November 30, 2012
Lithuania's MPK to buy raw milk from Germany, Poland
Lithuania's Marijampoles Pieno Konservai (MPK) is starting to import raw milk from Poland and Germany because it is cheaper than buying local milk.
Imported milk may account for up to 30% of raw milk processed by the company, the business daily reported on Thursday (Nov 29).
"Prices for raw materials in Lithuania are too high for us to operate at a profit. We have already concluded a contract to import raw milk from Germany and Poland," Raimondas Karpavicius, the chairman of MPK's management board, told the paper.
The reason for this price rise is that cooperatives are increasing their grip on the market, dictating the terms and charging prices that are higher than EU prices, Karpavicius said.
MPK, one of the biggest milk processors in Lithuania and the largest canned milk producer in the Baltics, estimates that the price of imported milk, including delivery, will be 5-10% lower than that of milk purchased in Lithuania. The company will process all imported milk into dairy products for its customers, the chairman said.
The company this year is projecting LTL400 million (US$151 million) in revenues, up from LTL324 million (US$122 million) in 2011.