8 January 2007 - Swedfund is making an equity investment in Swedmilk Macedonia in association with M&A Beverages, a local beverages production and distribution company, and private individuals with international and regional experience from the dairy industry. In total some MEUR 15 will be invested in the planned dairy near to Skopje, which is expected to make a major contribution to the country's dairy sector.
One domestic company currently dominates the dairy industry in Macedonia and for the most part the products available are imported. Production at the Skopje dairy will be focused on milk and yoghurt products. Replacing imports with locally produced dairy products will be an important part of the strategy
The arrival of a serious player will provide a more secure market for dairy farmers in the region, who often find it hard to sell their milk profitably in the current situation. The dairy will be offering farmers long-term contracts and the provision of finance for refrigeration tanks on their farms.
“We’re concentrating on rebuilding confidence between Macedonian dairy farmers and the domestic diary industry. With long-term contracts and help with development and equipment we can grow together,” says Roger Oscarson, CEO of Swedmilk Macedonia.
The dairy will be built in Ilinden, a small town just east of Skopje. Initially, the dairy will take around 50 tonnes of milk a day, but it will have the capacity to take up to some 250 tonnes. The dairy will employ a total of 100 people. A Swedish company, Tetra Pak, will supply the processing equipment as well as packaging machinery and packaging materials.
The Skopje dairy is expected to become of great symbolic value for the capital, which currently lacks a large, reputable dairy. In addition, high quality processing of milk and the introduction of new equipment and technical expertise will be of great importance for the country in terms of both health and the economy.
“A promising investment with great potential. The dairy will be built in accordance with EU standards and commercial production is expected to get underway by the summer of 2007,” says Staffan Ahl, Investment Manager at Swedfund.