Estonia Witnesses a Decline in Milk Purchase Prices Amidst Production Surge in 2023
Source: The DairyNews
Statistics Estonia has reported a significant development in the country's dairy sector, revealing that 859,600 tonnes of milk were procured from Estonian agricultural producers in 2023, with farmers receiving approximately €375 million.
However, the average purchase price experienced a notable dip, standing at €436.73 per tonne, marking a 5.8% decrease compared to the previous year.
Milk production holds substantial economic weight in Estonia, contributing to approximately 25% of the total value of the country's agricultural output. Anton Kardakov, the leading analyst at Statistics Estonia, highlighted that December 2022 recorded an all-time high in milk purchase prices, reaching €544.15 per tonne. However, the trend shifted, with prices hitting their lowest point in August 2023 at €397.31 per tonne. The latter half of the year saw a recovery, culminating in a December price of €426.87 per tonne.
The Estonian milk market remains influenced by global factors, aligning with trends observed in other European Union (EU) countries. International demand and external market conditions play a pivotal role, given the substantial export share of Estonian milk and dairy products.
In December 2023, Estonia's milk purchase price was consistently lower than the EU average, trailing by 7%. The estimated EU average for the same period was €461.4 per tonne. Despite being higher than Latvia and Lithuania, Estonia's average purchase price is notably lower than that of Finland.
A positive note for the Estonian dairy sector is the remarkable 7.5% year-on-year increase in the quantity of milk purchased from agricultural producers, marking the highest figure in recent decades. Preliminary data for 2023 indicates the production of 231,000 tonnes of various dairy products, encompassing 104,000 tonnes of drinking milk, 50,500 tonnes of cheese and curd, 36,000 tonnes of fermented milk products, and 4,700 tonnes of butter products.
Milk production holds substantial economic weight in Estonia, contributing to approximately 25% of the total value of the country's agricultural output. Anton Kardakov, the leading analyst at Statistics Estonia, highlighted that December 2022 recorded an all-time high in milk purchase prices, reaching €544.15 per tonne. However, the trend shifted, with prices hitting their lowest point in August 2023 at €397.31 per tonne. The latter half of the year saw a recovery, culminating in a December price of €426.87 per tonne.
The Estonian milk market remains influenced by global factors, aligning with trends observed in other European Union (EU) countries. International demand and external market conditions play a pivotal role, given the substantial export share of Estonian milk and dairy products.
In December 2023, Estonia's milk purchase price was consistently lower than the EU average, trailing by 7%. The estimated EU average for the same period was €461.4 per tonne. Despite being higher than Latvia and Lithuania, Estonia's average purchase price is notably lower than that of Finland.
A positive note for the Estonian dairy sector is the remarkable 7.5% year-on-year increase in the quantity of milk purchased from agricultural producers, marking the highest figure in recent decades. Preliminary data for 2023 indicates the production of 231,000 tonnes of various dairy products, encompassing 104,000 tonnes of drinking milk, 50,500 tonnes of cheese and curd, 36,000 tonnes of fermented milk products, and 4,700 tonnes of butter products.
