The dairy market will exceed the one billion euros mark over the next three to four years, while the industry will process 2 billion litres of milk per annum, almost double the currently processed quantity.
"Following European Union integration, the dairy market will be much bigger. There will be more types of products, innovations for consumers, new opportunities coupled with a more modern consumption trend. The new consumers of cereals, coming to enrich the dairy market, are one example in this respect," says Valeriu Steriu, chairman of the Milk Industry Employers Association (APRIL).
In his opinion, the market will go beyond the value of one billion euros prior to 2010.
At present, the value of the market exceeds 750 million euros, in the context where Romania has negotiated with the EU a quota of 3.3 billion litres of milk annually, of which only 1.2 billion litres are currently industrially processed.
The growth pace of this market will mainly depend on two factors, in the opinion of Gerbrant de Boer, the general manager of Friesland Romania, the biggest player on the dairy market.
"The rising purchasing power will also generate a market increase, but the growth pace would not be higher, in this case, than 2-3% annually. A much speedier pace, of 10-15%, could be posted annually in case the black market shrank, a situation largely depending on the moves to be made by authorities," says De Boer.
According to the main players in this industry, the dairy market is on the rise because of the development of the domestic sector, with the growth to be sustained during the following period, too.
"Better informed consumers are increasingly more delighted with the brands policy in the milk industry," says Steriu. This is also a factor driving the growth of the market of industrially processed products at the expense of self-consumption or sales in agrifood markets.
"Starting January 2007, new products, superior in terms of packaging, will emerge, and they will entice consumers," Steriu also says.
On the other hand, Gheorghe Petrisor, head of acquisitions with Danone company, says that by 2008 more than 70% of milk quantities will need to be industrially processed for higher competitiveness on the European market.
At this moment, almost 500 companies operate on the dairy market, of which only 100 have poured investments for adjustment to food safety norms. Of these, less than 80 are licensed to export in the European Union, in line with APRIL data.
One of the most important features of the market is its fragmentariness, with most players being small, domestic companies. There are only few multinational companies, concentrated at the peak of the market, though.
dana.ciriperu@zf.ro
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