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Abstract:
The Slovenian dairy industry is characterised by processes of consolidation that have led to a sharp decline of small producers. Thus, Slovenian dairy farmers develop specific strategies to allow for a survival in the production process. This article analyses various sets of activities Slovenian small-scale producers develop to implement own direct sales channels as well as further processing strategies. These strategies grow more important for Slovenian dairy farmers since milk prices remain very volatile and regulatory mechanisms, which protect the milk farmers, erode. The article emphasises the connection between global events, such as financial crises, and the changes on the farm level. The drawback of the increasing consolidation of retail and globalisation in milk processing, together with milk prices, were identified to be the main driver mechanisms for the producers to create their own direct distribution patterns. Contemporary approaches to value chain analyses, such as the Global Value Chain and Global Production Networks, provide the theoretical framework for this research, which primarily serves to understand the power constellations in the Slovenian milk sector.