28-06-2012 17:01 Latvia
Valmieras piens turnover decreased by 13.1% in 2011
Joint-stock dairy company Valmieras piens achieved LVL 25.42 million in turnover in 2011, 13.1% less than in 2010, when the company turned over LVL 29.25 million, according to Firmas.lv information.
Valmieras piens operated with LVL 971,746 in losses in 2011, 3.71% more than in 2010, when the company's losses amounted to LVL 884,840, writes LETA.
In 2009, Valmieras piens posted LVL 27.24 million in turnover and LVL 108,167 in profit.
According to the company's management report, Valmieras piens plans to cover its losses at the expense of next year's profit.
Last year, the company bought 62,000 tons of milk, paying on average 20.8 santims per kilogram of milk.
Valmieras piens foreign trade turnover reached LVL 8.64 million, its total share in the company's turnover – 34%, compared to 37.5% in 2010.
LVL 196,000 was invested in the company last year, modernizing its production equipment and sewage treatment system.
This year, the company will continue to work on the development of its market strategy, taking into account that Valmieras piens, after its merger with the Rigas piena kombinats dairy company, will become the most competitive player on the Baltic market within the newly established Food Union concern.
As reported, on May 9, the Competition Council granted permission for the merger of Rigas piena kombinats and Valmieras piens. However, the companies will have to observe several restrictions in the process and thereafter.
The Competition Council ordered several restrictions so as to prevent the possible negative effect of the merger on farmers and small retailers. The companies will have to observe the restrictions until March 31, 2015.
Source: The Baltic Course