From June 28-29, Prime Minister Māris Kučinskis participates in work of the European Council in Brussels. The European Council has called on the European Commission to swiftly implement all the necessary support measures, incl. to provide the financial support to farmers in dairy and pig farming sectors. The EU leaders also call on all the participants of the supply chain to help reduce imbalances of the market.
According to estimates of the Ministry of Agriculture, the purchase price of milk has fallen by 38% since the Russia’s embargo from July 2014 to May 2016. In view of price trends and purchase volumes for milk, the decrease in revenues of the Latvian milk producers could reach EUR 132.3 million by August 2016.
Exports of milk and dairy products decreased by EUR 129.3 million from August 2014 till December 2015, compared to the equivalent period prior to Russia’s embargo on imports. In turn, the purchase price of pork was by 11.3% lower at the end of May 2016 than before Russia’s embargo.
To compensate for damages, the support measures aimed at mitigating the impact of embargo on import have already been used. The EU’s temporary emergency support in the amount of EUR 7.72 million was granted in November 2014, the EU’s temporary emergency support in the amount of EUR 8.45 million was granted to farmers of livestock sector in October 2015.
The aid for Latvia as an advance payment of EUR 7.60 million for breeding was granted and paid in 2015, while the additional aid of the state of Latvia to milk producers in the amount of EUR 6.197 million, supplementing the EU's temporary emergency aid was granted for farmers in the livestock sector in May 2016 and paid in June.
Andrejs Vaivars
Press Secretary to the Prime Minister
Phone: 29228678
E-mail: Andrejs.Vaivars@mk.gov.lv