seasonal characteristics
regarding the supplies of raw materials, materials and goods necessary in operating the
tourist guesthouse.
The services provision plans are presented in Tables 3, 4 and 5.
Accommodation (rooms)
(Table no.3)
Productio
n/
services
Production/
services
Production/
services
Production/
services
Production/
services
Name of the
activity
An 1
(UM)
An 2 (UM) An 3 (UM) An 4 (UM) An 5 (UM)
Renting
double rooms
718 942 1.007 1.077 1.130
Total 718 942 1.007 1.077 1.130

Training (room)
(Table no.4)
Production/
services
Production/
services
Production/
services
Production/
services
Production/
services
Name of
the
activity An 1 (UM) An 2 (UM) An 3 (UM) An 4 (UM) An 5 (UM)
Training

56 56 56 56 56
Total 56 56 56 56 56

Leisure (persons)
(Table no.5)
Production/
services
Production/
services
Production/
services
Production/
services
Production/
services
Name of
the
activity An 1 (UM) An 2 (UM) An 3 (UM) An 4 (UM) An 5 (UM)
221 238 238 238 238
Total 221 238 238 238 238

THE MARKET

The main customers of the tourist guesthouse will be:
Table no. 6
No. Customer (Name
and address)
RON Value Ratio %
1 Romanian tourists 146144 80
2 Foreign tourists 36536 20
Total 182680 100

The average prices for the accommodation, leisure and training services in the revenues
forecasts are the following:
Table no. 7
Category Price RON/Um. Um.
Renting double rooms 95 Room
Training 1000 Room
Leisure services 10 Person

518
The prices used by the competition in the region are generally 15-25 higher than those
taken into account in elaborating the revenues forecasts.
The market for accommodation services and meals is represented by Romanian tourists
(about 80%) and foreign tourists (about 20%).
Of the Romanian tourists, about 80% are tourists from Bucharest and neighbouring
counties.

THE IMPACT OF THE PROJECT ON THE DEELOPMENT OF THE REGION AND
BUSINESS ENVIRONMENT

By implementing this project, the local community will have from the following advantages:
1 new job will be created in the field of agro-tourist services;
an increase in revenues will be recorded in the local town budget of Predeal;
an increase in the tourist accommodation capacity in the region of 8 beds,
comfort (classification) 3 flowers.
Better conditions are provided for attracting as large a number of Romanian and
foreign tourists as possible in the Trei Brazi region.
Financial forecasts and financial indicators
Revenues forecasts
Forecasts of the operation revenues the guesthouse will obtain
Table no.8
RON
Year 1 Year 2 Year 3 Year 4 Year 5
Operation revenues (VE) 137190 162000 169150 176850 182680
Total 137190 162000 169150 176850 182680

The level of using the quarterly accommodation capacity is placed, on average, between
45% and 55% in the first year of the tourist guesthouse operation.

The level of using the annual accommodation capacity is placed, on average, between
52% in the first year of operation and 78% in the fifth year of operation.
Table no.9
Total An
1
Total An 2 Total An 3 Total An 4 Total An 5
50% 65% 70% 75% 78%
Forecasting operating expenses
Table no.10
Operating expenses (Oe) 63445 83405 92846 96194 99582
Total 63445 83405 92846 96194 99582
The operating expenses of the firm will range between 63,445 RON in the first year of
tourist guesthouse operation and 99,582 RON in year 5. The expenses forecast was made
in correlation with the prices for raw materials, materials and tariffs for the services
provided on the local market.

The evolution of the net profit is presented in the table below:
Table no.11
RON
Net profit (Np) 61946 40820 64095 67751 69803
Total net profit: 61946 40820 64095 67751 69803

519
The return on the investment made in the agro-tourist guesthouse
Based on the data obtained from the forecasts performed, the indicators which prove the
sustainability and viability of the investment to be promoted will be calculated.
All the forecasts were calculated for an interval of 5 years, after the investment is
completed, in constant prices
The operation revenues forecast:
Table no. 12
RON
Operation revenues (Ve) 137.190 162.000 169.150 176.850 182.680
Total revenues: 137.190 162.000 169.150 176.850 182.680

