Farmers: The dairy industry is currently like a patient in intensive care

Although the government's decision to allocate six million euros to dairy farmers will help keep farms operating, it is only a one-time support that will not solve the complex situation related to the Russian embargo, milk overproduction, and falling purchase prices, the farmers surveyed admitted.

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As Juris Cīrulis, the owner of the Mežacīruļi farm, pointed out, the allocation of additional funds demonstrates the government's prompt action, however, the one-time support will not solve the situation, and overall the industry resembles a hopeless patient in the intensive care unit.

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"What is happening in the dairy industry can be compared to a hospital intensive care unit. The industry is in a coma and, by allocating six million euros, it is being connected to artificial respiration. No one can answer whether we will be provided with a donor, medicines will be provided or an inferior existence will continue until the industry is carried out of the unit feet first," said Cīrulis.

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He emphasized that currently farmers need a stable market to sell their produce, because "everyone is very aware that the problem needs a long-term solution."

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Ieva Alpa-Eizenberga, a board member of the association "Zemnieku saeima" and owner of the farm "Robežnieki", also admitted that the approved state support will only partially cover the losses caused by the Russian food embargo for dairy farmers.

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"For example, on my farm, the support will cover approximately half of the losses for one month. At the moment, no one can predict how long and deep this crisis will be, so it is important for the government to realize that if the situation does not improve, farmers will still need support afterward," the farmer said.

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As reported, the government decided yesterday that the dairy industry will receive 13.9 million euros in support for breeding work in the coming months for losses related to the Russian embargo. Earlier calculations made by the Ministry of Agriculture indicated that 13.9 million euros should be allocated for this purpose, which was also publicly confirmed by Minister of Agriculture Jānis Dūklavs on several occasions.

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The support will cover up to 70% or up to 46 euros for costs related to productivity control tests for pedigree cows. The Rural Support Service will grant the support as a lump sum based on lists submitted by the pedigree animal breeders' organization that is the support applicant.

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Due to overproduction of milk and low purchase prices, the sanctions imposed by Russia affect not only dairy producers, but also milk suppliers, therefore support measures are being planned that would help more than 10,000 dairy producers involved in the sector to ease the situation in the face of increasing competition.

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Source: LETA