bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 22.01.2017 | Name days: Austris
LatviaLatvia

Farmers and food industry representative predict a «nervous 2017»

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThere could be a price increase on dairy products, coffee, oils and oranges next year. This can be explained with trends on world markets. In Latvia’s local markets, however, there could be price increase for bread, said head of Agricultural Resources and Economics Institute’s department lead Inguna Gulbe.

At the same time, she said prices are expected to remain stable or even decline for some product categories – eggs, fish, grains and meat.

«Procurement prices continue their climb in the dairy market. Because of that, processing industry has to increase the prices of its end products to be able to pay suppliers. At the moment farmers are paid around EUR 0.30 per 1 kg of milk. The price is growing, however. This is because multiple processing plants have opened up in Lithuania and Poland. I doubt it will reach EUR 0.40. There should be a border to prevent that. It is possible a number of smaller processing companies that focus on niche products may shut down next year because of the inability to pay suppliers,» – said Gulbe.

«Coffee price grow somewhat because there was a problem with Robusta bean harvest – a deficit is forming. There could also be an increase for oils and butter, because processing has declined somewhat in recent years. Consumption is currently on a rise. Poor harvest could mean a significant price increase for oranges. This means a price increase for orange juice,» – Gulbe added.

She also noted that price decline will remain in the world’s grain market, where good harvests resulted in surplus forming.

«But that won’t be a reason for bread price decline, because the correlation between flour and bread prices tends to decrease every year,» – she said.

Gulbe stated that grains only form a mere 10% of the cost in the break-baking business. All other costs consist of energy resources, labour fees, taxes and logistics. On top of that, Latvia’s market has its own specifics.

«Latvia’s specific characteristic is very small prices – average price is EUR 2.50 per 1 kg. There is no room to drop further. This characteristic is dictated by lower purchasing power and enormous competition. Because bread is unnaturally cheap, the price will undoubtedly rise,» – Gulbe noted.

She also admitted that prices for eggs, fish and meat will be stable on the local market.

«We have a strong Baltic market player in the form of Balticovo. Fish prices, especially on salmon, have grown by several euros in the past months. No future increase is expected. Norway had a problem with salmon disease for a short while. Scotland managed to fill this niche fairly quickly. Latvia also has a well-developed infrastructure for breeding fish similar to salmon. Prices in the meat market will be either stable or lower,» – the expert said.

At the same time, Gulbe predicts next year will be a nervous one for agriculture and food industry.

«Vegetable producers will be influenced by Poland’s enormous market, which, in spite of weather, is able to provide sufficient products. Pork producers in Spain and other countries will be able to produce a large volume of port. Logistics of those products will be affected by low fuel prices. African swine fever and trade restrictions associated with it will remain a problem for pork producers. 2017 is expected to be rather nervous for this industry,» – the expert concluded.

Ref: 102.109.109.6091


Leave a reply

People no longer believe in their own country, because they associate it with people who make decisions

The biggest threat to Latvia is the fact that society, including state officials, is afraid. People are afraid of change, afraid of voicing their thoughts (thoughts that often do not comply with the politically correct stance), afraid of being misunderstood. Fear makes it harder to develop. It limits people’s internal freedom. Such is the opinion Inga Antane, president of Baltic Association – Transport and Logistics and sworn attorney of Triniti law firm, explained in her interview to Atbalsts.

Expert: «Lithuania’s renewed National Security Strategy is a «hodgepodge»

This week, the Lithuanian Parliament has overwhelmingly approved a renewed National Security Strategy, laying out 14 major hazards and risk factors to national security.

Industry: advertisements contribute the entire economy of the European Union

Every euro invested in advertisement has seven times the influence on a country’s GDP. Every one euro brings seven euros in return to the country’s GDP, as emphasized by Latvian Advertising Association, noting that advertisement sector contributes to employment in all of the European Union.

Six deputies applied with administrative penalties in Saeima’s autumn session

According to information provided to the parliament, six deputies were applied with administrative penalties during Saeima’s autumn session.

Slower economic growth for Estonia forecast – at 2.2% - for 2017

The economic growth of Estonia in 2017 will be slower than previously expected, Swedbank economists have announced lowering their previous economic forecast for the Baltic country by 0.2% to 2.2%.

Latvian and Lithuanian authorities dismantle two criminal groups

Latvian State Revenue Service’s Finance Police has successfully apprehended two organized crime groups that caused significant damage to the state budget in 2015 and 2016 by realizing different VAT fraud schemes.

