METHODOLOGICAL EXPLANATION MILK AND MILK PRODUCTS

METHODOLOGICAL EXPLANATION MILK AND MILK PRODUCTS This methodological explanation relates to the data releases: - Milk and milk products, Slovenia, monthly (First Release) - Milk and milk products, Slovenia, annually (First Release) - Milk and milk products, detailed data, Slovenia, annually (First Release) - Annual production and use of milk on agricultural holdings, Slovenia, annually (First Release) Content: 1. PURPOSE 2. LEGAL BASIS 3. UNIT DESCRIBED BY THE PUBLISHED DATA 4. SELECTION OF OBSERVATION UNIT 5. SOURCES AND METHODS OF DATA COLLECTION 6. DEFINITIONS 7. EXPLANATIONS 8. PUBLISHING 9. REVISION OF THE DATA 10. OTHER METHODOLOGICAL MATERIALS Prepared by: Aleš Stele Last updated: 8 September 2017

1. PURPOSE The purpose of publishing data on milk and milk products is to present current production and consumption of milk. The data are the basis for monitoring the situation in the milk sector, which is one of the most important sectors in agriculture and food industry. Disseminated monthly are data on the amount of purchased cow s milk and the amount of main milk products produced by dairies. Annually, the production and consumption of milk on agricultural holdings, the production of milk products in dairies, and export and import of milk and milk products are disseminated in greater detail. 2. LEGAL BASIS - Annual Programme of Statistical Surveys (LPSR) (only in Slovene) - National Statistics Act (OJ RS, No. 45/95 and 9/01) - Council Directive 96/16/EC of 19 March 1996 on statistical surveys of milk and milk products (31996L0016) - Guidelines on implementing statistical surveys of milk and milk products (OJ RS, No. 52/05) (only in Slovene) 3. UNIT DESCRIBED BY THE PUBLISHED DATA The unit described by the published data is the amount of milk and milk products. In purchased milk and milk products the fat and protein content is also monitored. 4. SELECTION OF OBSERVATION UNIT Purchase of cow s milk: full coverage. All registered purchasers of milk and Slovene dairies (data are collected with the KME-ODK survey) are included. Production of milk and milk products in dairies: full coverage. All dairies covered by the Chamber of Commerce and Industry (Chamber of Agricultural and Food Enterprises), which represent around 99% of total produced cow's milk, are included. Production and use of milk on agricultural holdings: Observation units are agricultural holdings. This is a combination of administrative data on the purchase of milk (full coverage) and a sample survey on the production and use of milk for other purposes. Sample data are collected with the KME-DEC survey. Agricultural holdings are selected into the sample in line with the methodology of stratified statistical sampling (random sample). Based on a correctly designed sample the data are obtained that are representative for the entire country. The sampling frame for selecting agricultural holdings into the KME-DEC survey sample is the Statistical Register of Agricultural Holdings and the Central Register of Bovine Animals. The sampling frame includes agricultural holdings satisfying the following criteria: a) they cultivate at least 1 hectare of utilised agricultural area, or 1/12

b) less than 1 hectare of utilised agricultural area but: - at least 0.1 hectare of utilised agricultural area and 0.9 hectare of forest or - at least 0.3 hectare of vineyards and/or orchards or - two or more livestock units (LSU) or - 0.15 to 0.3 hectare of vineyards/orchards and 1 or 2 LSU or - more than 50 beehives or - are market producers of vegetables, herbs, strawberries, mushrooms, flowers or ornamental plants. The sample of agricultural holdings is divided into four strata, each stratum is determined according to the size class of the holding. In addition to family farms selected into the sample, this statistical survey includes all agricultural enterprises breeding livestock. Because administrative sources (Central Register of Bovine Animals, data are collected on the basis of the Rules on the Market Information System for Milk and Dairy Products) are used, the data referring to cattle and production of cow's milk are collected with a subsample on fewer than 2,000 agricultural holdings. 5. SOURCES AND METHODS OF DATA COLLECTION Data on milk and milk products are obtained from: - Data of dairies on monthly and annual production of milk and milk products in dairies: 2 administrative sources: o Chamber of Commerce and Industry Chamber of Agricultural and Food Enterprises (CCIS CAFE): data on obtained milk products in dairies o Agency of the Republic of Slovenia for Agricultural Markets and Rural Development (ARSAMRD ) data collected on the basis of the article 3. of Rules on the Market Information System for Milk and Dairy Products - Data of registered purchasers of milk on the amount of purchased milk: o administrative source: ARSAMRD: data are collected on the basis of the article 5. of Rules on the Market Information System for Milk and Dairy Products o statistical survey: Purchase of Agricultural Products (KME-ODK/M) - Yearly data of milk producers (agricultural holdings) on production and use of milk on agricultural holdings: o administrative source: ARSAMRD: data are collected on the basis of the article 7. of Rules on the Market Information System for Milk and Dairy Products o statistical survey: Livestock and Area Sown in Autumn Sowing (KME- DEC) - Data on the fat and protein content in produced cow s milk: Agricultural Institute of Slovenia; the data on content are used only for control purposes - Data on quantity and value of export and import of milk and milk products (statistical survey on export and import of goods) - Data on milk yield for sheep and goats: Biotechnical Faculty, Zootechnical Department. Data are available on the website: http://www.drobnica.si/index.php?option=com_content&view=article&id=112&itemid =87 2/12

