IDEAS home Printed from https://ideas.repec.org/p/pes/wpaper/2017no136.html
   My bibliography  Save this paper

Lithuanian Agri-Food Industry Responses to Russian Import Ban on Agricultural Products

Author

Listed:
  • Vlada Vitunskiene

    () (Aleksandras Stulginskis University, Lithuania)

  • Evaldas Serva

    () (Aleksandras Stulginskis University, Lithuania)

Abstract

For a long time before the Russian import ban, Russia was the second most important destination for Lithuania's agricultural exports (after the EU common market), especially for processed dairy and meat products, and edible vegetables. Russia imposed a ban on most agricultural products from the EU in August 2014. Moreover, a year earlier, Russia closed its market for Lithuanian dairy products citing safety concerns. Among the EU countries, the economic impact of the Russian import ban of agricultural products may be most acute in Lithuania. Purpose of the article is to examine the Russian import ban consequences for Lithuanian agricultural products export and the agri-food industry responses to the Russian import restrictions. The examination has been based on trade and production performance indicators. Time series and spatial analysis of agricultural export flows by HS and the food production. Due to the Russian embargo Lithuania’s agricultural production export worth sharply declined in 2014-2015. In volume terms, Lithuania’s export of cheese, cream, yogurt and other fermented milk products was significantly lower in 2016 than in 2013, although, butter export has increased, whereas a higher share of raw milk was processed into butter. The production profile of the dairy processing industry has been changing since 2014. Processors have increased output of products like butter and skimmed milk powder which can be sold or stored within the EU intervention programs or exported to alternative markets within the EU or beyond. In 2015-2016, the export of banned agricultural products has been reoriented towards new markets. The profitability of dairy processors decreased in 2014. However, in 2015, main dairy processors increased the profitability again due to the greatly reduced farm-gate milk prices. Despite the drop of farm-gate milk prices, majority of farmers are continuing milk production. Some of the farms completely switched to local food markets

Suggested Citation

  • Vlada Vitunskiene & Evaldas Serva, 2017. "Lithuanian Agri-Food Industry Responses to Russian Import Ban on Agricultural Products," Working Papers 136/2017, Institute of Economic Research, revised May 2017.
  • Handle: RePEc:pes:wpaper:2017:no136
    as

    Download full text from publisher

    File URL: http://www.badania-gospodarcze.pl/images/Working_Papers/2017_No_136.pdf
    File Function: First version, 2017
    Download Restriction: no

    More about this item

    Keywords

    agri-food products export; processing industry; Russian import ban; profitability;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pes:wpaper:2017:no136. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adam P. Balcerzak). General contact details of provider: http://edirc.repec.org/data/ibgtopl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.