One of the stakes for Porumboiu’s business this year will be the autumn harvest, when he will gather corn and sunflower.
The increase in the areas dedicated to autumn crops (corn and sunflower i.e.) comes after the businessman cut to 3,500 hectares the area dedicated to rapeseed. The decline on last year amounts to 1,400 hectares.
The entrepreneur announced almost six months ago that the rapeseed crop was endangered by last autumn’s drought.
The first production estimates show that Romania’s overall rapeseed production will be cut by two thirds this year to 224,000 tons. In money terms the rapeseed production is EUR200 million lower than in 2011, according to ZF calculations.
On account of the smaller rapeseed crop, Porumboiu relies on autumn crops. The entrepreneur is set to harvest a sunflower crop from an area of 3,300 hectares of land through Comcereal, 83% larger than last year.
Corn-growing areas are set to grow at a similar rate, to 3,000 hectares, 76% more than last year.
However, the biggest areas will be wheat-growing ones, which will cover two thirds of the total, or 17,300 hectares.
This is not surprising given that the entire amount produced by Comcereal Vaslui is then processed by Mopan, the company that operates several bread plants held by Adrian Porumboiu in Moldavia (NE Romania).
Although last year came with record productions for farmers, Comcereal Vaslui had turnover of EUR44 million in 2011, up by just 2.3% against 2010. The company posted a net profit of EUR1.4 million.
He wants 800 lei/ton of wheat
Adrian Porumboiu expects this year to sell a ton of wheat for RON800, 9.2% more than last year. Overall, revenues from wheat businesses are set to amount to EUR8.2 million.
On the other hand, the rest of the agricultural raw materials produced by Comcereal are set to cost less this year. The rapeseed price is estimated to fall by 15.6% to RON1,400/ton and the corn price by 8.2%, to RON700/ton.
He wants to buy 3,000 ha of arable land
Porumboiu intends to extend the areas controlled by Comcereal Vaslui to 30,000 hectares of arable land, almost 3,000 hectares more than at present.
This could cost Porumboiu around EUR5 million, according to ZF calculations, which are based on an average price of EUR1,700/ha.
(English version by Daniela Stoican)