After a long period of low milk purchase prices in Estonia, milk retail prices in the Baltic country have increased twice, reaching the point where farmers received just enough to cover milk production costs.
In 2016 Estonian consumers were paying an average of 35 cents per liter for milk in stores, while milk producers were being paid 21-23 cents per liter, which was not enough to cover production costs.
After two price increases, the purchase price of milk has now climbed to 32 cents per liter, increasing the average shop price of milk to 55 cents per liter.
Interestingly, milk producers cooperative Coop last year produced Aus (“Honest” in Estonian) brand milk and its higher sale price was meant to help guarantee sufficient income for the producers at 32 cents per liter production price, which resulted in retail price 79 cents. Aus’s production has now been stopped. (BNN/Business World Magazine)
