"After a period of high purchase prices in late 2016 and almost throughout 2017, farmers across the world started to produce more milk, leading to an oversupply of dairy products. This pushed down prices for products and, some time later, for raw milk, too," Dalius Trumpa, CEO of Rokiskio Suris, one of Lithuania's largest dairy groups, told.
According to Trumpa, the European milk market also experiences some downward pressure due to the EU's excess stocks of skimmed milk powder. Raw milk prices may remain under that downward pressure until the market has clarity as to the use of these stocks.
Jurate Dovydeniene, CEO of the milk production cooperative Pieno Puta, also thinks that product prices had an impact on raw milk prices.
"In fact, global product prices are fluctuating, but not in the better direction," she told.
Dovydeniene expects raw milk prices to resume their upward trajectory this spring or summer.
According to figures from the Agriculture Ministry, milk purchase prices in Lithuania fell by 4.4% in February, marking the fourth consecutive month of decline.
