Podgorica, (MINA-BUSINESS) – According to the Party of European Progress (SEP), the agreement to export surplus milk to countries in the region will have consequences for the domestic market, producers, the state budget, and consumers.

“Exporting raw milk at a time when the country does not have sufficiently developed capacities for processing and finalizing products represents a missed development opportunity. Instead of creating added value through domestic industry, through the production of cheese, yogurt, and other dairy products, Montenegro remains at the level of a raw material exporter in the 21st century and on the threshold of the EU, while at the same time facing the import of finished products at increasingly higher prices,” the statement said.

SEP believes that such a model directly affects inflation.

“Exports reduce supply on the domestic market, which inevitably leads to an increase in the prices of milk and dairy products. At the same time, importing finished products entails additional costs: transport, margins, customs duties, and taxes, which further burdens the end consumer,” SEP said. 

The party warned that the state is losing long-term revenue that would come from developing a domestic processing industry, through new jobs, higher business volume, and a broader tax base.