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Romania Doubled Its Food Production In 2012
According to the Romanian Ministry of Agriculture and Rural Development, the deficit of Romania’s trade balance, as regards foodstuffs, stood at some 745 million Euros in 2012, almost double as compared to the previous year. Last year, Romania imported over 6 million tons of foodstuffs, reporting a 6% increase as compared to 2011. Imports exceeded 4.65 billion Euros, that is by 372 million Euros more than the previous year. Last year, exports of foodstuffs exceeded 7.9 million tons and the amount of money that was cashed in exceeded 3.9 billion Euros, the same level registered in 2011. Maize and wheat exports brought in most revenues, totalling 1.14 billion Euros. In 2012, the same foodstuffs ranked first in terms of imports, just like in the previous years, namely sugar-286 million Euros, followed closely by pork meat with 259 million Euros and maize with 191 million Euros. The European Union was Romania’s main agricultural trade partner, both in terms of distribution and purchase of foodstuffs. However, in the first part of the year, Romania’s meat exports were affected by the horsemeat scandal, mislabelled in other countries as beef. The president of the National Sanitary Veterinary and Food Safety Authority, Vladimir Manastireanuhas further details: Vladimir Manastireanu: “We managed to reject all accusations that had been levelled against Romania and Romanian producers. The accusations were brought against us initially by France, as you well know, then by Germany and later on by Greece. During all our talks held in Brussels, at the meeting of the heads of veterinary services, as well as in Dublin, during private talks with colleagues and partners in France and other member states, we reiterated the idea and wish that such situations be disclosed to the press only when we know for sure if and what state is responsible for the mislabelling. Actually, this was also the general conclusion we drew after each of the meetings. Otherwise, we find ourselves in unjust situations, when ungrounded accusations are being made, just like in our case. No one issued an official apology after Romania was cleared of all accusations, and the only effect produced by the scandal was a huge export deficit of the Romanian food industry.” According to Vladimir Manastireanu, over a very short period of time Romania has produced evidence that the country’s veterinary services are doing their job and fully observe the entire European and national legislation. At the same time, the Romanian official believes the line industry is a serious one, and that it labels correctly the meat it supplies to the European market and not only. In spite of this, beef and horsemeat exports have plummeted by more than 20% following the mislabelling scandal, as Romanian producers say. One of the largest Romanian producers and exporters of horsemeat and beef on the European market, Iulian Cazacut, has put forth a series of proposals meant to redress the situation following this scandal. These include a meat exchange, which should function under the authority of the Agriculture Ministry, and the opening of new markets, which call for greater transparency of the supply and demand prices, as well as of the meat origin. Iulian Cazacut: Iulian Cazacut: “First of all, the rules regulating the operations of a meat exchange should be set, because if they are officially established, they must be observed and the Agriculture Ministry could supervise the accuracy of the data operated by a meat exchange.” However, producers seem to foresee some new opportunities. Iulian Cazacut: Iulian Cazacut: “We want to make the best of the moment and capitalise on its positive aspects. In a first phase, we had to defend ourselves, to show the world that we did nothing wrong, but respected and observed all regulations and standards. Currently, we are interested in direct communication with each and every customer and partner. We are further investing in the development of producers’ brands, it is the centrepiece of all our strategies. We can deliver safe meat, of controlled origin, on the market. We would like to see Romanian producers receive further support in order to enjoy access to international markets.” It is also worth mentioning that the Romanian food industry is in the focus of attention of foreign investors. In October 2010, the French company Sofiproteol took over the food grade oil producer Expur Urziceni, which had been controlled by the Swiss group Alimenta. The value of the transaction stood at some 80 million Euros. Other companies active on the oil market are the American firms Bunge and Cargill. One of the best-known companies which produce and sell rice is the Italian group Riso Scotti. Foreign investors are also interested in the meat industry. In 2004 the American company Smithfield Foods purchased the former pig farm Comtim in Timisoara and intends to take the volume of investments in Romania to a total of 850 million dollars. Also, in early 2007 the German sausage producer Reinert inaugurated a meat processing unit in Feldioara, Brasov County. Other food companies active in Romania are the firm Hame from the Czech Republic, the Norwegian group Orkla and the group Nestle. Some other firms operating on the dairy market are the group La Dorna, which was taken over by the French consortium Lactalis in 2008, the French company Danone, the Dutch companies Friesland and Campina as well as Hochland from Germany. balkans Continue reading
