AGRICULTURE ECONOMY INDUSTRY

Poultry industry is afloat

The Romanian poultry industry offers Romanian consumers sufficient meat during this period, at “very good” prices that are lower than the ones registered in the same period last year, the prices being significantly influenced by massive poultry meat imports from Poland, imports at “ridiculously low prices,” according to Ilie Van, Chairman of the Union of Romanian Poultry Farmers (UCPR).

“We have sufficient meat for the domestic market, we are not selling as much as we would like to sell despite the fact that the price is very low. Farms are selling a kilogram of poultry meat (with bones) for RON 6. As an annual average, we have sold the kilogram RON 1 cheaper than we did last year. Poultry meat imports, especially those from Poland, have killed us. Poland produces a lot of poultry meat, five times more than we do, despite the fact that its population is only two times larger than ours, and of course they sell wherever they can the surplus they register because of the embargo with Russia, including in Romania, but at ridiculously low prices. We suspect there is also a problem on the quality side,” UCRP Chairman Ilie Van stated.

He pointed out that during this time of year poultry meat sales total approximately 30,000 tons, “not more than that because this is not really its period, it’s the period of pork.” On the other hand, the UCPR Chairman states that the Romanian poultry industry has managed to export 80,000 tons of processed products this year, despite the massive imports of poultry meat, exports also being backed by the lowering of VAT on foodstuffs, a measure that came into force on June 1.


+ Poultry meat imports from Poland have “ridiculously low prices” and are of poor quality, according to the Chairman of the Union of Romanian Poultry Farmers

We have raised exports, we will reach around 80,000 tons this year, but imports stand at 130,000 tons. However, we export products with high added value, the average price being EUR 2,400 per ton, while the price of imports is EUR 1,200 per ton, because poor quality meat is being imported. The Romanian consumer prefers the Romanian product if it is correctly labelled, however there are Romanian companies that package meat from Poland and label it as being packaged by Romanian companies, however the label does not say the meat was produced in Poland. I believe more has to be urgently done when it comes to labelling, so that all should be forced to write on the label where the poultry meat was produced. The Romanian consumer has to know what he is buying,” the representative of the Romanian poultry industry stated.

In his opinion, the lowering of the VAT on foodstuffs was a breath of fresh air for the industry because an extra 10,000 tons of poultry meat and meat products were produced, a quantity that has been exported.

“The lowering of VAT has helped us a lot. If it hadn’t been for this measure I believe we wouldn’t have existed now. First of all because we produced an extra 10,000 tons and we exported an extra 10,000 tons. Basically we have exported all of our production. The lowering of VAT has been a breath of fresh air for the poultry industry,” Ilie Van added.

In what concerns eggs, sales are growing by 50 per cent in December because this is the month of pound cakes, Romanians consuming up to 180 million eggs.

“We sell eggs better than we do on a regular month because pound cakes are baked too. Poultry farms are selling around 160-180 million eggs in December, 50 per cent more than on a regular month, and the price is roughly the same as it was last year, it hasn’t changed, namely RON 0.20-0.30 per egg sold at the farm,” Ilie Van added.

The Romanian poultry industry is estimated at approximately EUR 1.1 bln. Romania has around 500 certified poultry farms owned by 250 UCPR-member companies. In 2014, the amount of poultry produced in intensive farming stood at approximately 435,000 tons.

The 200 UCRP-member farms that produce eggs cover 85-90 per cent of the eggs produced domestically in intensive farming. The annual production of eggs totals approximately 1.36 bln eggs.

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