Agriculture, Baltic Export, Cooperation, Estonia, Foodstuff, Latvia, Markets and Companies

Managers at the Jelgava, central Latvia based company said that while it is not rational to buy new equipment in the current situation, the market situation and growing competition call for the production of innovative products at competitive prices.

"Initially we will be taking 100 tons of milk to Estonia monthly and getting back high-quality kefir with bifidobacteria and milk, which will be distributed in the Rimi [retail chain] under Trikata brand name. This is a good example of cooperation that has long been discussed among dairy companies. The products will have a competitive price, and it is our chance to enter the Estonian market," said Anita Skudra, CEO of Latvijas Piens.

She would not disclose the name of the Estonian company but said that Latvijas Piens had agreed on similar cooperation also with a company in one of the old EU member states.

At present Latvijas Piens exports products to 11 countries, and Scandinavia has become its main export market. The company exports 50% of its cheese output.

Latvijas Piens belongs to a number of Latvian agricultural cooperatives, the biggest owner being Latraps with a stake of 73.28% , followed by Dzese with 16.52% and VAKS with 3.64%.

In 2015, Latvijas Piens generated 11.82 mln euros in turnover as opposed to 28.33 mln euros in 2014, and its loss increased to 2.47 mln euros from a loss of 1.26 mln euros in 2014. The company expects to cover the loss using future profit, focusing on expanding of the product range and export markets as well as offering processing services.