Dairy business in Latvia is on the verge of bankruptcy

April 29, Minsk. In Latvia, the dairy business is on the verge of bankruptcy, according to LSM.lv.

Aldis Spalvins, member of the board of Rankas Piens, said that enterprises in Latvia suffer serious losses in the production of dairy products. He gave an example: if a plant produces 80-100 tons of milk per day, then its losses are up to 300 thousand euros per month.

Janis Šolks, head of the Latvian Central Union of Milk Producers, said that the government has been aware of the plight of the dairy industry since December last year, but has not yet taken any steps to provide financial support. Milk producers appealed to the authorities to reduce VAT on food products to 5% and provide subsidies to entrepreneurs. If the country's authorities do not provide support, prices for dairy products will have to increase by about 45% to cover production costs.

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