Farm output set to rise dramatically in new EU states post-CAP reforms

Agri-food companies can capitalise on farm output increases in new EU member states once CAP reforms are introduced in Jan 2014, according to a new Rabobank report.

The latest Rabobank Food and Agribusiness Research report suggests that Poland, Bulgaria, Romania, and other new entrant states will be among the most dynamic European markets in the next five to 10 years, as farmers seek to boost productivity to counteract the eroding positive effects of the CAP.

Rabobank analyst Harry Smit said: “The potential to increase agricultural production in the new member states is enormous. Yield gaps — the difference between the technically feasible yield and the actual average yield — in the new member states are large compared to the old member states. Therefore, in the coming years, farmers in the new member states can be expected to utilise this potential and increase productivity, and thus production, to maintain an acceptable income.”