Agricola International Bacau, the market leader for chicken products, has forecast turnover of 91 million euros (3,415bn ROL) this year, an increase of 17 million euros on last year (3,000bn ROL). Profits are expected to overshoot 600,000 euros (24bn ROL), triple the amount in 2004.
“Unfortunately, the meat market was severely effected by imports, most of which had lower prices than on the international market, and this forced us to drop our prices below the level of costs towards the end of the year. The situation was addressed in a way in the first few months of the year when some importers were subject to inspections,” said Gheorghe Antochi, the Agricola International chairman.
He says Romania imported 250,000 tonnes of meat last year, 130,000 tonnes of which accounted for chicken imports. “Romanian meat exports are 100 times lower than imports. Romania had a food-related trade deficit of more than 1bn euros, despite last year having one of the best crops ever.”
Agricola Bacau has begun a promotion campaign worth 1 million euros, according to rate card prices.
The company”s sales increased nearly 13% in the first three months of the year. “The growth came from fowl and raw-dried salami. Sales of half-cooked meat products conformed to estimates, but the market is not yet there for these types of products, which is why we are investing more money in promoting them,” said Grigore Horoi, the Agricola Bacau vice-chairman.
The company will invest 20 million euros over the next two years in developing its swine farming operations and ensuring compliance with environmental standards.
Last year Agricola began making “fast-food” type products after the opening of its Conagra factory for meat production and its Europrod facility for half-cooked chicken and vegetal food. The investment came to 4.3 million euros.
Last year also saw the group open a swine sorting complex. Total investment by the group so far has been worth 40 million euros, made possible thanks to banking loans and by reinvesting the company”s entire profit.
Agricola Bacau owns nine production facilities, including a concentrated fodder unit, a poultry slaughterhouse and a milk processing unit.
The group also includes raw-dried salami maker Carbac, Avicola, Suinprod, vitamin-mineral premix maker Intertrade Union, Conagra and Europrod.
stelian.negrea@zf.ro