• The Romanian bakery sector will benefit from European funding of 165 million euros, intended for the modernization of existing units and the establishment of new factories, according to the statements of Aurel Popescu, president of the Romanian Employers' Confederation of the Milling, Bakery and Flour Products Industry (ROMPAN).
The first projects will be able to be submitted starting in June, under the DR 23 scheme of the 2023-2027 Strategic Plan.
The funds were divided into two distinct categories, at the initiative of ROMPAN: one part for the construction of new factories, capable of competing in international markets, and the other for the modernization of existing units. "Through this scheme, we aim to develop at least 10 new factories, which will allow the export of frozen or fresh products, thus contributing to balancing the trade balance of the sector.", explained Mr. Popescu.
Currently, the Romanian milling and baking sector is experiencing a deficit of approximately 100.000 tons of products, importing 200.000 tons and exporting only 100.000 tons annually. New investments could fill this gap, boosting exports and reducing dependence on imports. The financing scheme, which becomes operational in June, will provide up to 10 million euros for new units, with a maximum financing rate of 65%, the rest being the contribution of investors. For modernizations, the amount allocated is up to 3 million euros, with the same co-financing rate.
The strategic importance of investments
The demand for such projects is already significant, and ROMPAN, in collaboration with the Ministry of Agriculture, aims to start construction starting next year. Popescu stressed the strategic importance of these investments, in the context in which the major cities in Romania are left with few large-scale bread factories. "In Bucharest there is only one large factory left, and in cities like Cluj or Timisoara there are none at all. In case of a crisis, small factories cannot cope, and bread must be ensured", he warned.
The lack of large production units also limits the participation of Romanian producers in international auctions organized by large retailers, such as Carrefour, which now operates at a regional level."To meet large demands, such as one million buns per month for Germany, modern, fully automated factories are needed.", added Aurel Popescu.
In the past, Romania had an extensive network of bread factories, with each county having at least 3-4 units, and Bucharest hosting seven large factories, one in each sector. Today, the situation has changed dramatically, with most of these units being closed or relocated outside the big cities.
BREAKING, the first employers' association established in Romania in 1990, currently represents 140 companies, which produce approximately 45-50% of the bread consumed in the country, 70% of the flour and the same percentage of pasta and biscuits. With this funding, the bakery sector has the chance to revitalize itself, consolidating its position on both the domestic and international markets.
Article written by Gabriela Dan, Editor-in-Chief Arta Albă
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