Baltic Export, Baltic States – CIS, Financial Services, Foodstuff, Latvia, Markets and Companies

According to the Agriculture Ministry, Russia's embargo has caused losses for Latvian dairy producers in the amount of EUR 50 million, while agricultural and food exports suffered EUR 140 million losses.

Because Russia's sanctions will remain in force until August 5, 2016, it is safe to say that export reduction and the damage from it will be much more severe for the industry than previously expected.

The ministry's report also says that companies are still suffering from overproduction, forcing them to cut the milk procurement price. According to the Agricultural Data Center, milk procurement price in August could fall to EUR 206 per ton, which is 30.7% less than the average procurement price in July 2014. Thus, the procurement price for milk has dropped below the actual cost, which on average in Latvia amounts to EUR 0.269 per kilogram of milk.

As reported, in August 2014 Russia banned import of most food products from the EU, United States and other Western countries that had adopted sanctions against Moscow. Russia's embargo concerns beef, pork, fruit, vegetables, poultry, fish, cheese, milk, and dairy products.