Lack of competition keeps milk prices high
Milk in Malta continues to rate amongst the most expensive within the European Union, according to the Unions statistical services latest report on dairy prices.
Milk in Malta continues to rate amongst the most expensive within the European Union, according to the Unions statistical services latest report on dairy prices, and government has until October to enforce regulations which may ensure more competitive pricing.
The statistics reveal that milk in Malta costs 46.4 cents per kilo, 12 cents more than the EU average of 34.4 cents per kilo, according to January 2012 figures.
Malta appears to have the third highest priced milk amongst the EU27, with Cyprus topping the chart with a cost of 53.5 cents per kilo, and followed by Greece with 47.2 cents per kg. After Malta, comes Finland at 45.3/kg.
In a report compiled in 2010 by Alexandros-Aristeidis Koutsogiannakis from Rotterdam's Erasmus School of Economics, it was explained how Malta, being the smallest milk producer in the EU, held just 6,000 dairy cows in 2010.
Koutsogiannakis said that when comparing milk prices, he found "remarkable examples" in Malta and Latvia. The average milk price of Latvia counts approximately for the quarter of Malta' milk price.
The widest inequalities though, occur in the case of annual milk production. In that case, Malta's annual milk production stands approximately for the 0.16% of the German annual production. Specifically, Malta is the country that barely even produces milk. According to market rules, this is not abnormal, given how it is also the country with one of the highest milk prices.
The paradox however lies in the fact that Latvia, which has the lowest milk prices, cannot even be categorised among the top producing countries.