“We are in advanced talks to acquire dairy plants in other countries of our region, including Lithuania and the Czech Republic. The first acquisition will be finalized next year”, Dariusz Sapinski, Mlekovita CEO said.
These are going to be mid-sized plants which Mlekovita will use as production and distribution centers. It wants to produce its Polish brands there as well.
“We already export our products. When we produce them in these countries, it should be easier to develop sales. Danone or Zott had done the same in the past in Poland”, Dariusz Sapinski added.
Experts believe that Mlekovita, similarly to Danone or Zott, will focus on yoghurt production in its new markets.
“Yoghurts are highly profitable, and far less demanding than cheese production. Mlekovita brand may be successful in neighboring countries if consumers like them and prices are attractive”, representative of one of big dairy companies said.
“According to figures for the first half of 2008, milk production in the Czech Republic and Hungary is falling. The reason are falling prices and growing production costs. This means that these countries will need to import more, which is an opportunity for Polish companies, including Mlekovita”, Jadwiga Seremak-Bulge, expert of the Institute of Agriculture and Food Economy believed.
In her opinion, the timing is perfect to enter the Czech market. The situation is not the same with Lithuania. There are no problems with milk, and Mlekovita’s headquarters are not far away from the border.
“Milk prices in Lithuania are low. I believe that Mlekovita’s acquisitions
will be mainly focused to get access to milk while in the Czech Republic – to
get access to a new market”, Jadwiga Seremak-Bulge said.