LaDorna to exceed 100m euros in 2007

LaDorna group, one of the major players in the dairy industry, owned by businessman Jean Valvis, estimates it will reach turnover worth 100 million euros in 2007, as it plans to tackle new market segments and to expand its raw material collecting system.

“The only hurdle in the way of our expansion is the lack of raw materials, but the collecting system has now expanded to Dobrogea and the north of Transylvania, allowing us to grow our business and to diversify the supply of products targeting final consumers,” said Jean Valvis, chairman and the majority stakeholder in LaDorna group.

According to Valvis, the group is already in the final testing phase for yoghurt and telemea (Romanian cheese specialty) and is to launch these products in early November.

“We”ve entered a new stage in the development of our business, in which we will invest to conquer new segments of the dairy industry,” the LaDorna chairman also said.

This year, in the wake of investments worth more than 5 million euros, the group started operating two new production facilities, LaDorna Agri, producing yoghurt and cheese, and Lactate Dobrogene, focused on feta cheese and pressed cheese. Through the investment in LaDorna Agri, the company entered the segment of yoghurts, deemed as of the main growth engines for the following period.

LaDorna group, owning nine production units in Moldova and Dobrogea, this year expects turnover worth 45 million euros, 32% higher than in 2004.

“So far, we have registered a 15% growth pace, but the last months of the year largely influence the consolidated turnover of the group,” Valvis added.

The expansion of the milk collecting system started in 2001, when LaDorna was buying the raw materials only from Suceava county.

At the end of 2004, the collecting area covered another three counties in the north of Moldova, and this year milk collecting units in the group expanded to four counties in the north of Transylvania, as well as in Dobrogea, in Tulcea and Constanta.

LaDorna also completed investments worth more than 14 million euros in the implementation of 120 euro-farms, with 50% of the investment covered from Sapard funds. The 120 units joined another 50 farms finalised in 2004.

Net benefits for a farmer joining the euro-farms programme initiated by LaDorna stand at 500 euros/month and these will get to 1,400 euros per month when the farm is amortised after an average period of 6 years.

Romania negotiated with Europe an annual milk production rate of 3 billion litres, but, at this moment, the milk industry only processes about 1.2 billion litres.

LaDorna also started exports of bio products this year, mainly to Greece and the Netherlands. dana.ciriperu@zf.ro