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There is very fierce competition in the dairy industry, says LPCS

In Latvia, there is very fierce competition in the dairy processing sector, as companies have to compete with each other and with foreign companies, as well as the fight for raw materials, admitted Jānis Šolks, Chairman of the Board of the Latvian Dairy Farmers’ Union (LPCS).

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He added that in the raw milk market, processors must work in a constantly competitive environment. “There is a shortage of milk in a competitive environment. I have been approached by several small and medium-sized milk processors, calling for help in finding milk,” said Scholk.

The Chairman of the Board of LPCS pointed out that part of the raw milk produced in Latvia is exported to nearby countries, but the missing part has to be imported from neighboring countries.

At the same time, Scholk acknowledged that when purchasing raw milk in Lithuania, there is a risk that the raw material may not meet certain quality criteria, so dairy processors mainly buy the raw material on the domestic market, as well as in Estonia, where the quality is adequate. At the same time, development-oriented milk producers in the Baltics as a whole are working to ensure that their milk quality in the future is even higher than required. European Union (EN) standards.

“Currently, more than two thirds of the milk produced in Latvia is processed in local companies. This shows that we understand and work with each other,” said Šolks.

He also said that the general mood in the dairy sector is quite good. Although there are occasional signals from milk producers about the need to receive an even higher payment for raw milk, the purchase price of milk in Latvia is currently adequate and close to the EU average.

LPCS unites milk processing companies and cooperation partners, which together sell about 80% of the milk processed in Latvia.

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