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Setting new dairy standards for Romania
Israel’s Tnuva and EBRD join forces with joint investment
The EBRD has signed an equity investment in two Romanian subsidiaries of Tnuva
Central Cooperative For the Marketing of Agricultural Produce in Israel Ltd.,
Israel’s largest food company. The company plans to establish a dairy plant
(TRD-Tnuva Romania Dairies SRL) and a milk farm (TRM-Tnuva Romania Milk SRL)
with a manufacturing capacity of 60 million litres per year. The plant’s
production will focus on fresh dairy products under the Yoplait brand and is
expected to start operations by the end of 2006.
Hans Christian Jacobsen, EBRD Director for Agribusiness, said the project will
be a good starting point for further cooperation with Tnuva. Bringing one of
the strongest fresh dairy brands to Romania will also improve drinking milk
standards in the country. The project is expected to have a strong
demonstration effect in terms of improvements in hygienic and quality
standards and work practices.
Hildegard Gacek, EBRD Director for Romania, said the Bank is proud to support
Tnuva’s first expansion to the EBRD’s region through the provision of equity.
The EBRD is ready to support Israeli investors in its countries of operations,
where it offers not only its financial products but also its knowledge of
local economies through a network of resident offices.
Liad Cohen, Chairman of the Board of Tnuva Romania and General Manager of
Tnuva Dairy, considers the cooperation with the EBRD as the first of potential
future collaborations in eastern Europe. It is an important step that
reinforces Tnuva Romania as a successful enterprise with a vital contribution
to the Romanian dairy market.
Romania is characterised by high per capita milk consumption and produces 4-5
billion litres of raw milk annually, overwhelmingly on micro-farms with 1-2
cows. However, milk quality is a major concern and meeting EU standards needs
to be addressed well ahead of EU accession. The project was very well received
in Romania and got both strong support and the cooperation from the Ministry
of Agriculture.
To date the EBRD has more than 250 projects worth around €4 billion to assist
the agribusiness sector throughout Central and Eastern Europe and the
Commonwealth of Independent States. In Romania the Bank has invested more than
€2.8 billion in a large number of sectors.
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