One method to be protected against the wave of food price increases is to buy shares in food producers. The shares of Argus Constanţa (vegetable oil) and Avicola Buzău (poultry) have risen over 30% since the beginning of the year.
The food price increase recorded in the past year has driven up the businesses of Stock Exchange-listed food industry companies, which have seen their sales up by 35% to 75% in the first quarter against the similar period of last year.
Titan Bucureşti (bread), Argus Constanţa (vegetable oil), Albalact (milk), Avicola Buzău (poultry) and Boromir Prod (bread) saw their turnovers increase, but only some of them saw their shares take off on the Stock Exchange. Those who wanted to "be protected" against the rise in the price of vegetable oil or of poultry should have bought shares in Argus Constanţa or Avicola Buzău at the beginning of the year. They rose by 26% and 29% respectively from January 1 until May 19. On the other hand, shares of Albalact, Titan and Boromir were down in the same period because the companies are making investments, because the shares are not visible enough or because the investors have higher profit expectations.
An Argus Constanţa share now costs 2.2 lei, having climbed 27% in the last quarter. A liter of vegetable oil has become 45% more expensive since June last year.
The turnover of bakery producer Titan Bucureşti went up 74% during this period, the turnover of vegetable oil producer Argus Constanţa went up 70%, while Albalact Alba Iulia saw its turnover up 35%.
"(...) The turnover increase was driven by two factors, the rise in the volume of sales and the rise in the price of raw materials. During this period, the price of raw materials went up by 60% I would say, which prompted a similar increase in the price of the end product," explained Vasile Leu, chairman of the board of director
