“We are not against exports, but we will consider this only in a few years, when we become Romanian dairy market leader,” according to a statement for Business Standard by Shmulik Porre, Chief Executive Officer and President of Tnuva Romania Dairy. He drew attention to the fact that in Israel, where Tnuva was developed, the company became market leader in eight years.
After some two years of activity in Romania, Tnuva now claims some 11 percent of the fresh dairy market, becoming the third-largest player both in terms of volume and value, after Danone and Friesland, said Tnuva representatives. “We are market leader on the flavored milk segment, with a share exceeding 80%, and we are also the first to have launched such a product here. When we entered this segment last winter, everyone told us we were crazy, and here we are number one,” added Porre.
Tnuva representatives believe the dairy market will rise this year by some 20 percent and will not be significantly influenced by the financial crisis. If it decides to effect a price hike, this will not exceed 10%, in keeping with rising production costs.
The dairy market is estimated at €1 billion, of which fresh dairy represents €300 million, according to estimates by market players.
Tnuva’s management expects a 50 percent year-on-year rise in sales in 2009, and an increase in its market share once it increases its product portfolio. At the beginning of the year, Tnuva added fresh milk (Laptele Meu) and fruit puree yoghurt to its product portfolio.
Upon establishing a greenfield factory and farms in Ilfov County, with €55 million from the European Bank for Reconstruction and development (EBRD), the company wants to reach a 5 percent market share for fresh milk. EBRD sold a 35 percent share package in the local branch at the end of last year to Apax Partners, a group of investors which acquired the majority global share package of Tnuva in 2006.
