Milky ways

Mlekovita, the second-largest milk producer in Poland, wants to take over regional milk producer Somlek. If Mlekovita, which posted revenues of zł.1.3 billion in 2005, acquires Somlek, which earned revenues of zł.120 million in the same period, the former will move closer to the sector's number-one spot, currently held by Mlekpol.

"We are talking with Somlek," Mlekovita's president Dariusz Sapiński confirmed to Rzeczpospolita.

But the competition is not standing idle. Spółdzielnia Mleczarska Ostrołęka, which has recently completed a zł.60 million investment to expand its plant, is holding talks with a couple of milk cooperatives. In addition, Polmlek wants to consolidate the four milk-producing companies under its group's umbrella into one entity, and is looking to make new acquisitions. The company recorded revenues of zł.700 million last year and expects the result to grow to zł.1 billion this year. Its sales are expected to surpass zł.1.1 billion next year, which will make competition even fiercer.

According to the Polish Association of Milk Cooperatives (KZSM), the number of milk producers has decreased from 355,000 at the time of the country's accession to the EU, to 284,000 this year.