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last update:Jul 25, 2008
Romania: pork giant bets on small farmers
Smithfield Ferme, the Romanian farm division of the
US-based Smithfield group, will seal partnerships with small farmers in Romania
to support the company's development.
Smithfield uses a business model commonly used on foreign markets, but also
promoted in Romania by dairy producers.
Contracts
"We currently
have 50 contracts in various stages of negotiations with small farmers. Under
this partnership, Smithfield provides the expertise, the technology and the raw
materials, while farmers handle the investment part, and access structural
funds. Ultimately, Smithfield buys the livestock reared by the farmers," said
Bogdan Mihail, general manager of Smithfield Ferme.
He added that the
project was dedicated to farmers and that 8,000 pigs could be reared per
production cycle.
Classical Swine Fever
Although Classical
Swine Fever
(CSF) affected the business of the American group last year, company
representatives say production outside their farms does not incur the risk of
the disease returning; a disease that cost the Americans €11.5 million in
2007.
American giant Smithfield, with a global turnover worth around €9
billion, has investments underway worth around €100 million on the local market,
in the construction of new farms and in the modernisation of old ones, as well
as in the construction of a feed mill.
Investment
This is part
of the overall investment conducted by Smithfield on the Romanian market so far,
worth 600 million dollars (€381 million). By the end of this year, investments
in Smithfield Ferme will amount to 500 million dollars (€318
million).
Smithfield is involved in pig rearing, as well as agriculture
and livestock feed. The farm division of the American group owns 10,000 hectares
of land and has rented plots that cover another 10,000-15,000 hectares in
Western Romania.
Related websites:
• Smithfield Foods
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