Milk producers are not satisfied with the long-term agreement scheme suggested by milk processors.
Last week, following a discussion with milk producers and processors, Prime Minister Algirdas Butkevicius and Agriculture Minister Virginija Baltraitiene said that the Lithuanian milk surplus, which occurs due to seasonality, could be reduced thanks to long-term agreements.
Producers and processors, meanwhile, claim that they could not reach an agreement because they disagree on the milk buy-up price formation principles rather than the amount of milk.
According to Egidijus Simonis, head of the Lithuanian dairy association Pieno Centras, processors suggest establishing in the agreements specific amount of milk to be bought up from milk producers, while price formation, according to processors, should be subject to negotiations, taking into account seasonality and global milk prices.
"Nobody wants to tie themselves to a specific price because they normally fluctuate and fall. We expect an increase in prices after 2 months, but it is very difficult to make forecasts now," Simonis said on Tuesday during a press conference.
