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Meat products may become 15-20% more expensive in Latvia this year

Pork prices started growing in the second half of last year. The current trend shows that prices will continue growing this year. This means meat product prices may grow 15-20% this year, says meat processing company Forevers chairman Andrejs Ždans.

He says pork prices reached their maximum in 2012-2013. For example, prices grew 19% in 2012 in comparison with 2013. Prices started growing in 2014, after Russia introduce import embargo on food products. «Producers, not so much in Latvia as in European countries, were mostly focused on exports to Russia. A surplus of products formed once this market closed for them. This caused prices to go down,» said Ždans.

He also mentions that prices declined 15% in 2014 and 16% in 2015. With that, prices reached their lowest point in the past decade, declining by a whole 30% in comparison with 2012.

«It was rather painful for the industry. Not us specifically, but Latvian and European meat product suppliers in general. They suffered losses. For us as a processing company the situation turned out more positive – the lower the price on raw materials, because it means larger profits and larger sales. Nevertheless, it is clear that increase of profits was only short-term. In a long-term perspective, our processing companies will transfer their losses on our shoulders,» says the head of Forevers.

He notes that meat suppliers corrected their production volumes by putting down unnecessary livestock. This helped balance out supply and demand. On top of that, it is possible there is a known meat deficit. For example, meat prices reached a record in May – increase was 30% in comparison with May 2016. In June, pork prices in Latvia were 14.3% higher than the year before.


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