Romanian group to invest in meat production and processing

By Jaroslaw Adamowski

- Last updated on GMT

Agricola Group exports it meat to the EU, Kosovo and Macedonia, among others
Agricola Group exports it meat to the EU, Kosovo and Macedonia, among others

Related tags Meat Poultry Processing equipment & plant design

Romanian agricultural holding Agricola Group plans to invest €10 million this year to boost its capacity at various locations.

Under the plan, the group is to invest €3.5m in Agricola, its poultry production subsidiary, which owns 19 farms, a slaughterhouse and a feed production facility in Romania. Other expansion projects are to include a €1.5m allocation to meat processor Salbac, and €4m to be invested in ready meals maker Europrod, according to senior company representatives. The remaining €1m is to be allocated to the group’s egg producer Avicola Lumina.

Revenues on the rise

For the time being, we will focus on our existing brands. We want to expand and consolidate them,​” Grigore Horoi, the chairman of Agricola Group, told local business daily Ziarul Financiar.

Horoi said the group’s aim was to increase its revenues by between 5% and 10% this year.

For 2017, the holding estimated its revenues at about RON 710m (€153.5m). This would represent an increase of close to 5% compared with the RON 677m (€146.4m) Agricola Group reported a year earlier.

Production capacities to increase

The investments are expected to allow the Romanian holding to upgrade the production capacities of its offshoots.

The group’s meat processing subsidiary Salbac specialises in pork meat products, and its plant is enabled with a capacity of 20 tonnes (t) per day. The company’s portfolio includes cured salamis, as well as boiled and smoked products. Agricola Group’s offshoot Agricola has a slaughter capacity of 100,000 head per day, while its third subsidiary Europrod produces about 12t of ready meals per day, according to figures from the holding.

The group said it has a 18% share of the Romanian poultry meat market, and holds a 20% stake in the country’s salami segment.

Agricola Group sells a portion of its products through its own retail store chain, which consists of 29 stores across the country. However, this channel accounts for only 2% of the holding’s sales, which are predominantly generated by sales through other Romania-based retailers. This channel accounts for 56% of the total. The group’s logistics capacities are ensured by its own fleet, comprising more than 120 commercial vehicles.

In addition to the Romanian market, Agricola Group exports its meat and processed meat products to other member states of the European Union. Some of the group’s main foreign markets include the UK, Germany, France, Italy, Spain, Austria, Denmark, the Netherlands, Greece, and Malta. Outside the EU, Agricola Group exports its products to Macedonia and Kosovo, as indicated by data from the holding. Export sales account for about 10% of the company’s sales.

Based in Bacău, in the country’s eastern region, the Romanian group is operated by a workforce of slightly fewer than 2,900 employees. Agricola Group said its facilities are ISO 9001- and 22000-, IFS- and BRC-certified.

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