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Friday, 29.03.2024, 14:31
Oil price to play part in future dairy market
In his opinion, it is now crucial to see growth of oil
prices, which will play a key part in the capacities of countries that import
many products. Karpavicius said decline in dairy production volumes in some
countries is also an important factor: "Everything will largely depend on
the oil price. Exports to countries, such as Saudi Arabia, largely depends on the
price, they buy a lot more when the price is going up. French and German
farmers have slashed the use of animal fee, thus pulling down the volume of
milk they produce. New Zealand gives hope due to declining production there.
Everyone hopes that China will also do its work."
In the first quarter of this year, Lithuanian dairy
companies exported 71.2 mln euros worth of produce, which marks a steep decline
by 31% y-o-y. The situation had improved after the first half of the year, with
exports from Lithuania down 22.3% y-o-y, while the 10.3% drop over the first
eight months of 2016 give hope that the overall annual result would not be
below the 2015 figures