Agricover: entire edible oil industry revises budgets

Agricover Buzau, which operates in the agricultural and food industry, in the first nine months of this year registered turnover worth 99.6 million RON (27.2 million euros), 8% lower than in the same period of 2004.

The company''s income stood at 3.96 million RON (1.1 million euros), 10% higher than in the corresponding period of last year.

"The overcapacity of edible oil production seen by the market has eroded the profitability rates of major players. Small producers, carrying out export activities, now find it cheaper to sell on the domestic market than abroad, which has upset the entire industry. There has been a surplus quantity on the domestic market, and the entire industry is revising its initial budgets," stated Ovidiu Chiscan, a general manager with Agricover. He stated that, in this context, Agricover''s turnover registered a significant decrease amid a lower sale price for edible oil.

"We estimate we will end this year at a level at least equal to that seen in 2004, both in terms of turnover and profit," Ovidiu Chiscan also said. Last year, the company logged turnover worth above 150 million RON (38 million euros).

Sales of bottled edible oil rose by 11.5% in terms of volume in the first nine months of this year, from the corresponding period of last year, while the market share went from an average of 12% last year to 17.4% this year, according to MEMRB market research, quoted by Agricover representatives. Thus, from a market share of 2-3% three years ago, the company has reached 17.5%.

The company sells Ulvex and Soreanca edible oil brands.