Bunge, the leader of the domestic vegetable oil market, a branch of the world's leading company in the field, registered positive results in its first year of presence on the Romanian market and is considering new acquisitions.
The company reported for last year turnover standing at 90 million dollars (75 million euros), almost 40% higher year-on-year.
"The avalanche of acquisitions operated on the Romanian market over the last two years, both in the field of factories and of storage capacities is a positive signal as to the attractiveness of the Romanian market. Bunge has a solid position in Eastern Europe and is willing to make long-term investments, and in Romania we are actively looking into the existing opportunities", says Robert Arsene, country manager.
He says that the company's brands, Unisol, Floriol Muntenia, Horea, Raza Soarelui, last year posted solid growth based on their own potential and not on price fluctuations on the market. The cumulated market share owned by these brands amounted to about 40%.
Arsene maintains that last year's rich sunflower harvest has not have a positive impact over the industry, though.
"Despite the fact that last year's sunflower and soy harvests have been among the best of the last five years, market schemes and the negative influence of raw material exports led to an unjustified price raise of raw material for the edible oil industry. This has been reflected in the higher sale prices of bottled vegetable oil in the second half of last year", says Arsene.
He estimates that during the first half of this year, prices of edible oil will go down because consumers cannot deal will a major price gap for a basic product, thus the profitability of the entire industry will be dramatically eroded. For this year, Arsene anticipates a moderate growth of edible oil consumption. "Factors influencing edible oil consumption in a certain country are related to the general welfare of the respective country. Romania's economic growth in real terms is a signal for us in this regard," says Arsene.
Bunge last year invested over $3 million to improve operational activities. "This year, we will invest in already existent facilities, as well as in some acquisitions," states Arsene. stelian.negrea@zf.ro
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