Not meating market requirements

Alan Heath
20-06-2001, 00:00

Not meating market requirements

In two weeks time the shareholders' meeting of the Rawa meat company based in Rawa in central Poland is likely to vote for the liquidation of the company. This firm up until a very short time ago was one of the leading meat suppliers in the country but it failed to meet market requirements and changing customer demands. The financial problems have forced the owners, the largest of which is the American Smithfield Foods, to close the plant.

The plant was built in the middle of the 1970s. One of the main reasons for its collapse was undoubtedly the Russian crisis but also reasons given include that of an employee management committee which failed to produce good results. The company was then bought by market leader Animex who in turn lost the raw material supply and main customer base. The coup de grace was given by small producers who often work in the black economy and do not face the same costs.

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