International

Baroncini EST targets MENA markets

Equipment

“In the last months, we have seen a certain liveliness in the Middle Eastern and North African markets” - Gabriele Utignani, CEO, Baroncini EST

Posted on May 07 ,11:27

Known as one of the most representative companies in the sector, Baroncini EST is looking to increase its operations in Eastern Europe as the markets in the Balkans and former Soviet republics are showing potential for growth in the next years. The company’s involvement in different projects in several regions of the world, the Middle East, East Europe, South America, is explained by Gabriele Utignani, CEO, Baroncini EST in an interview for EuroMeatNews. Also, the company’s plans for expansion are targeting Serbia, Ukraine and Central America.

 

1. How profitable was the year 2018 for Baroncini Group and what were the main challenges that you have to address?

2018 was a difficult year because in the European countries where we operate in the majority, funding for the food industry did not start as in Eastern Europe or the crisis has oppressed the market as in Turkey. Fortunately, we have among our client many large meat groups that still continue to invest even in difficult conditions.

2. As the food industry gets more influenced by the consumer what are the options for the food technology sector in adapting to the new trends in the market?

The consumer trend in Europe is the pursuit of quality. Our goal as technology suppliers is to offer new products that allow our customers to work with maximum hygiene in every sector.

3. In terms of innovation and automation, what are the latest novelties that your company introduced in the market?

In order to satisfy the requests coming from small organic meat producers, we have created a series of small modular slaughterhouses in containers. In our containers, animals of different species can be slaughtered in extremely hygienic conditions. We also have modules for meat processing and cold stores.

4. Baroncini has been involved in several big projects in different countries. What was the most challenging project that you took?

 After 70 years of experience, we consider all the projects the same ... because our goal is the customer's satisfaction. We put the same attention in an 80 cattle/hour and 300 sheep/hour made in Turkey as well as in the containers plant made for a customer who wants to process the sheep of his biological farm. In this small plant, alive animals enter and final meat products are delivered.

5. Speaking of external markets, what is the market dynamics for food technologies in the Middle East and Africa? How about the South American and Mexican markets?

In last months we have seen a certain liveliness in the Middle Eastern and North African markets. In these markets, we are present through our subsidiary based in Istanbul. About the South American market, we consider it to have great potential. We have a technical sales office in Medellin, Colombia and we are realizing good results, especially in Panama.

6. What are the company's current development plans and what do you intend to do in the near future to expand your business?

We are planning to expand our production area in Italy and our commercial office in Eastern Europe.

7. What are the main challenges that the food tech sector have to address right now and what is Baroncini doing to overcome these problems?

The meat sector has different problems in every country. In Eastern Europe, for example, the salaries are growing up faster, so in this area, we must find solutions to change from manual slaughtering lines to automatic lines.

8. Logistics and cold storage capacities are under pressure from the rapid growth of new sales channels such as e-commerce. Do you foresee a significant change for these sectors in the next few years?

I don't think there will be big changes in the meat processing market. The chain between the producer to the final client in the meat sector has to be very short.

9. From the perspective of investments made in South and Eastern Europe by your clients, how would you describe these markets (Greece, Romania, Bulgaria, Russia) for the meat industry? How fast are developing and what how many future investments do you expect to see in the next couple of years?

 In South-East Europe, meat consumption is still growing. Particularly, we see that the request for beef quality meat is also growing. We think that in the next years we will have more requests for beef slaughtering lines.

10. In the last 5 years, Romania has witnessed consolidation in the food technology sector. Do you expect to see further mergers& acquisitions in this area?

Sure, in Romania, as it happened in other European countries, we will see a lot of fusions, joint ventures and acquisitions. I think that in the next 10 years only a few very big players will remain on the market. Some smaller regional companies which offer high-quality products may also resist.

11. What other markets did you open in the last 12 months and what are your company's plans in the next 4 years?

 In the last year, we planned to consolidate the Central America market. We had very good results in Panama, Columbia and Nicaragua. Just now the European financial programs are opening in Serbia and for the next years, our efforts will be to consolidate the market in the ex Yugoslavia republics. We also look with interest to the political development of Ukraine in order to begin commercial activities there.

 

 

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