Today: February 8, 2016, 7:13 am

Croatia Packaged Food Market: New market research released
Drinking Milk Products in Croatia - a new market research report on 2014-04-10 16:45:01
The prices of raw milk in Croatia were usually higher than the European average. This changed in 2012, with an abrupt fall in buyoff prices, hitting the bottom in September 2012, at HRK2.1 per kg of raw milk of standard quality. This decline brought Croatian raw milk prices to European levels. Of course, farmers were not happy about this, and have since been constantly protesting against the government´s policies. In 2013 prices increased, following the trend in the rest of the EU, reaching HRK2.5 per kg of raw milk in the summer, which is about €0.30.

Dukat leads drinking milk products sovereignly in 2013 with a 34% share of retail value sales. The acquisition of Dukat by the French company Groupe Lactalis in 2007 did not affect its share in any way. Dukat profited from its investment in product development and its network of suppliers established in its early years. As Lactalis also finished the acquisition process of leading Slovenian dairy manufacturer Ljubljanske Mlekarne, achieving 100% ownership in 2013, it affected the sales through Dukat, de facto making it the owner of Ljubljanske Mlekarne. This established Dukat as a regional hub which manages all of Lactalis´s operations in Southeast Europe.

Since Croatia is now within the EU, this will profoundly affect the Croatian dairy industry. The buyoff price will be regulated by market mechanisms, and local farmers will have to make peace with the fact that the industry is not obliged to take their raw milk. On the other side, a whole new market opens for them if they manage to organise in clusters, in addition to European money promised to agriculture to the value of HRK300 million each year. The dairy industry has already organised, forming the new association of milk buyers called CroMilk, immediately a member of EDA – European Dairy Association

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