Dairy firms urge EU to create special buffer zone amid Russia sanctions

Baltic dairy firms will turn to Brussels with calls to create a special buffer zone to counter Russian food sanctions.

Latvia will also propose to build a milk powder factory after Russia turned away large quantities of . It follows after Russia laced sanction on Western food goods.

Deputy CEO of the Latvian Agricultural Cooperatives Association and CEO of the cooperative "Piena cels" (Milky way), Ilze Aizsilniece, the association's leaders will meet with their Lithuanian and Estonian counterparts in order to discuss a joint strategy to achieve EU compensation payments for dairy companies, intervention measures and nullification of fees for the used milk quotas.

"Taking into account the proximity of Russia's borders and consequences of the Soviet period, Europe must show solidarity with the Baltic countries and designate a special buffer zone, stipulating tax reliefs for dairy producers,' said Ilze Aizsilniece.

"The EU should pay for the dairy companies' products that cannot be sold due to political decisions, thus the Baltic agricultural cooperatives expect a re-distribution of the EU funds which would solve the crisis caused by Russia's sanctions"

She also indicated that Latvian dairy producers should consider the option of building a milk powder facility in Latvia.

"The time will come when Latvian dairy companies will be unable to continue successful operations without such a plant, said Aizsilniece.