UNMIK RADIO

8 April 2003

LOCAL DAIRY PRODUCTS

(Hysni)

Hello and welcome to UNMIK on air!

Though farming is one of the main branches of agriculture, Kosovo still imports far more milk than it produces, and only 5 % of the milk consumed is processed and packed in Kosovo. The vast majority of the packed milk offered to consumers in urban areas is imported from Slovenia, Hungary and other countries.

Boosting milk production is seen as a key part of sustainable rural development and top Swedish company Tetra Pak hopes to make a difference in Kosovo and has come up with proposals for developing the dairy sector.

“Drini I Bardhe” (White Drini) is the name of the project and Tetrapak hopes that by 2007, Kosovo will not only produce enough milk for local needs but will also be able to export milk and dairy products.

Stefan Johansson, heads the “Drini i Bardhe” project.

Stefan Johansson: We see that there is an opportunity, a fantastic opportunity actually to build up an efficient and profitable milk and dairy industry in Kosovo, and further more step by step to build up a revenue to the government from this milk and dairy industry.

Driton Krasniqi owns the “Rudina” farm just outside Prizren. When he began working in the dairy business, he used to sell his milk to a local collector. Today, he has 120 cows, and hopes that Tetra Pak’s operations will make a difference.

Driton Krasniqi: I pack the milk in a simple way, daily fresh milk without pasteurizing, to be used within 48 hours. I am happy, there is consumer demand. If they offer good conditions I will send milk there.

The project is a challenging one though - the lack of proper legal infrastructure, managerial skills, and a low technology base are major obstacles, and continued support from UNMIK and local institutions is of vital importance. But there are enough plus points to build on, insists Johansson

Stefan Johansson: We have suitable farming land and in some cases infrastructure already available, we have organizations and institutions around and in Kosovo that potentially could support financially a project like this, and again coming back to the optimistic people of Kosovo, that is a great base.

A school milk program for Kosovo for example, could both serve as incentive to production, as well as ensure that the product is consumed by those who need it, says Markus Huet of the American Refugee Camp. Huet, who has been associated with school feeding programs around the world for a long time, insists that children need to drink at least one glass of milk per day.

Markus Huet: First of all there are a lot of elementary age children, there is a very big need.

Q: Your personal example. Do you drink milk on daily basis?

I drink about a liter of milk per day.

The Drini Bardhe project was drafted in consultation with the Ministry of Agriculture and the Ministry of Trade. They have been asked to consider some kind of exemption from VAT and other import duties until the industry is solidly established.

Deputy trade minister Mejdi Bektashi says the government is committed to making the economic climate more suitable to investors.

Mejdi Bektashi: We support this project since it uses local resources, opens new jobs, and creates a string of activities, starting from producing milk in local mini-farms, and then collecting it. Tr. 27 Tetra Pak is a world known company and we hope that their experiences will be passed on to local companies.

And authorities have ambitious plans – they want to set up 3 large pilot farms with up to 500 cows as well as small and medium farms with 10 to 15 cows each. Agriculture minister, Goran Bogdanovic stresses the importance of small and medium enterprises.

Goran Bogdanovic: The Ministry of Agriculture in principle supports setting up small and medium farms, but we have nothing against larger farms. When we have in mind the difficult situation in the whole agriculture sector, the long-term success of big farms is non-profitable. The development of big farms up to 500 cows is possible only if we use the land of social enterprises, and if there are loans available for that kind of production.

Many people still think it is not safe enough to invest in Kosovo – but Tetra Pak’s packaging manager Lars Gustafson is upbeat.

Lars Gustafson: Investors who have money can go to different places and maybe they can find safer places. We see from investors’ point of view that there is a profit. Today to invest and put money on the table and to have a payback in such a short time as five or six years, that is not to be found in so many places in Europe. So that is what makes us optimistic.

So look for that produced in Kosovo label the next time you’re out buying milk – that does it for this edition of UNMIK ON AIR. Thank you for listening.