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Monday 18.06.2018 | Name days: Madis, Alberts

Balticovo: speculative feed grain prices complicate situation in the industry

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU, Arnis Veinbergs

Balticovo head Arnis Veinbergs

Although due to speculative feed grain prices the situation in the sector is complex, Latvia’s population has returned to the tradition to cook at home, boosting eggs sales. For example, last year 500 million eggs were produced – one for each European Union citizen, Balticovo head Arnis Veinbergs points out in an interview to the business news portal BNN.

What are the recent key events in your sector?

It is the fact construction of liquid egg mixture or melange factory is coming to end. The investments placed amount to around two million euro. It will allow producing products with added value. We plan to export 95% of the total production, because melange is highly demanded in the Western Europe. The new facility will enable production capacity of five tons of melange per hour.

Speaking of the overall situation in the industry, last year was not very easy due to speculative feed grain prices. At the same time, in the economic crisis conditions people are buying more eggs because many have returned home-cooked meals. Moreover, eggs are still the cheapest source of animal protein.

Do you feel the lack of skilled labour?

No, we do not.

What changes would you like to see in the Latvian legislation?

More attention should be paid to the state functions assessment, because it seems the function audit is superficial. It should be revised whether the state monitoring institutions’ resources are made efficient use of. Institutions should carry out their core functions, creating equal business environment, rather than filling up the State Treasury by means of repressive measures. For example, the VAT collection system should be changed, as the state still collects this tax on transactions that have not taken place yet.

How did the crisis affect your industry?

Despite the fact last year we managed to produce 500 million eggs – enough to give one egg to each European Union citizen, compared to the previous year, in 2010 the turnover dropped 5.8%. This was tied to fluctuating egg prices, propelled by speculative feed grain prices and other conditions resulting from the economic downturn. Although the company’s production grew 10% and we produced half a billion of eggs over the year, the turnover shrank because the price of eggs fell across the European Union.

When will your company attain the pre-crisis performance?

It depends on the economic recovery and more moderate speculations on the feed grain market.

What is your assessment of the government’s policy to improve the economic situation?

Currently, it is negative, because practically nothing is done to foster the business environment. The possibility of setting up a micro-business is just a drop in the vast sea of work still ahead.

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  1. hemen parekh says:

    A Full Blown Crisis ?

    World Bank president Robert Zoellick warns that the world is one shock away from a full-blown crisis.

    Here are my guesses re: where that one shock may come from :

    > European Invasion [ Libya ]

    > Ethnic Massacres [ Africa ]

    > Population Explosion [ India ]

    > Regimes Overthrow [ Middle East ]

    > Nuclear Nemesis [ Japan ]

    > Economic Collapse [ PIGS ]

    > Overheated Economy [ China ]

    > Melting Snows [ Poles ]

    > Terror Exports [ Pakistan ]

    > Food Shortages [ Developing Countries ]

    > Global Warming [ Worldwide ]

    Feel free to add your own.

    There is no doubt that in 2011, a “ Black Swan “ event is around the corner !

    With regards

    hemen parekh

    Jobs for All = Peace on Earth

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