Latvian meat processor Forevers expands production capacity

The company’s investment is aimed at two major projects: the construction of a new processing plant at Forevers’ production complex, and the reconstruction of existing facilities, according to a statement from Sanita Liepiņa, head of Forevers’ trade department.

“We want to build a plant that will operate with the most modern equipment in Europe, so we have entrusted the design of the plant to Austrian architect firm ATP – one of Europe’s leading companies for integrated design. We have already signed a contract with ATP, to the tune of €325,000, which will allow the project to start being developed over a three-month period,”​ explained Forevers CEO Andrei Zhdanov.

Based on ATP’s initial design, a suitable Latvian company will be commissioned, via a tender process, to manage the architectural design and construction of the project. The general production plan has been developed by German company Foodfab, which is a consulting subsidiary of ATP.

In 2014 Forevers invested €1.25m in purchasing new production equipment, while €450,000 has been put into developing the company’s current machinery. According to official information, Forevers’ turnover last year amounted to €27.5m.

The company’s expansion programme is taking place against the backdrop of significant difficulties in the Latvian meat industry, caused by the Russian ban and implementation of the European Parliament’s new food allergen labelling requirements.

According to Forevers, following the introduction of the labelling laws in December 2014, sales of the company’s products dropped by 5-10%, as the company claimed part of the new labelling was putting off customers. For example, on sausages, the words “with soy protein” have been introduced to labels – a wording previously not widely used by Latvian meat producers.

“The composition of the product remains the same as it was up to 13 December, when the transition period for implementing the new mandatory labelling regulations came into force. But the attitude of customers has changed – new names repel them,”​ said Liepiņa.

Both end-customers and small stores have reacted negatively to the new packaging and, in the first instance, even sent back products in the new packs. “Other meat processing enterprises are not so scrupulous about fulfilling the EU’s requirements, creating an unfair competitive advantage,”​ added Zhdanov.

Meanwhile, the country’s Food and Veterinary Service, which fights against labelling inconsistencies in the Latvian market, said that about 4-5% of all meat products in Latvia still have the old labelling.