Some Estonia's dairies plan to lower the milk purchase price in times when milk producers can't pay their leasing installments and owe money to partners, Sirje Niitra writes in Postimees, as LETA reports.
Mart Lees has 180 cows, he sells the production to Maag dairy. Maag announced the intention to pay 20 cents less per milk litre to the farmer from August, which would mean 20,000 kroons a month in Lees´s income.
"We all work with loss, the situation is terribly bad," Lees said.
He has to pay leases for 120,000 kroons a month. The bank gave grace period for half of it until the end of year. Today Lees expects a meeting with representatives of Maag to discuss the price question.
Valdis Noppel, the CEO of Maag dairy, said the situation on the market forces to lower milk purchase price: "We're suppliers, and we have customers who dictate the price. We don't reduce the price voluntarily, we're over a barrel to keep factories running and offer work to people," Noppel said.
CEO of the company highlighted that dairies are well aware that the first-level producers are in even worse situation, which is why the milk purchase price has been increased when possible.