The current situation for Lithuanian milk producers is really dramatic at the moment. After offered only 10 cents per liter, producers have poured out 30 tons of milk on 1st of July. Lithuania is dominated by 5 milk processors, purchasing milk not only from local but also from neighbouring milk producers. Recently, the Ministry of Agriculture has initiated, and the Government has approved a new law, targeted towards balancing fair trade practice in the milk supply chain. As a reaction to this attempt to tackle the problem of unfair trade practices, the dominating milk processors have started rejecting locally produced milk as “surplus”, offering to buy it for a ridiculous, 10 cents per liter price.
In Lithuania, cooperative farmers are currently paid an average price of 16-17 cent/liter. Milk from Latvia and Estonia is bought for a higher price, aiming to ensure independence from local milk producers and to avoid reliance on cooperated farmers.
According to the Lithuanian chamber of agriculture, the processors are trying to destroy consciously local cooperatives - “Divide et empera” (divide and rule….)
