‘Until we increase production, we will continue to import milk’

Minister of Agriculture Tihomir Jakovina today called on milk producers to continue with the production and delivery of milk and not to block roads and border crossings due to dissatisfaction with the purchase price of milk.

Jakovina emphasized at a press conference in Banski dvori that the Ministry of Agriculture does not set the purchase price of milk, as it is a matter of the market. He stated that milk buyers offered to purchase it at a price of 2.43 kuna per liter, which was accepted by some producers at yesterday’s meeting that lasted 10 hours, while others did not.

– Those who accepted the buyers’ proposal will continue production under the new corrected conditions, while those who are not satisfied will continue negotiations with their buyers, he added.

Jakovina emphasizes that expressing dissatisfaction is a legitimate right of every producer, but blocking roads and causing additional losses and problems for the population and the economy of Croatia is not a normal expression of dissatisfaction. He appealed to producers to produce milk and not to block roads and border crossings, reminding them that Croatia has imported milk before.

‘Until we increase production, we will continue to have imports. We must produce more, better, cheaper,’ said Jakovina.

The minister presented to journalists the conclusions from yesterday’s Council for Monitoring the Situation in the Milk Production Sector, highlighting that the Ministry this week paid two installments of advance support for milk amounting to 54.6 million kuna, and that based on the Law on State Aid for Agriculture and Rural Development, an additional 167 million kuna will be secured for the cattle sector through the redistribution of available funds from the national envelope. This amounts to about 800 kuna in additional funds per head for farmers, he said.

In addition, HBOR presented a package of credit line measures available to agricultural producers, which are extremely important given the over-indebtedness of most producers. The so-called milk code was also presented, under which producers will negotiate the price of milk they deliver to buyers based on clearly defined terms in the future.

Jakovina pointed out that the amount of 2.43 kuna, which dairies have now offered, is not all that milk producers receive, as they also receive funds through support for the area of land they cultivate, plus the envelope for sensitive sectors, as well as 800 kuna in additional support, and three kuna per liter of blue diesel. If we calculate that, it amounts to almost 1.4 kuna from the budget added to each liter of milk produced, along with 2.43 kuna from the buyers, he said.