Developing the typical dairy products of Thessaly Diagnosis and local strategy January 2014 Developing the typical dairy products of Thessaly January 2014 Diagnosis and local strategy REFERENCES This publication has been produced as part of the LACTIMED project with the financial assistance of the European Union under the ENPI CBC Mediterranean Sea Basin Programme. The contents of this document are the sole responsibility of the University of Thessaly (UTH) and the Mediterranean Agronomic Institute of Montpellier (CIHEAM-MAIM), partners of LACTIMED project, and can under no circumstances be regarded as reflecting the position of the European Union or of the Programme’s management structures. LACTIMED aims to foster the production and distribution of typical and innovative dairy products in the Mediterranean by organising local value chains, supporting producers in their development projects and creating new markets for their products. The project is implemented under the ENPI CBC MED Programme, and is financed, for an amount of EUR 4.35 million, by the European Union through the European Neighbourhood and Partnership Instrument. The European Union is made up of 28 Member States who have decided to gradually link together their know- how, resources and destinies. Together, during a period of enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms. The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders. The 2007-2013 ENPI CBC Mediterranean Sea Basin Programme is a multilateral Cross-Border Cooperation initiative funded by the European Neighbourhood and Partnership Instrument (ENPI). The Programme objective is to promote the sustainable and harmonious cooperation process at the Mediterranean Basin level by dealing with the common challenges and enhancing its endogenous potential. It finances cooperation projects as a contribution to the economic, social, environmental and cultural development of the Mediterranean region. The following 14 countries participate in the Programme: Cyprus, Egypt, France, Greece, Israel, Italy, Jordan, Lebanon, Malta, Palestinian Authority, Portugal, Spain, Syria and Tunisia. The Joint Managing Authority (JMA) is the Autonomous Region of Sardinia (Italy). Official Programme languages are Arabic, English and French. © Copyright LACTIMED 2014. No part of this publication may be reproduced without express authorisation. All rights reserved for all countries. Electronic version available on: www.lactimed.eu AUTHORS . Report written by: - Main authors: Dimitris Goussios, University of Thessaly, Konstantinos Tsiboukas, Agriculture University of Athens, Theodosia Anthoupoulou, Pantuion University of Athens; - Contributions: Vasileiadis Anastasios, expert in entrepreneurship ("Marketing systems and weaknesses of marketing strategies" section, pp. 44-45), Dimitra Gaki, University of Thessaly (parts 1.2.3., pp. 16-18 and 2.2.2., pp 44-48); . Implementation of fieldwork: - Main experts: Dimitris Goussios, Konstantinos Tsiboukas, Theodosia Anthoupoulou, Dimitra Gaki; - Junior experts: Goulas Apostolos, Louka Konstantia, Poutsiakas Nikolaos, Makris Georgios, Seggi Chrisavgi, Mardakis Prodromos and Faraslis Ioannis; . SWOT analysis (in addition to the aforementioned experts): Tsampra Maria, University of Patras, Perucho Lola, veterinarian; . Creation of maps: Mardakis Prodromos, University of Thessaly; . Layout and proofreading: - For the CIHEAM-MAIM: Selma Tozanli and Hamid Bencharif; - For ANIMA: Jeanne Lapujade. 2 Developing the typical dairy products of Thessaly January 2014 Diagnosis and local strategy GLOSSARY AND ACRONYMS AEI University, Institute of Higher Education AGROCERT Agricultural products certification and supervision organisation AGROVIZ Cooperative union division of the Trikala regional unit specialising in feed production CAP Common agricultural policy CRSN French national strategic reference framework DAYOK Directorate of agricultural and veterinary economics EEC European economic community EFET Unified actor of food control EKKYZ Animal feed movement control laboratory ELGO DIMITRA Hellenic agricultural organisation "DIMITRA" ELOGAK Hellenic milk and meat organisation ELSTAT Hellenic statistical services ETHIAGE National institute of agricultural research EVOL Volos dairy cooperative GDP Gross domestic product GMO Genetically modified organism EX TAXES Excluding taxes IACS Integrated administration and control system ISO International standardisation organisation KEK Training centre LEADER Liaison between actions for the development of rural economy LSU Livestock unit LTD Limited company MINAGRIC Hellenic ministry of rural development and food OGEEKA DIMITRA Agricultural training organisation "DIMITRA" OPAACH Integrated programmes for the development of the PIDER rural space OTEX Technico-economic orientation of farming PDO Protected designation of origin PEP Regional operational programme PGI Protected geographical indication R&D Research and development RICA Farm accountancy data network SME Small and medium enterprise SVET Thessaly business and industry association SWOT Strengths weaknesses opportunities threats THESgala Thessaly livestock breeders' group THESgi Thessaly farmers' group INC TAXES All taxes included TUI Technological university institute UAL Utilised agricultural land UE European union YAAT Minister of rural development and food 3 Developing the typical dairy products of Thessaly January 2014 Diagnosis and local strategy CONTENTS 1. THE DAIRY CHAIN IN GREECE AND THESSALY ...................................... 6 1.1. THE DAIRY CHAIN IN GREECE ......................................................................................... 6 1.1.1. Animal feed ....................................................................................................................................... 6 1.1.2. Dairy production: milk, yoghurt, butter and ice cream ...................................................................... 7 1.1.3. Cheese production .......................................................................................................................... 10 1.2. MARKETING SYSTEM AND POLICIES FOR THE DEVELOPMENT OF THE DAIRY CHAIN ............ 13 1.2.1. Marketing system ............................................................................................................................ 13 1.2.2. Price formation ................................................................................................................................ 15 1.2.3. National development policies of the dairy chain ........................................................................... 16 1.3. THE THESSALY DAIRY CHAIN ....................................................................................... 18 1.3.1. Position of the territory in the national dairy chain .......................................................................... 18 1.3.2. Dairy farming ................................................................................................................................... 19 1.3.3. Fodder crops ................................................................................................................................... 22 1.3.4. Dairy processing ............................................................................................................................. 25 1.3.5. Large companies in the territory ..................................................................................................... 27 1.3.6. Related industries ........................................................................................................................... 29 2. THESSALY FIELD SURVEY ...................................................................... 32 2.1. SAMPLING AND METHODOLOGY ................................................................................... 32 2.1.1. Sample representativeness ............................................................................................................ 32 2.1.2. Data processing method and results .............................................................................................. 36 2.2. CURRENT STATE OF THE INDUSTRY AND STRATEGIC PRIORITIES FOR ITS DEVELOPMENT ... 36 2.2.1. Summary of survey results ............................................................................................................. 36 2.2.2. Public and private support to the dairy chain .................................................................................. 45 2.2.3. Strengths and weaknesses of the Thessaly dairy chain ................................................................. 49 2.2.4. Priorities proposed by the different actors ...................................................................................... 51 2.3. THE DAIRY CLUSTER PROJECT ..................................................................................... 54 2.3.1. Opportunity to create a dairy cluster in Thessaly ........................................................................... 54 2.3.2. Priority objectives ............................................................................................................................ 56 2.3.3. Search for a relevant "clustering" process ...................................................................................... 57 2.3.4. Two-phase action plan ...................................................................................................................