Giurgiu / RO. (zf) Milling and bakery producer Farinsan Company posted a seven-million-euro turnover in the first six months of the year, up 70 percent against the same time last year. «This progression was primarily prompted by a rise in the price of raw materials, as well as by the constant diversification of our product range. We are hoping to maintain the same turnover growth rate until the end of the year», said general manager Ioan Vladu to «Ziarul Financiar».
Farinsan from southern Romania posted an approximately eleven-million-euro turnover last year, up by around 48 percent against the previous year; therefore exceeding initial estimates, which stood at nine million euro. If the growth rate announced by the company is met, Farinsan could see a business worth approximately 18 million euro this year. «The fact that we exceeded our estimates was related to the over one million-euro investments required to modernise the bread plant including the introduction of new production lines, the setting up of a lab and an increase in the milling capacity, by around ten to twelve percent, to 200 tonnes a day», Vladu says in Giurgiu.
As a result of an increase in the price of wheat, company representatives increased the price of flour from 0,77 RON per kilo to 0,85 RON per kilo. «The prices will continue to rise this year, depending on the cost of wheat», the general manager saiys. According to players in the milling and bakery industry, this year the price per kilo of wheat ranges from 0,55 to 0,58 RON, double last year´s level of approximately 0,33 to 0,34 RON and could reach around 0,75 to 0,8 RON per kilo by the last quarter of the year.
Farinsan does not have sufficient stocks of wheat to cover the entire year. As a result, by the end of this year, Farinsan will have to resort to importing through specialised traders. «Around 25 to 30 percent of the total raw materials required will be imported», says Ioan Vladu. According to associations in the milling and bakery industry, the halving of the wheat production, caused by the drought, will generate an increase in wheat imports to one million tonnes (Source).