July 15, 2010

Lielzeltini finds new poultry export partners in Sweden

The Latvian poultry producer Lielzeltini has found new partners for chicken produce exports in Sweden.

At present the company exports some 10-15% of its output. While Lielzeltini would like to increase its exports, for now it is not possible due to the limited production capacities.

Cooperation in exports with the first customer in Sweden began five years ago. By now Lielzeltini already has several customers in Sweden, mostly food producers and wholesalers.

Lielzeltini exports mainly frozen chicken fillets that the cooperation partners use as raw material in their production. The Latvian company has also found a cooperation partner in Sweden that buys cooked chicken fillets, a product which has not been much demanded in Latvia, probably due to the economic crisis and the price.

"Our focus is mainly on the domestic market, and we export the rest," Lielzeltini's CEO Igors Zolotarjovs said.

The company's further plans regarding exports are based on finding new customers and sales market for products with added value such as cooked fillets and nuggets, which are not much in demand in Latvia but are more popular in Estonia.

As for the effects of the economic crisis on Lielzeltini business, Zolotarjovs said that it had not had any serious effect on exports but adjustments had to be made on the domestic market, taking market promotion measures to maintain sales.

Lielzeltini closed the year 2009 with a turnover of LVL12.501 million (US$22.5 million) at a 33% drop from 2008 but its profit increased several times year-on-year to LVL851,600 (US$1,532,400). Lielzeltini shareholders are several Latvian individuals as well as Tionis, KomKeri Latvija and Sortinvest companies.