According to Statistics Estonia, 859 600 tonnes of milk were purchased from Estonian agricultural producers in 2023, for which farmers were paid nearly 375 million euros. The average purchase price for the year was 436.73 euros per tonne, 5.8% lower than a year earlier.
Milk production accounts for about a quarter of the value of Estonia’s agricultural output and therefore has a significant impact on the economic situation of Estonian agricultural producers.
Anton Kardakov, leading analyst at Statistics Estonia, pointed out that in December 2022, the purchase price of milk was higher than ever – 544.15 euros per tonne.
“At the beginning of 2023, the purchase price started to drop,
reaching its lowest level of the year in August at 397.31 euros per tonne. In the second half of the year, the price rose again and in December milk producers were paid 426.87 euros per tonne,” Kardakov added.
For years, the purchase price of milk in Estonia has been following the trend in the European Union (EU) countries and has depended largely on the situation on the external market and on foreign demand, as a considerable share of Estonian milk and dairy products is exported.
The milk purchase price in Estonia is consistently lower than the EU average, standing 7% below the average in December 2023. The average purchase price of milk in the EU countries in December last year is expected to be 461.4 euros per tonne. In comparison with neighbouring countries, the average milk purchase price in Estonia is higher than in Latvia and Lithuania, but significantly lower than in Finland.
Also read: Fresh milk procurement price in Latvia up by 4.4%
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