The North Africa Journal: Tough Time for Milk Companies in Tunisia 

Tough Time for Milk Companies in Tunisia
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The North Africa Journal on 26 December, 2008 11:05:00
 
Skyrocketing costs of primary and raw materials led the leading companies and
their association to call for price increases of milk and related products,
essentially to cover the cost coming from farmers and milk collection centers.
The calls for higher milk prices may be challenged by authorities because the
industry underwent four recent increases totaling 170 millimes per liter of
milk. Additional increases, however, are expected to help reduce the losses
generated by milk and dairy companies, estimated at TND 18 million in 2007
alone.
Of the six milk and dairy firms active in the Tunisian market; four are at risk
of bankruptcy after accumulating losses last year. This also threatens to break
a balance in supply and demand, especially since Tunisia managed to avoid
imports in 2007 as domestic production covered demand. The current area of focus
for the milk industry is packaging, with initiatives seeking to reduce the
content of packaging to reduce cost. However, there is a recognition that
current technologies in milk packaging would lead to a reduction in the
conservation period for milk down to 15 days.