Constantin Boromiz: Now is the time for gaining local milling and baked goods market share

“There is room for change on the Romanian market. What is important is that we expand our markets.  One has to be on the look-out not to miss anything,” Boromiz told Business Standard.

The group’s Chairman is not considering regional expansion as long as Romania provides opportunities which the company can make profitable. The large number of imported products and the significant investments made lately are proof of these opportunities. The Boromir group posted over €165 million in business in 2008, up 25 percent year-on-year.

Regarding bread and baked goods consumption, Boromiz said that the effects of the crisis on the local market will not be dramatic, even if in this year’s first two months sales fell, which is normal for the January-February period. The annual per capita bread consumption in Romania is some 112 kg, compared to less than 100 kg in other EU countries.

The local milling and baked goods market has an estimated value of €2 billion, and its main players are Boromir, Vel Pitar, Titan, and Dobrogea. This market is one of the most affected by tax evasion, at 80 percent. Evasion has grown since Romania joined the European Union, as the elimination of borders between member states has led to higher quantities entering the local market, and traders are taking advantage of this situation by not paying some taxes.