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2018 should not be worse than last year for food production companies

Photo: pixabay.com.
The situation in Latvia’s food production industry continues slowly recovering. This year’s situation is not expected to be worse than last year, unless some unpleasant changes are added to tax legislation, says manager of berries and fruits processing company Purators Latvia Aigars Balodis.

«People do not spend less money on food; they spend more by buying high-quality food. The industry is still able to export and recover successfully from all the crises. This is why I believe the situation should not get worse, unless, of course, the tax policy makes Latvia’s food producers less competitive in exports,» says Balodis.

He also added that this is a good time for investments. However, everything depends on businesses’ ability to spot realization markets and sell products there. The industry still has considerable growth options abroad.

Balodis also mentions that export should be the first thought when considering long-term development. ‘We see more opportunities than obstacles when it comes to export markets. For this reason we invest in procurement of new production machineries,’ he continues.

At the same time, he added that with real products to offer the right clients it is possible to grow and develop on the domestic market. Latvian customers remain demanding because they want to buy quality and healthy products. They are prepared to pay more if need be. At the same time, there are also customers for whom the price is the most important factor.

According to Balodis, competition in the industry represented by Purators Latvia remains positive, because it encourages continued development.

He predicts that market segmentation will continue in the future – there will still be clients who prefer quality products, but there will also be clients who buy food for low prices. Entry of low-price stores in Latvia helps increase the range of choice for consumers. Producers have to be able to provide quality products to different categories of customers, adapting their products accordingly.

Information from Firmas.lv shows that Purators Latvia worker with turnover of EUR 22.151 million in 2016, which is 2.6% more when compared to 2015.

The company was registered in 1994 with a base capital of EUR 1,659,350, according to data from Firmas.lv.

On 27 April 2011, the company’s owner Pēteris Žimants announced its sale to Belgian private capital company Purators Group NV.


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