The leading milk processing companies in Latvia Food Union announces increase in procurement prices of raw milk in the 30% for the month. Increasing purchase prices will affect all suppliers of milk to enterprises of the group Food Union - "Rīgas piena kombināts", "Valmieras piens" and "Rīgas piensaimnieks" - with 15 September, said a representative of the BC Food Union.
Increasing purchase prices the company's management explains the rise in prices for industrial dairy products on world markets.
"Currently, there are such trends in world markets in the supply and demand for dairy products, which contribute to the growth of prices of industrial dairy products - butter and milk powder. To a certain extent, and with a temporary shift, this is reflected in the prices of raw milk in the world and the European region, including Latvia. Currently, it is difficult to predict whether the price increase will continue in the world and in the following months, but we will closely monitor the situation and accordingly adjust the procurement prices for raw milk for our suppliers. One thing is clear - after the longest milk crisis in world history, this price trend is the first important symptom of improving the dairy industry, "says Normund Stanevich, vice president for strategy and business development for the Food Union.
Minister of Agriculture Janis Duklavs is sure: "This is a positive news for Latvian milk producers, who, due to low procurement prices for milk, have been in a very difficult situation for more than two years. I am glad that the Food Union enterprise has responded to the trends and changes in the world dairy market. This is only logical, when the Latvian milk processing enterprise follows the price trends in the world market not only when purchasing prices fall, but also when they grow. I hope that other processors will respond to these changes in milk prices and farmers will receive adequate payment for the delivered milk. "
"The price of raw milk is closely related to the prices of dairy products in stores. Accordingly, this growth will also be reflected sequentially and with a certain time shift on the prices of dairy products on the shelves of stores - just as it was until now, when lower procurement prices for raw milk were expressed at substantially lower prices for dairy products on the shelves. However, the increase in the prices of products will not be sharp and directly proportional, and also in cooperation with retail chains, we will continue to offer attractive discounts on the most favorite dairy products, so that buyers continue to give preference to fresh dairy products of Latvian origin, "adds Normund Stanevich.
Food Union is the largest milk processing company in Latvia, as well as the leading ice cream producer in the Baltic countries. Food Union Group unites three of the largest Latvian dairy processing and ice-cream enterprises - “Rīgas piena kombināts”, “Valmieras piens” and “Rīgas piensaimnieks”, the largest Estonian ice cream producer Premia, the largest Danish ice-cream producer Premier Is, a Norwegian producer ice cream “Isbjørn Is”, Romanian ice cream maker “Alpin57Lux” and Belarusian ice cream maker “Ingman Ice Cream”. The total turnover of Food Union Group in 2015 was 256 million euros, including Baltic companies that provided 60% or 158 million euros. The group employs over 2500 workers, of whom more than 1200 people work in the Baltic enterprises.
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