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Dairy sector highlights - September 1st, 2009
The dairy industry was not spared financial problems either: after experiencing a 20 pct setback in the first three months of 2009, business saw a rebound in the second quarter of the year due to
aggressive price-cutting campaigns by even as much as 30 pct. Providing more proof of the current financial difficulties, two manufacturers entered judicial reorganization following default on debts.
In the second half of this year, the dairy industry will be dominated by mergers and acquisitions rather than by companies facing financial impasse. The Competition Council (CC) approved recently the takeover
by Covalact Covasna of Primulact (Harghita), but also the acquisition by Primulact of Lactate Harghita, in a deal closed in April.
"In H2, we do not expect other companies to see financial trouble, because the market is on the good track and I think that by the end of the year it could get back to a slight increase. The hardships are
to come next year if the EU does not extend the compliance deadline for all processors to be able to complete ongoing projects. Otherwise, many of the 265 processors with updated licenses are in danger,"
said Valentin Blanaru, executive director of the Romanian Dairy Industry Employers' Association (APRIL).
Source: Agerpres
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