Friesland Foods, the dairy producer of Milli and Napolact brands, estimates turnover worth 130 million euros this year, up 20% against 2006, but below the 23% rate registered in the first ten months of the year.

Friesland representatives forecast the company's profitability will be hurt in the last quarter of the year, following a rise in the price of raw materials. According to ZF calculations, the Dutch group posted profit worth almost 9 million euros in 2006.

"Friesland registered turnover worth 105 million euros in the first ten months of the year, up 23% on last year. For the end of the year, we estimate turnover worth 130 million euros, and the same level of profitability as last year, with the exception of the last quarter of this year, which was affected by price increases for raw materials," said Gerbrant de Boer, general manager of the group.

According to previous statements from Ioan Balan, vice-president of the Romanian Association of Milk Industry Business Owners (APRIL), in summer, a litre of milk purchased from a collection centre cost 0.75 RON and between 0.85 - 1 RON from large farmers. These prices will increase, however, by 0.1 RON at the end of this year, and cause the price of local dairy products to rise by margins of 10 to 15%.

With price increases in raw materials, wages and energy, as well as greater competition in the wake of Romania's accession to the EU, Friesland recently decided to transfer production from its Satu Mare plant to Carei, a town also located in the Satu Mare county, in order to render the business more efficient.

According to company representatives, the maturation and pre-sale activities will remain at the current plant in Satu Mare, while Friesland intends to open a local logistic centre in Satu Mare next year.

Friesland Foods, the dairy producer of Milli and Napolact brands