March 31, 2023 -  On Thursday, the Croatian government changed the decision on direct price control measures for specific food products in such a way that the highest retail price of UHT milk with 2.8 percent milk fat per liter has now been raised by 5 cents and the price it cannot exceed amounts to 1.03 euros.

"The Ministry of Agriculture has proposed that the price of UHT milk be increased by five cents, all in order to protect primary milk production and to limit trade margins to a maximum of ten percent," said Minister of Economy and Sustainable Development Davor Filipović, as reported by Poslovni.

As stated in the explanation that came with the government's decision, this was an amendment of the decision on direct price control measures for certain food products, i.e., increasing the upper price level of UHT milk 2.8 percent milk fat by 5 percent - from 0.98 euros/liter to 1.03 euros/liter. Also, the upper margin limit of ten percent for traders for UHT milk of 2.8 percent of milk fat has been introduced.

"Such a proposal continues to ensure an acceptable price for UHT milk with 2.8 percent milk fat, which is the type of milk most often consumed in Croatia. It also ensures a margin limit that does not put traders in an unfavorable position in the chain while preventing potential pressure to lower the purchase price", states the explanation.

It is also noted that the liquidity of agricultural holdings, along with the entire primary production, as well as the processing industry, are now in quite unfavorable production conditions, which is a result of market disturbances in the last three years. According to the document, this has been preserved mainly by national regular and intervention measures of financial support granted precisely because of significant market disruptions and challenging business conditions.

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