Agriculture, EU – Baltic States, Financial Services, Legislation, Lithuania, Markets and Companies

The Russian embargo, the situation in the global dairy sector and the abolition of milk quotas had a direct impact on Lithuania's dairy sector. The consequences were severe and are still felt. Income of Lithuania's dairy producers for milk sold in January-July 2015 was by approximately 30% lower compared with the same period of 2014. Farmers of the Baltic States are paid for milk the least in the EU, by around 25% below EU average.

Director of the Agriculture Ministry's Finance and Budget Department, Regina Mininiene, said that dairy farms will be able to apply for compensations of up to 80% for interest paid for credit to finance current assets. Moreover, dairy farmers may receive a guarantee of up to 80% for short term credit for financing current assets and/or for payment for agricultural services.

In addition, the search for new export market continues. Opportunities were created to take advantage of the intervention support and private storage of butter and skimmed milk powder. As much as 38% of voluntary coupled support was directed towards dairy producers. In 2015 they are subject to EUR 77 payout per dairy cow. Dairy producers also receive the maximum possible transitional period national payouts.