Addressing concerns that the elimination of milk quotas in the EU as of April 1 will lead to cheaper milk imports, Constantin said local farmers should not be worried because EU forecasts point to a 1% growth in milk production.
“What we need is improved collection, particularly in mountain areas. There is also the issue of price and the most awaited measure is to lower VAT on several products, including milk. By lowering VAT, we hope to relaunch consumption and maybe reach better producer prices,” the minister said.
The EU will eliminate the quota system as of April 1 and each member state will be allowed to produce as much milk as it wants.
APRIL, the local association of dairy producers, has expressed concerns over cheaper imports and estimates the number of dairy manufacturers in Romania will drop from 130 to around 70 by the end of the year. The association estimates the local dairy market at around EUR900 million.
The top dairy producers in Romania are Danone, Albalact, Friesland, Olympus, Delaco and Hochland.