IMPACT OF PORTUARY INVESTMENTS ON THE TRADE WITH ROMANIAN GRAINS

Abstract

In Romania, an agricultural market where only one hectare in 10 hectares is irrigable, the silos and warehouses remain one of the few risk management instruments. Such an investment enables farmers to keep their grains on stock or to maximize their profits waiting for the prices to rise. In recent years, the world grain prices were higher, fostering the Romanian grain trade. As the great players on the market consider that the Romanian grain production will increase by 25% in the next five years, the investments in the ports on the Danube and at theBlack Seaalso increased, in order to facilitate grain transport. A possible impact of the grain trade increase will be represented by more attractive prices for farmers and greater investments in the grain cultivation technology.