Additional explanations on methods and use of sources: Yearly data on fat and protein content in milk and milk products in dairies With yearly publication of data on dairies we supplement monthly data on produced quantities with data on fat and protein content in milk products, which are obtained from dairies yearly (via CCIS CAFE). Data on production and use of milk on agricultural holdings In data on production and use of milk on agricultural holdings we also combine data. For purchased cow s milk, which represents almost 90% of total produced milk, we use exclusively administrative data (by 2015 the quota data, later on data collected on the basis of the article 5. of Rules on the Market Information System for Milk and Dairy Products. For calculating the use of the rest of milk on agricultural holdings, by 2015 we were using the quota data on direct sale of milk and the processing of milk into milk products, while from 2015 on on we use data collected on the basis of the article 7. of Rules on the Market Information System for Milk and Dairy Products. These data are combined with the data of the sample annual survey on livestock (KME-DEC) with the help of which we obtain data on the milked amount of milk used for fodder and food on agricultural holdings, and partly the data on smaller milk processors (producing milk products for own consumption). 6. DEFINITIONS Milk is cow s, goat s, ewe s or buffalo s milk. Drinking milk: raw milk, whole milk, semi-skimmed and skimmed milk containing no additives. The term relates only to milk directly intended for consumption, normally in containers of 2 litres or less. Also included is milk with vitamin additives. Raw milk: milk produced by the secretion of the mammary glands of one or more cows, ewes, goats or buffalos, which has not been heated beyond 40 C or has not undergone any treatment that has an equivalent effect. Whole milk: milk that has been subject to one heat treatment or an authorized treatment of equivalent effect by a milk processor and whose fat content is either at least 3.0% naturally or has been brought to at least 3.5%. Semi-skimmed milk: milk that has been subject to at least one heat treatment or an authorized treatment of equivalent effect by a milk processor and whose fat content has been brought to at least 1.50% and at most 1.80%. Also included is Finnish drinking milk type designated as 'ykkoesmaito/ettans mjoelk` whose milk fat content is 1%. Skimmed milk: milk that has been subject to at least one heat treatment or an authorized treatment of equivalent effect by a milk processor and whose fat content has been brought to not more than 0.30%. Pasteurized milk: pasteurized milk must be obtained by means of a treatment involving a high temperature for a short time (at least 71.7 C for 15 seconds or any 3/12

equivalent combination) or pasteurization process using different time and temperature combinations to obtain an equivalent effect. Sterilized milk: sterilized milk must be heated and sterilized in hermetically sealed wrappings or containers, the seal of which must remain intact, in the event of random sampling, be of preservability such that no deterioration can be observed after it has spent 15 days in a closed container at a temperature of +30 C. Uperized milk: uperized milk (or UHT milk) must be produced by applying a continuous flow of heat using a high temperature for a short time (not less than 135 C for not less than 1 second). Member States which make no distinction between sterilized and uperized milk may group them together. Buttermilk is a residual product (may even be acid or acidified) of the processing of milk or cream into butter (by continuous churning and separation of the solid fats). Buttermilk with additives must be included in drinks with a milk base. Cream: a film of fat which forms naturally on the surface of the milk by slow agglomeration of emulsifying fat globules. If it is removed by skimming it from the surface of the milk or extracted from the milk by centrifuging in a cream separator, it has, in addition to the other components of the milk, a relatively high fat content (usually exceeding 10% of the weight of the product). Cream: cream which has been processed and is available for delivery outside dairies (i.e. for human consumption, as raw material for manufacturers of chocolate, ice cream, etc.). In the same way as for other products, it does not include intermediate production intended for the manufacture of other dairy products. Cream of a fat content by weight over 29%: pasteurized, sterilized or uperized; also includes acidified cream as well as cream in cartons or tins. Acidified milk: milk products with a ph of between 3.8 and 5.5. Relates to yoghurts, drinkable yoghurts, prepared yoghurts, heat-treated fermented milk and others. Also included are products based on or containing bifidus. Acidified milk without additives: also included is acidified milk with the addition of sugar and/or sweeteners. Drinks with a milk base: other liquid products containing at least 50% of milk products, including products based on whey. Included are chocolate milk, buttermilk with additives or flavoured, etc. Other fresh products: the group includes fresh milk products not elsewhere specified, mainly milk-based desserts (jellied milks, custard tarts, cream desserts, mousses, etc.) and ice cream (and similar products) manufactured in the reporting enterprises. Also included are desserts in tins as well as fresh farm products collected from agricultural holdings and placed on the market without processing (excluding packaging). Concentrated milk: a product obtained by partial elimination of water, from whole milk, semi-skimmed or skimmed milk only. Also included are evaporated milk (heat-treated) and concentrated milk with added sugar. Also included is concentrated milk used for the manufacture of 'Chocolate crumb`; dried product consisting of milk, sugar and 4/12

