The prices of dairy products are set to rise by ten percent next year as global demand for dairy products increase. Agricultural Market Promotion Center head Inguna Gulbe has said,
''There has been a 25 percent increase in global demand for dairy products this year. Asia purchases about 55 percent of the global dairy products, as demand in this region continues to increase. We are seeing a substantial increase in demand for dairy products in Russia as well,'' Gulbe said.
''Even though the price of dairy products has been relatively stable in recent years, we will most likely see an increase between five to ten percent next year,'' Gulbe admitted, while at the same time adding that the consolidation of dairy companies will continue next year.
''Smaller dairy companies will either join up with larger ones or disappear. These companies produce just for the domestic market, and do not export. These niche products are very interesting of course, but they will become so expensive to produce, that they will just cause losses for the company. Companies that export their products have much better outlooks. Of course, milk farmers are expected to have a good year as well next year,'' Gulbe added.
The Agricultural Market Promotion Center was created in 1995 as a part of the Latvian State Institute of Agrarian Economics. It collects and collates information about the price and amount of specific agricultural products and submits it to the European Commission. The acquired information is used to assess the situation in the production of agricultural products and on the market, to ground intervention measures, and to establish the customs value of specific agricultural products, reports nozare.lv.