A price hike on pork on the domestic market is imminent this year considering the rising costs of animal feed and legislative changes in the European Union.
“Breeders and processors have postponed raising prices on pork to avoid an even bigger slump in consumption, and have endured higher feed and utility prices. Many processors can no longer afford these increases and will raise shelf prices. We estimate prices will increase 12-15% by the end of the year and we’ll have increases of up to 7% after that,” Carmolimp general manager Olimpiu Soneriu said in a press release Tuesday.
He said the price of feed will continue to rise until this year’s crop is harvested and, at the same time, periods of drought are expected in July and August, which will mainly affect corn, the main crop used in animal feed.
“Also, the European Union is considering implementing directives regulating the minimum space required for each animal and processors will have to invest to bring their farms up to standard. We expect production to decline following the introduction of these measures in the second half of the year,” Soneriu added.
Started in 1993 as a family business, Carmolimp has 50 stores and 60 more franchised units, and is owned by Olimpiu and Carmen Soneriu.
The company said recently it would start exporting premium products this year to the UK, Germany, and Belgium, and estimates a 10% rise in sales. In 2012 Carmolimp had sales of EUR30 million, up 20% from 2011.