Agriculture, EU – Baltic States, Foodstuff, Good for Business, Industry, Latvia, Markets and Companies

The concern's vice-president and head of strategic and business development Normunds Stanevics said, the price of such products as butter and milk powder on the global market have increase in recent months, meaning that the purchase price of raw milk in global and European regions, including Latvia, have also increased.

''It is hard to predict at the moment whether these prices will remain, but we will continue to follow along and adjust the purchase price of raw milk accordingly. One thing is clear - after a protracted milk crisis, we can see the first signs that the market is finally starting to recover,'' Stanevics pointed out.

At the same time, he also pointed out that the retail price of dairy products is strongly connected with the purchase price of milk, and thus an increase in the price of dairy products can also be expected.

''However, this price increase will not be substantial but proportional, which means that in cooperation retailers we will continue to ensure competitive prices for our dairy products, so that consumers continue to chose Latvian made products,'' he said.

As reported LETA, an overproduction of milk in Latvia has been observed this year due to the Russian food embargo. From July of 2014 to June of 2016 the purchase price of raw milk has reduced by 39 percent to about 18 to 19 cents per kilogram.

Food Union is the largest dairy company and leading food and beverages producer in Latvia, as well as the leading ice cream producer in the Baltic states.

Food Union Group comprises Latvia’s three largest dairy and ice cream companies – Rigas Piena Kombinats, Valmieras Piens and Rigas Piensaimnieks, Estonia’s largest ice cream producer Premia, Denmark’s largest ice cream producer Premier Is, Norway’s third largest ice cream producer Isbjorn Is, Belarus ice cream producer Ingman Ice Cream, and Romania’s second largest ice cream producer Alpin57Lux.

In 2015, the achieved EUR 256 mln in turnover. The company employs over 2,500 persons, out of which 1,200 are employed in the Baltics.