The bankruptcy of KTG took most observers by surprise. The farming group was approximately 400 million euros in debt. KTG Agrar posted huge phantom profits by buying and selling produce among its own subsidiaries.
Investors are buying more of eastern Europe's farmland, turning it into instruments of speculation and letting the owners profit from public subsidies. Smaller farmers are getting pushed out.
A massive oversupply of powdered milk, coupled with an end to limits on regular EU milk production, has sent the market price plunging in recent years.
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