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Food producers brace up for a difficult start of the year

08.12.2009, 15:02 10

Producers operating in the bakery, dairy and charcuterie sectorsdo not expect a consumption rebound in the first quarter of nextyear, with most of them anticipating 2009 trends will maintain inthe first half of 2010.

"I don't believe there will be any major changes. Pastaconsumption will probably rise a little," stated ConstantinBoromiz, chairman and one of the five shareholders in Boromirgroup, the biggest domestic producer of bakery, a market put ataround 2bn euros.

He added the bread consumption downward trend, to around 110 kgper capita at present, came amid the diversification of the bakeryspecialty segment, particularly on the patisserie segment. "Salesare now probably feeling the impact of recession, as people areless wasteful," the businessman coordinating a group with 148m-euroturnover in 2008 also says.

Radu Timis, chairman and stakeholder in CrisTim charcuterieproducer, also maintains the 10% consumption decline trendregistered in the past three months of this year will continuethrough 2010.

"I believe the first quarter of 2010 will see the charcuteriemarket fall by 10%, leaving aside the 20% sales decline posted inthis period amid domestic seasonality," stated the founder of thecharcuterie producer with turnover worth above 90m euros in2008.

Domestic charcuterie consumption has dropped by 10% to 20% onthe entire market in the past three months of this year, accordingto Timis. This has pushed the charcuterie market down to around700m euros, 100m euros less than in 2008.

The dairy market is thus now among the few segments of the foodindustry likely to see a consumption increase in the first half ofnext year, provided that producers continue with this year'spromotional campaigns and see dairy sales go up during the winterholidays as well. "In the first 10 months, dairy sales went up byaround 10-12% from a year ago, amid promotional offers conductedthis year," said Valentin Blanaru, general manager of theAssociation of Romanian Milk Industry Business Owners. "We cannotsay yet how the consumption in the first quarter of 2010 will go,"Blanaru added.

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