«Ten years is a very long time, given what is happening in geopolitics and in the dairy sector. At the same time, I think the dairy landscape will not change that much over the decade», says Paweł Gaca, President of the Management Board of dairy cooperative (Spółdzielnia Mleczarska, SM) Spomlek, Portal Spożywczy reports.
Key points:
- SM Spomlek President Paweł Gaca believes the structure of Polish dairy will not change significantly over the next decade despite global turbulence;
- according to Gaca, the industry will remain diverse, with large players alongside regional companies, private-label producers and firms building their own brands;
- companies’ strength at home and abroad will depend on strategy, speed of adaptation and stability for milk suppliers, as farms become increasingly professional.
Dairy will stay diverse
In Gaca’s view, the sector will continue to include a wide variety of companies.
«We will have very large companies, regional companies, companies creating their own brands and those producing retailers’ private labels. That landscape will remain», he says.
He notes that it is hard to predict the number of companies, as it has been shrinking over the years.
Strategy will be key
Each company’s strength, both domestically and internationally, will depend on its strategy — its ability to adapt to market changes, which are now happening much faster.
«Crises are also becoming more frequent, and in them, stability must be guaranteed for milk suppliers — these factors will decide which companies are strong. At the same time, farmers are professionalising their farms at a rapid pace. That is very important, because it affects production efficiency and costs and helps them survive difficult periods on the market», Gaca says.
He stresses that the professionalisation of farming will shape how strong the entire dairy sector is and how much milk Poland produces in ten years’ time.
Source: Portal Spożywczy
