Aspects concerning the economic activity of the food processing sector

Abstract

The characterization of the economic activity of the food processing sector is rather difficult, as some foodstuffs are subject to limited processing and are not recorded as distinct economic activity, then vertical integration is common for certain types of food, and because self-consumption in rural areas is widespread. Statistical data shows that the food processing sector has grown and its productivity has increased over the period considered (by decreasing the number of employees). This tendency is more pronounced in Romania than in Europe. In 2013, the food processing sector generated a gross added value of 1.4 billion euros, which represents about 20% of the total gross value added of the productive sector and 1% of the Romanian economy. Even though food prices are relatively low in Romania (although they have risen steadily by 20% between 2010 and 2015), reforms that regulate the food processing sector could increase the efficiency of the processing activity that would benefit Romanian consumers. However, Romania has the lowest food expenditure per capita in the European Union, significantly below average. However, spending on household food consumption accounts for 28% of total spending, which is by far the largest share in the area. The constraints that may be addressed are over-training of staff that do not pose a threat to food security, the reduction of separate areas for the sale of bakery products in shops, excessive licensing requirements and control measures for food market operators, importers and unjustifiable collaboration contest (as in the dairy industry) and ambiguous and outdated legislation.