Milk purchasing cost from farmers at all-time high
Last year, Statistics Estonia reports, a total of 800.2 thousand tons of milk were purchased from Estonian farmers for about €371 million. The average purchase price for the year was €463.49 per ton, a 47 percent increase from the previous year and an all-time high.
Dairy production accounts for almost a quarter of the value of Estonia's agricultural output and has a substantial impact on the economic state of Estonian farmers.
In 2020, the buying-in price fell below €300 per ton, but it has been slowly increasing since mid-2021, hitting €544.15 per ton in December 2022.
Years ago, the purchase price of Estonian milk followed the trend of the European Union and was heavily influenced by the external market and foreign demand, as a significant portion of Estonian milk and dairy products are exported.
In December 2021, the average milk buying-in price in Estonia was 13 percent below the EU average; by December 2022, however, the Estonian average is only expected to be 6 percent below the EU level.
The average milk buying-in price in EU countries is expected to be 578,1 EUR per ton in December 2022.
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Kristina Kersa