Ehrmann to bring in second yoghurt line - Brief Article

Eurofood, Sept 27, 2001

German yoghurt producer Ehrmann is planning to bring in a second production line for yoghurt production, at its plant in Ramenskoye outside Moscow. A company press release puts Ehrmann's overall investment in expanding its production in Russia at more than DM30m (15m [European Dollar]).

The introduction of three new technological lines will make it possible to up milk processing by 150 tonnes to 200t per day. The enterprise currently processes more than 200t of milk per day, supplied by Moscow region dairy farms. The initial stage saw 30t of milk being processed daily. The company estimates that its yoghurt products command 30% of the Russian market.

The Ramenskoye plant officially. opened its doors in August of last year. Some DM80m had been invested in the project. Ehrmann spent DM6m of that on the development of that agricultural enterprises in the Moscow, Ryazan and Vladimir regions that it gets its raw material from.

Production capacity make it possible for the company to process up to 500 000 litres of milk a day.

YOGURT CONSUMPTION TO GROW

Specialists at the large German yoghurt-maker Ehrmann are saying that yoghurt consumption in Russia is on the way up.

Executive board chairman at the company Anton Ehrmann said that per capita yoghurt consumption in Russia is now around 1.5 kilograms per year. It is 16kg in Germany.

Russia has great potential as a market for yoghurt, the Ehrmann specialists say, confident that there will be no problem selling product even if production doubles with the new line. The plant is now processing around 200t of milk per day, where 30t was the figure at the first stage of the game. The plan for the future is increasing the plant's production capacity so it can process 500t per day.

Ehrmann's yoghurt commands 30% of the Russian market, and the company holds second place in yoghurt production after the domestic producer Wimm-Bill-Dann.

Ehrmann has been on the Russian market since 1994. It began building its own production facilities in the Moscow region in the autumn of 1998, putting DM80m into the project. The second line has cost the enterprise another DM30m. Ehrmann has invested around DM150m in Russia since 1994.

Company specialists are forecasting Ehrmann's turnover this year to reach DM150m.