Products like wheat, corn and soy grits used as feed for the poultry in industrial farms make up 70% of the production costs. Under the circumstances, Agricola Bacau officials say that premium products are the only ones still generating profit.
“We forecast a profit of EUR4 million in 2012 but I don’t know whether it will be that high because all the calculations were based on grain prices of around 750 lei (EUR167) per ton, but prices are now around RON1,200/ton,” said Grigore Horoi, chairman of the Agricola Bacau, during the 50th anniversary event organized by the company.
Agriculture Ministry data show that the price of chicken, a product that makes up the bulk of the Bacau-based company’s sales, ranges between RON7.5 and RON9.8 per kilo, the same as last year.
Agricola Bacau expects revenue of some EUR130 million this year, up about 8% on 2011. The growth pace, however, is halved compared with the previous year.
(English version by Loredana Fratila-Cristescu)