Despite a difficult situation in Lithuania's milk sector, President Dalia Grybauskaitė says that prices have to be regulated under market conditions rather than artificially.
Dalia Grybauskaitė
© DELFI / Tomas Vinickas

"As to any intervention through price regulation, I can say that price regulation under non-market conditions would only lead to an increase in prices for all consumers," Grybauskaitė told reporters on Wednesday.

"Milk producers will not win from this as they will not get more money for their milk. As to all other consumers, we will pay more for milk products. This is why this method is not used in the European Union. It is prohibited by directives and this is right," she said.

According to the president, local milk producers must cooperate with each other.

"Locally, there is only one measure, which is for producers to cooperate more closely and enhance their negotiating power. Cooperation in Lithuania is symbolic, fictional. There are a lot of intermediaries between the producer and retailer chains," she said.

Lithuania is seeking 32 million euros in aid from the European Commission for its milk producers.

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