IPARD Investments Supporting the Modernisation and Growth of Lazine Dairy

Lazine Dairy – “Šimšić Montmilk” Ltd., Danilovgrad

In today’s business environment, characterised by increasingly demanding market requirements, high quality standards, and growing obligations in the field of environmental protection, even well-established and market-stable companies recognise the importance of utilising European Union support through pre-accession funds. These funds represent a powerful mechanism for modernising production, strengthening competitiveness, and gradually aligning operations with European Union standards.

The IPARD Programme plays a key role in improving agriculture and the food processing industry by supporting investments that contribute to increased production efficiency, enhanced food safety, improved product quality, and environmental protection, while simultaneously supporting the development of rural areas.

As emphasised by one of the owners of Lazine Dairy, Milutin Đuranović:

"The support provided through the IPARD Programme is not just financial assistance for us—it has enabled Lazine Dairy to significantly improve its capacities, modernise equipment and infrastructure, and enhance product quality. This programme has opened the door to European standards and further strengthened our position as a leader in Montenegro’s dairy sector."

Recognising the strategic importance of the IPARD Programme, Šimšić Montmilk Ltd. decided to use EU support as an important development tool for further modernisation and strengthening its leading market position.

Lazine Dairy is the longest-established privately owned dairy company in Montenegro, founded in 1998. From its establishment until today, the company has successfully combined traditional values with a modern approach to business, continuously investing in quality, innovation, and sustainable development.

Located in the heart of the Bjelopavlići Plain, surrounded by numerous pastures and family farms, Lazine Dairy specialises in the production and processing of high-quality milk. Raw milk is collected from the Zeta–Bjelopavlići region and northern parts of Montenegro, including Nikšić, Bijelo Polje, Berane, Rožaje, and Petnjica.

Thanks to their pristine natural environment, abundant pastures, and rich variety of meadow flowers and medicinal plants, these regions provide exceptionally high-quality raw materials, which directly contribute to the superior quality of the company’s final products.

With the aim of improving operations and achieving the highest EU standards, the company implemented an investment project under the Fourth Public Call of the IPARD Programme (Measure 3), with a total value of EUR 845,403.58.

The project included the purchase of specialised vehicles, a machine for filling and sealing containers, a machine for filling and sealing cups, a PET packaging production machine, a compressor station, and the construction of a wastewater treatment system. These investments significantly improved environmental standards, reduced negative impacts on the environment, and further modernised the company’s production and logistics infrastructure.

In line with its long-term development strategy, Šimšić Montmilk Ltd. continued its active participation in European Union support programmes and, within the framework of the IPARD III Programme, applied again for funding during the new programming period.

In addition to investments in environmental protection, IPARD III support enabled significant improvements in logistics and transport capacities. The investment included the purchase of a forklift, electric pallet trucks, as well as specialised vehicles equipped with thermal insulation and refrigeration systems.

During the second phase of the project, approval was also granted for the purchase of a specialised tanker vehicle, as well as additional specialised vehicles with thermal insulation and refrigeration units. These investments improved internal logistics, strengthened the cold chain, and enhanced food safety, further increasing the company’s competitiveness on the market.

Continuous investment in quality and compliance with the strictest international standards has resulted in products recognised and awarded at numerous international fairs. However, the greatest recognition for Lazine Dairy remains the trust of loyal consumers throughout Montenegro, whose tables are supplied daily with products from this dairy company.

Milutin Đuranović adds:

"IPARD enables us to plan for the long term, invest in new technologies and environmentally friendly solutions, while ensuring that our products remain competitive and recognisable on the market. For us, this support represents an investment in the future of our dairy company and our employees."

Through these investments, Lazine Dairy confirms its commitment to further modernisation, sustainable production, and strengthening the competitiveness of Montenegro’s dairy sector.