Estonian shops short of bagged milk as farmers point to competition for raw milk
Farmers in Estonia say there is no milk shortage in the country, yet supermarket shelves have gaps, as processors compete for raw milk to make higher-value products such as protein-rich goods.
Some Estonian supermarkets have recently run short of milk sold in plastic bags. Farmers say the country is not short of milk, but competition for raw milk has grown as companies look for ways to make higher-value products, including protein-rich ones. The issue was reported by Estonian public broadcaster ERR.
Marta Palm, purchasing manager at Rimi Estonia, said that about two weeks ago the producer of Rimi Smart milk told the retailer it was facing supply difficulties. According to her, the producer explained that a switch to new feed had temporarily made raw milk production harder. Maag Food, one of the suppliers of bagged milk, declined to comment to the evening news programme "Aktuaalne kaamera".
Farmers' explanation
Lenno Link, head of dairy farming company Väätsa Agro, said that changing feed generally does not affect output, which is usually very stable. He said raw milk production in Estonia is in fact rising by around 100 tons a year, but processors are competing for it more than before. Link explained that people are consuming more protein, partly because of weight-loss drugs, and animal protein is being added to many products. Whey protein powder, made from raw milk, has become very scarce.
Prices on the European milk market have risen by around 10 percent in recent months. That gives dairy farmers hope of securing more favorable supply contracts with processors for next year.
Views from the industry
Ants-Hannes Viira, head of agricultural policy at the Estonian Chamber of Agriculture and Commerce, said the tense period of contract negotiations may be one reason for the disruption. He stressed that the real question is whether bagged milk can be sold in shops at a price that is also fair to producers.
Valio CEO Maido Solovjov said bagged milk will not disappear from the mainstream market any time soon. He noted that he has worked in the dairy industry for over 20 years and that talk of its disappearance has been constant, yet consumption in Estonia is still 100 tons per day.
Rimi's purchasing manager said Maag Food has promised to resume deliveries next week, and the retailer has pledged not to raise the product's price.
