“Agrowill Group” Believes that Rough Time in Milk Suppliers Business Should End
“Agrowill Group”, one of the biggest milk producers company, forecasts that milk purchasing prices in Lithuania have already touched the bottom and shouldn‘t go down any more. The signs of stabilization in world dairy markets allow such considerations. One of the biggest milk supplying companies in the country, “Agrowill Group” believes that Lithuanian dairy product producers will behave in a fair manner and will share additional income with milk suppliers.
“The world tendencies show that milk and dairy product markets start showing signs of stabilization, and prices for some products in international markets are already going up. Milk processors will start working in non loss-making way. It allows us to hope for milk purchasing price rise, if only dairy product producers behave in a fair manner and earn profit via more effective work and not at the charge of milk producers”, - Mindaugas Juozaitis, the general director of “Agrowill Group” expressed his expectations.
He rates the statements of milk producers on profitable year 2009 in two ways.
On the one part, after international markets going out from the dead-point, the dairy product companies will have better export opportunities for their products. However, the dairy product producers in Lithuania must increase their business effectiveness considerably, as the prime cost of Lithuanian produce is very high.
Therefore it is difficult for Lithuanian made dairy products to compete in the international markets.
On the other part, producers of dairy products do all their best to earn from milk consumers and milk supplying farms. The prices for dairy products sold in Lithuania went down slightly: prices for 1 litre of 2,5% fat milk were going down about 13 percent per year, while dairy farms for sold milk are paid in average 42 percent less per year.
“The producers of dairy products do not avoid an opportunity to state in public that by not selling their products, they take income at the charge of milk supplying farms. Besides, we continue paying for milk products in Lithuania more than other EU member states, and our milk purchasing prices still remain the lowest in Europe. It means that our milk processors are operating very inefficiently”, - Mindaugas Juozaitis, the general director of wondered.
One of the ways out suggested by the manager of “Agrowill Group” for milk industry is search of new export markets.