Mlekara Subotica, the Serbian dairy processor, has invested in its cheese production to sell feta to Russia.

Serbia’s Ministry of the Economy said the company has spent EUR1m (US$1.1m) on a line that will increase the processor’s output of cheese by 2,500 tonnes.

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In a statement issued by the ministry, Ilija Setka, general manager of Subotica’s umbrella company Imlek, said the line would be used exclusively to make feta for the Russian market.

Subotica and Imlek are part of Serbia-based dairy and confectionery company Danube Foods Group. In February, private-equity firm Salford Capital Partners sold Danube to fellow buy-out house Mid Europa Partners, which focuses on central Europe and Turkey.

At the time, Mid Europa said the combined Imlek and Subotica “represent the largest independent dairy business” in the former Yugoslavia.

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