Baltic meat round-up
sector, we discover that Estonian processors are facing increased
costs due to EU carcass disposal regulations, the region's largest
meat processor has reported strong financial results and a Latvian
poultry producers denies cartel allegations.
Estonian meat processors face increased costs
Meat processors in Estonia say that the launch of an animal waste handling facility in the town of Vaike-Maarja is likely to triple costs for meat processing, leaving them with no alternative other than to pass costs on to consumers.
According to a Baltic News Service report, the facility was opened to comply with EU requirements for the disposal of dead carcasses, but with costs estimated at €123 a tonne, processors and packers claim that this will push production costs up in line with those found in old member states such as neighbouring Finland and Sweden.
Under the EU rulings that now have to be adopted following Estonia's integration to the EU, meat producers are compelled to use the facilities to dispose of dead animals, a regular occurrence in the industry.
Largest Baltic meat processor reports strong results
The largest meat processor in the Baltics, Rakvere Lihakombinaat, has reported strong first half financial results, with profits up from EEK13.6 million (€0.8m) to EEK43.1 million, compared to the same period last year.
With volume sales up 9.2 per cent to 21,500 tonnes, the company reported that the increase in turnover was bought about by Estonia's accession to Europe as well as benefiting from a reduction in tariffs.
Since becoming a member of the EU the company said that Latvia's obligation to drop high tarrifs on pork imports had provided a major boost for cross-border trade. On top of that the fact that customs formalities have also been relaxed to all the EU markets, old and new, has led to a more simplistic and profitable system of trade.
Latvian poultry producer denies cartel
Latvian poultry producer Kekava has denied claims that the country's leading poultry companies have agreed to show force and jointly raise the consumer price for chicken.
According to a Baltic Business News report, the company said that prices had only gone up for chicken fillet and frozen chicken due to increasing costs following accession to Europe, while the price of other chicken products had remained constant.
But the price rise comes directly after leading Latvian poultry company Lielzeltini acquired a controlling stake in Kekava. Latvian authorities are now investigating the ethics of the acquisition.
