Without subsidies, poultry producers announce price hikes of up to 40%

As of 2010, state aid can no longer be granted, and the authorities must find new ways of supporting its replacement, such as through support for animal welfare, following the model of other European countries.

Local producers fear that, in lack of subsidies, as of 1 January 2010, they will not be able to compete with imports from the European Union.

“The units in Romania were forced to invest a lot in the past two-three years, while there [Ed. n. – in the European Union] investments were lower. Unless we get some support, we will have unused modern factories. The industry made significant progress lately,” said George Horoi, President of Agricola International Bacau.

Horoi said he is expecting a 20 percent price rise in 2010, otherwise “many producers will be forced to give up.” Ilie Van, President of the Union of Poultry Farmers in Romania (UCPR), said that prices could increase by as much as 30-40 percent next year, if the sector receives no support.

Domestic production amounted to 286,000 tons in 2008, compared to 114,000 tons imported, while exports reached 8,000 tons. Local production increased some 15 percent in the first eight months of this year, on the back of a 10 percent rise in consumption, according to Van, while imports amounted to 85,000 tons.

The value of the poultry market is of some €800 million, with Transavia, Agricola Bacau, Agrisol, and Agroli as main players.