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 | | EASTERN EUROPE DAIRY MARKET REPORT 2006-2012 | | | 3A Business Consulting | | 28/02/2008 | | | Dairy products, ingredients and industry in Eastern Europe and Russia – With large market potential, milk supply is a real challenge.
A new report from 3A Business Consulting entitled: “Eastern Europe Dairy Market Report – Dairy products, ingredients and industry in Eastern Europe and Russia” has been formulated to analyse both the historical development of consumer products and dairy ingredients in the region and forecast the large market potential that exists. At present, demand for dairy products is already exceeding the milk production of the region and as economic growth and hence consumer demand continues to increase, milk production and raw material supply will become a considerable challenge.
Current import levels are approximately 7 million MT of liquid milk equivalents and the increase in demand will require an additional regional milk production or import of dairy products of some 10 million MT by 2012. Whilst the dominant growth segments are cheese and yoghurt, the rapidly developing food service and food processing industry will inevitably lead to increased demand for quality and value added dairy ingredients “Unlike many other emerging dairy markets, this region has a cultural and historical connection with the consumption of dairy products. Consequently, a simple comparison of per capita consumption between Eastern Europe and Western Europe clearly illustrates the enormous market potential” stated Tage Affertsholt, Managing Partner from 3A Business Consulting. The report covers the 9 new Eastern European EU Member States, as well as Russia, the Ukraine and Belarus. Therefore, it encompasses a market of 270 million consumers and includes information relating to the production, importation, exportation and consumption of the specific dairy market segments:
Liquid milk
Yoghurt
Butter
Cheese
Milk powders and dairy ingredients
The dairy sector is analysed with particular emphasis on the major national and foreign dairies that operate in the respective dairy markets.
At present, more than 30 foreign dairy companies have a presence in the region, many of which operate with local processing facilities, including such multinationals as Nestlé, Unilever, Danone and Kraft. However, it should be noted that many dairy companies have also established manufacturing plants in the region, including Campina, Friesland Foods, Hochland, Ehrmann, Müller, Nordmilch, Meggle, Lactalis, Bel, Bongrain, Euroserum, Arla Foods and Valio. Furthermore, the large Russian dairy company - Wimm-Bill-Dann - is also active in several of the markets outside Russia.
The foreign companies process a large proportion of the milk in the region and are playing a leading role in developing the dairy sector through investments in new technology, innovations, product development and marketing. In addition, vertical integration is a key area where the foreign and domestic dairy companies invest in improving the milk quality and the cooling chain to secure dairy products of high quality. | |
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