SORIN MINEA, ROMALIMENTA: "Consumers are turning to inferior food, found on the black market"

Romania's consumption of food is facing the lowest consumption in Europe, says Sorin Minea, the president of the Professional Association of the Romanian Food Industry (Romalimenta).

"Given that we no longer have inflation, there has to be a cause, and in Romania's case that cause is the drop in consumption", he told us, and he added: "The situation is very difficult on the food segment. I don't think that people eat less, rather they are turning to bad products and to the black market. Evasion has increased all over Europe in the food industry, and we are leading the pack in that regard too. I don't believe in the theory that Romanians no longer eat as much as they used to. I also don't believe the theory that Romanians only eat very cheap food. It's all about the types of stores, and the first ones to disappear are the non-supermarket ones that play fair. Supermarkets are experiencing price pressure, and tax evaders can afford to drop their prices. Given these circumstances, Romania is in a nasty situation".

According to Mr. Minea, the idea that was making the rounds a few years ago that we should be producing as cheap as possible could have a boomerang effect: "We may start importing. Statistical data shows that imports of processed products have increased. It is clear that we are losing a niche. On the export side, we have relied heavily on the cheap products for the Romanian emigrants and that may not be a solution".

The food industry will die quietly if isn't supported, Mr. Sorin Minea says. He says that over the last few years, companies that have entered default are those in the food industry: "The industry opted to cut costs, and this led to artificial price levels. Because of that, Romania could be seen as a weak producer and it might find itself unable to export".

The food industry can not be separated from the production side, considers Mr. Minea, who says that Romania is a powerful player when it comes to agriculture, and that is why we shouldn't limit ourselves in that regard.

According to the president of Romalimenta, it is the first time that our meat imports have reached 18%, and the imports of processed products amount to 10%, which threatens the sector, and could lead to the elimination of domestic processors.

The shortage of unprocessed food products that the industry is facing is artificial, Sorin Minea also says, and he said that in Romania we have an economic deadlock.

Romania's potential must rely on encouraging agriculture and supporting the industry, which "has never asked for money, just legislation and facilities".

If that doesn't happen, Romania will become an exporter of unprocessed food products, Sorin Minea said in closing.