Dairy firm Tnuva files for insolvency in Romania

Israeli dairy producer Tnuva filed for insolvency in Romania last week, with a first court date set for this week. The company had already announced to its suppliers that it will go insolvent. This comes soon after local and international media reported on the upcoming insolvency after massive losses in Romania. The company could not compete with lower price, imported dairy products, while its production costs were 50 percent more expensive than those for local dairy products, according to Israeli media. According to international media, Tnuva invested around EUR 60 million in Romania. Tnuva Romania Dairies posted a turnover of EUR 17 million in 2010 and a net loss of around EUR 16 million. The year before, its losses stood at EUR 22.6 million, while its turnover was of EUR 21 million. Tnuva entered the Romanian market with the help of a EUR 15 million loan from the European Bank for Reconstruction and Development (EBRD). The company bought a farm in Adunatii Copaceni for EUR 1 million and modernized it, only to close it in March 2011, as it was not profitable. editor@romania-insider.com (photo source: Tnuva)