cocoa paste in the following proportions: milk fat: more than 6.5% (content by weight) but less than 11% (content by weight), cocoa: more than 6.5% (content by weight) but less than 15% (content by weight), sucrose (including invert sugar calculated as sucrose) more than 50% (content by weight) but less than 60% (content by weight), non-fat dry matter of milk: more than 17% (content by weight) but less than 30% (content by weight), water: more than 0.5% (content by weight) but less than 3.5% (content by weight). Its composition is as given in Annex I to Commission Regulation (EEC) No 380/84 of 15 February 1984. Powdered dairy products are products obtained by eliminating water from cream, whole milk, semi-skimmed milk, skimmed milk, buttermilk and acidified milk. Also included are additives to the raw material before the product is made into powder as well as milk powder manufactured in dairies and contained in powders for infants and in animal feeds. Cream milk powder: milk powder with a milk fat content of not less than 42% by weight of the product. Whole milk powder: milk powder with a milk fat content of not less than 26% and less than 42% by weight of the product. Partly skimmed-milk powder: milk powder with a milk fat content of more than 1.5% and less than 26% by weight of the product. Skimmed-milk powder: milk powder with a maximum milk fat content of 1.5% by weight of the product. Buttermilk powder: powder product made from buttermilk. Other powdered products: curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa. Also included are mixtures of powdered cream, milk, buttermilk and/or whey, as well as protein-based powdered products. Butter, total and other yellow fat dairy products: includes butter, rendered butter and butteroil, and other yellow fat products, expressed in butter equivalent with a milk fat content equal to 82% by weight of the product. Butter: a product with a milk fat content of not less than 80% and less than 90%, a maximum water content of 16% and a maximum dry non-fat milk-material content of 2%. Also included is butter which contains small amounts of herbs, spices, aromatic substances, etc., on the condition that the product retains the characteristics of butter. Butter and other yellow fat products: Reduced-fat butter: a product similar to butter with a milk fat content of less than 80% by weight (excluding all other fat) Other: fats composed of plant and/or animal products: products in the form of a solid, malleable emulsion principally of the water-inoil type, derived from solid and/or liquid vegetable and/or animal fats suitable for 5/12

human consumption, with a milk fat content of between 10% and 80% of the fat content. Cheese is a fresh or matured, solid or semi-solid product, obtained by coagulating milk, skimmed milk, partly skimmed milk, cream, whey cream or buttermilk, alone or in combination, by the action of rennet or other suitable coagulating agents, and by partly draining the whey resulting from such coagulation. Casein is the main protein constituent of milk. It is obtained from skimmed milk by precipitation (curdling), generally with acids or rennet. The heading covers various types of casein which differ according to the method of curdling, e.g. acid casein and rennet casein (paracasein). Caseinates (salts of casein) include the sodium and ammonium salts known as 'soluble caseins`; these salts are normally used to prepare concentrated foods and pharmaceutical products. Calcium caseinate is used in the preparation of foodstuffs or as a glue, depending on its character. Whey: by-product obtained during the manufacture of cheese or casein. In the liquid state, whey contains natural constituents (on average 4.8% lactose, 0.8% protein and 0.2% fats by weight of the product), which remain when the casein and the majority of the fat have been removed from the milk. Total whey: also includes whey used in the dairy for manufacturing animal feedingstuffs. Whey delivered in the liquid state: whey delivered to be used mainly for animal feeds. Amounts used as raw materials for other processes must be excluded. Lactalbumin: one of the main components of whey protein. 6/12

