INTERNATIONAL SCIENTIFIC DAYS 2008

BOJNEC, Š.

RESTRUCTURING AND COMPETITIVENESS OF DAIRY PRODUCTION IN SLOVENIA
RESTRUCTURING AND COMPETITIVENESS OF DAIRY PRODUCTION IN SLOVENIA

Anotácia:

Abstract:
This paper analyses restructuring and competitiveness of dairy production in Slovenia. We present some evidences on market developments in the Slovenian dairy sector focusing on restructuring, quality improvements and competitiveness of milk production to provide lessons learned and policy implications. The Slovenian agricultural and dairy sector policies have been adjusted to the Common Agricultural Policy of the European Union (EU). The dairy markets and dairy processing in Slovenia have undergone substantial adjustment changes and harmonisation of quality standards towards the EU standards. During these adjustments and harmonisations, the Slovenian dairy sector has experienced considerable structural changes with implications for domestic dairy markets. Slovenia is a net exporter of dairy products. Dairy production in the past has been protected, which caused the lower level of international competitiveness. Nominal and effective protection rates for dairy products have been relatively high, while international competitiveness measured by domestic resource costs indicated a lack of international competitiveness. With the introduction of comparable EU quality standards the purchased milk of higher quality has increased substantially. An increase is also recorded in the relatively low yield per cow, whereas cow milk production is concentrated towards more efficient family farms. Some small producers stopped with milk production. With the exit of traditional, smaller family milk producers, the commercialisation and concentration of cow milk farms have increased towards more productive and efficient larger family farms specialized in milk production. A shift in milk production from family household's subsistence needs towards greater commercialisation of farms have occurred and the share of marketed production outside the family households increased. At the same time, there is a considerable reallocation of existing factors in the dairy sector.