Estonia to drop special pensions, push forward sweeping pension reforms

The Estonian government has decided to drop special pensions and to push forward with plans regarding other significant changes in the pension system, including tying the retirement age to the average life expectancy.

KNAB performs inspection about Jakrins’ approval in the board of Rīgas satiksme

Corruption Prevention and Combating Bureau intends to inspect if the approval of acting head of Riga City Council’s Transport Department Emils Jakrins in the management board of Rīgas satiksme had any signs of breach of good management principles.

Chinese GDP up 6.7% in 2016

World’s second largest economy has seen a 6.7% growth in 2016, Chinese official data show, which indicate that the gross-domestic-product increase has been slower than the 6.9% seen in 2015 and the slowest since 1990.

Dozens buried in Italy’s avalanche-stricken hotel

Italy has been shaken by a number of earthquakes this week, one of which has triggered an avalanche burying a mountain hotel, where at least two people have been found dead and dozens more a searched for through rubble and snow.

Weekends to experience frost and thaw; drivers urged to be careful

Weather in Latvia will not be stable in the next couple of days – cloudy weather with some precipitation will be mixed with periods of clear sky, according to State Environmental, Geology and Meteorology Centre.

Logistics Industry Council assesses results of 16+1 summit

Experts say container cargoes have the potential to bring major contribution to the logistics sector. With that, LDz Logistics intends to continue organizing the next container train from China, as well as cooperate with partners from Belarus and China in the context of the Great Stone industrial park, as BNN was informed by Transport Ministry’s representative Ilze Greiskalna.

Parliament supports amendments to avoid expensive land-measuring actions

It will no longer be necessary to prepare land border plan for entry of land units in the Land Book. It will help save budget funds, as it will not be necessary to perform land-measuring actions, as reported by Saeima press-service.

CP supervisors concerned about Latvijas Gāze’s contract terms

The Competition Council is concerned about Latvijas Gāze’s behaviour in the process of liberalization of the country’s gas market. Economy Ministry has submitted a draft of the Gas Trade and Use Rules to the Cabinet of Ministers Committee for review.

Germany seeks clarity from Trump’s government, to boost military spending

Berlin has emphasised plans to increase defence spending after facing criticism from upcoming U.S. President Donald Trump on NATO countries not meeting their spending commitments.

Saeima re-elects Elita Krumina as State Auditor

On Thursday, 19 January, the Saeima re-elected Elita Krumina in the post of State Auditor.

Saeima supports formation of aircraft passenger data registry to combat terrorism

On Thursday, 19 January, Latvia’s Saeima approved the Aircraft Passenger Data Processing Law in the final reading. This will form the passenger data registry.

Milk retail price in Estonia reaches 55 cents per litre after to price hikes

After a long period of low milk purchase prices in Estonia, milk retail prices in the Baltic country have increased twice, reaching the point where famers receive just enough to cover milk production costs.

Ventspils Freeport carries Lembergs around with luxurious car worth EUR 156,000

In spite of a 16.44% turnover decline, Ventspils Freeport bought a lux-class Audi A8L W12 for EUR 156,000 last year. It’s only known passenger so far has been the formally suspended chairman of Ventspils City Council Aivars Lembergs, as reported by Latvijas Avīze.

Estonia concludes bilateral defence framework deal with Finland

Estonia and Finland have signed a bilateral defence cooperation framework agreement aiming for closer and more regular cooperation in the field by the neighbouring countries.

Biden: Wealthiest 1% does not pay enough in taxes

The «top 1% is not carrying their weight», outgoing U.S. vice-president, Joe Biden evaluated at the World Economic Forum, insisting the world's wealthiest that they do not pay enough in taxes.

Latvia and Japan sign convention on attraction of foreign investments

In Tokyo, Latvian Finance Minister Dana Reizniece-Ozola and Japanese Foreign Ministry’s Parliamentary Vice-Minister Motome Takisawa signed a convention between the two countries on double taxation prevention for income tax.

FM: problems with real estate tax cannot be resolved with tax rate corridor

Real estate tax benefits for housing area could be applied for each person declared living in each respective house. Each benefit can be applied to the building and land, Finance Ministry’s representative Aleksis Jarockis reported on conclusions made by the work group responsible for amendments.

Turkey’s New Year’s terrorist admits choosing nightclub randomly

The main suspect of the attack in Istanbul, which left 39 people dead during New Year’s celebrations, had selected randomly the place of attack.

WhatsApp to be provided with bank-contacting functionality

Continuing the digitization process and studying customer habits more intently, it is planned to allow customers resolve matters related to finances using WhatsApp, DNB Bank reports.

When do you pay fines for speeding?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: