1 / 38

Milk sector in Latvia : Future d evelopments

Milk sector in Latvia : Future d evelopments. Rigonda Lerhe Deputy State Secretary Ministry of Agriculture Republic of Latvia. Global situation. Milk production, consumption and price 2020 EU export share in global market EU m ilk quota & abolition impact estimates.

afric
Download Presentation

Milk sector in Latvia : Future d evelopments

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MilksectorinLatvia:Future developments Rigonda Lerhe Deputy State Secretary Ministry of Agriculture Republic of Latvia

  2. Global situation • Milk production, consumption and price 2020 • EU export share in global market • EU milk quota & abolitionimpactestimates

  3. World dairy estimates beyond 2015 Source: FAO • The expansion in demand will be driven by growing incomes, expanding populations, urbanisation and changing diets (mainly in developing countries) • Price & market volatility not taken into account, but will become more and more substantial over time • Global supply and demand will remain even – no overproduction & stock building

  4. Main dairy exporters …and their share in world dairy trade

  5. EU share in world dairy market Source: DG-Agri Expected increase in exports of dairy products not sufficient for raising world market share (milk powders, cheese)

  6. Competition in SMP exports 2013 • USA taking advantage of reducing SMP exports from the EU in 2013

  7. LV: - 3,6% EE: - 6,5% LT: - 21% Source: DG-Agri Milk quotas not reached in most of MS – quota abolition in 2015 unlikely to create heavy effect on the market & prices EU milk quota and milk production trends

  8. Milk production and raw milk price projections for Baltic states Source: Eurostat, CSB, E&Y, 2013

  9. Importance of milk in agriculture production (by value)

  10. Milk sector in Latvia:targetsfordevelopment

  11. Main indicators (milkrecording) • Numberofproducers: 5233 • Averageherdsize: 23,2 • Numberofcows: 124 800 • Yield per cow: 6,5 tons

  12. Cows under recording in Latvia, Estonia, Lithuania and Poland, %

  13. Different breeds under recording in Latvia (2012) 3 breeding organizations in dairy sector: - Animal Breeders Association of Latvia - Latvia Holstein breeders association - Co-op company of agricultural services “ABC Projekts”

  14. Increase the proportion of mediumand large farms Source: The State Agency “Agricultural Data Centre”

  15. Increasing the average herd size by 2 times(cowsunderrecording)would contribute to raising the share of medium and large farms Source: The State Agency “Agricultural Data Centre”

  16. Increase themilkyieldandtotal productionof milk

  17. Average milk yield kg per cow (2011) Source: Eurostat

  18. Increase output of biological milk Source: The State Agency “Agricultural Data Centre”

  19. Farm level efficiency • Promote farm modernization • Increase the knowledge level about efficient farm management

  20. Milk production costs EUR/ litre Source: FADN

  21. Structure of costs in farm (2011)grouping according to economic size Source: MoA calculations

  22. Improve milk quality By: •Promoting the use of milk quality database maintained by Agriculture Data center: - information on rolling geometric average of milk quality parameters •Increasing the level of knowledge of milkfarmersregarding milk quality issues •Increasing the average dairy herd size: - better opportunities to attract resources for modernization

  23. Support to milk farmers (2012, mln EUR) • SAPS & CNDP formilkproducers got 41,1 mln EUR, including coupledsupportfordairysector 4,6 mln EUR, • Ruraldevelopmentprogrampayments27,4 mln EUR andinvestmentsfordairycattle 91,7 mln EUR Source: RSS * 2008 -March 2013

  24. Cooperation of milk farmers Source: The State Agency “Agricultural Data Centre” 2013.* - dataon 01.09.2013.

  25. The EU CAP «Milk package» in Latvia • «Arrangementsforrecognitionandsupervisionofmilkandmilkproductsproducerorganisations» (05.02.2013, nationalregulation): • Mandatorywrittencontracts: inforceundermilkquotasystemalreadybetweenproducerand first purchaser. Otherstagesofmilkchainexempted

  26. Industryandtrade

  27. Share of dairy industry inthestructureof food production Source: Central statistical bureau

  28. Increase volumes of milk procesed and reduce raw milk exports Source: RSS, AgricultureDataCentre, MoAcalculations

  29. Milk purchasing in Baltic states Source: AgricultureDataCentre, CSB, MoAcalculations

  30. Increase share of the largest dairy processors in total domestic processing 15% 85% 85% Totalnumberofprocessors - 32 Source: AgricultureDataCentre, MoAcalculations

  31. Increase production of higher value added products 19% 19% 19% Source: CSB, LatvianDairyCommittee Production of dairy products in Latvia, % and thsd.t

  32. Increase exports to eastern destinations mln EUR and % Source: EUROSTAT

  33. Trade balance of Latvian dairy sector Source: Eurostat The EU isthedestinationfor 80% of LV dairyexportsandtheoriginfor 99% LV dairy imports

  34. Support to dairy industry

  35. Investment support for dairy industry under the rural development policy2007-2013 RDP investment support • Public funding: 21,1 mlnEUR (28.7% of the total public funding) • Total attracted investment: 40,7 mln EUR • Companies supported:21

  36. School milk in Latvia 2012/2013: • ~4% (3245 tons) of drinking milk volumes marketed by LV dairies (in 2012) • Main product: plain milk (99,9%) • 59 % (834) of schools & pre-schools/ 65% (181 thsd) of pupils • National top-up: Plain milk to pre-schools and 1st-9th grade of school • Total budget: 2,1 mln EUR Schoolmilk

  37. Dairy promotion programme implemented in Latvia Productpromotion Source: RSS by CSB

  38. Thank you for your attention! Rigonda Lerhe Ministry of Agriculture E-mail: rigonda.lerhe@zm.gov.lv Zemkopības ministrijaZemkopības ministrija Zemkopības ministrija 38 38

More Related