A/S Tukuma piens strategic project development of organic milk production

A/S Tukuma piens strategic project development of organic milk production

A/S Tukuma Piens is one of the largest dairy processors in Latvia, which works with 225 suppliers and produces more than 180 different dairy products, including the Baltais Exports brand
fresh dairy products, “Baltais EKO branded ecological products: yogurts, curd, cream, kephir, etc.

 

Company A/S “Tukuma Piens”
Area of business One of the biggest milk processing companies in Latvia
Name of the project Strategic project “A/S “Tukuma Piens” strategic development of production of organic milk, giving an important contribution to the growth of agriculture.
Project Nr. 17-00-A00402-000089
Realization date June 2018 – December 31, 2019
Support programme Support for the investments in processing
Cooperation institution Rural support centre
Aim of the project Aim of the project is a stimulation of organic milk production, its processing, development of export products, that would give significant contribution in the development of agriculture.
Description of the project In the scope of the project it is planned to construct new warehouse to store the organic products, to adapt current warehouses for the production space and to adapt current warehouses to the production of organic products. In addition to that, the purchase of new equipment and new product lines are planned and acquisition of certification for export activities.
Total costs 9 653 052 EUR
Planned co-financing of EU funds 4 826 526 EUR

 

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The volume of organic milk produced in recent years has a growing trend. According to Ministry of Agriculture Republic of Latvia it can be concluded that organic dairy production has increased from 58.4 thousand tonnes in 2012 to 72,1 tonnes in 2016, an increase of 24% in 2016 compared to 2012. Although the production of organic milk in agricultural holdings in Latvia is increasing, organic milk processing volumes are stable. As a result, a large proportion of farms producing organic milk sell the majority of organic milk produced as conventional products and suffer losses. It can therefore be concluded that organic milk processing is not accompanied by an increase in organic milk production.

A/S “Tukuma Piens” carried out an analysis of the trends and problems of the Latvian biological milk processing industry together with State Audit Office. While being a major player in the market for organic milk and considering the company’s future development goals, A/S “Tukuma Piens”, as a future company development objective, set out to make ambitious investments in the development of the organic milk processing production line, which would make an ambitious contribution to the development of the overall organic milk processing industry in Latvia.

More information on their website: https://baltais.lv/en/