Operation expenses:
Table no.13
RON
Operation expenses (Ce) 63.445 83.405 92.846 96.194 99.582
Total expenses: 63.445 83.405 92.846 96.194 99.582

The operation expenses of the firm will range between 63,445 RON in the first year of
tourist guesthouse operation and 99,582 in the fifth year.
The expenses forecast was made in correlation with the prices for raw materials, materials
and tariffs for the services provided on the local market.
The operation result from the current activity is positive for the entire period of 5 years,
after the project is implemented, according to the next table:
Table no.14
RON
Operation revenues (Ve) 137.190 162.00
0
169.150 176.850 182.680
Operation expenses (Ce) 63.445 83.405 92.846 96.194 99.582
Operation result
(Re = Ve - Ce )
73.745 78.595 76.304 80.656 83.098
Operation result (% din Ve ) 53,8% 48,5% 45,1% 45,6% 45,5%
The operation result rate is situated, in the forecast interval, between 68.0 % and 66.0 %.

The net profit the final result of the financial exercise (yearly):
Table no. 15
(Euro)
The final result of the financial
exercise (yearly)
73745 48595 76304 80656 83098
Corporate tax 11799 7775 12209 12905 13296
Net profit (Pn) 61946 40820 64095 67751 69803

The economic results obtained from the analysis performed expressed in a series of
indicators (revenues, expenses, profit, profit rate) indicate the capacity to achieve the
520
investment objective. The positive values recorded by the agro-tourist guesthouse are
obvious from the very first year of operation, respectively 53.8% for a coverage of 55%. To
these we add annual increases in other indicators as well (the return on the invested
capital, the net profit).
In conclusion, we mention that tsetting up the agro-tourist guesthouse has a high
level of economic viability, representing an opportunity for rural development, being in
acordance with the organisational structures in the European Union agriculture.

BIBLIOGRAPHY

1. ALECU IOAN I COLAB.,1997- Management n Agricultur, Ed. Ceres
2. BOLD IOAN SI COLAB., 2003- Spaiul Rural. Definire, organizare, dezvoltare, Ed. Mitrton, Timioara
3. MOGA TOADER, RADULESCU CARMEN VALENTINA,2004- Dezvoltarea complexa a spatiului
rural, Ed. ASE, Bucuresti
4. RADULESCU CAREMEN VALENTINA, 2007- Dezvoltarea regionala si rurala, Ed. ASE, Bucuresti
5. ISTUDOR NICOLAE, 2006- Dezvoltarea rural i regional a Romniei n perspectiva integrrii n UE,
Editura ASE, Bucureti

521
THE IMPORTANCE OF THE MULTILINGUALISM IN AGROTOURISM AND
RURAL DEVELOPMENT

IMPORTANA MULTILINGVISMULUI N AGROTURISM I DEZVOLTARE
RURAL

TIA V.

The Faculty of Management, Economic Engineering in Agriculture and Rural Development,
Slatina Branch

Abstract

This paper underlines the importance of the multilingualism and the significance of learning foreign
languages in the rural development process. Learning languages represents an important issue in activities
regarding rural development and agrotourism progress. The multilingualism implies the responsibility to
improve the communication between factors which can sustain the growth projects for these two areas.

Keywords: multilingualism, foreign languages, community policies, rural development, agrotourism

INTRODUCTION

The European Union, built around the free movement of its citizens, capital, goods and
services, is now home to 450 million people from diverse ethnic, cultural and linguistic
backgrounds. The importance of encouraging societal and individual multilingualism in the
European Union was rehearsed in the Commission Communication 'Promoting Language
Learning and Linguistic Diversity: an Action Plan 2004 - 2006. The ability to understand
and communicate in languages other than their mother tongue is a basic skill that all
European citizens require. The further development of foreign language skills is important
to encourage mobility within the Union; it will contribute to the creation of a truly European
labour market by allowing citizens to take full advantage of the freedom to work or study in
another Member State. Furthermore, a labour force with practical language and
intercultural skills enables European enterprise to compete effectively in the global market-
place. Learning and speaking other languages encourages a more open approach to
others, their cultures and outlooks. In addition, learning other languages improves
cognitive skills and strengthens mother tongue skills, including reading and writing.
Learning one lingua franca alone is not enough. The Commissions objective is a truly
multilingual European society: a society in which the rate of individual multilingualism
steadily increases until every citizen has practical skills in at least two languages in
addition to his or her mother tongue. Heads of State and Government in Barcelona in
March 2002, having set the objective of making European Union education and training
systems a world quality reference by 2010, called for further action to improve the
mastery of basic skills, in particular by teaching at least two foreign languages from a very
early age At the same time, they called for the establishment of a linguistic
competence indicator in 2003. This decision arose from the current lack of data on the
actual language skills of people in the European Union and the need for reliable systems
to measure progress towards this new objective.

