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Condition of the Serbian Milk and milk products market
For the purposes of this article:
a: 1 kilogram = 2.2 pounds [USA]
b. 1 liter = .973 quarts [USA]
c. ostale mlekare/other dairies = Zemljoradnicke zadruge, privatne i drustvene mlekare/farm and field workers unions, private and state owned dairies.

There are three characteristic conditions of the milk and milk products industry in Yugoslavia:
1] the presence of a large number of dairies;
2] highly fragmented production segment ( a high number of small milk producers);
3] low utilization of a the total capacity for milk and milk product production.



Overview

The production and sales of milk and milk products is covered by 36 industrial and almost 130 private dairies which and includes the societies [unions] of field workers. The production of milk is accomplished on a great number of smaller farms and farms which are owned by the state. The largest percentage [80%] of milk cows are controlled by private dairies and producers.

The total production of raw milk in FR Yugoslavia is close to 1,8 billion (B) liters, annually. Less than 50% is used by industrial processors and, the remaining stays with the primary producers for their personal use and, the feeding of calves. Taking in to account the above data, it is obvious that milk production in Yugoslavia is far below the standard of the European Union, where 90% of raw milk is consumed by industrial processors and, only 10% remains on the personal estates for personal use and, the use of feeding cattle.

Quality of milk in FR Yugoslavia is also below the standard of the European Union. The standard amount of micro-organisms [bacteria] in production milk in Yugoslavia is 3million [M]/ml while in the countries of the EU this standard is 100,000/ml. At the same time, the total amount of somata cells allowed by Yugoslavia regulations [500,000/ml] is also above the standard of the EU [300,000/ml]. The structure of consumption of raw milk leads to the fact that the biggest part of raw milk given to dairies from primary producers is used for the production of pasteurized milk - close to 40%. The remaining raw milk is used in the production of various types of milk products - cheese 22%, sour milk drink products 16%, Ultra pasteurized products 10%, butter 4-5%, sour cream 3%, and the remainder of raw milk is used for the production of powdered milk. The average per capita milk consumption in Yugoslavia is 75 liters per year. In the urban areas consumption of milk is weaker, with 48l of milk and approximately 7l of milk products - which is modest when compared to rural households, which consume a much larger amount [81l milk, 11l milk products], due to greater access to primary milk producers.

The milk and milk products market has been traditionally dominated by domestic producers except in the sour milk products line, which have a higher added value. On the basis of world trends and, the expected internationalization of the domestic market here, in the mid term we expect greater competition from foreign producers.

Considering distribution, products are most usually sold by smaller sales points, a sector which is highly fragmented [i.e., there are no worldwide known, regional distribution centers]. Producers mainly distribute final products themselves, increasing the prices of the products and inefficiency of the distribution chain.

Source: PU Zajednica za stocarstvo i ministarstvo poljoprivrede RS

 Table of contents
Overview
 
1 Wholesale milk purchasing
2 Pasteurized Milk
3 Sour milk products and Sour Cream
4 Ultra pasteurized products
5 Butter
6 Cheese
 
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