Difficult access to credit blocks food industry
Nine o'Clock - 3 Februarie 2009
The food industry is blocked by the difficult access to credit and also by the delays in recovering owed money from retailers, the President of the National Wine and Vine Employers Association (PNVV), Ovidiu Gheorghe, said yesterday. He says retail chains sometimes owe producers millions of Euros. In fact, Gheorghe reminded that a law should be adopted based on the Code of Good Practice signed by retailers and suppliers because the code as such had not amounted to anything, the same old charges and practices having survived.
As for the impact of the crisis upon the wine and vine sector, he said no lay-offs had been announced for now.
At least 10-15 pc of staff - laid off
The President of the Food Industry Labour Unions Federation (FSIA), Dragos Frumosu, in turn claims that at least 10 - 15 per cent of the 175,000 - 190,000 workers in the food industry might be laid off this year. He pointed out that multinational companies would also fore workers.
‘We depend on import. We import 80 per cent of our fruits and vegetables, 70 per cent of the pig meat, raw sugar for a production of 30,000 refined sugar, meaning that we are influenced by the depreciation of the national currency. The depreciation rate could be directly found in prices. The increase is not immediately visible. Such mark-ups should only occur a months after the beginning of the depreciation. If they happen before that, then it is the retailer's fault and not the producer's.
He showed that a 10 per cent depreciation of the local currency continuing over one or two months could only translate into a maximum 15 per cent higher price for imported goods. The Central Bank of Romania on Monday announced an official exchange rate of RON 4.2987 / EUR, higher by 2.12 bani compared to Friday's rate.
Sursa: http://www.nineoclock.ro
Tags: industry
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