The milk processing company AS “Jaunpils pienotava” worked with a turnover of 28.319 million euros last year, which is 45.8% more than a year earlier, while the company’s profit was 9856 euros, as opposed to losses in 2021, according to “Firmas.lv” information.
The management report of the company’s annual report mentions that the increase in turnover is related to the high prices of milk procurement and energy resources, as a result of which the prices of final products have increased.
Last year, the company took advantage of the market situation and increased sales of industrial products, including skimmed milk, sweet cream and condensed whey.
Compared to 2021, the amount of processed milk increased by 18% last year.
Last year, “Jaunpils pienotava” started implementing the alternative heating system reconstruction project in order to reduce the negative effect of the gas price increase. Funds were also invested in the purchase of production equipment. At the same time, the company’s store network was optimized last year.
The management report states that the company worked stably last year and continued to strengthen its market positions both in the domestic and foreign markets.
At the end of last year, the demand for industrial dairy products decreased in Europe, which was followed by a sharp drop in the demand for milk in Latvia, which caused a sharp drop in the purchase price of milk. Market instability trends have also continued at the beginning of 2023.
At the cooperative level, a decision was made to take advantage of the existing situation and attract new milk suppliers, according to the management report.
Taking advantage of the instability of the market, “Jaunpils pienotava” obtains constant volumes of milk supply and will stabilize its place not only in the Latvian, but also in the Baltic market.
The company’s management states that in order to reduce possible losses and to guard against the risks of milk purchase price fluctuations, “Jaunpils pienotava” will optimize its product portfolio and this year will focus more on the production of products with longer shelf life.
It has already been reported that in 2021 “Jaunpils pienotava” worked with a turnover of 19.427 million euros, which is 18.9% more than the year before, while the company’s losses were 225,185 euros, contrary to the profit in 2020.
The company was registered in 1997, and its share capital is 1.354 million euros. The owner of “Jaunpils dairy” is the European cooperative of dairy farmers registered in Estonia “SCE E-Piim”, which unites about 150 milk producers in Estonia and 50 dairy farms in Latvia.
2023-07-17 04:30:01
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