January 12, 2012

Lithuanian dairy companies will face a new competitive challenge on export and raw materials markets, according to Russian businessmen who have invested in Latvia's dairy industry.

Meanwhile, the executives of Lithuanian companies assure that they will manage to stay competitive despite changes looming in the neighbouring country, the news reports on Wednesday (Jan 11).

"I cannot say that the plans by the Latvians do not raise any concerns, but I definitely do not dramatize the situation. Our activities are planned in such a way so that we remain competitive, or, to be more precise, capable of buying milk at higher prices," Gintautas Bertasius, CEO of Vilkyskiu Pienine (Vilkyskiai Dairy) told the news portal.

The news portal reports that Russia's businessman Andrei Bezkhmelnitski last year invested in the dairy company Rigas Piena Kombinats (RPK), and the investment fund Private Asset Management, which is owned by Yevgeny Varov, acquired almost all shares in Valmieras Piens. Both new owners intend to merge the companies, which will gain new export possibilities, and will seek to prevent exports of local raw milk to foreign countries, including Lithuania.

Both Rokiskio Suris and Vilkyskiu Pienine import large volumes of raw milk from Latvia. Lithuania's exports of raw milk to Latvia are lower than its imports from the neighbouring country.