MATERIAL AND METHOD
522
Since the 1st of January 2007 multilingualism has become a separate strategy of the
European Union and a crucial component of improving European integration and
competitiveness. European Union states through the Articles 21 and 22 of the Charter of
Fundamental Rights that the Union shall respect cultural, religious and linguistic diversity
and ban the discrimination based on some fundaments, including language. The policy
area about multilingualism implies the responsibility to improve communication between
European citizens and the institutions that serve them underlining the interest in diversity
of cultures, customs, beliefs and languages.
The European Union has 27 Member States and 23 official languages. Each Member
State, when it joins the Union, stipulates which language or languages it wants to have
declared official languages of the EU. The official languages of EU countries alone
represent three language families: Indo-European, Finno-Ugric and Semitic. Beside the 23
official languages of the European Union, there are over 60 indigenous languages and
non-indigenous languages spoken by migrant communities and, in this aspect, languages
are the most direct expression of culture and give us a sense of identity. In November
2005, The European Commission adopted its first ever Communication on Multilingualism.
One of its key proposals was the creation of a high level group of experts on
multilingualism. The Group recommendation was presented on the 26
th
of September in
the European Day of languages, last year. Learning a foreign language with its entire
idiomatic and cultural context is a tough and time consuming experience, especially when
one wants to learn a language from a different linguistic group.
The importance of languages in a Europe without borders has grown significantly not only
in the socio-cultural meaning but also because the pressures of globalization and the
business world demand it. The last ELAN-study (2005) about Effects on the European
Economy of Shortage of Foreign Language has shown that this fact impacts significantly
European companys bottom line and their profit margins due to their shortfall in having
competent personnel who are proficient in foreign languages. As a consequence the labor
force in Europe becomes more mobile, a companies' staff is more and more culturally and
linguistically diverse and furthermore, if one wants to be competitive in todays globalized
world it is necessary to direct services Europe-wide. All these factors entail that languages
skills are the fuel which will fire this economic impetus in European and will contribute
positively to its ongoing evolution.
The Eurobarometer survey on language skills of European citizens and their attitudes
towards language learning shows a clear support to language learning: 56% of citizens in
European Union member States say they are able to hold a conversation in one language,
other than their mother tongue, and 28% of the respondents state that they speak two
foreign languages throughout Europe.
The state languages of the most populous Member States are, unsurprisingly, the widest
spread native languages within the European Union, German being the most widely
spoken mother tongue (18%). When these results are combined with the skills in foreign
languages, it can be noticed that English is clearly the most commonly used language in
the EU with over a half of the respondents (51%) speaking it either as their mother tongue
or as a foreign language. Commissioner Orban said: As an integral part of our identity,
language is the structuring element of any culture and its most direct expression. To
respect and promote linguistic and cultural diversity is one of the European Union's
strategic priorities and a basic key to European integration. The promotion of intercultural
dialogue is inseparable from multilingualism.
523

