Tnuva to raise competition on dairy production market

Israeli dairy products maker Tnuva is about to enter the Romanian market, thus increasing the competition in the field, according to executives of the main companies on the market. Tnuva is the first foreign company in this sector investing in a greenfield project in Romania.

The Israeli company is likely to be followed by two other international producers, Lactolymp and Meggle, which also plan to enter the Romanian market through greenfield investments.

Multinational dairy producers Friesland and Hochland started operations in Romania after buying local companies. Tnuva has invested €55 million in a dairy products plant and a farm near Bucharest, in Popesti-Leordeni. The company will start operating soon, as the plant is being subjected to technological testing, according to Sagit Tzur Lahav, Tnuva Romania’s Vice President and Marketing Manager. “The competition will become tougher, especially for fresh dairy products, which are a top seller and have the best price,” General Manager of local producer Covalact Sfantu Gheor¬ghe, Ioan Balan, told Business Standard.

Friesland Romania’s General Manager, Gerbrant de Boer said there is still room for competition on the market. “Tnuva, a company with tradition in Israel, is a serious competitor, whose coming to Romania could affect the market,” he added. The domestic dairy products market is worth some €800 million and forecasts for the coming years exceed €1 billion. Main companies on the market are international producers Danone, LaDorna, Friesland and local producers Albalact si Covalact.