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Attila Csányi, CEO of the Bonafarm Group stresses that size itself has never been an objective, neither in terms of turnover, staff or the capital invested itself: “We prefer to believe in professionalism, development and invest in product lines where we believe it is possible and meaningful to develop”. he said, adding that most of the group’s companies were bought from foreign investors or companies that were in a situation close to bankruptcy at the time of the acquisition.
Therefore, a leading food company in the Central and Eastern European region needs to simultaneously renew its own infrastructure, improve its operational structure and, in the meantime, withstand the strong competition from the market on a daily basis. The Bonafarm Group and its strategic partners are also planning significant developments in the coming years.
Pick’s new salami factory will be established with an investment of approximately HUF 60 billion (green or brown field) and strategic partner Hungerit Zrt. He intends to build a modern chicken slaughterhouse.
“The difficulty with the entire food industry is that certain investments have lagged behind for generations and if someone wants to develop in the long term, they have to step in. It is also time that we build a new Pick plant, ”said the CEO, adding that accumulation must be incorporated for development, even if the return on investment can only be realized in the long term. Pick Szeged Zrt., Which belongs to the business group, participated in the MNB’s Growth Bonds Program, under which the company raised HUF 26.99 billion in external funds, which is expected to be used for the development of plant.
In addition to the two large investments, Attila Csányi also wants additional livestock farms, stables and fattening farms, from which it expects further market acquisition,
and is confident that the group will strengthen its role in the traditional food markets of the Hungarian food industry in the long term, including across the border.
The biggest problem for the group of companies lately has been African swine fever. “Food exports, which could be Hungary’s driving force, require a rapid removal of animal health restrictions in international trade,” noted the CEO, adding that agriculture and the food industry are not among the industries. easier anyway, as costs are safe, returns, and yet world market prices fluctuate significantly, making income more uncertain.
“We have greatly developed our strategy and capacity for the slaughterhouse in the Far East market, which would have provided a significant part of the performance. However, we do not anticipate the emergence of swine fever and the closure of the Chinese market, so we have been trying to build a market outside of China again since then, ”said Csányi. In addition to swine fever, the Bonafarm Group and its strategic partners have been significantly affected by avian influenza. The company reacted immediately to the emergency situation caused by the coronavirus in recent months, and after taking the necessary precautions, production at its plants was continuous in the spring of 2020, so the group was able to supply the market without changes. .
Bonafarm also has a small dairy plant in Serbia, which serves to develop local distribution, business relationships and production capacities. In Romania, your own trading company helps to market your products. Due to geographical conditions, there is less milk in southern countries, so they can be an important market for Sole-Mizo Zrt. Also in the future. With regard to the meat products market, competition in export markets is extremely intense, as the meat industry is one of the most fragmented in Europe. Currently, salami is exported to 26 countries, the largest market being Germany, which traditionally knows the Pick brand, as well as neighboring countries such as Slovakia, the Czech Republic and Romania.
“Japan was also an important market, but we were pushed out due to swine flu,” said the CEO, adding that intensive market expansion is no longer expected in Hungary, but they still see opportunities in existing export markets and they flirt with areas like the United States. In his opinion, first of all, there is the opportunity to develop in markets where people are already familiar with a particular brand.
Competition in product quality is intense, current trends must be followed, which are also gradually spreading to Hungary.
Some examples are the responsible use of non-GMO antibiotics, plastic-free packaging or salt reduction.
Of course they are based on one of Hungary’s best known and most trusted brands, Pick.
“Our list of product development is so long that it must be prioritized. At the group level, we are also trying to respond more quickly to these needs ”, says Attila Csányi, who says that the training of young people is very important and they attach great importance to it. For example, it is currently not easy to find a specialist in Hungary who has the appropriate industry and production experience as well as the necessary management skills.
He also mentioned that he sees the Netherlands and Denmark as good examples, where small farms and large food companies can work well together: this should also be achieved in Hungary, because the lack of stable long-term business cooperation makes both the retail trade as raw materials impact on the industry.
The original of the article appeared in the publication of the Budapest Stock Exchange, BSE50. BSE50’s media sponsor is Portfolio Group.
Cover image: BSE50
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