The growth in profit has been achieved alongside a jump in export supplies, with the country exporting meat products totalling €42.4m last year, which is 38.4% higher than a year earlier. The report also says that last year the country’s meat industry received €10.2m in investment, which has mostly been spent on the purchasing of machinery, equipment and inventory.
"One of the main reasons for the increase in profits was the oversupply situation in the market of the number of European Union (EU) countries due to the Russian embargo, which has made raw materials cheaper," commented the head of the department for trade and manufacture at Ministry of Agriculture. "At the same time, the price of meat products in grocery shops and markets has not dropped significantly."
These comments counter initial assumptions which were expressed last year, that the Russian embargo might hit the country’s meat sector hard, with the possible bankruptcy of dozens of market players. It is therefore noteworthy that the gloomy forecast has not been turned into reality for other Baltic States.
Strong results for Latvia and Lithuania
According to official statistics Latvia increased meat production by 4.9% in 2014, compared with 2013 - up to 84,000 tonnes (t), including 37,000t of pork (up 3.1% year-on-year), 28,700t of poultry meat (up 7%) and 17,700t of beef (up 5.8%).
At the same time, the average selling price of meat (on carcase weight) decreased by 12.6% - from €1,772 per tonne (p/t) in 2013 to €1,550p/t last year. The average selling price of beef fell by 14.7%, and pork by 10.8% year-on-year.
Full statistical data for Lithuania is not currently available, but the information available so far suggests that the country’s meat industry also has quite successful year, despite many challenges.
The State Food and Veterinary Service of Lithuania, the country has exported 9,400t of meat and meat products, during the period from January to November 2014 - 33.5% more than in the same period last year, including 4,100t of beef (49.4% increase year-on-year), 2,800t of poultry (+55.6%) and 1,120 of pork (31% less year-on-year). Exports of sausages were down however - 37% year-on-year. It is worth noting that last year Lithuania initiated large-scale exports to other EU countries
It also appears that the African swine fever (ASF) epidemic didn’t have a significant impact on the pig industries of the Baltic States, despite the possible limiting of export opportunities.