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Croatian government ministers meet Lactalis representatives - extended

ZAGREB, April 4 (Hina) - Lactalis plans to continue developing Dukat dairy company, which will be its basis for regional expansion, and all of Dukat's contract farmers will keep their contracts, it was said at a meeting between Croatia's Deputy Prime Minister Damir Polancec and Agriculture Minister Petar Cobankovic and representatives of Dukat's new owner, the French company Lactalis, led by company owner Emmanuel Besnier.
ZAGREB, April 4 (Hina) - Lactalis plans to continue developing Dukat dairy company, which will be its basis for regional expansion, and all of Dukat's contract farmers will keep their contracts, it was said at a meeting between Croatia's Deputy Prime Minister Damir Polancec and Agriculture Minister Petar Cobankovic and representatives of Dukat's new owner, the French company Lactalis, led by company owner Emmanuel Besnier.

Speaking to reporters after the closed-door meeting which lasted almost two hours, Polancec said the Lactalis management had presented the company and its plans regarding Dukat, its employees and contract farmers.

Polancec said he was satisfied with Lactalis's clear intention to make Dukat its basis for regional expansion regardless of its future acquisitions.

Lactalis has experience in increasing milk production, which it intends to do in Croatia, in cooperation with the Croatian Agriculture Ministry.

Polancec said he was satisfied with the statement by the company management that Dukat would keep its present contract farmers and that there was a plan to increase production for each group of contract farmers.

Besnier said that Dukat was an excellent company which Lactalis intended to continue developing.

Lactalis has never let its producers down and it plans to continue developing the dairy industry in Croatia, Besnier said.

He added that Dukat's products would be exported to markets where Lactalis was present, and that Lactalis products would be distributed on Dukat's markets.

Asked how he intended to settle the dispute with the "Konzum" chain of stores, whose owner Ivica Todoric has decided to stop distributing Dukat products, Besnier said he would talk with Todoric and persuade him that Lactalis was a strategic partner for Konzum.

Agriculture Minister Petar Cobankovic said after the meeting that Lactalis was an impressive company with great potentials.

"After this meeting, we can be calm and assure the producers that they have a good future," the minister said.

After the Zagreb meeting, a member of the Lactalis management, Daniel Jaouen, manager for international and European markets, told a news conference that the French company was planning to make Dukat the centre of dairy development in the region.

Dukat CEO Mato Zadro said that an in-depth analysis and long negotiations about the future development of the Croatian company had preceded the agreement on the acquisition of a 91.5% stock in Dukat by Lactalis.

Zadro portrayed Lactalis as the best partner for his company's progress.

In response to a reporter's question about Lactalis's investments in Dukat, French representatives said that they could not yet give exact figures.

Asked whether the transaction had been carried out, they said that it was in mid-March that the outgoing owner Luka Rajic decided to sell his stake to the French company. The entire transaction is to be completed by the end of June.

Lactalis is the second-largest global group in the dairy sector processing 7.8 billion litres of milk annually. This year Lactalis plans a turnover of 9 billion euros.

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