Avicola Buzau, the meat product manufacturer controlled by Aaylex Trading group, has generated turnover worth 21.5m euros in the first nine months of this year, up 18% on the 18m euros derived during the same period in 2006.
"The increase is natural, considering we've had to overcome a difficult year, after two epidemics of bird flu had a strong impact on our operations, which primarily caused a sharp decline in the average sale price. However, we managed to bring our activities back up to normal levels during the first half of this year," stated Carmen Damu, general manager of Avicola Buzau.
In terms of poultry production, the company posted a 15% increase during the first 9 months of this year against 2006, because of increased efficiency in production.
However, meat product manufacturers are currently coping with twice as high fodder prices, after wheat, maize and sunflower harvests dropped 40%, to 70%, as a result of this year's severe drought.
At the moment, the domestic grain harvest is unable to cover domestic consumption, with maize being imported at prices twice as high as last year's.
"Given the current price of raw materials, fodder accounts for around 75% of costs to produce 1 kg of meat, and because of the rising fodder prices a rise in the price of 1 kg of meat by around 30% is needed," said Damu.
Damu also explained that at the end of the first ten months of this year poultry prices at slaughterhouses had not posted an increase against January, while some products registered lower prices.
"There is a paradoxical trend that has seen average poultry sale prices drop, which is most likely the result of surplus production, after small farms experienced massive depopulation, as they can no longer support their activities due to higher fodder prices," said Damu.
Avicola Buzau
18m euro-turnover reported in the first 9 months of last year
21.5m euro-turnover generated at the end of the first three quarters of 2007
22.7m euro-turnover derived last year
60.6%-the stake Aaylex Trading holds in Avicola Buzau
10,000 tonnes of slaughtered meat-the current production capacity of the plant
30,000 tonnes of slaughtered meat-the capacity the company intends to reach in 2009
225,000 euros-2006 income
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