“The main thing in times of crisis is to create a building that does not wobble and withstands storms and storms.” He emphasizes this when he speaks of “Dodona” and its resilience to the inflationary and energy crisis, Managing Director of Continental Dairy, a resilience also evidenced by the fact that in 2022 the company’s turnover exceeded 150 million euros for the first time in a decade. Speaking today at Kathimerini on Sunday, Mr. Michalis Panagiotakis reveals Dodoni discussions for synergy with DELTA Vivartia Group and announces acquisitions during 2023-2024. At the same time, this explains why Greece cannot ignore the decline in cow’s milk producers’ prices that is taking place in Western Europe, and also what it expects from the new government that will be formed as a result of this year’s national elections.

– If I could give an assessment of the year, I would say that we achieved some goals, and in others we followed the general trend. Our turnover has increased and exceeded 150 million euros for the first time in a decade, and our exports account for 50% of our sales. On the other hand, we have experienced a reduction in profitability due to the inflationary wave that has been haunting the economy for the past three years. As for the rest of the market, everything we’ve seen and experienced with huge price increases, from the primary sector to energy, packaging materials, transport, and intervention in wage costs, I can say that I’m particularly pleased in the end.

The main thing in times of crisis is to create a building that does not wobble and can withstand storms and storms. Over the past two years, we have seen situations and performance in the economy and sector that we have never seen before. Under these conditions, the company has demonstrated strong resilience. We continue to be one of the healthiest and most balanced companies in our industry. And I want to believe that little by little – and over time – we will begin to get out of this crisis tunnel.

– For another year, Doconi leads the feta market share even though the overall feta market is down 15%. Our percentages were much better in volume and of course in value of sales. Our market share in the milk we sell in certain regions has increased as ‘Dodoni’ has taken advantage – in a good way – of existing opportunities. So, putting that into last year’s evaluation process, the sign is positive again. As for the inflationary crisis, I would like to note the following: producer prices in January 2023 increased by 70% compared to January 2021. There is no precedent for this. Prices for finished products rose by no more than half of the total on the market.

This was done primarily because we all wanted to protect our markets and therefore give preference to the consumer without passing on the total cost increase, with all the ensuing consequences for all of us. And so I repeat that depending on what kind of building you have built, you can support prices or not.

The price of energy increased by 300% over the same period. Prices for packaging materials increased by 20%. Well, it all contributed to the anomaly in the market. The main pillar that has filtered growth and kept prices low is manufacturing. Dodoni, of course, followed the market in terms of price increases. In 2023, I expect the market to normalize. We must let the economy speak for itself because no one can control it.

In 2023, I expect the market to normalize. We must let the economy speak for itself because no one can control it.

We have made a small adjustment. I should, however, note the following: Friesland in the Netherlands recently announced a 10 cent manufacturer’s price cut. This is a movement that shows where the market will move. We should not ignore this in Greece, because when it comes to cow’s milk, I would say that the market is globalized. Many companies in Greece use milk from abroad. Therefore, everything that happens abroad directly affects events in Greece. We cannot ignore this, and if in the Netherlands and France prices are going down, then in Greece we have to say that we will not cut them.

“They are already starting to have liquidity problems. We haven’t seen “locks” yet because they come with a time lag from problems occurring, a lag that can be 12-18 months. An organization like Dodoni always has a desire to grow not only organically but also through acquisitions. In order for Dodoni to buy someone, the other person must also want to be bought. When the time comes, we will definitely take advantage of this opportunity. At the moment we cannot announce anything specific, but in 2023-2024 we will have something to say.

– Firstly, the markets have declined over the past two years, despite the fact that there was political stability. The feta market is down about 15% in 2022 compared to 2021, and the trend continues this year. In yogurt, the market fell by 6%-7%. Thus, factors related to the consumer’s income as such and overall accuracy primarily affect it. A possible political situation different from what they have experienced so far, I do not think that at this stage this will affect the psychology of the Greek consumers. In addition, over the past 15 years, we have faced the worst situations.

– Feta is a national product. And the industry must show the required responsibility and seriousness. The key is to maintain and ensure quality with transparent mechanisms that must act quickly to put out any fire should it break out without creating uncertainty in Brussels, whether we produce PDO or not. All feta producers must be checked and given a reason to report on their actions. I would say from the most specific to the most controversial, because this is the only way to solve the problem as a whole. In addition, there must be a clean criminal record.

I’m not saying that if someone is recognized as an illegal immigrant, he should be hung on Syntagma Square. However, we should all know that, depending on the illegality, there will be an appropriate punishment, which must be immediately enforced. If a fine is imposed, it must be paid immediately. Do not wait until it is paid, but in the meantime, so that the business continues to work.

New product categories and synergy with DELTA

Dodoni plans to expand further into the plant-based category while strengthening its presence in the hard cheese category with a recent investment in a new packaging unit.

The plant is on a great track. We are among the top three in this category and have a growth rate of about 5% -7% per month. We have an ambitious program for this category and we will soon see new products on the market. We are bringing snacks to market in November 2022. We are present in all major markets, we work in large networks, in small retail, in cafe chains. We are not affiliated as a brand in the snack category and I think we should put more effort into it. We look forward to meeting our sales targets for this year to see how we can invest in category enrichment over the next few years.

This year we are completing a two-year investment program worth around 7 million euros, which will support other new food categories in the plant food group. We are also developing our category of hard cheeses (graviera, kefalotiri, etc.). We always had them, but for us it was more of a niche category.

– Dodoni’s majority shareholder is CVC, which also owns the Vivartia Group. Will we see synergy between Dodoni and DELTA?

– From time to time we discuss some synergies, some will be implemented, some, if it is not in the interests of a particular company, will not be implemented. They will be announced when we are ready.

Subsidies are an unhealthy model

“What I would like is the certainty that we are all within certain limits, regulated by laws, controls and penalties, within which we must all operate. I also believe that a state that supports its economy with subsidies is not a healthy model, as the practice of the last 40 years has shown. It is very easy for an entrepreneur to go over to the other side, to the dark side, to screw up, to overdo it, instead of being conservative and following a certain plan step by step. Finally, I would like to encourage young people to take up animal husbandry.

For example, a quality program could be set up so that everyone makes the most of best practices on their farms to achieve maximum quality, say, lipoproteins or something else directly related to milk production, and be funded by the state and industry. Greece has a small area. It cannot compete with other countries in terms of numbers. Where he should invest is in quality.