Importers to Win Battle on Romanian Market as Local Producers Increase Food Prices

F.A.
Ziarul BURSA #English Section / 17 august 2007

Romanian producers plan to increase prices for food stuff up to 40 percent as the severe drought resulted in higher costs for raw materials, however their merchandise might remain unsold as imports are cheaper, according to Dragos Frumosu, president of the Food Industry Trade Union Federation (FSIA), quoted by NewsIn.

The highest price increase of 40 percent will apply to bread and vegetable and fruits cans. The price for beef is also expected to rise 40 percent while seed oil prices will hike 10 percent. The lack of fodder for animals will lead to a 20 percent price increase for dairy-products.

In this situation, imported goods are more attractive to Romanian consumers as they are cheaper, despite the fact they are not too fresh.

The FSIA president underlined that in order to diminish the effects of the price increases and protect producers from imports, the government should set a coherent strategy or reduce VAT for foodstuff.

Agriculture Minister Decebal Traian Remes has recently declared there are no real reasons to increase prices for foodstuff and announced he would look for solutions to eliminate speculations on the market.

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