Slovakia aims for radical streamlining

EUROPE – Central European republic Slovakia is investing 37 million euro in its dairy industry to radically reduce the number of processing companies in the country.

Slovakia currently has 70 dairy processing companies and wants to reduce this to between four and six large companies and up to ten smaller specialist processors. The country plans to join the EU in 2004.

Already there are 26 dairy companies in Slovakia processing in excess of 90% of milk production. These include established French multinationals Bongrain, Bel and Danone.
Slovakia’s milk production in 2001 reached 930,000 tonnes, with 93% of this processed by dairies. Planned EU quotas are likely to reduce the country’s annual production by around 10%.

Efficient cheese manufacturing is central to the survival of Slovakia’s dairy industry. Last year, Slovakia produced 50,000 tonnes of cheese. Only around 800 tonnes of that was exported, mainly to the neighbouring Czech Republic. The cheese export market offers great potential for Slovakia as it produces over 200 different cheeses.