7. EXPLANATIONS 7.1 CLASSIFICATIONS Classification of products in milk statistics and combined nomenclature (CN): Name CN4 digit CN8 digit 1. MILK 401 04012XXX 04011XXX 1.1. Whole milk 401 4012091 1.1.1 Whole milk in bulk packaging 401 4012099 1.2. Semi-skimmed and skimmed milk 401 0401201X 2. CREAM 401 04013XXX 04014XXX 04015XXX 04031XXX 3. FERMENTED MILK PRODUCTS 403 4039053 4039059 0403906X 0403909X 3.1 FERMENTED YUGHURT 403 04031XXX 4. CHEESE 406 0406XXXX 4.1 FRESH CHEESE 406 04061XXX 4.2 GRATED CHEESE 406 04062XXX 4.3 MELTED CHEESE 406 04063XXX 4.4 BLUE-VEINED CHEESE 406 04064XXX 4.5 OTHER CHEESE 406 04069XXX 5. WHEY 404 04041XXX 0404100X 5.1 POWDERED WHEY 404 0404101X 0404102X 0404103X 0404104X 0404105X 5.2 LIQUID WHEY 404 0404106X 0404107X 0404108X 4049021 7/12

Name CN4 digit CN8 digit 6. BUTTER AND DAIRY SPREADS 405 0405XXXX 6.1 NATURAL BUTTER 405 0405101X 6.2 DAIRY SPREADS 39-75 405 04052XXX 0405103X 6.3 OTHER BUTTER 405 0405105X 0405109X 04059XXX 402 04029XXX 403 04022XXX 404 04021XXX 4039011 4039031 4039071 4039013 7. OTHER MILK PRODUCTS 4039019 4039033 4039039 4039073 4039079 4039051 4049023 4049029 0404908X powder 7.1. Concentrated milk 402 04029XXX 7.2.1. Cream, whole milk and partly skimmed-milk 402 04022XXX 7.2.2. Skimmed-milk powder 402 04021XXX 4039011 7.2.3. Skimmed fermented powdered milk products 403 4039031 4039071 4039013 4039019 7.2.4. Fermented powdered milk products 403 4039033 4039039 4039073 4039079 403 4039051 7.3. Remaining milk products 404 4049023 4049029 0404908X 8/12

7.2 DATA PROCESSING In processing the data that are received monthly and annually from dairies we check the internal consistency of data (including consistency with other sources) and consistency with data from previous periods. In case of larger discrepancies, the data are checked by contacting reporting units. In processing data on consumption of milk on agricultural holdings, which are collected with the sample survey KME-DEC, we apply similar procedures, usually without checking the data by contacting reporting units but only editing the data with statistical methods listed below. WEIGHTING With weighting adjustment we want to achieve representativeness of the sample, so that the weighted data give us as good population estimates as possible. The process of weighting depends on the sampling design, the unit non-response rate and available auxiliary variables used for calibration. The final weight is the product of the sampling weight, the non-response weight and the calibration factor. STATISTICAL DATA EDITING Data were statistically edited with appropriate imputation procedures. The following imputation methods were used: logical imputations, mean imputations, historical imputations, etc. For more, see the general methodological explanations Statistical data editing. 7.3 PRECISION In statistical surveys different kinds of errors can occur (e.g. sampling error, nonresponse error, measurement error) influencing the accuracy of the statistical results. Errors deriving from the random mechanisms determine the precision of the statistical estimates. The Statistical Office of the Republic of Slovenia draws attention to less precise estimates by flagging them with a special sign or by not publishing them at all. In the tables that contain estimated number of units with the certain characteristics, publishing limitations are determined according to the model. In the tables that contain estimated population totals of (continuous) variables, estimated averages of continuous variables or estimated ratios of population totals of (continuous) variables, publishing limitations are determined by the relative standard errors or the coefficients of variation (CV). In such cases it holds: if the coefficient of variation (CV) of the estimate is - 10% or below (CV<=10%) the estimate is of acceptable precision and is published without limitations; - in the interval from 10% and up to 30% (10%<CV<=30%) the estimate is less precise and is flagged for caution with letter M; 9/12

