Latvia's Dairy Dilemma: Over 1,000 Farms Fold Amidst Challenging Year
Source: The DairyNews
The past year has proven to be a challenging period for Latvia's dairy sector, marked by falling milk prices and difficulties in securing food supplies due to drought. According to Zemgale Regional Television's report on March 10, a staggering 1,050 dairy farms ceased their operations.
One such farm, "Lejas-Kaivēni," with a three-decade history in the dairy industry, made the difficult decision to abandon dairy farming. Paulis Jaseris, the farm's owner, reflected on the transition, stating, "When we did dairy farming, I had a bundle of bills standing by Christmas and no money, but now I have money in my account and wallet."
The broader trend reveals a significant decline in the number of dairy cows, with nearly 9,000 fewer reported last year. The impact has been felt acutely by small family farms, exemplified by the "Bites" dairy cooperative, which comprises 24 small farms. In 2023, 10 of these farms suspended their dairy activities, attributing their struggles to the fluctuating prices in milk procurement.
Biruta Pudniece, Chairwoman of the Board of the dairy farmers' co-op "Bites," emphasized the challenges faced by small farms, stating, "Milk buyers are putting the emphasis on big farms, even though we're doing the hard work." She highlighted the disparity in payment, where smaller farms receive less despite covering significant distances to collect milk from rural areas.
Despite these difficulties, the Latvian Agriculture Ministry asserted that it cannot influence or compensate for the market price of milk procurement. Agriculture Minister Armands Krauze emphasized the need for powerful and modern processing facilities that can provide farmers with higher prices, signaling a focus on future development.
To address the sector's challenges, the State budget for 2024 allocates almost EUR 10 million for breeding activities payments in the milk sector. Additionally, a total funding of EUR 15.7 million is earmarked for insurance, while agricultural primary producers receive a total funding of EUR 21.6 million this year. The aim is to provide support and pave the way for a more sustainable and resilient future for Latvia's dairy industry.
The broader trend reveals a significant decline in the number of dairy cows, with nearly 9,000 fewer reported last year. The impact has been felt acutely by small family farms, exemplified by the "Bites" dairy cooperative, which comprises 24 small farms. In 2023, 10 of these farms suspended their dairy activities, attributing their struggles to the fluctuating prices in milk procurement.
Biruta Pudniece, Chairwoman of the Board of the dairy farmers' co-op "Bites," emphasized the challenges faced by small farms, stating, "Milk buyers are putting the emphasis on big farms, even though we're doing the hard work." She highlighted the disparity in payment, where smaller farms receive less despite covering significant distances to collect milk from rural areas.
Despite these difficulties, the Latvian Agriculture Ministry asserted that it cannot influence or compensate for the market price of milk procurement. Agriculture Minister Armands Krauze emphasized the need for powerful and modern processing facilities that can provide farmers with higher prices, signaling a focus on future development.
To address the sector's challenges, the State budget for 2024 allocates almost EUR 10 million for breeding activities payments in the milk sector. Additionally, a total funding of EUR 15.7 million is earmarked for insurance, while agricultural primary producers receive a total funding of EUR 21.6 million this year. The aim is to provide support and pave the way for a more sustainable and resilient future for Latvia's dairy industry.
