Govt. addresses milk shortage, dairy warns

The government adopted a regulation requiring dairies to make at least 40 pct of the daily amount of processed milk available as pasteurized or sterilized milk. Otherwise, the companies will face penalties, said reports. Govt. addresses milk shortage, dairy warns The regulation will be implemented starting December 31. Those who violate the rule will be fined with RSD 100,000-2,000,000 and could also be banned from conducting certain parts of their business for 6-12 months. The document was adopted to improve the milk supply on the market, preserve certain standards and ensure a balanced supply for the population, said a statement. However, Serbia's largest dairy, Imlek, says that this will not solve the lingering shortage of milk present in the market for the past two months. The company's general director, Slobodan Petrovic, says not all dairies are technically capable of producing only pasteurized milk, and that the regulation could end up creating a shortage of yogurt and cheese instead. He also noted that Imlek expected the market to settle in late October or early November, "without any interventions", adding that if the government wished to have that stability right now, "imports are the only short-term solution". However, Goran Tasic, who heads the State Commodity Reserves, denied that this scenario would play out, and says there is a sufficient amount of dairy products other than milk in stores. Since the milk crisis began, milk processing companies and the Ministry of Agriculture have shifted blame, with dairies such as Imlek saying that there was a shortage of raw milk, while the ministry claimed this was just an excuse to seek higher prices for their products.

Govt. addresses milk shortage, dairy warns

The regulation will be implemented starting December 31.

Those who violate the rule will be fined with RSD 100,000-2,000,000 and could also be banned from conducting certain parts of their business for 6-12 months.

The document was adopted to improve the milk supply on the market, preserve certain standards and ensure a balanced supply for the population, said a statement.

However, Serbia's largest dairy, Imlek, says that this will not solve the lingering shortage of milk present in the market for the past two months.

The company's general director, Slobodan Petrović, says not all dairies are technically capable of producing only pasteurized milk, and that the regulation could end up creating a shortage of yogurt and cheese instead.

He also noted that Imlek expected the market to settle in late October or early November, "without any interventions", adding that if the government wished to have that stability right now, "imports are the only short-term solution".

However, Goran Tasić, who heads the State Commodity Reserves, denied that this scenario would play out, and says there is a sufficient amount of dairy products other than milk in stores.

Since the milk crisis began, milk processing companies and the Ministry of Agriculture have shifted blame, with dairies such as Imlek saying that there was a shortage of raw milk, while the ministry claimed this was just an excuse to seek higher prices for their products.