Food Union once again lowers product prices to support dairy farmers

In connection with the continuing milk crisis, the overproduction of fresh milk in Latvia is reaching record volumes and a further reduction in the purchase prices of milk. In order to support dairy farmers and continue purchasing fresh milk from them in the same quantities as before, Latvia’s leading dairy company Food Union will once again lower the price of all Limbažu piens products sold in Latvia. From May 1 to June 30 this year, Limbažu piens milk (1l) and kefir (1l) will be sold for one recommended price – EUR 0.65, while Limbažu piens curds and sour cream – for EUR 0.69.

“The crisis continues and this can be seen by shoppers when they go grocery shopping. If just two years ago a liter of milk cost around EUR 1 and last year a liter of milk cost around EUR 0.80, then this year a liter of milk costs EUR 0.65. This is not good for the dairy industry, but is good for consumers. This is why we are looking for ways how we can satisfy the desire for attractive prices, while at the same time increasing the consumption of dairy products and directly supporting our farmer,’’ the chairman of joint-stock Rigas piena kombinats (Food Union group) Normunds Staņēvičs explains. “Limbažu piens has been amongst the most popular dairy brands for years, and a leader when comparing the quality to price ratio. This consumer loyalty towards Limbažu piens can help nearly 400 Latvian farmers outlast the crisis. The support mechanism is simple – the more people purchase Limbažu piens products, the longer we will be capable of purchasing fresh milk from farmers in the same quantities as now and paying these farmers above the average national milk purchasing price,’’ Normunds Staņēvičs added.

Prices will be reduced for all Limbažu piens products – milk, kefir, curds and sour cream. These reduced-price products will be available at all supermarkets and grocery stores throughout Latvia in May and June, and in most of these shops will be highlighted with yellow price signs.

“Seeing that this milk crisis continues to linger on, Food Union implemented several emergency measures last year with the aim of improving the effectiveness of the processing process. We reduced warehouse costs by 40%, milk logistics costs by 25%, as well as the supply and logistics costs of our own products by 20%. By making our work more effective, we were able to save EUR 3 million last year, of which EUR 2 million we diverted to help maintain a competitive milk purchasing price. Thanks to this, we are still capable of paying dairy farmers a 5% higher purchasing price than the average purchasing price in the country,’’ Normunds Staņēvičs emphasized.

Food Union continues to enter new export markets in the Middle and Far East regions, as well as utilizes the group’s advantages to optimize production costs and increase the use of Latvian made ingredients at the company’s other subsidiaries abroad. At the moment, Food Union’s Latvian companies Rigas piena kombinats, Valmiers piens and Rigas piensaimnieks export their products to 20 different countries around the world.