Romanian dairies process 50% more milk y/y in January-February despite shrinking domestic demand

In the first two months of the year, 353.5 thousand tonnes of milk from domestic production and imports were processed by Romanian dairies, 49.6% more than in the same period last year, according to Economica.net, citing data from the statistics office INS. While the domestic consumption, including dairy products, is shrinking, the exports are expanding.

Romanian dairies collected over 314.7 thousand tonnes of milk from local farmers in the first two months of the year, 51.3% more than in the same period last year, while the quantities of imported raw milk also increased by 37.2%, up to 38.7 thousand tonnes.

During the two months, 15.9% more butter was produced, namely 2,525 tonnes, 4.9% more drinking milk, namely approximately 67,000 tonnes, and 4.7% more acidified milk (yoghurt, drinking yoghurt), respectively around 41,100 tonnes.

Also, the production of sour cream (+1.4%) and cheese (+0.2%) increased slightly, in the context in which the production of processed cheese contracted strongly, by 7.6%, to 1,600 tonnes.

While the domestic sales are far from increasing, under the current negative dynamics of the overall private consumption, exports are supporting higher activity of the local dairies. The exports of dairy products increase, however, in the context of a deep trade deficit in the trade with some categories of dairy products.

For instance, the Brașov Dairy Factory produces under the Olympus brand and exports approximately 35% of its production from Romania to 23 markets, including Greece, its country of origin, but also to Germany, France, Great Britain, Italy, Sweden, and Bulgaria. Danone also makes important exports, whose factory in Bucharest practically operates as a production hub for surrounding countries.

(Photo source: Evgeniy Parilov/Dreamstime.com)