August 28, 2018

Greek dairy products stand strong despite shrinking market

Ever since Greece began facing an economic crisis, the repercussions on the fresh milk market have been quite apparent, especially since many consumers are dealing with shrinking incomes and have in turn, chosen to purchase products with longer shelf life, such as ultra-pasteurised milk.

Milk accounts for an overall 67.2% of supermarket sale volumes and according to the market research firm, IRI, supermarket milk sales declined by 27%in between 2013 – 2017, with losses amounting to an estimated 85 million euros (US$99.2 million).

Additionally, sales of refrigerated milk (fresh and high pasteurisation) fell from 283.64 million euros (US$331.2 million) in 2015 to 241.5 million euros (US$282 million) in 2016 and 230.5 million euros (US$269.1 million) in 2017.

In terms of volume, the total number of milk sales dropped from 225,793 litres in 2015 to 191,223 litres in 2016 and 188,001 litres in 2017.

This year, data shows that while the volume in milk sales declined by 1.1% in the first six months, sales revenues went up by 2.5% from the same period a year earlier.

Private label products rose 6% in sales volume and 9.7% in sales revenue in the first half of the year.

Yet, through the economic crisis, Greece's dairy industry remains one of the strongest in the packaged food sector.

According to the latest annual report on the food and drink sector by the Foundation for Economic and Industrial Research (IOBE), dairy products rank third in the food industry in terms of gross added value and accounts for 17% of the sector's total production value.

The dairy industry also stands second in line for the largest turnover in the Greek packaged food sector and is the third largest employer in the packaged food sector with over 15,000 employees.

Source: Ekathimerini.com