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Dairy subsidy and price crises spread across Balkans and EU

Updated 2 times since CLSTR started tracking revisions of this situation.

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2026-08-11 04:02 UTC → 2026-08-16 15:54 UTC · added removed

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. On 21 July 2026, Hungary reported a dairy market crisis driven by a sharp fall in farm‑gate milk prices and an influx of cheap EU milk imports from Germany, By 15 August, the Czech Republic, Poland and Slovakia. Raw‑milk retail price war expanded to other staples. Butter prices slipped from about 200 forints/kg in 2023 fell to roughly 129 forints/kg in approximately 117.54 CZK per kilogram, the lowest level since June 2024, leaving processors 2010, alongside drops in egg and farm owners unable semi-skimmed milk prices. While this has helped dampen inflation, the Office for the Protection of Competition (ÚOHS) is investigating butter prices to cover costs. 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.

Versions

  1. 2026-08-16 15:54 UTC Dairy subsidy and price crises spread across Balkans and EU
  2. 2026-08-11 04:02 UTC Dairy subsidy and price crises spread across Balkans and EU
  3. 2026-07-28 19:51 UTC Dairy subsidy crises spread Balkans, Czech, Hungary

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