August 22, 2011


Rigas Piena Kombinats' sales increase 16% in H1



Rigas Piena Kombinats (RPK), the biggest Latvian dairy company, attained LVL28.9 million (US$58.6 million) in sales between January and June this year, rising 16% as compared to the previous year.


RPK spokeswoman Irena Berzina said that that the company's sales were influenced by fluctuations of milk prices which depend mainly on external factors.


She said that exports accounted for 26% of the RPK sales, and there has been steady growth of exports to Russia and Azerbaijan. Domestic sales are also stable as RPK remains the leader of the Latvian market.


She said that Latvia should follow the example of other European countries which apply reduced value-added tax (VTA) rates to dairy products. For example, in Italy the VAT on dairy products is 4% and on cheese 10%. Moreover, subsidies to Italian farmers are much larger than subsidies paid to Latvian farmers, the RPK representative said.


In the first half of 2010, RPK posted LVL24.9 million (US$50.5 million) in sales. During the full year 2010, RPK reported a turnover of LVL53.536 million (US$108.6 million) at a 28.6% rise from 2009 and a loss of LVL1.45 million (US$2.9 million) as opposed to the profit it had in the previous year.

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