The milk processing industry in Romania faces an unprecedented crisis. Over 180 plants were operating in the past but their number decreased last year by almost one third.
The situation is particularly worrying, as Romanian milk processing plants are being forced to restrict their activity due to the large production costs, the retailers, who prefer purchasing imported milk at lower prices and, last but not least, the consumers, who do not support the consumption of local products.
Unfortunately, the Romanian government promotes a policy of excessive taxation, with VAT for basic food at 24%, while the energy price for producers is also at a very high level.
Given that milk quotas are to be eliminated this year, which will worsen the crisis affecting the Romanian milk processing industry:
What are the Commission’s recommendations to the Romanian authorities in order to maintain the competitiveness of the milk processing sector?
What alternatives are there for milk processing plants that are faced with the prospect of restricting or closing down their business?