Dairy Innovation Storyline
The average farm size in the Ljubljana Metropolitan Region (LjMR) – Slovenia is 6.4 ha of agricultural land (grassland and fields). Small farms are generally oriented to the local market. Amongst 70,000 farms, 6,883 dairy farmers produce a total of approximately 600,000 tons of milk annually, of which 530,573 tons are processed in dairy factories. In Slovenia, factories process 356,372 tons of milk. Besides milk, they produce 17,994 tons of cheese, 2,585 tons of butter, 33,915 of fermented products. Export is mainly a consequence of higher prices of milk in neighbouring countries (Italy). Self-supply in Slovenia is 120%; consumption is 219 kg/person and the milk price is around 30 €/100 litres. Farmers are mainly organised in big cooperatives (zadruga) covering local entities or regions.
Slovenia exports 33% of its milk. Slovenia has generally small scale productions. Only the biggest companies in processing food are competitive enough on the market. However, when they become big players on the market, they are usually privatised and sold to international food groups. Grass production is not exploited at its full capacity. However the terrain is not favourable for dairy production, but rather for suckler cows for later meat production. Dairy cow production, due to its intensive technology, can reach its highest added value, which is better than grain production from flatlands.
Innovations GAS: Merging small cooperatives into one big one to become a major player on the market, capable of negotiations with big Dairy Milk processors. Organic production of milk. GMO-free production of milk. To reach that: Redesigned roles between producers, cooperatives and milk processors. Jointly defined objectives and performances for all producers if they are organised in one cooperative or if they produce organic or GMO-free milk. Creating information transparency and consumer security. The consumer gets organic milk and products produced without artificial plant protection products, mineral nitrogen, with animal welfare at its maximum, etc. Tracing the origin of the milk and feed products from the farm to the shelves.
Innovations MAS: Standardised quality and looks of the product with a regional/metropolitan origin. Integration of producers at the regional metropolitan level is preferred. Unified knowledge and its transfer into practice. Directed/focused in providing constant food supply with the possibility of the sale/export of surpluses. To reach that: Common/uniform action/looks of the producers on the market. Better visibility on the market. Buyers/wholesalers get good and constant quality. Unity of the producers facilitates the supermarkets, customers. Merchandisers satisfied with regular supply of steady quality regardless of the producer. Due to production planning, consumers can choose between a wide range of products from a variety of production technologies (organic, integrated, and conventional).
Highly expressed GAS in milk production would cause environmental problems with groundwater resources. These influences are already seen through high levels of nitrates in all major alluvial plains and karst sources. Concentrations of nitrates are at certain points well above guide levels of the Water Framework Directive. The main cause is intensive forage production for dairy cows. The establishment of a common regional trade mark/brand and FoodHub on MAS level would be beneficiary. Due to the common action and standardisation of the processes and technologies food regionally produced is better in quality and at least equal in prices.
In recent years the idea of vending machines for selling raw milk directly from the farms has been very successful. The system was developed in Switzerland and improved in Italy. Farmers sell only fresh milk, which is not treated with heat. Preserved at 4°C, milk can last for 3 days. Right after you buy milk you can drink it raw. However, health authorities advise boiling the milk before use. Milk bottles can be bought at the vending machine or you can use your own container. The milk is priced at 1 EUR per litre or less. Vending machines are placed all over Slovenia at market places, supermarkets and high-density residential areas (apartment blocks). They were introduced due to the low market price of milk and consumer demand. People have the choice to use raw, fresh milk without additional treatments in factories. They can make yoghurts, cream, butter, cottage cheese and cheese. All producers need to be registered and they have to fulfil EU Regulation No. 852/2004, 853/2004 and the HACCP standard. Milk quality and machine cleanliness is regularly checked by the Administration of the Republic of Slovenia for Food Safety, the Veterinary Sector and Plant Protection.
Useful links:
http://www.mko.gov.si/si/delovna_podrocja/kmetijstvo/kmetijski_trgi/