# Dairy subsidy and price crises spread across Balkans and EU > Live situation record from CLSTR: https://clstr.news/situations/balkan-dairy-subsidy-crises > Updated: 2026-08-15T17:35:07.000Z. Sources: 20. Developments: 6. In mid‑June 2026, North Macedonia cut agricultural subsidies by €40 million and lowered the guaranteed milk purchase price to about 0.20 denars per litre, prompting two dairies in the Delčevo region to stop buying milk. A month later, dairy producers in Bosnia‑Herzegovina’s Tuzla Canton reported that federal subsidy payments were nine months overdue and milk purchase prices had fallen to 55‑75 fenings per litre, threatening farm closures. On 14 July 2026, the Czech Republic experienced a similar shock: average prices for quality‑grade milk dropped 11.4 % year‑on‑year to 11.39 CZK per litre. By 28 July, Czech livestock breeders added that a drought‑induced hay shortage, compounded by reports of hay theft, heightened financial strain. By 10 August, the crisis intensified as Czech retailers began selling milk for as low as 5.90 CZK per litre. Industry leaders, including Jiří Kopáček of the Czech-Moravian Dairy Association, warned this creates a ‘total deformation of prices,’ suggesting supermarkets use milk as a ‘loss leader.’ The Czech Meat Processors Association has called for the government to classify selling below cost as an unfair trade practice, while the European Commission has promised a new directive regarding unfair trade practices later this year. By 15 August, the Czech retail price war expanded to other staples. Butter prices fell to approximately 117.54 CZK per kilogram, the lowest level since June 2010, alongside drops in egg and semi-skimmed milk prices. While this has helped dampen inflation, the Office for the Protection of Competition (ÚOHS) is investigating butter prices to ensure no abuse of market power is occurring. Agriculture Minister Martin Šebestyán noted the situation may lead to market concentration among a few powerful entities. ## Timeline ### 2026-08-15: Czech food prices hit 15-year lows amid retail price war Czech retail chains are engaging in a price war, driving staple food prices like butter and milk to 15-year lows as they use basic goods as loss leaders to attract customers. 4 sources. https://clstr.news/cluster/czech-food-prices-hit-15-year-lows-amid-retail-price-war ### 2026-08-10: Czech dairy industry protests ultra-low supermarket milk prices Czech dairy farmers and industry groups are protesting extremely low milk prices in supermarkets, alleging that retailers are using milk as a ‘loss leader’ to drive sales at the expense of producers. 3 sources. https://clstr.news/cluster/czech-dairy-industry-protests-ultra-low-supermarket-milk-prices ### 2026-07-28: Czech dairy farmers face low milk prices and hay shortages Czech farmers say low milk prices and drought‑driven hay shortages are tightening finances and forcing operational changes. 6 sources. https://clstr.news/cluster/czech-dairy-farmers-face-low-milk-prices-and-hay-shortages ### 2026-07-14: Czech dairy farmers warn of crisis as milk prices plunge Czech milk prices fell 11.4%, prompting dairy farmers to warn of farm closures and call for EU emergency measures and increased government subsidies. 2 sources. https://clstr.news/cluster/czech-dairy-farmers-warn-of-crisis-as-milk-prices-plunge ### 2026-07-13: Tuzla Canton dairy producers face crisis as federal subsidies delayed Bosnian dairy farms in Tuzla Canton warn of a crisis as nine‑month subsidy delays, falling milk prices and rising costs threaten over 1,200 farms and families. 2 sources. https://clstr.news/cluster/tuzla-canton-dairy-producers-face-crisis-as-federal-subsidies-delayed ### 2026-06-14: Macedonia's dairy farmers face crisis after subsidies cut and milk purchase price slashed Macedonian opposition reports a farming crisis: subsidies cut by €40 M, milk purchase price down 46 %, two dairies halted buying, leaving farmers without market. 3 sources. https://clstr.news/cluster/macedonias-dairy-farmers-face-crisis-after-subsidies-cut-and-milk-purchase-price-slashed --- Cite as: Dairy subsidy and price crises spread across Balkans and EU. CLSTR, https://clstr.news/situations/balkan-dairy-subsidy-crises