“In three years we will hit the 2008 level should consumer confidence rise,” said Grigore Horoi, president of Agricola Bacau group, a EUR133 million business in 2013.
Poultry production has advanced in each of the past four years and got to 325,500 tons, after a 4% plus against 2012 last year. Now, the market is 5% below the all-time production peak of 2008, according to Eurostat data.
Romania ranks 9th in the EU by 2013 poultry production and 3rd in Central and Eastern Europe, after Poland, leader of the region with a five times higher output than Romania’s, and Hungary.
“For output to grow, living standards need to rise. Cutting VAT for meat will spur consumption,” stated Ioan Popa, owner of Transavia, the largest poultry producer in Romania, with revenue of EUR135 million.
Domestic consumption of food and non-food items slightly rose in 2013, by 0.5%. Growth continued in the first quarter of the year, at a 9% rate.
In Romania, poultry registers the highest rate of consumption among meat products, with an average monthly consumption of 1.5 kg/capita, being followed by cold cuts, pork and beef, according to National Statistics Office data.
In the past three years, poultry processors’ receipts have been partly supported by contracts they signed for deliveries to Western Europe. In this period, exports have advanced almost each year and climbed to EUR125 million last year.
Thus, poultry has come to cover two thirds of total exports of unprocessed meat products and seven of the top ten exporters are players on this segment. The largest are Avicola Buzau, Avicola Crevedia and Ave Impex Satu Mare.
“Exports are, beside spurring domestic consumption, the key to boosting domestic output,” said Agricola Bacau’s Horoi. Instead, Ioan Popa, owner of Transavia, expressed skepticism about such a business model.
(English version by Catalina Apostoiu)