ZF English

Mercado targets 55m-euro sales

03.07.2007, 19:28 15

Meat products distributor Mercado in Alba-Iulia, held by businessman Dorin Mateiu, the main shareholder of the charcuterie producer Elit Cugir, intends to become involved in the distribution of organic products next year, with a view to start exporting. "Organic products are one of the prime export opportunities," said Voicu Vuscan, general manager of Mercado. He added that traditional products could also find a market outside Romania, with the targeted countries being those in Western Europe. The decision comes given the lower growth estimates on the domestic market, following a move by domestic charcuterie producers, which are starting to make their own imports from EU countries. "Since many of our clients have made investments after Romania's integration into the EU and since the elimination of customs duties they have begun to import their own raw materials. Many companies in Europe have also opened branches in Romania, and it is hard for us to compete on equal footing with European companies on the market. After business increases of more than 30% over the last two years, Mercado estimates a no more than 10% turnover increase this year. "We are hoping to maintain the results we saw last year, or to see a maximum 10% increase." Mercado ended 2006 with a 51 million-euro turnover, up 57% against 2005 and a 2.3 million-euro net profit. Mercado is one of the ten companies in Alba-Iulia, which obtained the necessary permit to conduct exports within the European Union.

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