ROMANIA: ESTIMATES OF SUPPORT TO AGRICULTURE

DEFINITION AND SOURCES

            Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific sources indicated in square brackets. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.

            Market Price Support (MPS) and CSE by commodity in Table 2 are calculated for the following commodities: wheat, maize, barley, oats, rapeseed, soybeans, sunflower, sugar, milk, beef and veal, pigmeat, poultrymeat, sheepmeat and eggs. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

            Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

The description of budgetary measures in Table 1 covers the period 1995-2005.

Table 2. Market price support and consumer support estimate by commodity

Definitions:

I.            Level of production 

Wheat, Maize, Barley, Oats, Potatoes, Rapeseed, Sunflower, Soybean, Sugar beet: Total production in calendar year. (1)

Milk: Cow and buffalo milk production. (2)

Beef and Veal: Total production in carcass weight equivalent. (2)

Pigmeat: Total production in carcass weight equivalent. (2)

Poultry meat: Total production in carcass weight equivalent. (2)

Eggs: Total production of eggs expressed in thousand tonnes using the coefficient of 19.5 eggs per kg. (1)

II.          Producer price

Producer prices at farm gate level: The domestic producer prices used were: (1)

(i) between 1986 and 1989, the weighted average producer prices received by state farms and prices registered on peasant market, with weights based on marketed output.

(ii) between 1990 and 1993, the prices derived from the GAO calculations using unit value of each commodity.

(iii) as of 1993, the unit values of marketed output calculated from the the producer commodity balances.

IV.         Level of consumption

Wheat, Maize, Barley, Oats, Potatoes, Rapeseed, Sunflower, Soybean, Sugar beet: Total domestic use defined as production plus imports minus exports minus net change in stocks. (3)

Beef and Veal, Pigmeat, Poultry meat: Total domestic use in carcass weight equivalent, defined as production plus imports minus exports minus net change in stocks. (3)

Eggs: Total domestic use of eggs expressed in thousand tonnes using the coefficient of 19.5 eggs per kg. (3)

VII.        Reference prices

Wheat: EU export price of commercial quality wheat. (4)

Maize: EU import price. (4)

Barley: EU export price for feed barley. (4)

Oats: EU import price. (4)

Potatoes: German price at farm gate. (4)

Sunflower: EU import price. (4)

Rapeseed: EU import price. (4)

Soybean: EU import price. (4)

Sugar beet: EU export price of white sugar. (4)

Milk: EU border prices of butter and SMP converted into a milk equivalent border price using technical coefficients minus a processing margin, calendar year. The border price of butter is the “Butter f.o.b. export price, 82% butterfat, N.E.” (4), the border price of SMP is “Non fat dry milk f.o.b export price, extra grade, Northern Europe” (4). The processing margin is the average of processing margins in Australia, European Union, New Zealand and the United States. (4)

Beef and Veal: Hungarian unit export value for carcasses. This price is expressed in carcass weight and recalculated from the Hungarian carcass coefficient (0.56) using the Romanian carcass coefficient. (4)

Pigmeat: Hungarian unit export value for carcasses. This price is expressed in carcass weight and recalculated from the Hungarian carcass coefficient (0.79) using the Romanian carcass coefficient. (4)

Poultry: Extra-EU unit export value. (4)

Eggs: Extra-EU unit export value. (4)

Sources:

(1) National Commision of Statistics of Romania.

(2) FAOstat collection database, Ministry of Agriculture and Food for 1998 data.

(3) FAOstat collection database, Ministry of Agriculture and Food network database.

(4) OECD PSE/CSE databases for European Union and for Hungary.