Milk market in Lithuania

Earlier Report Observations

The Lithuanian milk market volume began the period at 540 thousand tons in 2018, supported by expanding consumer demand for organic milk and positive export trends within the EU. However, the market contracted to 493 thousand tons in 2019 as domestic sales fell sharply early in the year, reflecting weaker local consumption and Lithuania's persistently low milk procurement prices compared to the EU average.

Market volume recovered to 546 thousand tons in 2020 and continued expanding, reaching a peak of 603 thousand tons in 2022. This growth was driven by lower raw milk prices at the end of 2022, which improved affordability, and the emergence of the vertically integrated cooperative 'Pienas LT,' which contributed to a more streamlined production structure. Concurrently, the market value surged to $418.3 million in 2022 amid broader inflationary pressures and rising energy costs that increased production and supply chain expenses.

After the 2022 peak, the physical market volume softened to 593 thousand tons in 2023 and further to 575 thousand tons in 2024. In value terms, the market exhibited volatility, dropping sharply to $194.9 million in 2019 due to low farmgate prices before rebounding as costs rose.

Production milk in Lithuania

In value, 2018-2021, M $ US

Lithuania's milk production value increased for the second consecutive year. In 2021, milk output was valued at 399.6 million US dollars, marking a sharp increase of 35.6% compared to 2020. Over the period from 2018 to 2021, production grew by 13.7%, which translates to an annualized growth rate of 4.4%. The lowest value was recorded in 2019 at 284.5 million US dollars, with the largest decline of 19.0% occurring that same year.

Annual dynamics of production in Lithuania in value, 2018-2021, M $ US

In kind, 2018-2021, K t

Top producers of milk, 2018-2021

World map of production of milk, 2018-2021

Milk production in Lithuania increased for the second consecutive year. In 2021, Lithuania produced 244.8 thousand tonnes of milk, showing a limited rise of 7.4% compared to 2020. From 2018 to 2021, production decreased by 2.4%, with a compound annual growth rate of 0.8%. The lowest volume was recorded in 2019 at 218.7 thousand tonnes, and the largest decline of 12.8% also occurred in 2019.

Annual dynamics of production in Lithuania in kind, 2018-2021, K t

Exports milk from Lithuania

Exports in kind, K t

Lithuania exported 224.9 thousand tonnes of milk in 2021, indicating an uptick of 4.6% compared to 2020. Between 2018 and 2021, exports increased by 5.4%, equating to an annualized growth rate of 1.8%. The highest volume was recorded in 2019 at 232.1 thousand tonnes. The largest decline of 7.3% occurred in 2020, while the largest increase of 8.8% was recorded in 2019.

Annual dynamics of product's exports from Lithuania in kind, 2018-2021, K t

From 2018 to 2021, Poland, Latvia, and Germany were the main buyers of milk from Lithuania, accounting for 77.9% of total exports in volume. Poland led with 55.1% of exports, followed by Latvia at 15.7%, and Germany at 7.1%.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Lithuania in kind, 2018-2021

Exports in value, M $ US

In 2021, Lithuania's milk exports reached 325.7 million US dollars, indicating an increase of 23.6% compared to the previous year. Over the period from 2018 to 2021, exports grew by 14.7%, with a compound annual growth rate of 4.7%. The lowest value was recorded in 2020 at 263.5 million US dollars, and the largest decline of 10.1% also occurred in 2020.

Annual dynamics of product's exports from Lithuania in value, 2018-2021, M $ US

From 2018 to 2021, Poland, Germany, and Latvia were the main destinations for milk exports from Lithuania in value terms, together accounting for 65.0% of total exports. Poland contributed 47.2%, Germany 11.3%, and Latvia 6.6%.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Lithuania in value, 2018-2021

Imports milk to Lithuania

Imports in kind, K t

Lithuania's volume of milk imports increased for the third consecutive year. In 2021, imports stood at 550.5 thousand tonnes, up by 3.2% relative to the prior year. Over the period from 2018 to 2021, imports grew by 9.6%, with a compound annual growth rate of 3.1%.

Annual dynamics of product's imports to Lithuania in kind, 2018-2021, K t

Throughout 2018 to 2021, Latvia and Estonia remained the primary suppliers of milk to Lithuania, with a combined share of 89.0% of total imports in volume, while other countries accounted for the remainder.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Lithuania in kind, 2018-2021

Imports in value, M $ US

Milk deliveries to Lithuania increased for the third consecutive year. In 2021, imports reached 255.4 million US dollars, up by 19.4% versus the previous year. From 2018 to 2021, imports increased by 26.7%, with a compound annual growth rate of 8.2%.

Annual dynamics of product's imports to Lithuania in value, 2018-2021, M $ US

Throughout 2018 to 2021, Latvia and Estonia remained the key partner countries for milk imports in value terms, with a combined share of 81.2% of total flows; other partners accounted for the rest.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Lithuania in value, 2018-2021