Today: May 24, 2016, 10:01 am

Croatia Packaged Food Market: New market research released
Cheese in Croatia - a new market research report on 2014-04-10 16:47:02
As the prices of cheese rose, the prices of raw milk plunged, as Croatia joined the EU. At one point, in 2011, the buyoff price of raw milk in Croatia was 30% above the EU average. Currently, the price is at 34 cents per litre, which is even below the EU average. Prices are now freely formed by the market, and dairy companies have clearly shown that they do not need local milk at all to function normally. Local milk suppliers are ceasing their production of milk, because their high overhead costs due to small farm sizes do not allow them to make any profit.

The leader in dairy in Croatia is Dukat, a member of Groupe Lactalis, which is set to lead cheese with a 32% value share in 2013, followed by Vindija with 12%. Its mother company used the Croatian subsidiary to acquire the Slovenian dairy leader, Ljubljanske Mlekarne, and subsequently Dukat will be used as the regional hub for Lactalis´s operations in Southeast Europe.

The turning point for cheese may have already happened, in July 2013, when Croatia joined the EU. Retailers aggressively lowered their prices, and amongst other promoted products, cheese was one of the most common. This could bring a plethora of imported cheese brands which are cheaper than those currently offered, which would not be a major problem, as the current manufacturers will use their dominant positions to achieve substantial profits. Lactalis will probably gradually replace local brands with global bands, which has already been the case with Président.

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