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Swedish farmers hit by Russian sanctions

Published tisdag 23 december 2014 kl 11.29
Mjölkbonden Robert Aronius. Foto: Annika Ström/Sveriges Radio.
Dairy farmers were already having a hard time before sanctions. Photo: Annika Ström/Sveriges Radio.

Sweden's biggest dairy firm will be paying a lot less to farmers after the new year.

The price paid will drop from SEK 2.65 to SEK 1.95 per kilo.

News agency TT reports the Arla company explains its decision by referring to an imbalance in global demand and supply. The European cheese market has been hit hard by the Russian block on certain EU food imports.

Arla says Swedish farmers have been hit by a domino effect, after tit-for-tat EU and Russian sanctions over the Russian annexation of Ukraine's Crimea.

Dairy giant Arla is owned by thousands of farmers. It traces its history back to 1880 and merged with Danish MD Food in 2000.

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