The information society combined with the multilingualism are revolutionizing many area of
everyday life, particularly access to training and knowledge (distance learning, e-learning
related services) work organizations and mobilizations of skills. It is also providing new
opportunities in terms of participation of citizens by making it easier to express opinions
and points of view. The combination also affects in a positive way the rural development
and agrotourism, bringing new information about efficient technologies or trends in rural
areas and encouraging the communication on specific tasks for practical experiences
exchanges in agrotouristim activities.
Rural Development represents the second pillar of common agricultural policy and has
four fundamental areas. The first one refers to the competitiveness of agriculture, food
products and forestry which is to be improved through measures targeting human and
physical capital and food products, including quality production. The second area refers to
land management and the environment, in these cases measures are being introduced.
The quality of life in rural area is improved by encouraging the diversification of economic
activities and the development of local infrastructure. It is known that healthy multilingual
economy and social cohesion are the expression of solidarity between Member States and
regions of the European Union. Finally the Leader initiative promotes diversification of the
economic activities of rural area through innovative, integrated local development schemes
with an emphasis on participation. Rural development policy has its own integrated
financing and programming arrangements. The Council has drawn up a strategic approach
for the 2007 2013 period, which will be translated into national strategic plans.
Agrotourism is the form of tourism which capitalizes on rural culture as a tourist attraction.
It is similar to ecotourism except that its primary appeal is not the natural landscape but a
cultural landscape. If the attractions on offer to tourists contribute to improving the income
of the regional population, agrotourism can promote regional development. To ensure that
it also helps to conserve diversity, the rural population itself must have recognized
agrobiodiversity as valuable and worthy of protection. There are a range of other forms of
rural tourism which are not necessarily a part of agrotourism in the strict sense:
ethnotourism, project tourism, health tourism, historical tourism, cultural tourism or
adventure tourism. The term 'agro-ecotourism' is generally synonymous with 'agrotourism'.


524
Since the foreign language is one of the foremost obstacles for people to access the
content of the newest scientific and technological discoveries related to things that can
improve the farming or boost the rural development, languages learning and achieving
knowledge in this way have to represent the main preoccupations for individuals,
entrepreneurs, small and medium enterprises and other parts involved in rural
development. In Olt County for example, students and people that were abroad in Italy,
Spain, England and other European Union countries, use their experiences here, in
Romania, and apply them with great results, developing activities such as: raising snails,
growing mushrooms, strawberries. In alternative rural activities the foreign languages
become also the windows through which entrepreneurs present their crafts in pottery,
ceramics, carved wood, rugs, knitting etc. Agro-touristic activities also imply the knowledge
of languages which could boost the interest of foreign tourists for Romanian rural areas
even for doing investments in additional preoccupations.

CONCLUSIONS

Knowledge and information are important factors for accelerating agricultural and rural
development by increasing agricultural production and improving marketing and
distribution. It is clear that knowing more than one foreign language offers the possibility of
an efficient communication inside or outside of the European Union, encouraging and then
improving the exchanges of scientific and technical data in some agricultural or rural based
activities. Rural development is directly linked to the educational level of the inhabitants of
an area, thus it is directly related to foreign languages learning as well.

BIBLIOGRAPHY

1. Action 18 of the Commission's Action Plan for skills and mobility (COM (2002) 72 final) calls for the
development of language and cross-cultural learning skills as part of a lifelong learning scheme in all
Member States.
2. Commission of the European Communities, A New Framework Strategy for Multilingualism,
Brussels, 22.11.2005;
3. Directorate General for Education and Culture of the European Commission, ELAN: Effects on
the European Economy of Shortages of Foreign Language Skills in Enterprise, December 2005;
4. European Commission, Eurobarometer - Europeans and their Languages, 2006;
5. European Commission, A Political Agenda for Multilingualism, 23.02.2007;
6. European Commission, The European Indicator of Language Competence, Brussels,
01.08.2005;
7. European Commission, Rural Development in the European Union Statistical and Economic
Information Report, 2006;
8. Evi Eftychiou, Rural Development through Foreign Language Learning - The Pitsilia Area case,
The Unit of Environmental Studies, Research and Development Center, Intercollege;
9. http://www.europa.eu.int/scadplus/glossary/economic_social_cohesion_en.htm
10. http://europa.eu.int/scadplus/glossary/regional_policy_objectives_en.htm
11. http://ec.europa.eu/regional_policy/index_en.htm

525
CALL FOR EVALUATING AGRICULTURAL CUNSULTANCY

NECESITATEA EVALUARII CONSULTANEI AGRICOLE

VASILE MIOARA

TERRITORIAL INSPECTORATE FOR SEEDS QUALITY AND SEEDING MATERIAL
TULCEA

Abstract

In evaluating the extensions activities we try as much as possible to answer the question whether
our effort resulted in achieving the proposed objects. Assessments may vary according to data correctness
the objectivity degree of the criteria and the precision level in our assessments. In order to better understand
the nature of an issue and the answer to it we evaluate not only the results but in certain circumstances
activities and the persons involved. Evaluating is a management process and the active instrument as well.
All collected data undergo analysis in order to emphasis in the most objective way the relevance, effect and
consequences of the extension activity. Assessment is used in order to improve present and future activity in
order to effectively carry out the objectives of the extension policy.

