May 2010

Consumption Of Mineral Water Declining
In the first three months of this year, 7 percent less mineral water was bottled than in the same period last year, as announced by the Romanian Association for Mineral Water SNAM. The decline in the quarter equals the total reduction of last year, when consumption declined because of the economic crisis and a cool summer. In 2009, the annual per capita consumption was 55 liters of mineral water, a year before it had reached it's peak so far, at 60 liters.

April 2010

More Foreign Investments In Farmland And Forest
Romanian soil is increasingly interesting for foreign investors. Gerald Schweighofer, owner of the same timber holding four factories in Romania, bought 5000 acres of land through one of his companies, Agraria Nord. In addition to wheat, corn, sugar beets and soybeans also poplars and willow trees are planted - for biomass. Because of high tax return (in Germany) the forest fund of the Hamburg financial services Nordcapital enjoys already its second edition. The Waldfonds 2 with his 12-year period provides average payments of 4 per cent p.y. Aton Transilvania, belonging to the Aton group of companies based in Fulda, Germany, holds and manages a total of 20,000 acres of arable land. Most of the agricultural production is exported.

March 2010

Subsidiary Of Smithfield To Fusion With Caroli Foods
Two of the largest meat processor in Romania, Caroli Foods Group and Campofrio Food Group, have announced at the beginning of March to form a joint venture. Thus, the largest meat processors would be created with an annual turnover of more than 120 million Euro and a market share of 16 per cent. The new company will be known as Caroli Foods Group, the names of donors will hold 51 per cent of the shares and also name the CEO. Main market of the new food manufacturer would remain Romania, but the two meat processor plan to jointly expand into Southeast Europe. U.S. food company Smithfield is the largest single shareholder of the Spanish parent company, Campofrio Food Group, with more than one third of the shares. However, the Romanian Antitrust Office still has to agree to the joint venture.

February 2010

Fast Food Tax Already To Divide Romanians
A very good example of immature ideas is "the fast food tax" proposed by the Romanian Ministry of Health. Minister Attile Cseke wanted to stop the consumption of unhealthy fast food, so his reasoning. The Romanian food trade association Romalimenta almost went mad about it, saying several food categories would experience price rises between 20 and 30 per cent. That would hinder sales, unemployment would result. Already, it has reached 6 percent of the industry. Up to 20 per cent of the approximately 190,000 employees of the food industry should therefore lose their jobs this year. However, the Health Ministry has so far not even clearly defined which products are to be additionally taxed. Pizza and the Romanian version of Kebab certainly will not find themselves on the list.

January 2010

Most Start-ups Are Recorded In Agriculture
In Romania, last year more than 13,500 businesses have been set up with activities in agriculture, which represents an increase of 140 per cent to the year before. Thus, this industry is the one with the highest growth rate, second to which is the energy sector with a growth of 3 per cent. The explanation lies in the approximately 8 billion Euro, the allocation to Romania as a fund for agriculture by the European Union until 2013, and that can be tapped more easily with a trade license. Agriculture is operated in Romania currently by 55 per cent of licensed traders and 45 per cent by individuals. As a fund applicant, they have both the same rights but registered traders have the better opportunities to get EU funds. The Program for Rural Development PNDR has received in the past year some 22,000 applications for funding, out of which 10,000 were investment projects. So far, 9000 applications were accepted.