Farmers say Estonia has no milk shortage despite bagged milk gaps

Estonian farmers say there is no shortage of milk despite recent supply gaps for bagged milk in several shops, ERR reported. Raw milk production is increasing, while competition among processors for supplies has intensified.

Rimi purchasing manager Marta Palm said the supplier of Rimi Smart milk had reported delivery problems about two weeks ago. The supplier said a change of feed had temporarily made raw milk production more difficult.

Lenno Link, head of dairy farm Väätsa Agro, said feed changes generally do not affect production. He said Estonia’s raw milk output is now stable rather than highly seasonal.

Daily raw milk production has been rising by about 100 tonnes a year as processors compete more keenly for supplies, Link said. Demand for protein is growing, partly because of weight-loss medicines, and animal protein is being added to a wider range of products. Whey protein powder made from raw milk has become particularly scarce, he said.

European milk prices have risen by about 10% in recent months, raising producers’ hopes of securing better supply contracts with processors for next year. Ants-Hannes Viira, head of agricultural policy at the Estonian Chamber of Agriculture and Commerce, said the pressure of contract negotiations could be one reason for recent disruptions to bagged milk deliveries.

As raw material prices rise, processors have to pay more for milk and are looking for ways to add value to it, Viira said. He added that bagged milk should be sold at a price that is fair to producers.

Valio chief executive Maido Solovjov said bagged milk was not likely to disappear from the main market soon. Estonia still uses about 100 tonnes of it a day, he said.

Palm said Maag Food had promised to resume bagged milk deliveries next week. Rimi does not plan to raise the product’s price.