Finnish farmers concerned about market penetration by Estonian dairy producers (3)
While European markets continue to concentrate on large producer countries such as Germany and France, the growth of milk production in the Baltics has gone unnoticed, creating a threat to Finnish dairy farms, reported the confederation of Finnish cooperatives Pellervo.
According to Pellervo's estimates, the dairy boom in Estonia, Latvia and Lithuania poses a significant threat to the Finnish dairy industry and the worst may be yet to come, reported the Finnish Broadcasting Company (Yle).
Pellervo economist Lauri Vuori stated that when the EU renounced milk quotas in spring of 2015, it was to be expected that large producer countries would increase production, however the Baltics' rapid increases in production was left out of political discussions entirely. He noted, however, that this should not be the case, as milk production plays a very important role in Finnish agriculture.
"Our concern is overproduction, and producer prices are low," explained Vuori. "In addition, Baltic manufacturers are forcing an increasing amount of their own milk onto the markets."
Last year, 500 dairy farms ceased production in Finland. At the same time, however, Vuori found that the average farm has increased in size and cow milk production has remained fairly stable.
At the beginning of 2016, the European Commission passed a 500 million euro support package for dairy farmers, of which Finland received 7.5 million euros.
Selle aasta alguses võttis Euroopa Komisjon vastu 500 miljoni euro suuruse toetuspaketi piimafarmidele, millest Soome sai 7,5 miljonit eurot.