Unirea Iasi feels export slump in form of lower turnover

Unirea Iasi, an edible oil producer owned by US giant Bunge, has reported losses for the first half of this year of 1.85 million euros amid a drop in company sales of 25%.

The first six months of this year saw the company turn over 25.3 million euros, down from 33.4 million euros in the same period last year, according to the report the company sent to the RASDAQ. The company”s representatives were unwilling to comment on these figures.

Most edible oil producers on the Romanian market had to deal with falling turnovers for the first half of this year. According to market sources, one of the reasons behind the lower sales was the appreciation of the domestic currency against the euro and the dollar, blocking the traditional exports of Romanian edible oil, which account for around 30% of total domestic production. As a result, all edible oil producers experienced over-production, which eventually triggered lower prices on the domestic market. Although beneficial for final consumers, the price slump for bottled oil has hit all players on the market.

Consequently, Bunge Romania, the top player on the domestic market for vegetal oils, decided in August to close its Muntenia plant in Bucharest in a bid to boost the efficiency of its activities in Romania. The company is planning to consolidate its production in more profitable and better-positioned divisions.

Bunge Romania, which also owns Interoil Oradea Bucuresti, reported turnover of 72.5m euros in 2004, an almost 40% increase year-on-year.