The production cost of raw milk in Lithuania is approximately 35 cents per kilogram, with a selling price of around 48 cents, resulting in a margin of 13 cents; projections for 2025 indicate a selling price of about 54 cents per kilogram.
According to data from the Agricultural Data Center (ŽÅŖDC), the cost of producing raw milk in Lithuanian agricultural companies and cooperatives in 2024 is estimated at around 35 cents per kilogram, considering key expenses such as wages, feed, fuel, energy, and other production costs. The average purchase price from these producers stands at about 48 cents per kilogram, leading to a profit margin of roughly 13 cents per kilogram. This reflects the economic dynamics in the dairy sector and showcases the competitive positioning of Lithuanian dairy producers within the European Union.
Further insights from Edmundas Piesarskas, a partner at the consulting firm Economic Consultations and Research (EKT), reveal that final data for last year's milk production costs have yet to be released. However, based on previous years' trends and market changes, it is likely that the production costs remained at a comparable level. Piesarskas indicates that the prices of energy and feed resources did not significantly increase last year, which is pivotal for maintaining the competitiveness of Lithuanian milk production in the EU market.
Looking ahead, the projections for 2025 suggest an annual raw milk price of approximately 54 cents per kilogram, which suggests a steady increase and highlights the ongoing viability of Lithuania's dairy sector. The interplay between production costs and selling prices will be key for farmers, as they navigate fluctuating market conditions and strive to maintain viable operations while within the competitive landscape of the European Union.
