How to Increase Sales of Agricultural Machinery in Romania

Abstract (Swedish)

Problem Definition: The aim with this master thesis is to examine the available
European Union funded financial support for investment in
agricultural machinery in Romania. Its regulations and limits
and what customer group Väderstad Verken AB shall target
during the pending European Union budget period 2007-2013.
Purpose: The purpose of this master thesis is to increase the
understanding of the available EU-funded financial resources
within the agricultural sector in Romania. With a better
understanding might Väderstad Verken AB be able to increase
their sales of agricultural machinery in Romania.
Methodology: The research has been conducted as a descriptive case-study in
order to do an analysis of the present situation. The qualitative
collection of the primary empirical data has mainly been made
from Government publications and official statistics from the
European Union’s website and Romanian Government’s
website. The secondary data has been gathered from written
sources; literature, reports and e-sources.
Conclusions: Romania receives €1,021mln of financial support for
investment in agricultural machinery during the pending EU
budget period 2007-2013. €212mln (20%) remains out of the
initial amount. There is ongoing discussion to add extra
financial resources to the measure until the new EU budget
period starts in 2014, but no decision is still available.
The financial banking system in Romania has improved during
the last decade and many farmers are today eligible to apply for
a bank loan. The bank Väderstad Verken SRO is cooperating
with in Romania is offering its agricultural customers special
EU funding-products with straight conditions.
Target customers for Väderstad Verken SRO is preferably
larger (>1,000 ha) agricultural companies. These companies
receive a significant amount of EU funded financial support
under the Single Area Payment Scheme, which ensure a
smooth co-financing or private financing of the agricultural
machinery.
Recommendation: In order to increase sales of Väderstad machinery in Romania,
the local VVRO must be able to offer their local potential
customers a package of services as a single product. The goal
with the product is to simplify the purchase process for the
potential customer by offering a single product including the
EU-fund application, private co-financing option and general
consulting linked to the machine purchase. By taking over the
intricate application processes and financing options from the
potential customer and offer a competitive single solution
(product) VVRO will have an improved possibility to increase
their machinery sales in the country.

• author: Gillheimer, Carl
• supervisor: Ola Alexanderson
• organization: Production Management
• course: MIO920
• year: 2010
• type: M1 - University Diploma
• subject: Technology and Engineering
• other publication id: 10/5374
• language: English
• id: 1970767
• date added to LUP: 2011-06-17 08:06:34
• date last changed: 2011-06-20 12:34:15