Lithuanian dairy farmers throw in the towel

The low milk prices in Lithuania are the reason for the dairy farmers with a small or medium-sized dairy farm to throw in the towel. The latest figures show that 1 in 8 Lithuanian dairy farmers has stopped working in the past year. Drought also still plays a role.

The cost of 1 liter of milk in Lithuania is about €0,23, while the processors buy the milk for about €0,21 per litre. "That means that dairy farming is no longer cost-effective," said Giedrius Masikonis, a dairy farmer in Lithuania. LRT† For many dairy farmers in Lithuania it is a reason to stop, sell cows (especially to Poles) or bring extra cows to slaughter.

"I have now sold 33% of my livestock to dairy farmers in Poland, but have now decided to sell my company in order to avoid bankruptcy." According to Masikonis, this is not only due to the low milk prices, but also to the drought of last year. "It is still difficult to get enough feed for the cows. In addition, the prices are very high."

no vision
All dairy farmers in Lithuania collectively own about 250.000 cows, which means that the sector is very small-scale. By way of comparison: in the Netherlands the number of dairy cows in April 2018 was about 1,6 million. However, the fact that dairy farming is a small-scale sector is not the problem for dairy farmers. The country exports 80% of the milk, with a value of €464 million. Most of it goes to Russia.

The main problem, according to Lithuanian dairy farmers, is the lack of a clear strategy for the country's dairy industry. The government in Lithuania aims to double milk production by 2030, although many dairy farmers do not expect this to be feasible. The agriculture minister in the country has now promised to look for ways to increase the milk price.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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