Polish dairies under threat

Eurofood, Dec 3, 1998

Around 90% of the 280 Polish dairies and dairy co-operatives are likely to change hands or go bankrupt. According to the director of one of Poland's leading dairies, Spomlek, the market only really has room for the best 20 or 30 dairies. Around 20% of dairy products in Poland are produced by foreign companies, and this trend is growing.

Many dairies which until recently were able to export most of their output to the CIS countries are now trying to offload it onto the domestic market - which has reached saturation point and is therefore highly competitive. The best dairies are subject to export quotas to the European Union, and the Polish government is trying to negotiate similar quotas for the United States. The US boasts a high demand for hard cheeses like those produced by Spomlek and other leading dairies. If the government's negotiations are successful, Polish dairies will begin exporting hard cheese to the US next year.