- over 30% (CV>30%), the estimate is too imprecise to be published and therefore suppressed for use by letter N. For more, see the methodological explanations Precision of statistical estimates. 7.4 OTHER EXPLANATIONS Due to rounding, some totals within the releases on milk and milk products might not match. For calculating the amounts of milk products produced, the following coefficients are used: 1 litre of milk = 1.03 kg of milk; 1 kg of butter = 22.50 kg of milk; 1 kg of cream = (26.30 kg of milk x % of milk fat in cream)/100; 1 kg of cheese = 12 kg of milk; 1 kg of ewes cheese = 6 kg of ewes milk; 1 kg of goats cheese = 12 kg of milk; 1 kg of curd = 8 kg of milk; 1 kg of other milk products (yoghurt, acidified milk) = 1 kg of milk Data on the production of ewes and goats milk are calculated from the number of milk ewes and goats that have already lambed/kidded (from the December survey) and the amount of milk per ewe/goat (data from the Biotechnical Faculty, Zootechnical Department). Data on the use of ewes and goats milk were analysed for the first time in the 2009 December survey and the same shares were used also in the next years. Letter»z«is used if the data are suppressed to protect the reporting unit. The data that are suppressed for confidentiality reasons are not published but replaced with letter z. 8. PUBLISHING Data are published: Monthly: - SI-STAT Data Portal: Environment and Natural Resources Agriculture and Fishing Milk and other animal products Milk and milk products. Monthly data on the amount of milk and production of main milk products are published. - First Release (Agriculture, Forestry and Fishery, Livestock, Milk and Milk Products):»Milk and milk products, Slovenia, monthly«. Indices for the previous month and the same month of the previous year are also published. - Eurostat 10/12

Annually: - SI-STAT Data Portal: Environment and Natural Resources Agriculture and Fishing Milk and other animal products Milk and milk products. - First Release (Agriculture, Forestry and Fishery, Livestock, Milk and Milk Products):»Milk and milk products, Slovenia, annually«. Annual data on the purchase of milk and production of main milk products in dairies are published. - First Release (Agriculture, Forestry and Fishery, Livestock, Milk and Milk Products):»Milk and milk products, detailed data, Slovenia, annually«. Production in dairies is presented in greater detail: in addition to produced amount, the fat and protein content is published. At the same time also the data on quantity and value of export and import of milk and milk products are published. - First Release (Agriculture, Forestry and Fishery, Livestock, Milk and Milk Products):»Annual production and use of milk on agricultural holdings, Slovenia, annually«. The release presents production and use of milk on farms (both cow s milk as well as ewe s and goat s milk). - Eurostat - Agency of the Republic of Slovenia for Agricultural Markets and Rural Development - Stat o book - Other publications 9. REVISION OF THE DATA 9.1 PUBLISHING OF PRELIMINARY AND FINAL DATA Monthly data for the last year are provisional. With each release the data can be corrected and completed with new data. They get the status of final data with the first release of annual data (in mid-february of next year). In most cases only provisional monthly data on the amount of purchased milk are revised; only exceptionally data on the production of milk products are revised. The difference between provisional and final data is small. The only larger revision was implemented at the transition to the administrative source in 2006. 9.2 BREAKS IN TIME SERIES Until 2007 annual data on fat and protein content in purchased milk were obtained from the Slovene Dairy Association, and from 2008 to 2015 from the quota data of the Agency of the Republic of Slovenia for Agricultural Markets and Rural Development. In 2016 we again used the data from dairies (market information system for milk and dairy products). Methodological explanation on revision of statistical data is available on http://www.stat.si/dokument/5299/revisionofstatisticaldatamegeneral.pdf. 11/12

10. OTHER METHODOLOGICAL MATERIALS - Questionnaire (only in Slovene): - Statistical survey on livestock and areas sown in autumn sowing (KME-DEC) - Standard quality report for the survey (only in Slovene): - Statistical survey on milk and milk products (KME-MLEKO/L) - Annual quality report for the survey: - Statistical survey on milk and milk products (KME-MLEKO/L) theme: Agriculture, Forestry and Fishery, subtheme: Livestock, Milk and Milk Products - Rules on the Market Information System for Milk and Dairy Products https://www.uradni-list.si/glasilo-uradni-list-rs/vsebina/121044 - Methodological explanation - Livestock production theme: Agriculture, Forestry and Fishery, subtheme: Livestock, Milk and Milk Products - Purchase of agricultural products theme: Agriculture, Forestry and Fishery, subtheme: Prices in agriculture - Exports and imports of goods theme: Trade and services, subtheme: Exports and imports of goods http://www.stat.si/statweb/en/methods/questionnairesmethodologicalexplanationsquali tyreports 12/12