Estonia, Foodstuff, Latvia, Markets and Companies

Although the previously registered loss in amount of 13 million kroons was reduced by the company to zero in the course of restructuring process, that lasted for two years, and minor creditors were prepared to get their money in the course of a longer period of time, Latvian court decided to grant the bankruptcy petition submitted by the enterprise's creditor – bank Krajbanka and declare the Daugavpils meat processing plant bankrupt.

Bankruptcy of the Latvian plant means that Uvic will increase the production volumes in Estonia.

There has been a number of versions circulating about the demise of the meat processing plant. The Latvian media wrote that the local veterinary board found bacteria in raw products, used by the plant.

Uvic, on the other hand, asserted that the technology used complied with all necessary norms and the alleged violations did not occur.

"Daugavpils meat processing plant sold its products to Russia as well and the veterinary standards there are much higher," stated the FCO of Uvic Markus Kirsberg.

Thus far, meat dumplings for exports to Europe and to Russia were mostly produced in Latvian plant, but after its bankruptcy the principal production operations will be transferred to Estonia.

"By September we should be able to issue from the plant here (in Estonia – ed.) the same products that we manufactured in Daugavpils," said Kirsberg.

The open auction on the Daugavpils meat processing plant will take place on July 23, 2010.