The Subotica Dairy is the first Serbian dairy to obtain EU export permit and it should start exporting long-lasting milk, yoghurt and cheese to Hungary, Austria and Slovenia late in 2011, officials said at a press-conference on Monday.

Subotica Dairy Director General Milan Grujic said that the EU export permit implies that the entire system of purchase, transport, reception and processing of raw milk has been adjusted to European regulations.

Grujic pointed out that the permit was obtained after ten years' long efforts and added that the Dairy's products, characterised by high European quality, are not destined only for the EU market, but are available every day to consumers in Serbia as well.

Grujic pointed out that Subotica Dairy will open its presentation to the EU by exporting its products to closest markets, those in Hungary, Austria and Slovenia, and added that negotiations with big trade chains such as Merkator and Hungarian retail chain Tesco are underway.

So far, Subotica Dairy exported only a very small percentage of its total production, primarily to Macedonia, Montenegro and Bosnia-Herzegovina because local consumers and Serbian market constituted the dairy's priority, Grujic said and noted that Subotica Dairy holds a 12-15 per cent stake on the Serbian market.

Danube Food Group Director General Slobodan Petrovic said that the company purchased five dairies in Serbia in 2003, including Subotica Dairy and Imlek.

From 2003 by the end of 2010, the Danube Food Group invested EUR 109 million in Imlek Diary and EUR 45 million in Subotica Dairy, while the funds invested in the raw material base in this period totalled over EUR 50 million, Petrovic underscored.

He said that Subotica Dairy passed strict controls before being granted the EU export permit, and added that the factory already fulfils international standards ISO 9001, HACCP, BRC, Halal, ISO 14000 and IFS.

Assistant Minister for Agriculture and Trade Milos Milovanovic noted that the fact Subotica Dairy obtained EU export permit serves as a confirmation of the competence and abilities of competent veterinary and inspection services in Serbia.

He stated that this is only a part of the 'mosaic' which the Ministry is constructing in cooperation with its partners in the European Commission, and added that similar activities should be implemented in the case of meat products, particularly regarding the export of poultry, followed by export of fresh meat products and chilled pork.