Albertas Gapsys, the Head of the Agricultural Product Market Research Division of the Lithuanian Institute of Agrarian Economics, noted that such tendency was determined by the Russian embargo on goods produced in the European Union. In the same period average wholesale output prices of dairy companies increased by 1-10%, while export prices fell by 10-18%. Retail prices were by 2-5% greater than a year ago.
"Prices in domestic market are not decreasing because at their expense losses in export markets are being reduced," said Gapsys, "Purchase price of raw milk should stabilise as the supply declines".
Head of AB Rokiskio Suris dairy Dalius Trumpa acknowledged that due to the Russian embargo processing companies will not be able to cover the cost of producing milk as product prices have dropped below production cost.
"Sales have dropped by 26% per month, we have accumulated produce worth LTL 40 million (EUR 11.6 million) in warehouses, whereas it takes around two years to enter the new market," said Trumpa.
