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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 14:31

Oil price to play part in future dairy market

BC, Vilnius, 21.10.2016.Print version
The recovery of the dairy market will depend on oil prices and the decline of milk production volumes in southern Europe and New Zealand, Raimondas Karpavicius, chairman of Marijampoles Pieno Konservai operated by Russian-Liechtenstein joint venture Eksimeta, told Verslo Zinios business daily writes LETA/BNS.

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






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