We live in a reality where a large part of the population in Latvia is forced to buy the food they can afford, not what they want. In this difficult situation, we invite you to support local producers, because they struggle with similar problems as every family in Latvia.
The last year turned out to be fatal for some food producers, for example, Kazdanga milk processor “Elpa” stopped production due to dramatically rising costs – one of the companies of the Karotīš family, which would have celebrated its 30th anniversary next year. The company was involved in the National Food Quality Scheme, and more than 90% of “Elpas” production had the Green Spoon mark. Now the company has been declared insolvent.
Basically, the raw material and all the additives for “Elpai” were produced in Latvia, by purchasing milk from local farmers, processing it ourselves and delivering it to customers and sales points with little logistics. Delivering produce to local schools and nurseries. Employing dozens of employees, buying milk from more than 50 farmers, paying taxes to the state treasury. During the existence of the company, taxes to the Latvian state were paid around six million euros.
The activity of the Southern Kurzeme district company had to be stopped in connection with the increased prices for energy resources, raw materials for production, as well as consumables. In March and April, when state support was needed, “Elpa” did not receive it. Paying taxes was more important to the state, the State Revenue Service froze the company’s accounts, causing a snowball effect that led to Elpa’s insolvency.
Now employees have lost their jobs, farmers have to find new buyers for milk, schools and kindergartens – another supplier, even though “Elpa” was the last milk processing company left in South Kurzeme. The example of “Elpas” vividly illustrates why consumers should support Latvian producers, why Latvian entrepreneurship should be encouraged.
Even though the state is working on support mechanisms so that such situations do not happen again, each of us as a buyer with our wallet, with our decision to choose a Latvian product, can also help our producers. Of course, we understand the choice of people, taking into account the general rise in prices, to buy the cheapest imported goods, but we must remember that this is money that goes to heat 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. Be it fresh food – meat, fish, milk and eggs, or basic necessities, but it would be important to take this step once. This would help the poorest citizens of the country, reduce the share of the shadow economy and promote the viability of local companies. It would be important so that local manufacturers can withstand the competitive battle, to provide jobs, to 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 use this opportunity.
Each of us can also do our part not to go bankrupt for manufacturers like “Elpa” by choosing Latvian products instead of imported products in stores. The spoon on the package will help you find the product made in Latvia more easily. There are more than 850 different products available, whose local origin is confirmed by the Green and Bordeaux spoon quality marks.
Last year, the best-known and most reliable food quality mark of Latvian consumers – the Green Spoon – turned 20 years old. Spoons give producers advantages when starting green food procurement, but at the same time imposes a certain responsibility, because producers have to carry out additional analyzes that must be presented to the Food and Veterinary Service.
Food producers have received state support, continue to receive it, but the story is not over. Winter is still ahead, so it is important to follow the trends in order to maintain the competitiveness of our companies, so that support for Latvian producers is not less than in other countries, with whose producers we have to compete for the wallets of European buyers. And let’s be patriots ourselves and support local producers, even if that package of milk or loaf of bread is a few cents more expensive.
