Covalact plans a 20% rise in net sales in 2008

The company estimates some RON 75 mln (about €21.5 mln) worth of business in 2007, a 16 percent annual rise, Ioan Balan, Covalact's General Manager, told Business Standard. The company posted a 20 percent year-on-year increase in net sales in the first nine months of 2007.

Since the U.S. SigmaBleyzer Southeast European Fund IV (SBF IV) investment fund took over the majority package of Covalact Sfantu Gheorghe, the dairy producer plans to double its production capacity and market share by the end of 2008, according to Balan. Covalact currently produces some daily 80,000-100,000 liters of fresh dairy products, and has a 2 percent share of this market segment, according to own estimates.

The domestic dairy market is valued at €800 mln and main players are Danone, Friesland, Albalact, Brailact, and Covalact.

The consumption of dairy products in Romania is the lowest in the European Union. Annual per capita consumption is some 5.4 kg of fresh dairy products, while that in Germany can reach 33.6 kg, and in Bulgaria 16.2 kg, according to data supplied by producers.