The meat products market is expected to grow by 10% this year, less than it did in 2006, when it advanced by 20% to some 800m euros.
"The turnover the charcuterie industry generated in 2006 amounted to some 800m euros (producer prices), and to more than 1bn euros (consumer price); we estimate a figure around 1.2bn euros for the latter," stated Gabriel Alexandru, deputy chairman of Cris-Tim, the leader on the domestic market, with a cumulated group turnover of 180 million euros.
Whereas until recently producerse investments have been mainly used for the modernisation of plants so as to meet the EU standards, this yeares investments are going to bigger production capacities.
In the wake of the restructuring of the market, witnessed since Romaniaes EU integration, a large number of small and medium-sized producers have been forced to close.
Others have been or will be acquisition targets for the main producers this year.
According to the main competitors in this industry, the charcuterie market last year registered sales of around 600 tonnes of meat products daily, or around 220,000 tonnes a year.
According to the estimates of the same players, the market will witness growth by some 5-10% this year, as there will be an inflow of products from the EU and the black market will mainly focus on the production of fresh meat. In addition, major producers will also strengthen their position through investments in production.
The CrisTim group plans to double its current production capacity of 150 tonnes per day in the next three years, with its investments in production topping 30m euros. Investments will also target a larger range of packaged products. The company in 2006 posted a cumulated turnover worth 180m euros, from 150m euros in 2005, according to the groupes preliminary figures. For 2007, the group projects a growth in turnover by 20-25%.
Caroli, another major player domestically, also plans to increase its production capacities in Pitesti. It finalised the 2m euro investment to expand its charcuterie plant and also invested 4m euros to build a new dry-cured salami plant in 2006. The company posted a cumulated turnover worth 93m euros, up 50% year-on-year and a profit margin of around 10%. According to its representatives, Caroli will hit a turnover of 125m-euros in 2007, up 20-30%.
Boosting production capacities is also a major priority with Aldis Calarasi. It increased the capacity of its plant of Calarasi to 100 tonnes per day in 2006 from 80 tonnes in 2005.
The producer had a turnover of 75m-euros in 2006, up 25% year-on-year and expects growth to continue this year.
The structure of the market is expected to change this year, with the arrival of Germanyes Reinert, which plans to gain one of the top five positions on the market.
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