Context

Paška Sirana is the oldest cheese dairy on the island of Pag, proudly producing full-fat hard sheep’s cheese called Paški sir since the 18th century.

This unique cheese is made exclusively from the milk of sheep that graze freely on the island’s rugged terrain, feeding on aromatic native herbs naturally salted by sea spray carried inland by the fierce Bura wind. The result is a cheese with a distinctive flavour and texture that reflects its extraordinary origin.

Paška Sirana was the first dairy to send Paški sir beyond the island, to label it, to enter it into competitions and to win international recognition. It was also the first to export this cheese outside of Croatia, even as far as the USA, bringing global attention to both the product and the island of Pag.

For nearly 80 years, Paška Sirana has been one of the island’s largest employers. With a population of just over 8 000, almost every family on Pag has a connection to the dairy. A former director also helped found the Association of Paški Cheese Producers.

While Paški sir is a symbol of tradition, maintaining competitiveness in agriculture is a challenge. EU funds have played a crucial role in modernising production, creating new products from by-products and preserving authentic island craftsmanship.

Paška Sirana is more than a company – it is an institution. Deeply rooted in local life, it has shaped and safeguarded one of the island’s most valued brands.

Objectives

With Paška Sirana being a well-established business, the aims of this particular project were more long-term. The owners were looking to ensure the sustainability of manufacturing and the preservation of tradition through production improvement and modernisation. This would, in turn, lead to job creation and retention, and thus increase employment opportunities for the area.

Improving the business would enhance its competitiveness in the market, leading to greater profitability and increased productivity and efficiency for the producers.

With investments in renewable energy sources, the dairy was also hoping to improve its environmental focus.

Activities

From 2016 to 2023, the dairy completed five investment projects under five RDP Measures.

In 2015 and 2016, the dairy made investments in facilities for milk processing and the purchase of a utility vehicle with refrigeration equipment. This enabled the transport of water from municipal hydrants to pastures for sheep watering, and the transport of whey to pastures to feed the sheep.

From 2017 to 2020, the focus was on upgrading the dairy plant operations, improving milk collection processes and acquiring additional utility vehicles to support production and logistics. Further equipment upgrades were made in 2021, along with the purchase of utility vehicles to enhance operational capacity.

One of the biggest innovations came in 2023, with the construction and commissioning of a solar power plant to support sustainable energy use for cheese production.

Various dissemination activities were undertaken throughout this period. This involved sharing project results and best practices with local farmers and stakeholders, promoting the project’s impact on sustainability and innovation at industry events and through media channels, and engaging the local community to raise awareness of the environmental benefits and preservation of traditional production.

Gender equality

Women play a significant role in the project’s leadership and operations. Mrs Martina Pernar Škunca serves as the chair of the supervisory board of Paška Sirana and also leads the Association of Paški Cheese Producers, which was founded to protect the cheese, promote education, facilitate knowledge exchange and preserve tradition. Additionally, Mrs Barbara Čeko is a member of the company’s management board, highlighting strong female representation in key decision-making roles.

Women make up nearly 30% of the total workforce, actively contributing across various levels of the organisation. Overall, the dairy provides women with opportunities for leadership and influence within both the company and industry associations; access to professional development and skills enhancement in a traditional yet innovative sector; participation in preserving cultural heritage while advancing modern business practices; and economic empowerment through stable employment and career growth.

Generational Renewal

Of 63 employees at Paška Sirana, 31 are under the age of 40, demonstrating a strong presence of younger generations within the workforce. The project creates numerous opportunities for young people to pursue careers in agriculture and rural development. These include offering training sessions to develop technical skills related to dairy production and food processing - with 20 to 30 young participants already having completed such training; involving young employees in decision-making processes to encourage leadership and innovation; providing hands-on experience with modern technologies alongside traditional production methods; and facilitating networking opportunities targeted specifically at younger professionals to connect them with industry experts and peers.

Main Results

The developments have increased overall production capacity, enabling a higher output of Paški sir and an expanded product range, with the introduction of two new cheese varieties. Currently, the dairy produces approximately 500 tonnes of cheese annually, including around 70 tonnes of Paški sir, which is the flagship product. This has also led to a growth in exports, including the opening of a new international market in Ukraine.

The implementation of renewable energy sources (via the solar power plant) has resulted in a significant reduction in CO2 emissions.

These achievements have contributed directly to the project’s objectives of boosting economic growth and sustainability. Increased production and product diversification have strengthened the local economy and enhanced the competitiveness of the dairy. Export expansion has opened new business opportunities and broadened market reach, benefiting the local community through the creation of 12 new jobs and income growth. The shift to renewable energy reflects the project’s commitment to environmental responsibility, supporting climate action goals and reducing the carbon footprint of production processes.

The project has also led to the emergence of a new tourist attraction in the shape of expert-led tours of the dairy, including cheese-tasting experiences, which enrich the island’s cultural offerings and offer insights into its cultural and historical heritage. Launched in 2023, guided tours have attracted around 200 visitors to the dairy in 2024, with overwhelmingly positive feedback and excellent reviews on online platforms. This supports the broader goals of preserving tradition while fostering innovation, boosting the local economy and enhancing the island’s appeal as a unique destination. It also demonstrates how protected designations of origin contribute to the identity of a place and play a key role in preserving national heritage.

Key lessons

Networking is a crucial aspect of any project of this kind. It begins with local community members and associations and, in the case of the dairy, extends to cooperative partners across the island. There was also cooperation with tourism boards from the island of Pag and the wider country, which is key to promoting both local products and tourism.  This enabled the dairy to support and actively participate in island events, enhancing community engagement, and led to being part of the organising committee of the ‘Festa od sira’ cheese festival, celebrating local heritage and products.