Figure 7.1 Dairy production (butter, cheese, milk) in million kg Canada Australia New Zealand USA Ger many France Italy UK Netherlands Ireland Sweden Greece Austria EU 25 Source: Dutch Dairy Board. 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 Production (in mln kg) 2005 2000 1995 The production value is growing in the three largest dairy countries: Germany, France and Italy. In the United Kingdom it has decreased, which is mainly caused by a decrease in milk powder production (skimmed and non-skimmed) and condensed milk. The production value has nearly doubled in Poland. This country has surpassed the production value of Denmark and Belgium already and is approaching the production value ofthe Netherlands. On average the value added oftheEU-25 has decreased, while the value added oftheEU-10 has increased. Since the export share oftheEU-10 countries has decreased, this means that EU-10 have shifted their production to high value products. The decrease in value added ofEU-25 is mainly caused by Ireland, the United Kingdom en Slovenia. Lithuania, Cyprus and Austria are the largest growers in value added. 63
64 Figure 7.2 Production value ofdairy companies per country in 1999 Slovakia Slovenia Poland Malta Latvia Lithuania Hungary Estonia Czech Republic Cyprus United Kingdom Sweden Finland Portugal Austria Netherlands Luxemburg Italy Ireland France Spain Greece Germany Denmark Belgium Source: Eurostat. and 2005 0 5000 10000 15000 20000 25000 2005 1999 On average, the labour productivity has increased within theEU. But in Malta, Slovenia, Latvia, Cyprus, Italy, France and Greece the labour productivity has decreased. In Slovenia, France and Italy this is expectably partly caused by the decrease in value added, that has not translated in a decrease in the number of employees yet. In France and Slovenia the labour productivity in the total food industry has decreased as well, which may indicate that innovation in production methods is not implemented as quickly in those countries as in other countries. In all other countries the labour productivity has increased in total food production, despite the decrease in thedairy sector.