The consolidation which has marked Russia's dairy sector is spreading to neighbouring Ukraine, where Milkiland voiced an appetite for acquisitions, while Danone has latched on to Astarta's expansion plans.
Milkiland, unveiling 37% growth in underlying earnings said it "closely watches acquisition opportunities" in Ukraine, where it became the top cheese exporter last year.
Separately, Astarta unveiled a "strategic co-operation" with Danone, in which the French dairy giant has signed up for supplies, as well as to assist on plans to double the Ukrainian group's milk production to 100,000 tonnes between 2010 and 2015.
"Strategic partnership with Danone, with its broad international experience, will enable Astarta to bring [its] dairy business to a new level of efficiency," Astarta, the largest of Ukraine's industrial milk producers, said.
'New acquisition opportunities'
The moves follow a series of dairy deals in Russia which last year saw both Danone and America's PepsiCo unveil acquisitions, and where Milkiland raised to 94% its stake in its Ostankino Dairy Combine business.
And Milkiland flagged the prospect for consolidation in Ukraine as dairy groups to negotiate a "number of uncertainties" over subsidies from the government - which has preferred to support the milk sector through stringent application of import rules rather than direct financial help - and to tackle "fragile post-crisis demand".
"New acquisition opportunities may arise," said the group, flagging the "opportunities for expansion" offered by its flotation in Warsaw last year.
Ukraine's dairy sector is dominated by household farms, with industrial enterprises estimated by the US Department of Agriculture to account for only 20% of milk production.
However, many enterprises are believed to be open to tie-ups in the face of slow consumer demand ?especially businesses needing to refinance loans taken out for pre-credit crunch expansion programmes.
Price support
Milkiland unveiled its desire for deals as it revealed revenues up 30% at E259m for 2010, helped by higher prices as imports flagged early in the year, and as domestic production was limited by last summer's drought.
Earnings before interest, tax, depreciation and amortisation (ebitda) rose by 37% to E44.6m
Milkiland shares, which were priced at 33.78 zloty for December's flotation, closed unchanged at 42.00 zloty in Warsaw.
Astarta shares, which are also traded in Warsaw, closed up 1.0% at 94.75 zloty.
