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Sunday 16.02.2020 | Name days: Jūlija, Džuljeta
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Milk price triples until reaching stores

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Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RU

Spiking food prices in Latvia are boosted not only by climbing prices of raw material and resources, but also by the growing tax burden and conflicts between producers and traders. Milk has recently underwent one of the most dramatic surcharges. Moreover, its price is likely to keep gaining.

According to the Latvian Dairy Producers’ Central Union board chairman Jānis Šolks, there are both – objective reasons for the price climb and also ungrounded payments applied by certain retailers, consequently, boosting prices. Along with milk purchase, natural gas, fuel and electricity price gains and tax rise, certain retailers have also included a bigger impact of the so called bonus system in the new contracts for this year, Solks told the Newspaper Neatkarīgā.

He did not reveal, though, which retailers exactly are doing this and what the requirements for producers are like, because the contracts do not allow to reveal any details. A bonus system means food producers’ payments to traders, for example, for bulk purchase, logistics, shelf placement, ect. In line with the contract, milk producers supply traders milk for 0.34 lats per litre, while 0.12 lats is a surcharge of traders, Solks says.

However, at the end of a month, traders present food producers a bill including all bonuses to pay for. It is nine santims per litre on average. Having settled these payments, it turns out the producer has received 21 santim per liter, while the milk processor – only three santims. Moreover, he adds that one liter milk package costs around 1.5 santims as well. Given all this, Dairy Producers` Central Union board chairman believes Latvian dairy farmers are left with nothing but focusing on exports and turning to the Competition Council.


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  1. Rye says:

    Traders and producers fight has been everlasting.. it is impossible to solve it.

  2. Ewer_t says:

    The situation looks very grim…guess, people will be forced to tighten their belts even more and waive from buying certain products.

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