31 Octombrie 2008

Milk processors will resort to mergers to curtail the effects of economic crisis

Milk market will be dominated in the following period by merger of regional processors in order to cope with the economic crisis, said executive manger of Romanian Association in Milk Industry (APRIL), Valentin Blanaru.

“The next trend will be marked by a fusion among dairy products companies, so that expenses would be joined together. The first one to signal the trend was Albalact that merged with Raraul from Campulung Moldovenesc, acquiring 80% stake,” said Blanaru, NewsIn informs.

He also added that local and regional processors would coalesce between them or with bigger companies.
As for number of processors in the milk industry, representative of APRIL says that there are 305 companies registered on the field at this moment.

Blanaru estimates that in first half next year new milk processors will emerge on the market.

“There are already ten projects for milk processing in SAPARD project whose products will be out on the market first half next year, and five projects have been submitted to National Program for Rural Development”, APRIL’s executive director added.

He estimates that milk industry rose 15% this year and will reach 1 billion euros.

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