May 20, 2022

Croatian dairy farmers say milk farm gate price not enough to cover input costs

Croatian dairy farmers met with Marija Vučković and Zdravko Marić, the country's Ministers of Agriculture and Finance, to tell them that the milk farm gate price is not enough to cover input costs, Total Croatia News reported.

The Croatian Chamber of Agriculture (HGK) said if action is not taken to rectify the issue in the dairy industry, dairy farms will continue to shut down, the number of dairy cattle will decline, and subsequently, milk production will drop.

Igor Rešetar, a member of the HGK Dairy Sector Committee, said the Croatian Agriculture Ministry has not done enough since dairy farms have been affected by the global food crisis and Russia's invasion into Ukraine pushing grain prices upward.

Since June 2021, the county's farm gate price of milk had gone up 28%, according to representatives from Croatia's dairy industry, but they have received information that production costs have increased by more than 300% from primary producers.

They said the milk farm gate price should rise due to rising crop husbandry costs, which will affect cattle breeding and milk production.

The Croatian dairy farmers also urged the government to increase subsidies, lower VAT on dairy products, and reduce investment costs.

Croatia's Ministry of Agriculture said the government will continue to provide extensive solutions and called on stakeholders in the dairy supply chain to invest extra effort to preserve the current production level.

The ministry also said there is national dairy sector development programme in the period until 2030 with strategic goals, priorities and measures to make the industry stronger and more competitive.

-      Total Croatia News