June 14, 2011


CrisTim to increase export rate in coming years



Romanian processed meat producer CrisTim plans to have an export rate of 30-40% in 2012 in contrast to the 12% rate currently, according to the General Manager of CrisTim, Radu Timis.


"At present, we have an export rate of 12%, but we plan to shift interest towards the export, because the consumption on the domestic market plunged sharply over this year and I believe this trend will maintain also in the next two, three years. Regarding the end of 2011, we foresee an export rate of 20-25%, so as to get close to 30-40% in 2012," Timis said.


At this time, CrisTim exports to 12 countries and it has 63 clients.


"Unfortunately, due to the pig disease, we are forced to import 95% of the raw materials we are using to process the meat from Denmark and Germany in order to export to other European countries," Timis said.


According to the above-quoted source, the decline of consumption on the domestic market was due to the decrease of the purchasing power and the increase of the Value Added Tax, although the financial crisis brought the company a restructuring and a better efficiency.


"The most serious problem at this moment is that all producers want to be present on the market, they want large volumes, but they forget about the quality. We have focused on the brand, the CrisTim products, accounting for 90% and the cheaper brand Alpinia of only 10%. If we plan to sell only low products in the future, I think we shall be in trouble. The market needs to be consolidated," he said.


CrisTim general manager said that in 2010, he invested EUR9 million (US$13 million) in CrisTim firm group and he has in mind a similar amount for 2011 too.


According to a study conducted by Daedalus Millward Brown, on staple foods, CrisTim ranks first by consumption and also regarding the preference of Romanian processed meat consumers, the company recording a rate of over 24%.

The Romanian processed meat market is put at over EUR1 billion (US$1.4 billion) per year, with the main players being CrisTim, Campofrio, Aldis and Caroli.

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