Latvia's dairy sector: fewer farms, steady output, growing exports
The number of dairy farms and milking cows in Latvia is falling, yet milk output has stayed almost unchanged for about three years. The value of dairy exports has grown from just under €200 million to over €320 million in ten years.
Latvia's dairy sector is going through structural change: the number of farms and milking cows is shrinking, while the volume of milk produced has stayed largely stable for roughly three years. Jānis Šolks, head of the Central Union of Dairy Farmers, and Gatis Kaķis, chairman of the board of the company Agrofirma Tērvete, described the sector's situation, challenges and outlook. The matter concerns both farmers and processors, who must compete with producers in neighbouring countries.
Fewer farms, higher productivity
Kaķis says Latvia has about 110,000 milking cows, and the number falls by an average of 2,000–5,000 each year. About 6,300 farms keep between one and 50 cows, holding roughly 36% of all cows, while only a little over 200 farms have more than 100. Kaķis forecasts 90,000–100,000 milking cows in 5–10 years. Šolks argues that steady output points to production concentrating in farms able to invest in technology; average milk yield per cow is rising as well.
Prices, labour and generational change
The purchase price of raw milk has settled slightly below 40 cents per kilogram, but small farms receive considerably less than large ones. High resource costs and a labour shortage add pressure. The average age of dairy farm managers is approaching 60 and has risen by almost four years since 2020, while young people show little interest in the field.
Processing and exports
About 1,550 tonnes of milk are processed in Latvia every day, and part of the raw milk is sold for processing in Lithuania. Šolks estimates that about half of the drinking milk sold in Latvia is made in Lithuania or Estonia; the share of domestic product is around 95% in Estonia and above 80% in Lithuania.
The value of Latvian dairy exports rose from just under €200 million to more than €320 million in 2025 over ten years. Products reach about 72 countries, and cream cheeses and curd products are increasingly exported rather than only milk powder. Šolks warns that if support for food production shrinks, companies may find it harder to expand. Kaķis is confident about the future: “Dairy farming in Latvia was, is and will be.”
