Negotiations with Wal-Mart started this summer and U.S. citizen of Greek origin Victor Hellas, LaDorna’s designated representative in the U.S., is in charge of the. The company studied the U.S. market to identify all business opportunities, Valvis said in an exclusive interview.
He estimates this step to be a real go for LaDorna’s finances. “We anticipate that exports to the U.S. will be twice as high as what we currently export to Greece,” said Valvis. U.S. demand consists of bio-products, such as emmenthal, cheese and cottage cheese. According to LaDorna forecasts, the US market will absorb 50-60 percent of the company’s 2008 production capacity. Greece takes in some 90 percent of the current export-dedicated production, and five percent of total production, representing the first country LaDorna exports to, since 2004. Other markets with LaDorna presence are Germany, Britain and Spain, where Spanish retailers made requests for Romanian dairy products to be able to offer them to Romanians working in Spain.
“In about 2 – 3 years we will become the largest European producer of bio-products. We are counting on the potential offered by the 4.8 million hectares of Romanian grassland that have not been contaminated by nitrate, nitrite or pesticides,” said Jean Valvis.
LaDorna estimates €44 million worth of business in 2007, with profits up to four million euros. For 2008, the company forecasts business to go up to €58 mln, and profit of some €6.4 mln.
LaDorna’s bio production comes from the 44 farms that are already operating in Romania. By year-end, a further 120 farms will start production. LaDorna warrants farmers interested in bio production to take loans from the largest local commercial bank, Banca Comerciala Romana (BCR). The bank is financing half of the project, the remaining half coming from EU funds. The necessary funds for a bio farm amount to €120,000, and LaDorna intends to support the establishment of another 150 farms in 2008.
“We are counting on the potential offered by the 4.8 million hectares of Romanian grassland that have not been contaminated by nitrate, nitrite or pesticides Jean Valvis President, LaDorna