Estonian retail chains experiment with milk prices, triggering concerns over industry viability
Source: The DairyNews
Estonian retail chains are engaging in price experiments with milk, aiming for a competitive edge, according to Rainer Rohtla, Chairman of Coop Eesti Keskühistu.
This move involves selling Estonian milk at unusually low prices, with Coop offering fresh Estonian drinking milk for 59 cents per liter. Rohtla acknowledges covering the price difference internally but raises concerns about the impact on the local milk production industry, risking jobs. Margus Leek, CEO of cheese producer E-Piim, emphasizes the ethical dilemma and potential hostility towards farmers, urging alternative techniques for trade competition.
Teet Kallakmaa from Metstaguse Agro suggests a minimum milk price of 45 cents per kilogram to ensure sustainable production. The industry now grapples with the consequences of this pricing strategy, prompting discussions on the need for ethical business practices and support for local agriculture.
Teet Kallakmaa from Metstaguse Agro suggests a minimum milk price of 45 cents per kilogram to ensure sustainable production. The industry now grapples with the consequences of this pricing strategy, prompting discussions on the need for ethical business practices and support for local agriculture.
