No new multinationals will come after accession, says Friesland

European Union integration will bring with it major changes in the dairy products industry but will not lead to investments in production from companies that have not entered the Romanian market yet, believe representatives of Friesland Romania, one of the main players on the dairy product market with over 70 million euros in turnover last year.

“The competition from imported products will be much stronger after European Union accession, as was the case for Poland, Hungary and Slovakia, but I don”t think that multinationals that do not have production operations in Romania yet will choose to invest in production. I believe it will be too late to enter the market with production operations,” Gerbrant de Boer, the Friesland Romania general manager, said.

De Boer said that one of the most important development directions for milk processors would be determined by expansion by retailers.

“The consolidation of retail will have a significant impact on processors, which will have to provide more services, as well as more competitive products,” De Boer said.

While the group”s sales through key account networks amounted to 25% of the total this year, they will reach 40% in 2008, the company says, once these networks have expanded.

“Our sales through retail chains have gone up compared with last year, which has led to an increase in our market shares, mainly outside Transylvania,” De Boer explained.

Friesland Romania expects 90 million euros in full-year turnover, an increase of 25% on 2004.

The group, which owns seven milk-processing facilities in Transylvania and Banat, posted a 20% growth in turnover for the first eight months of 2005 compared with the same time last year. dana.ciriperu@zf.ro