June 8 (SeeNews) - Romanian farming products retailer Agroland Business System [BSE:AG] said on Wednesday it plans to invest 800,000 euro ($858,000) in 2022 to increase egg production capacity.
Agroland targets 12.5 million lei ($2.7 million/2.5 million euro) in revenues from the sale of consumer eggs in 2022, up by an annual 30%, it said in a press release.
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The company also aims for a 60% annual increase in sales of day-old chicks produced in its Mihailesti facility, to 10 million lei.
During the first quarter of 2022, Agroland’s consumer egg sales increased by 51% on the year to 3.4 million lei.
Agroland also announced that it has signed a contract for the delivery of consumer eggs to Belgian-owned retailer Mega Image, which operates over 800 stores in Romania.
"We estimate that there will be a shortage of eggs for consumption in the next two to three years, so we want to take advantage of this opportunity and increase the number of clients and the quantities of eggs delivered to the market," said Horia Cardos, founder and CEO of Agroland Business System.
"Our goal is to increase production capacity to over 200,000 laying hens by the end of the year, generating an estimated monthly production of five million consumer eggs, over 160,000 eggs per day."
Founded in 2009, Agroland Business System is a Romanian entrepreneurial company, which operates a network of 250 stores, all focused on garden, farm, and pet products. The company also owns the Avicola Mihailesti egg farm.
On Monday, Agroland Business System announced it had obtained a 120,000 euro grant to cover the raw material requirements of the business.
Agroland' Business System shares traded flat at 3.205 lei/share as of 14:53 CET on Wednesday on the Bucharest Stock Exchange.
(1 euro = 4.9456 Romanian lei)