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Farm minister: Croatian dairy industry hit by negative trends

Author: Vojo Micak

ZAGREB, July 5 (Hina) - The Croatian dairy industry has been hit by negative trends and may collapse if the situation continues, Agriculture Minister Tomislav Tolusic warned on Wednesday at a meeting of the council in charge of monitoring the situation in the milk production and processing sector.

Tolusic said that domestic production currently satisfied only 56 percent of the country's demand for milk, which was why Croatia ranked second last in the European Union, ahead of only Greece.

The minister said that all participants in the milk chain were responsible for the present situation, including the producers, wholesale buyers, traders and government.

He noted that Croatia had low milk production per cow, and that wholesale purchase prices and prices of milk at shopping centres were too low.

Tolusic announced measures to improve the situation, including a bill to prevent unfair trade practices, stricter import controls, and a new bill on agricultural land. He said that talks were under way with the Croatian Bank for Reconstruction and Development to reschedule loan payments for cattle breeders.

Tolusic said that his ministry would consider whether it would continue spending 700 million kuna in incentives for cattle breeding given that milk production and the number of farms were declining.

(Hina) vm

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