Key words: Consultancy - Extension

INTRODUCTION

The analysis and the evaluation of the extension results (consultancy) are used for
assessing whether an extension program achieved the proposed goals and if such
objectives could have been better achieved in different ways. Through this method the
specialist of the Extension Service learn from their experience through systematic
observing and analyzing the collected data, which will help them in a better elaboration of
future extension programs.

MATERIAL AND METHOD

Evaluating the activity of agricultural consultancy is very difficult. Under the
consultancy planning phase, the question arises whether the consultancy or the other
available resources can be used in solving farmers problems. To find and answer,
consultancy should be able to evaluate the situation and to assess during the fulfillment of
the development project, the contribution it should bring. It is advisable to anticipate the
scenario which could arise within the target group, without involving the agricultural
consultant.
Agricultural consultancy is necessary particularly in small farms, because they cannot
clearly define their issues and even if defined them they couldnt solve them.
In assessing the consulting projects there are some important requirements that are
available for criteria and used indicators, and the evaluation methods as well. This should
be in compliance with the objectives of agricultural consultancy.
With a view to evaluate there are data that should be collected, tot his effect there is to
be distinguished the forming evaluation, which collects data for the development of an
effective extension program end recapitulatory evaluation which tries to measure the final
results of the program, so that a decision regarding its completion, extension or
confinement should be made.
Dependent on the moment of actual fulfillment of the project, there are two types of
evaluation:
- progress evaluation
- final evaluation
526
Progress evaluation
This kind of evaluation starts with the analysis of the existing situation, prior to applying
the necessary measures in fulfilling the consulting project, the first step in achieving the
project consists in the elaboration of an evaluation plan, and this phase cannot be
postponed, as the valuable information obtained in the initial phases of the project may be
lost. Even with the first contacts of the consultants with the target group which may
decisively influence the next stages of the project.
In the evaluation plan, there should be established the following elements:
- The aim of the evaluation
- Important information resulting from the analysis of the situation
- Additional elements deemed as necessary
- The persons that can accomplish such evaluation
- Determining the moment in which the evaluation should be achieved
- The procedure through which data may be obtained.
The main aim of the evaluation is that of determining the correlations between the
elements of the project and to motivate the consultant to render quality services. The
simplest form of evaluation is in most of the countries the consultants journal, and written
reports of the consultant in a special form. These reports can be usefully capitalized only if
they undergo analysis through debates, at regular time schedules, as superior authority.
It is recommended that during the weekly debates between field consultants and their
coordinator or manager, there should be established the working plan for future weeks in
form filled in three copies, out of which a copy will be handed to the manager, two to the
field consultant. During the week, the consultant should draw up short notes regarding his
activity, such as: farmers names who received consulting services, the duration of
rendering such services, special aspects related to farms, production, etc.
At the next weekly meeting there will be performed a common activity of the consultant,
based on the week schedule. There can be determined which are the settled matters, the
difficult point and the reasons that resulted in indefiniteness of matters. Such evaluation
will be drawn up in two copies, one for the county office and one for the field consultant.
Data related to farms and obtain pursuant to visits made by them, will be recorded in a
farm record. This issue may be solved in a simple manner, in case the local consultancy
center is provided with a computer provided in its turn with a data bank administration
program. This should allow the consultant to get acknowledged with all the data regarding
the farms in the area in which they carry on their activity. Additionally, the consultant
should draw up a map of the village or the localities in which agriculture consultancy is
offered.
Through the evaluating methods in progress, there can be obtained data regarding
production, the attack of pathogens and pest in a region, the consultants behavior and the
appraisal of the consultancy program through the target group.
In order to accomplish the above mentioned two methods of work will be used:
1. Steady contact between the consultant and the representatives of the target group
2. Filling in inquiry forms several times a year by farmers in order to determine the
consultants behavior and programs quality (queries on the responsible consultant in the
area, utility of the data transmitted through him, assuming the recommendations made by
the consultant, the possibility of putting into practice the program)
Within this method an important source of information is direct information. In the
evaluation plan, there should be examined the data which can be identified without any
additional action. There have been often observed that field visit or in villages, participating
in popular gathering and observations made in outlets at farms or agricultural associations,
offer important conclusions regarding the achievement and effects of the program.
Final evaluation
527
Bu comparison with progress evaluation which strongly focuses on fulfilling
consultancy phases, the final evaluation has as an aim identification of the conditions that
led to success or failing, so that through other measures (such as political measures)
planning of other projects should be optimum.
The final evaluation is practically achieved through two ways:
1. Analysis of all reports and statistics drawn up by consultants and consultancy
organizations based on a certain criteria calendar (secondary analysis)
2. Rarrying out own inquiries based on secondary analysis
- number of farms which received consultancy
- level of education of the consultants
- number of work visits of the consultant at various groups of
- beneficiaries
- additional use of auxiliary means
Through these ways there will be identified some correlations between elements that
compose the consultancy program and stand the most valuable contribution of the final
evaluation. Moreover, it goes without saying that there are minute arguments deemed
necessary regarding the expenses made.


