Latvian poultry processor eyes €2.5m investment
“As we are continuing our plans to develop our output capacity, in the first phase of the investment, we will invest close to €1.5m in modernising the poultry breeding facilities of Kekava,” Pranckevicius told local news agency Baltic News Service (BNS). “The investment will be worth a total of between €2m and €2.5m.”
To develop its capacities, the company is aiming to use its own funds, as well as obtain co-financing from the EU, according to the chief executive. Under the plan, the modernisation work will be launched this autumn, and it is to be completed by mid-2018.
Stronger export sales
Furthermore, the Latvian company is aiming to launch further investments to raise its output capacity, as well as expand its market presence in various foreign countries, Pranckevicius said.
“In late 2016 and in 2017, we will invest a further several million euros. This year, we will focus on activities in particular on developing new products both for the domestic and export markets, where we are continuing to strengthen our presence,” the chief executive said. “We are planning to raise our output capacity by 10% per year.”
In addition to its presence in the Latvian poultry meat market, Kekava exports its products to the neighbouring Baltic States of Lithuania and Estonia, as well as Sweden, Denmark, Finland, the Netherlands and Uzbekistan, according to data released by the company.
Kekava says its product range includes various poultry meat products, including fillets, wings, drumsticks, medallions and others. The meat processor sells a share of its output through its retail chain which consists of 21 stores in the Latvian market, located mostly in the country’s central and eastern regions.
Dominant market position
The meat processor is based in Kekava, a Latvian region located in the country’s central part, in close proximity of Latvia’s capital Riga, which is 18km away. Kekava Poultry Farm is a dominant player in the country’s poultry meat processing industry, as its annual output represents as much as 65% of the industry’s output from Latvian meat supply.
Set up in 1967, the company was formerly state-owned. Since late 2013, Kekava has been controlled by Lithuania’s agriculture industry conglomerate Linas Agro Group, which directly owns a stake of some 55.29% in the firm. A further 36.28% of the shares are owned by local poultry meat processor SIA Lielzeltini, a subsidiary of Linas Agro Group, while the remaining stake of 8.43% is held by various legal entities and persons, according to figures from Kekava.
In its 2014-2015 financial year, Kekava reported sales revenues of more than €40.8m, and a net profit of about €1.05m.
The Latvian company said its poultry breeding and meat processing facilities were ISO 22000-certified.
