The shortage on the domestic pork market, as well as the alarming rise in pork prices in Europe and the US, are negatively affecting domestic meat producers that are finding themselves forced to either turn to the industry's black market or go under. "Things are very good now for the major multinationals to make takeover bids for Romanian producers. We may end up with new shareholders and new monopolies on the market when this crisis is over. There are takeover bids for domestic producers from Polish, Dutch and German producers," says Sorin Minea, chairman of the Romanian Meat Association (ARC), an organisation that consists of the leading meats producers. He did not care to reveal the names of the companies that submitted takeover bids or of those that were willing to sell.
The meats market has witnessed a flood of rumours about the possible takeover of domestic brands by foreign investors early this year. These rumours have yet to be confirmed.
The price per kilo of pig carcasses on the Romanian market has risen by up to 40%, to almost 2 euros. International price increases are even more spectacular: they have gone up from $1.35/kilo to $2.1/kilo on the US market and from 1.02 euros/kilo to 1.5 euros/kilo on the European market. "The current situation is strange to say but the least and is pushing charcuterie producers towards either production on the black market or bankruptcy. This is turning them into easy prey for the increasing number of bids by multinationals that we have seen over the last few months," Minea stated.
He explained that the meat industry could not impose price increases to keep up with the trends being seen in the cost of their raw material. "The average price increase per kilo of meat stood at 14% during recent months. Many producers turned to black market operations, so they are not paying the 19% VAT, which is three or four times higher than their profit margin," Minea added. He claims the black market has reached an alarming 60% of the total market.
The meat products market totalled 300 million euros last year and amounted to 155,000 tonnes, with the first half data not yet available.
stelian.negrea@zf.ro
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