They closed the deal for EUR1.3 million (EUR1.05 million plus VAT), 80% lower than the asking price at the first auction this summer.
The money will not go to Tnuva but to its creditors, which include BRD, Banca Romaneasca and the National Bank of Greece.
“I bought the entire farm, the idea was me buying it but I didn’t have that much money so I turned to Marin Boraciu who owns the Albora slaughterhouse in Ialomita (southern Romania),” said Valentin Istrate, the cattle farm vet. “We will set up a new company, we have not yet decided on how to split the ownership but I will definitely be one of the shareholders. I will stay on with the farm to provide food to the cattle and everything necessary.”
The veterinarian says he is now in talks with several regional milk processors. “We are in talks to supply milk to Lactate Bradet. We also signed a contract with Lactag Pitesti.”
Marin Boraciu and Valentin Istrate bought about 950 head of cattle in this deal, 550 of which milk cows and the rest heifers and calves. The farm also has a two-row milking parlor and several stables for the cattle.
The farm has enough land available to build additional stables and increase the number of cows to 2,500. If it grew that big, it would be one of the ten largest dairy farms in Romania.
It is, however, vulnerable to fodder price, because it does not have arable land to grow its own fodder.
(English version by Loredana Fratila-Cristescu)