Brau Union Romania announced it would back the domestic barley production by $3.5 million, as barley is the raw material for malt, after realising that long-term investments pay off if the raw material comes from a local source. The project has two steps.
One of them includes investments in seeds, fertilisers and assistance to the Romanian barley growers, and the other entails financing the production. The company takes care of marketing the crops of the Romanian growers and helps them by providing quality seeds, fertilisers and consultancy.
Along with the investment in seeds, consultancy and fertilisers, which already amounts to $3.2 million for a 31,000 tonne barley crop, the company also has funding contracts worth some $0.28 million for another 13,600 tonnes with two Romanian companies.
The producer must return two kilos of the crop for each kilo of seed received. It takes 170 kilos of seeds per hectare to obtain a 3,000-kilo yield. The fertiliser costs some $250/tonne, given that the amount of fertiliser required is 200 kilos per ha in the fall and 100 kilos per ha in the spring.
The fertiliser is paid for with the money obtained from the crop, while consultancy is provided for free. The price per tonne of barley (in foreign currency) is negotiated upon the signing of the contract between the grower and Brau Union Romania.