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Thursday, 28.03.2024, 09:36
Latvia’s Piena Cels, Estonian cooperative to invest EUR 100 mln in new dairy plant
According to information published on Latvijas Vestnesis
official gazette, Piena Cels has made a decision on restructuring and
will merge with E-Piim into a new organization E-Piim Societas
Cooperativa Europaea Limited.
Misa said that the goal of the merger of cooperatives is to
strengthen processing of milk.
In his words, the project has already been approved by
institutions administering EU funds, and the construction works may launch
soon. The financial resources for the project will be ensured by both parties,
also EU funds, a bank loan and private investments will be attracted.
Construction of the plant will cost about EUR 100 mln year,
and it should be completed in slightly more than a year. The new plant will
process about one fourth of Latvia’s and Estonia’s aggregate milk. Estonia has
been selected for construction of the plant because the Estonian partner
developed the project, received the necessary support from the EU and the
Estonian state.
Jaunpils Pienotava, a dairy processing plant that
belongs to Piena Cels, will continue business as usual. The only change
will be that it will now belong to more owners – both Estonian and Latvian
farmers, and the Latvian members will also have shares in the new plant.
Misa said that cooperatives should join in the future in
order to strengthen their positions in the market. “It is absolutely necessary.
The present situation in Latvia – 33 dairy cooperatives – in such a small
territory is absurd. It is not the future,” said Misa.
According to Firmas.lv, Piena Cels in 2018 generated
EUR 18.065 mln in sales, which is by 9.3% more than a year ago, and earned EUR
140,266 in profit in contrast to a loss a year ago.
Piena Cels was founded in 2004.
E-Piim belongs to more than 100 Estonian farmers and
is one of the largest cheese and butter producers in Estonia, processing more
than 120,000 tons of milk a year.