Baltic Export, Foodstuff, Latvia, Legislation, Markets and Companies

LETA was informed about this by Latvijas piens CEO Anita Skudra.

As of now, the company processes 80 to 100 tonnes of milk every day that is bought by three Latvian cooperatives.

"Quality is the key to the export market; we are willing to sign a long-term agreement with the local milk producers and we guarantee appropriate payment," said Skudra, who did not specify the sum they are paying for the milk they purchase from the farmers.

She also admitted that the company still has debt on the milk received last year payments are being conducted according to schedule.

She also mentions that in the last couple of weeks, Latvijas piens has made the planned technical maintenance and is ready for another inspection of international food quality and safety certificate BRC (British Retail Consortium-Global Standards for Food Safety), that is one of the strictest voluntary food safety and quality control standards in the world.

The company's products are exported to 11 countries, including Lithuania, Estonia, Ukraine, Germany, Slovakia, Great Britain, Israel, as well as the possible markets of the Middle East, Africa, and South Asia are being examined. Export on the industrial products make up 98% but the consumer products make up 17%.

As reported, Trikata KS was declared insolvent by the Valmiera District Court on August 6 as the cooperative was unable to pay its members for milk that the Trikata KS supplied to Latvijas piens which, in turn, had run up a debt of EUR 3,036,600 to Trikata KS that could lead to selling 55.68% of the controlling stakes in the Latvijas piens. Latvijas piens has offered Trikata KS a new debt repayment schedule and, in addition, is prepared to put up the "Trikata" brand, currently part of the company's share capital, with nominal value of approximately EUR 2 million.

In addition, starting today, the makeup of the board has been altered – it's deputy leader, Trikata KS CEO Uldis Krievars, has been sacked and taking his place Zemaitijos pienas Ltd. Export Departments Director Rimantas Banevicius – who has the required knowledge of the dairy industry.

The board will continue with five people. Valdis Siksnis will continue as the CEO, also, Zemgale cooperative Latraps Director General Edgars Ruza, CEO at VAKS cooperative Indulis Jansons, and cooperative Dzese CEO Maris Petrevics.

As reported, construction of Latvijas piens dairy plant began in September 2011. Trikata KS provided EUR 1.42 million for the project, approximately EUR 9.24 million was borrowed from banks, and the European Union's funding for the project totaled EUR 4.26 million. Also, The government on July 28 decided to permit Jelgava dairy company Latvijas piens to postpone the payment of the principal amount of a state-guaranteed loan taken out by the company. Latvijas piens is yet to return EUR 5,027,473 from the original EUR 7.11 million.

According to preliminary data, Latvijas piens turnover last year totaled EUR 28.33 million, compared to EUR 37.21 million the company turned over in 2013. In 2012 the company experienced losses of EUR 1.34 million but in 2013 managed to change it to better by reaching a profit of EUR 823,804 million.