The 'Meggle' dairy company will discontinue its operations in the eastern Croatian town Osijek, and will relocate the production to Bihac in Bosnia's northwest and Kragujevac, central Serbia, said Osijek-Baranja county perfect Ivan Anusic.

“The reasons are very simple – the cheaper business operation and maybe simpler functioning. I don't have that information at the moment, but since the operations are relocating to those two countries I guess that's the reason,” said Anusic.

According to him, as of now ‘Meggle’ is a brand that will no longer be produced in Osijek.

Croatian media earlier reported that the German-based Meggle Group is optimising its operations with the aim of setting business models viable in all markets in the long term, the company said in a press release, adding that a decision was therefore made to restructure operations in Croatia and phase out production in Osijek.