Food Union last year exported 30% of its output for EUR 45 million

Latvia’s leading dairy processing and ice cream manufacturer Food Union, including Rigas Piena Kombinats and Valmieras Piens plants, in 2023 started work in new export markets and developed the existing ones, and the overall turnover in export markets increased from EUR 35 million in 2022 to EUR 45 million in 2023. It accounts for almost 30 percent of the overall consolidated sales that reached EUR 150.2 million in 2023.

“As the growth in the local market is limited, one of the central tasks of Food Union is to enhance our ‘export muscles’ – competence about other markets, skills to develop products adapted for the needs of foreign clients, and ability to reach an agreement with large and strong retailers,” said Arturs Cirjevskis, Food Union CEO in Europe and Latvia.

 Dairy snacks – from Latvia to the world

“If earlier our focus in export was aimed primarily on ice cream categories, then now we see market demand for dairy snacks with high added value. Thanks to the growing healthy lifestyle trends and demand for protein-based snacks, we see increased market interest in curds snacks. In other words, Karums curds snack known to us for more than 30 years, which have a natural demand in several ethnic markets, now are facing interest from new European markets. We plan to use this opportunity, developing new and close export cooperations this year,” said Cirjevskis.

Focuss on exports

The five largest Food Union export markets in 2023 were Estonia, Ukraine, Lithuania, Azerbaijan and Poland. In total, Food Union exports products made in Latvia to 25 countries in the world, and over the past two years, 2-4 new export growth markets are developed annually. The concern plans to continue its expansion in the export markets with products of high added value – ice cream, cream cheese, curds snacks– also in the coming years, as well as to continue sales of industrial powdered milk within the group and beyond.

Curds snack sees its hour of fame

Export of Karums curds snack last year saw its biggest growth in Norway and Uzbekistan, where exports were started only in 2022. In 2023, the company increased and developed cooperation in the Netherlands, meanwhile in the US, Israel and Norway, the assortment of Karums curds snacks was expanded, introducing packaging made especially for these markets. In 2023, the curds snacks discovered such new countries as Romania and Bulgaria. In all these countries the curds snacks are sold under the brand of Karums. 2024 is special with a growing demand for curd snacks in European countries – Finland, Denmark, Italy, Spain, Germany and Cyprus, where cooperation with the partners has just started.

Latvia – also the land of cream cheese?

Ukraine showed the biggest growth among the existing markets, where export almost doubled – from EUR 5 million in 2022 to EUR 10 million in 2023, thanks to expanding distribution of Latvian-made high-quality cream cheese in cooperation with several customers. The new export markets – Kazakhstan, Greece and Poland – where exports of cream cheese were launched in 2023, also saw a significant growth. Exports to Kazakhstan in a year have reached almost EUR 1 million.