Carmistin: swiftly responding to new consumer preferences

For Carmistin, 2023 marked a milestone in the company’s development: the opening of the Potcoava Farm, the first 100% organic chicken farm in Romania. Octavian Paltanea, Development Manager at Carmistin, highlights the company’s main achievements of the year.

By Anda Sebesi

Carmistin is one of the fewest Romanian holdings that has an integrated business on the local market. To what extent has this business model contributed to the company’s success in Romania?

Carmistin’s integrated business model in Romania has likely played a crucial role in its success by providing operational efficiency, streamlined processes, and good control over the entire value chain, ultimately enhancing competitiveness and adaptability to local market dynamics.

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What were the biggest challenges Carmistin faced in 2023?

In 2023, the Carmistin Organisation faced challenges that were typical of the general business landscape, including supply chain disruptions, market volatility, and the need to navigate regulatory changes. Additionally, adapting to emerging technologies and addressing shifting consumer preferences also represent ongoing challenges for the company.

What were the most important projects the company carried out in 2023?

In 2023, Carmistin reached a significant milestone with the opening of the Potcoava Farm, indicating a notable commitment to sustainability. It is the first 100% organic chicken farm in Romania and it is aligned with Carmistin’s plan to produce organic food in Romania. The demand for such products, like the Organic Chicken from La Provincia, indicates a maturing market that’s focused on high-quality, healthy, responsibly and sustainably produced food. The new farm, located in Leleasca, Olt county, in the middle of nature, plans a medium- to long-term expansion of its organic segment. Additionally, this year, Carmistin also introduced its organic egg range under the La Provincia brand. The brand’s portfolio includes vegetarian chicken, antibiotic-free chicken, floor-raised chicken, marinated chicken, and the new organic chicken. Last year, the poultry division accounted for over 50% of Carmistin’s business. Currently, the group ranks among the top food producers in Romania. The integration of eco-friendly practices, innovative technologies, and community engagement initiatives were key achievements. Additionally, Carmistin implemented projects focusing on renewable energy, waste reduction, and biodiversity conservation to further solidify its position as a leader of the agrozootechnical market in Romania.

What’s the current state of the Romanian agribusiness sector and what changes should we expect to see in the coming years?

The agribusiness sector is currently experiencing steady growth, driven by increased investments in technology and sustainable practices. Trends suggest a shift towards digitalization, precision farming, and a heightened focus on environmental sustainability. Government policies supporting innovation and international collaborations are expected to play a pivotal role in shaping the industry’s trajectory in the coming years.

How important are ESG and sustainability criteria for Carmistin?

ESG and sustainability criteria are paramount for the Carmistin Organisation in today’s business landscape. Adhering to these principles not only aligns the company with global sustainability goals but also enhances brand reputation, attracts socially responsible clients and partners, and ensures long-term viability in an increasingly conscientious market. Integrating ESG practices is a strategic imperative for Carmistin to thrive amid evolving market expectations and contribute positively to the broader environmental and social ecosystem.

What were 2023’s main challenges from a management point of view?

The biggest challenges for Carmistin’s management in 2023 revolved around global supply chain disruptions, rising raw material costs, and adapting to evolving consumer preferences. Navigating the complexities of geopolitical uncertainties and maintaining operational resilience were also critical points. The company strategically addressed these challenges through proactive risk management, supply chain diversification, and continuous efforts to enhance operational efficiency and human capital management.

What is the outlook for the local agribusiness sector in 2024?

2024 appears promising for the industry, with anticipated opportunities in technology adoption, sustainable practices, and consumer preferences. However, challenges such as market volatility, regulatory changes, and the ongoing impact of global events may necessitate agile strategies. Success in 2024 for companies like Carmistin will likely hinge on proactive adaptation to emerging trends, resilience in supply chain management, and a continued commitment to sustainability to meet the evolving demands of the sector.