Taking meat off
The meat sector is doing badly and there is little hope on the horizon. The banks can also see the writing on the wall and are refusing to credit meat companies. Some industry analysts are now arguing for government intervention in order to prop it up and recover lost export sales. Last year profitability fell below zero to minus 1.5 percent. This year it is likely to be worse. In the expansion in the hey day of the sector after the demise of socialism, new businesses were springing up everywhere. It is these small concerns that are most at risk now. It is even harder for them to get credits than it is for those companies that have the EU’s favour. There are theoretically loans for these businesses but the red tape surrounding them kills the deal before it starts. Because of the risks involved, commercial banks are demanding three times the loan amount requested as security. The next problem is that of health which remains unregulated. Of course the large slaughter houses have strict veterinary controls which is not the case with the smaller ones.