All data acquired in the filed are consequences safe if they are well processed, the
results obtained form the consultants reports, debates, interviews and observations
should be made available for all the collaborators of the project, at certain schedules, by
the consultancy organization.
The presentation manner of the results should be clearly determined at the very
beginning of the project. The minimum requirement imposed to a consultancy important
program should be drawing up the quarterly evaluation reports. In order to meet this
demand, an employee of the consulting service will elaborate during a week the quarterly
report, base on monthly reports drawn up by the field consultants.
A typical quarterly report may be structured as it follows:
1. Laying down the annual program and scheduling monthly activities.
2. Appraising the services rendered
3. Drawing up schedules that figure the number of farmers that took into account
consultants recommendations
4. Presentation in the form of a table the contacts between consultants and farmers
5. Describing the inquiries and information acquired related to the group of farmers
6. The situation of the project and the environment it is carried on
- critical events which may influence the consulting program
- training and retraining the consultants
- summary appraisal of the issues and positive results acquired form
the weekly and monthly debates between various groups of consultants.
- changes of the consultancy personnel, biographical data, special
personal events.
7. Changes in the actual achievement of the contract and argumentation of its necessity
8. Presentation of special inquiries: assessment of production, climate data, market
studies
9. Financial statistics related to incomes and expenses within the project.
Quarterly and annual reports perform three functions:
- promote contact and data exchange between the employees of the
consulting service
- make public matters and successes of agricultural consultancy
- provide basic information for final and progress evaluation.
528

CONCLUSIONS

Evaluating and monitoring consultancy activity are of a great importance for the
following reasons:
o it allows the evaluation of progress recorded in the actual performing an
action
o it allows to correct eventual mistakes which may appear in carrying out an
activity
o it increases the efficiency of the consulting activity
o it allows carrying out better future plans
o it facilitates acquiring of data
o it allows comparison of cost with obtained results
o it allows comparison of obtained results with various consultants
o if facilitates the data and experience transfer between consultants.
Evaluation the actions within the consulting activity, leads to the correction of eventual
mistakes and determining success or failure of the respective actions. Failure shouldnt be
considered as a complete negative issue, as it stands for precious information related to
the action that took place. Failures stand for lessons which should be taken into account to
remove the causes that triggered such failure of the consulting activity.
Through evaluation we try to determine not on the expected results, but providing
useful information in order to improve future consulting activities.

BIBLIOGRAPHY

1. Ion V., 2007, Agricultural Consultancy, Didactic and Pedagogical Publishing House, Bucharest, pages 150,
152
2. SIN GHE, 1998, Assistance and Agricultural Consultancy, Agris Publishing House, Agriculture Magazine
Editorial Staff, Bucharest, pages 241, 248
3. U.S.A.M.V., 2005, Agricultural Consultancy, Distance Learning Department, Bucharest, pages 92, 93, 95.

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