It is estimated that in 2016 milk deliveries in Estonia will decline by one percent compared to the previous year’s level. The Russian ban on EU food items reduced export demand and resulted in a drop of farm-gate milk prices. It is estimated that in 2016 the crisis of the dairy market will result in a 10 percent reduction of the national dairy herd. It is estimated that in 2016 milk production will be processed into cheese and butter, which are in demand on the world market. In response to the European Commission’s market intervention measures till August 16, 2016, Estonia placed 672 MT of Non Fat Dried Milk (NFDM) into the EU intervention stocks.