Latvian Meat prices may rise by 15-20%
Mr. Andrei Zhdan also told LETA there was a downward trend in meat prices during the last couple of years. The prices fell by 15% in 2014 compared to the previous year, and again by 16% in 2015. As a result, the prices reached the minimum of the last ten years in 2015, with a decrease of 30% compared to 2012, when, Mr. Zhdan says, the prices reached their peak.
Furthermore, the Forevers CEO noted that meat suppliers started overproducing. Currently, the meat supplies meet the demand and there is possibly even a known deficiency in meat.
"For example, in May, meat prices reached a record high, an increase of 30% compared to May of the previous year, but in June this year pork prices in Latvia were 14.3% higher than a year earlier. I assume that all the meat production will become more expensive this year, by about 15%, but probably by as much as 20%," said Mr. Zhdan.
In addition, Mr. Zhdan said that the fall in prices hasn't affected Forevers, although the impact was quite significant for the meat industry in Latvia and Europe, which suffered losses. Forevers instead, as a meat processor, benefited from lower prices for raw materials, which led the company to achieve higher profits and higher volumes in sales.
In 2016, Forevers reported a turnover of 31.6 million euros. 98% of its customers are local residents of Latvia, and only 2% are export customers. The assortment of products consists of more than 100 different meat and meat products.
The Latvian company has 239 employees. Forevers collaborates with more than 3,200 retailers and stores, caterers, as well as over 80 specialized Forevers meat production stores throughout the country.
Photo Source: Wikimedia Commons/Alpha
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