Digitalization in Southeast Europe’s Agriculture Poised to Transform Business Practices - Analysis

A recent analysis by SeeNext explores how digitalization could boost the competitiveness of agriculture in Bulgaria, Romania, Croatia, and Serbia. The study highlights policies, investments, and the sector's current state across these countries.

Agriculture's Economic and Social Impact

Agriculture remains a key economic driver in Southeast Europe, contributing 4 to 5.1% of gross value added in 2023, compared to the EU average of 1.8%. Utilized agricultural areas account for 26 to 54% of these countries’ territories, with Romania holding the largest share in the region. Employment in agriculture also far exceeds EU levels, with Bulgaria, Romania, and Serbia reporting double-digit workforce shares, compared to the EU's 4.3%.

Challenges and Opportunities in Digitalization

Despite its importance, the sector faces significant challenges, including an aging workforce and low digital adoption, which limit productivity. Technologies like precision agriculture, IoT, satellite and drone imagery, and automation could address these issues, improving decision-making, efficiency, and resource management while tackling labour shortages and environmental concerns.

Employment and Productivity Gaps

Agriculture employs 15.2% of the workforce in Bulgaria, 14.3% in Serbia, and 20.8% in Romania, but employment is steadily declining, with over 30% of farm managers aged 65 or older. Productivity, measured as gross value added per annual work unit, remains low compared to EU counterparts. Addressing this requires urgent investments in digital technologies and workforce training.

Policy Ambitions in Digital Transformation

Digitalization strategies in Bulgaria, Romania, Croatia, and Serbia focus on modernizing agriculture through precision technologies while addressing connectivity and digital literacy challenges. Policy priorities include enhancing competitiveness, expanding smart agriculture, and improving workforce skills. Bulgaria leads the region with ambitious goals, aiming for 12.8% digital adoption by 2029, while Croatia and Romania lag significantly, targeting 0.82% and 0.03%, respectively.