The Lithuanian dairy sector faces structural challenges that contribute to an imbalance in the bargaining power of milk producers within the food supply chain, a low level of cooperation, and limited opportunities to adapt to growing economic, geopolitical, climate-related, and regulatory uncertainty. Despite the policy measures implemented at both the European Union and national levels, producer organisations have yet to become established in Lithuania, and there is still a lack of scientifically grounded evidence on the most effective forms of producer cooperation and their impact on economic performance.
The aim of the project is to assess the position of Lithuanian milk producers in the food supply chain and, based on economic, institutional, and behavioural analysis, develop evidence-based models for strengthening producers' position through cooperation under conditions of uncertainty. The research will examine the factors determining milk producers' bargaining power, as well as the incentives and barriers to cooperation and collective action; compare the experiences of Lithuania and other European Union Member States; and assess the impact of different cooperation models on economic performance and risk management using advanced quantitative and qualitative research methods.
The project is expected to establish an analytical framework for assessing the position of milk producers, identify the cooperation models best suited to Lithuanian conditions, and develop evidence-based recommendations for agricultural policy. The project results will contribute to strengthening farmers' bargaining power, promoting more effective cooperation, enhancing the resilience of the sector, and supporting the sustainable development of the dairy sector. At the same time, they will provide a basis for scientifically grounded improvements in public policy and help strengthen Lithuania's competitiveness within the European Union food supply chain.
The project is funded by the Research Council of Lithuania from the state budget of the Republic of Lithuania under the Targeted Research Programme (12th Call).
Project Funding Agreement No. S-REP-26-12.
Project implementation period: 3 November 2026 – 31 October 2027.
Project leader: Dr Tomas Baležentis, Principal Researcher
Email: tomas.balezentis@lcss.lt