Agroland to take over Caransebeș compound feed factory by EUR 1.3 M investment

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Agroland decided to take over the activity of the compound feed factory in Caransebeș, from Lipoplast SRL. The total investment will amount to 1,300,000 euros and includes the actual acquisition, as well as the restart of production processes. Agroland representatives plan to obtain non-GMO certification (non-genetically modified organisms) for feed, the factory in Caransebeș becoming the first such unit in Romania, with this certification.

The takeover of the factory is part of Agroland’s strategy to become the largest local producer of non-GMO certified eggs and poultry. In October 2020, Agroland entered the consumer eggs market by taking over the Avicola Mihăilești platform, a producer of consumer eggs and day-old chicks, which includes six farms.

The factory covers an area of ​​10,000 square meters and has eight employees at the moment. Production capacity is currently 12,000 tonnes per year, but it is estimated to increase gradually, by about 25% per year, by 2024. The certification process for feed production without genetically modified organisms started two months ago and it is expected to end this year in August.

Our goal is to become the most important producer of consumer eggs and non-GMO poultry in Romania, and the decision to take over the activity of the feed factory in Caransebeș is a vital move, in this sense. At EU level, the trend towards the consumption of organic and non-GMO products dates back many years. There are countries like Austria, where non-GMO products represent up to 90% of the total market, but also countries like Romania and Bulgaria, where this segment is close to zero. Fortunately, there are conditions for this market to grow slightly by up to 10% in the next three years. Until now, the main obstacle to the development of this market locally has been the lack of production capacity for non-GMO certified feed. With the certification we will obtain for the factory in Caransebeș, the obstacle will be removed and we hope that there will be other entrepreneurs or companies that will invest in this direction. We estimate that at the end of September we will be able to deliver the first non-GMO certified eggs in the major retail networks in the country “, said Horia Cardoș, founder and general manager of Agroland.

Agroland and Lipoplast will complete the acquisition process of the factory by the end of 2021. In the future, Agroland representatives are considering taking over the activity of other producers of table eggs and poultry meat, in order to strengthen their position in this market.

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