Two Baltic countries turned to the European Union for exceptional financial support for their dairy farmers on March 22, according to the online publication Agriland.
At the EU Agriculture Ministers’ meeting, the Latvian and Lithuanian delegations presented a document requesting support and explaining the reasons why it is needed. These countries were supported by Bulgaria.
In a joint document, the representatives of the two countries drew attention to the deteriorating situation in the dairy sector, caused by a sharp drop in raw milk purchase prices in a short period, combined with persistently high production costs. .
The statement also said that the situation in Ukraine “has severely affected the agricultural and food sectors of Latvia and Lithuania”. “Farmers and producers are under pressure due to the prolonged crisis and the sharp increase in input costs”the document says.
“It should be noted that already in 2021 a continuous increase in the prices of inputs was observed. The overall negative impact on farmers and their viability has been long lasting.”the authors of the report stressed.
Two countries have been particularly affected by the increase in energy prices. In December 2022, Latvia and Lithuania ranked second and fourth in terms of energy inflation, respectively, among all EU countries.
In addition, feed prices in both countries are also above the EU average. In this context, the prices of milk received by farmers are constantly declining. In Latvia, the cost of milk has been falling for half a year and is currently the lowest among all the states in the bloc.
In Lithuania, prices have also steadily decreased since November 2022. The document highlights that for small or family farms, which account for around 70% of dairy farms in Lithuania, the prices received “significantly lower than those reflected in the statistical averages”.
The statement says: “Immediate support is needed to ensure the survival of these dairy farms”. The situation has reached the point where some dairy farmers in Latvia and Lithuania are leaving the sector.
Last month, 10% of Lithuanian dairy farmers stopped milk production and the amount of raw milk decreased by 4% compared to the same period in 2022. “Unless urgent action is taken to respond to this significant market disruption, it could have irreversible negative consequences for the dairy sector in our region.”said the two EU states.
Source: Rossa Primavera
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