Romania's largest producer and bottler of edible oils, Bunge Romania, ended last year with more than $58 million in consolidated turnover, up 12% from the previous year.
"Oil consumption dropped 6% in the first half of 2003, mainly because the income portion spent on food actually shrank. However, the growth posted in the second half largely made up for this decrease," said Robert Arsene, general manager of Bunge Romania.
According to research conducted by GFK Romania and quoted by Arsene, the Bunge brands in Romania (Floriol, Unisol, Muntenia, Horea, Raza Soarelui) accounted for 36% of the market last year, compared to 27% at the end of 2002. "We logged a 9% growth in our market share and managed to keep our leading position on the Romanian market of edible oil," Arsene stated.
The Bunge official estimates modest growth (2-3%) of the bottled oil consumption this year. "The new crop this fall may significantly influence the sale price of the sunflower seeds by the producers. Given the large exports of sunflower seeds, the prices of edible oil may surge on the domestic market towards the end of the year," Arsene said. Still, he says that 2004 forecasts are optimistic, as last year's big sunflower crops allowed the price of oil to freeze or even drop. "This was possible because all three plants held by Bunge in Romania are using domestic raw materials," Arsene said.
Last summer, American group Bunge bought the main stakes in oil plants Muntenia Bucharest and Interoil Oradea. At the end of 2002, Bunge Romania became the main shareholder in Unirea Iasi, after taking over international group Cereol, which owned the Iasi-based factory back then.
In Romania, Bunge has some 900 employees and its main competitors are Argus Constanta, Topway Craiova and Ulvex Tandarei.
The entire edible oil market is estimated at 210,000 tonnes, namely $300 million. In fact, Romania's production capacity amounts to 400,000 tonnes, but the lower levels are grounded on the low purchasing power.
Bunge is a US-based company listed on the New York Stock Exchange, operating on four continents and employing 24,000 people.
stelian.negrea@zf.ro
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