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Sunday 17.12.2017 | Name days: Teiksma, Hilda

Milk price to increase

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In the following years the milk price could increase; nevertheless, it will mainly depend on the price changes of milk as raw material, specified the Chairman of the Central Union of Latvian Dairies Board Janis Solks (Jānis Šolks) in an interview for LTV broadcast Labrīt, Latvija.

During the past months we have seen growth, but it was justified. Farmers, however, want more, but it is not possible to go further, because the price of milk in the Baltics has reached the European level, Solks informed.

He also indicated that the Central Union of Latvian Dairies, who currently represents business interests of 16 dairy farming enterprises, in total processing 90% of milk in Latvia, considers that the construction of another factory for nine million lats that were allocated by the European Union (EU), would be unreasonable in these circumstances.

We already have 38 dairy farming enterprises, which is our problem, because they are fragmented. If another enterprise is established, the fragmentation will be even larger. Even though we could find the appropriate market for the production, the market price would be that of the market, not the one we expect that. If the cooperative owns the company, farmers will set the highest price and the production will have a good sales price. It will not happen this way. Business determines the situation, Solks maintains.

In his opinion, this money should be distributed to all dairy produce factories, maybe not exactly to all, because then it is possible that nobody gets anything; however, the union already has their own proposals on how the money should be distributed. 50% of this money should be allocated to the modernization of agriculture and another 50% – to the creation of value added tax, as well as to projects that would increase the export volume of the enterprise and would meet other criteria.

Overall, the demand for dairy products in Europe and in the world is increasing; therefore, this is a very good situation to develop export. Approximately 150 tons of milk is transported to Lithuania, which is almost one – third of the total volume of milk processed in Latvia.

Although it might seem that this sum (nine million lats) is large, it is not much for the whole industry in general. Therefore, I think that there is too much clamour about these nine million, because money is available from a variety of projects, said Solks.


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