Polish milk improves vastly in quality but production still yields low return

Although the population of milk cows in Poland decreased by 9.4% from June 1999 to June 2000, milk production is actually likely to be both higher and of better quality this year compared with 1999. The share of highest grade milk, the "extra" grade, in total production will be approximately 65% this year, while last year it was only 30%. The increase in quality is likewise noticeable in the higher number of dairies meeting European Union sanitary norms. Although only 5.5% of Polish dairies have EU export credentials, their combined market share is 30%. In general, the profitability of milk production in Poland remains very low. Return-on-sales for the entire sector was 0.36% last year and will likely reach 1.33% this year. (Rzeczpospolita, p.B2)