CONCENTRATION AND CONSOLIDATION  TRENDS IN ROMANIA�S DAIRY  PRODUCTION AND PROCESSING SECTOR

Gina FINTINERU; Vasilica STAN; Elena STOIAN

Volume : II, Issue : VIII, August - 2013

CONCENTRATION AND CONSOLIDATION TRENDS IN ROMANIA�S DAIRY PRODUCTION AND PROCESSING SECTOR

Gina Fintineru, Vasilica Stan, Elena Stoian

Abstract :

Dairy production holds an important position in Romania�s agricultural economy. Roughly 725000 agricultural holdings provide 4075 million liters of milk annually, having a value of 1252.8 million euros, which represent 7.3 % of the overall agricultural production value. In the dairy processing activity approximately 11600 people are employed, generating a turnover of 0.9 billion euros.. During the last decade there has been a decrease in the number of dairy processing companies on the Romanian market and a consolidation and growth of the largest companies. This paper proposes to contribute to the understanding of the agri-food market concentration and restructuring process by examining the consolidation and structural change in the Romanian milk processing industry. The specific aspect of Romania�s milk production sector is the strong fragmentation that takes place at the milk producers� level. The processors� segment is much more concentrated, so that in 2011, 8 economic operators gather 57% of the sector�s turnover.