Status of milk production sector in Montenegro

Quantitative and qualitative parameters of the milk production sector in Montenegro, addressing both production and processing have been evaluated. In Montenegro, livestock production is focused on cattle, sheep and goats and to lower extent pig and poultry. Montenegro dairy sector characterized by small-scale farming. Milk production based on about 26270 farms with average herd size of 2.9 cows and milk yield 2700 kg/cow has a very different structure to that in the EU-27. The small-scale structure of Montenegrin milk production results in the sector operating with a number of inefficiencies at the production level. Regarding processing diary industry there have been the positive changes: new dairies were established, collection area is enlarged, range of products is also widened. Maybe the most promising change is cheese production and its presence in many markets. Total self-sufficiency rate of milk and dairy products is at a level of about 60%. The remaining needs are imported, which is around 30 million euros. In order to strengthen production and market position of domestic dairy products and to further develop dairy sector, as very specific and sensitive one, the efforts should be focused on remove weak points and to make stronger the whole value chain. In addition to the domestic support schemes, pre-accession EU support (IPARD) should target investments in primary production of milk and processing sector.