Despite everything, the dairy farming industry in Latvia continues to work and develop! – Agriculture

Despite the fact that the year 2023 was full of challenges and trials for dairy farms in Latvia – the drop in the purchase price of raw milk at the beginning of the year from almost 50 EUR/100 kg to 34 EUR/100 kg, the increase in production costs, the severe drought and, therefore, animal feed disadvantage – the farms that survived the current difficulties have optimized their production and continue to farm and develop successfully.

“The year 2023, when the price of milk fell rapidly and the drought came, created huge challenges for those working in dairy farming with a shortage of feed and the high cost of milk. In livestock farming, the first stage of the chain is high-quality and sufficiently prepared fodder! Those farmers who had observed the basic conditions in dairy farming, or produced and prepared feed with at least a couple of months’ reserve, then was able to adapt to this situation and balance animal feeding and costs milk” The year 2023 was very difficult. We had a roughage deficit of around 25% of the basic needs. Managing a high-yielding herd with partially our own and purchased roughage was a big challenge for us,” Nils Bergmanis, head of the production department of SIA “Ogres piens”, comments and shares his experience.

According to the information prepared by the Agricultural Data Center (LDC) in the statistical register of raw milk procurement, the number of milking cow herds in January 2023 has decreased from 9490 herds to 8318 – March 2024 data. The number of dairy cows has also decreased by more than 10 thousand units during this period. This is an undeniable consequence of the fact that many dairy farmers, mostly small farms, could not cope with the challenges and difficulties of 2023.

On the other hand, based on data from the European Commission’s Milk Market Monitoring Center, Latvian dairy farmers have been receiving the lowest payment among all European Union member states for more than a year. In March 2024, they were 39.45 EUR/100 kg, which is almost 15% less than the average purchase price of raw milk in the EU.

“If we talk about the price of milk and compare it with other EU countries, the situation indicates to us that Latvian dairy farms must be much more creative and efficient. When sharing experience with colleagues from other countries, it often turns out that the cost of our feed and the productive the cost of feeding animals per kilogram of dry matter is at very similar levels, which means that the “profit after animal feeding” is higher everywhere else in the EU, because the main costs of animal husbandry are precisely the feeding of animals and the production of roughage. Therefore, we have to think about how to make other daily activities more efficient costs,” so Nils Bergmanis.

Despite the difficulties faced by SIA “Ogres piens” in 2023 and the lowest purchase price of raw milk in the EU, the farm is very optimistic about the future and has set big goals and settings for the 2024 season based on long-term thinking: “Our vision for future expansion is to think more creatively. To develop projects where we are able to increase the number of productive animals and reduce labor costs in terms of animal maintenance. Monitor animals with new technologies and develop animal genetics. At Ogres Piens Ltd. we are very focused on using the latest generations technologies to perform automatic monitoring of animals using the Allflex Livestock intelligence app. Also, developing animal genetics will create a farm plan based on genomic testing and results.”

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Data sources: https://agriculture.ec.europa.eu/data-and-analysis/markets/price-data/price-monitoring-sector/milk-and-dairy-products_en

https://registri.ldc.gov.lv/lv/svaigpiena_iepirkuma_statistika

The Association of Livestock Farms unites more than 50 members, representing the producing Latvian livestock farms and whose main goal is to represent the interests of the livestock farmers of the Latvian agricultural sector at the level of Latvia and Europe. To represent the needs and interests of farmers, creating a stable and production development-oriented Latvian agricultural sector, uniting the Latvian livestock production companies and farms in a common position, as well as standing up and fighting for fair and proportionate support mechanisms.

Association of Livestock Farms