Dairy producers in Serbia are facing a crisis as milk purchasing prices have been significantly lowered by dairies, some by as much as 10 to 16 dinars per liter. Producers claim they are pushed to the brink, with many small and medium farms at risk of closure, and some are threatening protests if the government does not intervene soon.
The president of the Cattle Breeders Association in central Serbia, Milija Palamarević, warned that the price cuts threaten the survival of smaller farms. Dejan Trajković from the “Our Milk” association reported monthly losses of about 500,000 dinars from selling milk at reduced prices and called for state compensation.
Despite government assurances that import licenses for milk and milk products have been halted due to rising milk stockpiles, producers say imports continue secretly, undermining the domestic market.
According to official statistics, milk production increased by 13.4% in 2024 compared to the previous year. However, producers receive only about 59% of total production value through milk collection centers, while retail prices remain much higher than farm gate prices.
Predrag Veljković, president of the Milk Producers Association for Šumadija and Pomoravlje, confirmed ongoing price cuts and accused dairies of debt delays and some stopping milk purchases entirely. He criticized the government for delayed subsidies and alleged the aim is to phase out small and medium farms to reduce budget spending.
Goran Vasić, president of the Milk Producers Association in the Mačva District, highlighted that dairies continue to cut prices despite repeated government statements blaming oversupply, decreased consumption, and aflatoxin export bans. He called for urgent dialogue between dairies, producers, and the Ministry of Agriculture to find solutions, including controlling imports and managing excess stock.
Vasić also raised concerns about milk quality, noting reports that some dairies adulterate milk with palm oil or water to cut costs, despite government efforts to enforce stricter quality standards.
Agro-economic analyst Žarko Galetin suggested dairies act out of defiance, controlling prices since they bear less risk than producers. He emphasized the need for a national reference laboratory to ensure milk quality and argued that improving domestic milk standards is essential to reduce reliance on imports.
The ongoing price reductions, combined with quality issues, import pressures, and delayed subsidies, create a challenging environment for Serbian dairy producers, threatening the sustainability of smaller farms and the domestic dairy sector overall.
