FrieslandCampina boosts Greek stocks to meet Grexit stockpiling demand

By Mark ASTLEY contact

- Last updated on GMT

FrieslandCampina boosts Greek stocks to meet Grexit stockpiling demand

Related tags: European union, Greece

FrieslandCampina has boosted stocks of infant formula and condensed milk in Greece, where consumers are stockpiling food following the closure of banks.

In a statement sent to DairyReporter.com, FrieslandCampina said "higher stocks of products with long shelf lives"​ - including Friso infant formula and NoyNoy condensed milk - are being "held locally"​ in anticipation of consumer stockpiling. 

It declined, however, to discuss the extent of its stockpiling efforts in Greece. 

As a precaution, FrieslandCampina also paid its employees in Greece early to ensure "they have access"​ to their salaries.

Greek banks have been closed since the collapse of bailout negotiations late last week and cash withdrawals are currently restricted to €60 per day.

Months of talks between Athens and its creditors broke down last after Greek Prime Minister Alexis Tsipras called for an extension of the existing bailout and a referendum on the terms of a new plan, which has since been set for July 5.

Tsipras' request for an extension was rejected, the European Central Bank (ECB) has said it will not increase emergency assistance to Greek banks, and Greece is also expected to default on a €1.6bn loan repayment to the International Monetary Fund (IMF) later today.

noy noy

It is feared that without further financial support, Greece will be forced to drop out of the Eurozone.

"Possible scenarios"

Asked if it is prepared for the possibility of Greece leaving the Eurozone, FrieslandCampina, which controls the single largest value share of the Greek dairy market, said that "all possible scenarios are being considered."

It added that its "primary focus"​ is guaranteeing the "continuity of the group's activities in Greece."

“As far as funding and receivables are concerned, we’re liaising with our banks and customers on deploying customised solutions, depending on how the situation develops."

“If Greece is forced to leave the Eurozone, financial transfers are likely to be subject to restrictions, while the transition to a new currency will have to be phased in. A devaluation will also result in goods from abroad becoming more expensive for Greeks, and that will have an impact on exports to the country.”

“Leaving the Eurozone will ultimately affect the prospects for Greek economic recovery, while a departure from the European Union would be the worst possible scenario for all parties.”

It added, however, that the impact of any eventuality will be "limited"​ as Greece only accounts for between 2.5% and 3% of total revenue.

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