Foodstuff, Latvia, Markets and Companies, Retail
International Internet Magazine. Baltic States news & analytics
Friday, 26.04.2024, 23:38
Latvia: Fruit and vegetable wholesale business may go bankrupt in a month's time because of Covid-19
Supplies of fruit and vegetables to restaurants, bars, schools, kindergartens and companies have almost come to a standstill and the industry has dropped 70% to 90%. "Every day, companies in our industry receive customers' letters about delayed or postponed payments," said Jaunzems. While demand for fruit and vegetables remains unchanged in supermarkets, demand in the HoReCa sector has been falling, and orders for new shipments are being canceled.
On the other hand, the cost of transport services has been rising for shipments from Netherlands, Spain and Italy. Trucking companies are short of drivers, and deliveries are delayed.
"A week and a half ago, we were concerned but relatively calm. Today, however, members of the association cannot guarantee that they will be able to cope with the crisis without government support," said Jaunzems.
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