We live in a reality where a large part of the Latvian population is forced to buy the food they can afford, not what they want. In this difficult situation, we invite you to support local producers, as they struggle with problems similar to those of any family in Latvia.
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The last year has proved fatal for some food producers, for example the milk processor Kazdanga “Elpa” has stopped production due to the dramatic increase in costs, one of the Karotīš family companies, which would have celebrated its 30th anniversary next year. The company was involved in the National Food Quality Scheme and over 90% of the “Elpas” production had the Green Spoon brand. Now the company has been declared insolvent.
Basically, the raw material and all additives for “Elpai” were produced in Latvia, buying the milk from local farmers, transforming it ourselves and delivering it to customers and outlets with some logistics. By delivering products to local schools and kindergartens, employing dozens of employees, buying milk from more than 50 farmers, paying taxes to the state treasury, during the company’s existence, the company paid about six million euros in taxes to the state. Latvian.
The business of the South Kurzeme District company had to be shut down due to rising prices of energy resources, raw materials for production and consumables. In March and April, when state support was needed, “Elpa” did not receive it. Paying taxes to the state was more important, State Revenue Agency froze the company’s accounts, causing an avalanche effect that led to the insolvency of Elpa.
Now employees have lost their jobs, farmers have to find new buyers for milk, schools and crèches – another supplier, even though “Elpa” was the last remaining milk processing company in southern Kurzeme. The example of “Elpas” clearly illustrates why consumers should support Latvian producers, why Latvian entrepreneurship should be promoted.
Even though the state is working on support mechanisms so that such situations do not happen again, each of us as a buyer with his own wallet, with our decision to choose a Latvian product, can help our producers as well. Of course, we understand the choice of people, taking into account the general increase in prices, to buy the cheapest imported goods, but we must remember that it is money that goes to warm the economies of other countries.
Even without support mechanisms, the state has untapped opportunities to help the population and producers at the same time by reducing the value-added tax on food. Whether it’s fresh food – meat, fish, milk and eggs or basic necessities, it would be important to take this step once. This would help the country’s poorest citizens, reduce the share of the shadow economy and promote the profitability of local businesses.
It would be important for local producers to be able to withstand the competitive battle, provide jobs, continue to pay taxes. For example, Poland has set a reduced VAT rate of 0% to 5% for food products. Latvia is the rare country on the European map that does not take advantage of this opportunity.
In addition, each of us can do our part not to go bankrupt for manufacturers like “Elpa” by choosing Latvian goods instead of imported goods in the shops. The spoon on the package will help you find the product made in Latvia more easily. More than 850 different products are available, the local origin of which is confirmed by the Green and Bordeaux spoon quality brands.
Last year, Latvian consumers’ best known and most trusted food quality brand, the green spoon, turned 20. Spoons benefit producers when they start sourcing green foods, but at the same time they impose a certain responsibility, because producers have to carry out additional analyzes that must be submitted to the Food and Veterinary Service.
Food producers have received state support, they continue to receive it, but the story is not over. Winter is still ahead, so it is important to follow trends to maintain the competitiveness of our companies, so that the support for Latvian producers is not less than that of other countries, with whose producers we have to compete for buyers’ wallets. Europeans. And we become patriots ourselves and support local producers, even if that package of milk or loaf costs a few cents more.
