Charcuterie producer, Tabco-Campofrio, the domestic unit of Spain's Campofrio Alimentacion, posted 10% higher sales in the first half of this year compared with the same period of 2005.

"We did not record a rapid growth in sales for the first few months mainly because we are witnessing a powerful assault from the key account networks (the major retailers, the most powerful of which are the hypermarkets i. e.), which are also embracing an extremely aggressive shelf tax policy," says Ovidiu Wencz, general manager of the company.

Hypermarkets are in a very strong bargaining position, as they charge producers a tax for putting their products on shelves that varies depending on where the products are positioned on the shelves and which store the products are sold in.

Wencz specified that this year the company planned to retain last year's profitability index. "We want to have a profitability index of 5-8% of net sales," says Wencz. The company this year expects to derive turnover worth 40 million euros, from the 33 million euros posted in 2005.

Wencz specified 2005 was one of the best years since Campofrio had entered the Romanian market, due both to market stability, and to investments in marketing and distribution.

Last year Campofrio ceased the importation of pork carcasses, after the development of its own farms supplied the company with the necessary raw materials it needed for this segment of its business.

The company owns two swine farms in Fantanele and Sibioara, Constanta county. According to company representatives, the local production of the two farms is likely to provide 40-50% of the firm's pork over the forthcoming period. To reach this target, the general manager of Tabco-Campofrio says the company will invest more than 10 million euros over the next 3 years, mainly to develop the farms. At the end of 2005, Tabco-Camp