MSCI upgrades UAE, Qatar to emerging markets
MSCI upgrades UAE, Qatar to emerging markets Muzaffar Rizvi / 12 June 2013 The UAE and Qatar finally elevated to emerging market by the global index compiler MSCI that will boost investor sentiment and attract foreign investment inflows into the region. With this long-awaited MSCI up-gradation, the UAE and Qatari shares are expected to attract approximately one per cent, or up to $500 million, of total global investments in the emerging markets space annually only after the reclassification takes effect in May next year. However, the two Gulf States will see a gradual surge in foreign investment inflows of up to $3 billion over a period of time. An investor monitors electronic stock boards at the Dubai Financial Market in Dubai. KT photo by Rahul Gajjar “The reclassifications of the MSCI Qatar and MSCI UAE Indices will coincide with the May 2014 Semi Annual Index Review while the reclassifications of the MSCI Greece and MSCI Morocco Indices will coincide with the November 2013 Semi Annual Index Review,” MSCI said in its yearly market classification report, posted on its website early Wednesday. Speaking on a conference call, MSCI managing director and global head of index research Remy Briand said Qatar and UAE stock markets would have a greater share in MSCI Emerging Market Index as compared to Greece, which downgraded from developed market. “Qatar and UAE will have a 0.45 per cent and 0.45 weight in the MSCI Emerging Market Index compared to Greece’s 0.3 per cent,” he said. The New York-based Morgan Stanley Capital International (MSCI) currently has its country indices for both UAE and Qatar. In the UAE Index, the developer includes stocks such as Emaar Properties, DP World, ADCB and NBAD, but it is still unclear that all of these shares will be included in the Emerging Market Index. Dubai Financial Market (DFM) was first to welcome the MSCI annual market classification review to upgrade the MSCI UAE Index to emerging markets status. Essa Kazim, managing director and chief executive, Dubai Financial Market, said: “This significant step evidently demonstrates international institutions’ recognition of DFM’s pivotal role over the last three years to further enhance the UAE market infrastructure in collaboration with the Securities and Commodities Authority of UAE (SCA). This development is overdue in light of the market infrastructure improvements made and ticking of all upgrade requirements long time ago.” A media statement by the Dubai Financial Market (DFM) said the DFM is amongst the best performing exchanges globally since the beginning of the year with its market index up by almost 50 per cent to rank amongst the best performing exchanges. The average daily trading value increased 67 per cent to Dh460 million compared to Dh278.2 million in the corresponding period of 2012, the statement said. “We are delighted to see the UAE market upgraded to emerging markets status, which reflects international investors’ confidence in our markets and their satisfaction with what we have accomplished,” Kazim said. MSCI said international institutional investors recognised the improvements made by the UAE regulator and bourses with respect to the delivery versus payment model. “The majority of market participants have expressed no major concerns over the safekeeping of investors’ assets and are starting to move away from the dual account structure,” MSCI said. For Qatar, the index provider said it welcomed the progress made by the authorities to raise the limits on foreign ownership of companies listed on the Doha-based exchange, but added that the current foreign ownership limits were still low by emerging market standards and the Qatari authorities should actively continue to increase them above 25 per cent in order to mitigate potential issues arising from increasing foreign capital inflows, MSCI said. “The MSCI decision to upgrade Qatar and UAE from frontier markets to emerging markets, with effect May 2014, reflects a growing realisation of how far these economies and their financial markets have developed in recent years,” said Sam Vecht, BlackRock’s head of the emerging markets specialist team and portfolio manager of the Frontiers Investment Trust. Equity index provider also said it is closely monitoring the situation in Egypt and in particular the country’s foreign exchange market. “MSCI may be forced to launch a public consultation on a potential exclusion of Egypt from the emerging markets index if the situation to worsen in the coming months.” MSCI further said it would reclassify Morocco and Greece as frontier market and emerging markets, respectively, in a move to lower their markets status. However, it maintained the emerging market status of Korea and Taiwan and will review their potential reclassification to developed markets as part of the 2014 annual market classification review. MSCI also initiating the review of China A-shares for potential inclusion in the MSCI Emerging Market Index. – muzaffarrizvi@khaleejjtimes.com Continue reading