November 13, 2006

Rominia's poultry industry needs EUR700 million to meet EU standards
 

The Romanian industry would have to invest EUR 700 million during 2008 - 2009 in its poultry industry if it wants to conform to EU standards, Union of Poultry Breeders from Romania said.

However, strong growth for the poultry product market for 2008 is expected to make that a reachable goal as the market is expected to balloon to EUR 1 billion by then, according to the president of Poultry Breeders Union from Romania (UCPR), Ilie Van

This is considering that the poultry industry would have been able to reverse a long decline and having recovered from the bird flu crisis this year.

The investments required are more than double than those for the five years during 2003 - 2007. Over 2003 - 2005, investments were worth EUR 115 million. For the 2006 - 2007 time period, investments are estimated to be EUR 170 million, according to Van.

Still, the higher prices of poultry offered after EU ascension would mean that investors would be able to recoup their investments, he said.

According to UCPR, the poultry market would grow by 16 percent this year, compared to 2005, increasing EU 100 million to reach EUR 700 million.

Poultry production over the first nine months of the year has already grown 8-9 per cent compared to the same interval the previous year, Van said.

The market is expected to have a better showing in 2007 to a total value of EUR 1 billion, meaning an increase by 40 percent after it recovers from the lower sales brought about by bird flu earlier this year, the UCPR president said.

Van said producers should not only focus on increasing productivity and reducing production costs, but also gear themselves for marketing activities.