Romania’s Largest Cattle Farm Signs Three-Year Exclusive Contract With Danone

05.31.2011 By Roxana Petrecu

The group of German and Dutch investors that earlier this year announced a EUR8 million investment into the largest cattle farm of Romania (2,000 heads), have now signed a contract to sell the milk production to France's Danone, the principal yogurt producer on the local market.

The investors, who own ten farming companies managed in Romania through the DN Agrar Group, also have an exclusive contract with Albalact, producer of the Zuzu and Fulga milk brands. In February, they paid EUR4.7 million for a farm developed by Albalact in Hunedoara county.

In addition to this farm, the investors have stated they would build a cattle farm in Garbova de Sebes, Alba county. The investment will be carried out through DN Agrar Apold, controlled through the DN Agrar Group.

"So far, we have invested EUR4 million into the Garbova farm, not taking into account the price of the cows.

For the milk produced here, we have signed a three-year exclusive contract with Danone," said Sorin Anderco, general manager of the DN Agrar Group.

According to Danone, the company collects over 200 tons of milk from the around 70 partner farms every day. The producer has recently announced it would begin to invest in expanding the production capacity of its Bucharest facility.