Strong Competition on Domestic Market.

Czech cheese imports started growing when the country became a member of the European Union, and are now three times higher than the country’s cheese exports. The Czech Republic is exporting milk which could be used by domestic dairies to make products with higher added value, said the Association.

In 2006, the Czech Republic produced 2.6 billion litres of milk, with milk imports, mainly from Slovakia and Poland, equivalent to around a sixth of Czech milk exports last year. The Bohemian and Moravian Dairy Association estimates that the prices of Czech dairy products will increase by 5-15 per cent in 2007 and 2008.

Czech dairy farmers currently receive around CZK8 (USD0.40) per litre of milk, with the price expected to increase to CZK8.20 (USD0.41) or more per litre by the end of this year.

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