Polish milk processors up production
the back of rising demand both from the domestic and export
markets. Leading Polish milk processor, SM Mlekpol says that on the
back of this it is expecting to increase its milk production by at
least 20 per cent in the course of the next year.
Mlekpol president Edmund Borawski says that the company aims to increase sales in 2004 from ZL857 million (€179.6m) in 2003 to ZL1.3 billion. This will be achieved through boosting production from 595 million litres of milk in 2003 to 725 million litres in 2004.
The main driving force behind the increase will be exports, says Borawki. But it isn't only increased opportunities in the expanded Europe that will drive anticipated demands. He says that the company has also received business offers to supply companies in Africa, South America and Asia.
The company has done much to target the export market, mainly supplying demands for milk powders. Currently exports account for around 30 per cent of the companies total turnover, but by the end of this year that figure is expected to increase to 50 per cent.
In an effort to meet the increased demand, Borawaski says the company is planning to invest around ZL50 million to develop the company's production capacity. This will also help it to launch a number of new products, including cream and condensed milk.
Last year Poland's overall Milk production showed an increase of 1.2 per cent, bringing the yearly total to 11.346 billion litres, a significant rise given the volumes. According to Elizabeth Nitecka, president of the Association of Private Dairy Processors, the increase was down to rising production capacities fed by increased demand on the domestic market. However, she also agrees that export markets are likely to be a further boon to the sector this year.
"Polish milk processors are expected to benefit from increased exports more and more in the future as they have a competitive price advantage," said Nitecka. "Milk processors are targeting export markets because they want to obtain higher prices for their milk than they can sell at on the domestic market. Some 210 dairies have now met the EU's requirements for hygiene and safety and this will allow them to increase their export opportunities."
Although a lot more is developed than many eastern European countries, the market for processed milk in Poland still has the potential for further growth. Of the total milk production in 2003, only 8.97 billion litres of milk was fully processed - the rest was sold in open markets or directly from the farm.
