Banvit group, Turkey's biggest poultry producer, invested 5m euros in a poultry incubator in Urziceni, Ialomita county, and plans to double its investment in the next two years.
"We are going to invest 10m euros to build some poultry farms to secure the necessary raw material, but we shall also allocate part of this sum for a fodder plant," stated Omer Gorener, general manager with the Turkish group.
According to him, the fodder plant will have a production capacity of 60 tonnes per hour and will supply the poultry farms the company owns domestically.
To finance these investments, both domestically and in Turkey, the company's representatives stated they planned to contract a loan worth 25m dollars (some 20m euros) from International Finance Corporation.
"In Turkey, we've been trying for three years to set up a cow farm and start red meat production. This loan will help us build the farm of Turkey and finance the production centres of Romania," said Gorener.
Three years ago, the company contracted a 15m-dollar loan from IFC to start carrying out a project related to the construction of a poultry farm and of a processing plant with a capacity of 40,000 tonnes of chicken per annum in Urziceni.
At that time, Banvit representatives stated the value of the project carried out on the domestic market would amount to 40 million euros.
According to the company, investments operated in the poultry incubator in Urziceni, with a total production capacity of 300,000 chicks per week, are about to the finalised, with the production centre to become operational in about two months, when Banvit Romania gets the operating licence.
Banvit is Turkey's biggest poultry producer, with sales worth 97.5m dollars (71.7m euros) in the first half of last year alone. Banvit's rivals domestically are Agricola Bacau, Transavia, Avicola Calarasi, Agrisol or Aaylex.
Domestic poultry producers' businesses were last year harmed by the bird flu, so that they posted losses worth around 45m euros. At the beginning of this year, though, in the wake of Romania's EU integration, the market saw imports go down by 40% against the corresponding period of last year. According to the main players on the market, this will lead to rising sales of poultry from domestic production.
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