The Lazine dairy will send surplus milk from the purchase to Serbia, where it would be packaged in UHT (long-life tetrapack) under their brand, and then returned to Montenegrin markets. The Ministry of Agriculture has taken on the responsibility of securing a permit from the Serbian authorities, due to the ban on milk imports in that country, as well as to participate in the costs of transport and packaging. Most retail chains will lower their margins on domestic types of yogurt, in order to speed up the sale of stocks, so a 1.5-liter package will cost about 1,65 euros instead of about 2,05 euros, and a 1-liter package will also be 20 cents cheaper and will cost about 1,09 euros.
This was agreed upon, among other things, at a meeting yesterday between farmers, dairies, retail chains and the Ministry of Agriculture, in order to resolve the problem of the current surplus of milk on the market, which is why dairies limited milk purchases at the end of last week. Several dairies and processors have stopped purchasing milk from small farmers who produce less than 100 liters per day, which has endangered around 400 farmers - small agricultural holdings.
President of the Association of Agriculture and Food Industry of the Chamber of Commerce (PKCG) Milutin Đuranović The director of the "Lazine" dairy told "Vijesti" that they will have a new meeting at the Ministry today to agree on the details of sending surplus milk for packaging in Serbia in UHT, so that purchase can then be normalized and small farmers and milk processors can be saved.
"Processors currently have a large surplus of milk and our cold storage facilities are full, and reducing purchases was a necessary measure. The surplus appeared for several reasons - switching dairy cows' diets from hay to grass, which significantly increases milk yield, increasing the number of dairy cows among some farmers, as well as importing dairy products. What we agreed on is to process these surpluses into long-life UHT milk, and since there is no possibility for its packaging in Montenegro, this would be done in Serbia," said Đuranović.
He stated that "Lazine" will provide packaging, and the Ministry will seek permits from the authorities in Serbia for temporary export for processing, given that there is a ban on milk imports in that country, as well as to cover the costs of transport and processing.
"This could be a permanent way to solve the problem of seasonal milk surpluses. They appear in the spring due to increased production, but also due to more non-working days in stores, we have them in early autumn after tourists leave, as well as during Lent. In order not to stop purchasing during these periods, one of the solutions is to make long-life UHT milk from the surpluses. Of course, the best solution would be to increase sales, that is, to increase the sale of domestic milk," said Đuranović.
He states that milk purchases have now increased by 18,4 percent, while sales have increased by 10 percent, which has gradually created surpluses. The largest surplus among processors and traders is in yogurt.
"The simplest solution for dairy farming, but also for other branches of agriculture and the food industry, is to buy domestic products. For example, if each household now bought just one liter of yogurt, the current surplus, which threatens the income of 400 farmers, would disappear in a day and a half. Our production is that small compared to imports, but it is significant for hundreds of families who live off it," said Đuranović.
He stated that retail chains offered assistance at the meeting, as they did during the crisis and the emergence of a surplus of dairy products in October, where they offered to increase the purchase of domestic dairy products, reduce their margins and offer them for promotional sales that would be prominently displayed in their markets.
"Retail chains have helped very correctly, as in previous cases, and we are very grateful to them for that. We hope that the purchase will normalize in the coming days and that this will be a permanent solution to seasonal milk surpluses, so that farmers and processors do not suffer damage," said Đuranović.
The Ministry of Agriculture stated in a statement after the meeting that new production lines in dairy farming were also discussed.
"It was noted that the growth in production represents a positive trend, but also an additional challenge in conditions of limited processing capacities. In this regard, it was agreed to intensify activities to establish new production lines, using available financing opportunities through the IPARD program. The Ministry will issue a public call in the coming period with the aim of systematically solving the problem of purchase," the Ministry stated.
Farmers expect normalization of purchases in two to three days
One of the farmers who participated in the meeting, Luka Ivanovic from the Agriculture Cluster, said that the normalization of milk purchases was announced to them in two to three days.
"A solution has been proposed to direct the surpluses to the production of UHT milk and send them for packaging in Serbia. We hope that this will be the solution and that the purchase will continue without reducing the purchase price of milk. Retail chains 'Voli' and 'Idea' have offered to reduce their margins on domestic milk and to organize promotional campaigns in order to sell the current stocks as soon as possible. The traders were very fair and even criticized the dairies for not informing them in time about the stockpiling before they limited the purchase," said Ivanović.
He stated that farmers must be more collegial and not allow themselves to be divided into small and large, and those whose milk will be purchased or not.
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