Romanian Chicken Farmers To Raise Prices As Of January 1, Over Elimination Of Subsidies

Chicken meat will be at least 20% more expensive on the Romanian market as of January 1, 2010, as farmers will raise prices to compensate for the lack of subsidies starting next year, Romanian Bird Breeders National Union (UNCPR) president Ilie Van told MEDIAFAX.

According to European norms, the 1.6 lei (EUR1=RON4.2817) per head subsidy for chicken farmers is to be eliminated on January 1. Van said farmers would "immediately raise prices by 20-30%" to compensate.

Van said that importers buy meat from abroad and sell it on the Romanian market cheaper than local producers, because VAT is not collected on sales between EU countries. Van said many local farmers will go bankrupt next year, unless the Government takes urgent measures against imports.

According to UNCPR data, 25% of the chicken meat on the market, 100,000 tons per year, is imported.

mediafax.ro