“The main problem of this industry is the fact that no powdered milk producer now has the oval stamp, which guarantees that the product complies with European standards and can be exported in Europe. Secondly, the price is not as competitive as that from abroad, as production costs are higher in Romania,” the Manager of the Association of Employers in the Milk Industry (APRIL), Valentin Blanaru, told Business Standard.
The entrance of large foreign companies, such as Milupa, part of the French Danone group, Nestle, Humana, onto the local market led to a rise in imports and a decline in the market share of domestic producers.
In spite of the fact that domestic powdered milk cannot be sold in Europe, there is demand from America, and countries in the Middle East and Asia, but this is insufficient to encourage domestic production.
Before the ‘90s, the most important player on this segment was the Raraul Campulung Moldovenesc factory, taken over last year by Albalact, which invested over €2 million in modernizing the unit. The new owner will not concentrate on powdered milk production, as the company’s strategy targets portfolio expansion on the cheese segment. “Albalact will continue to produce powdered milk at the Raraul Campulung factory, but this segment is not a focus for the company in 2010,” Raul Ciurtin, Albalact’s President, told Business Standard.
