Higher output of milk will result in increased production of dairy products in CY 2001. The large number of small dairy plants and shortage of good quality raw milk are the major constraints in the further development of the dairy industry. During the first eight months of CY 2000, production of cheese fell 8 percent in comparison to the same period in CY 1999. Production is expected to increase in CY 2001 due to higher milk output and stronger demand for cheese in the Polish diet as a result of lower supplies of pork and pork products. The decrease in cheese production is largely the result of fewer exports to Russia as well as reduced supplies of raw milk.
Most butter is produced during the summertime peak of raw milk supplies.
Home churning is estimated to be 30,000 tons per year. Production of butter in CY 2001 is expected to increase by two percent due to higher demand on the domestic market. Total production of NFDM is expected to decrease by eight percent in CY 2000 as a result of low raw milk supplies and reduced exports. Lower milk output is expected to result in lower consumption of milk, cheese and butter in CY 2000. However, long-range GOP forecasts indicate an increase in consumption of all dairy products within the next five years.