Food

Despite being a relatively small country on the Baltic Sea, Latvia has a rich history in agriculture and food processing. With a population that was largely rural until 100 years ago, the Latvian people evolved a cuisine designed to be nutritious, tasty and well-suited to the lives of people who spent most of their time outdoors. Like much of Central and Eastern Europe, Latvia has been ruled by a variety of other countries during its history, with possession of the Baltic territories being transferred between Germany, Sweden and Russia prior to the first period of independence in 1922.

The need for wholesome food, allied with the tastes of the imperial powers, has left Latvia with a wide variety of “traditional” foods. Today’s consumers in Latvia still retain these tastes, and continue to demand foods that taste as good as they did from grandmother’s kitchen, but in more convenient forms.

Modern Latvian food producers have embraced the challenge of meeting the demand for food that tastes fresh and natural, whilst taking advantage of modern technologies to ensure consistency, availability and hygiene.    

The food and beverage industry is the largest industrial sector in Latvia, producing around 2.1% of total value added in 2008 and 20.4% of value added in manufacturing. In 2008, some 665 companies were active.

• Sector output in 2009 (thsd EUR)  - 1 240 998
• Export proportion in 2009 – 23.8%
• Average growth of the industry in 2009 - -27

Food and Beverage Output, 2009

Source: Central Statistical Bureau of Latvia, 2010
 
The dairy industry in Latvia has matured rapidly over the last few years. Aided by state support, which has improved farmers' access to new technology, veterinary care and better quality supplementary feeds. The dairy industry in Latvia is building a strong international position with growing exports of standard products, such as cheese, chocolate-coated cottage cheese, butter and sour cream. In 2009, industry output totalled around 227 million EUR, of which 41 million EUR was exported.

The Latvian fishing industry has undergone huge changes in the last fifteen years. Sector output volume reached 113 million EUR in 2009 year. The sector has expanded to produce value-added, prepared foods but traditional fish products such as canned sprats are still in demand. Fish production export is about 74 million EUR.

Latvia has had a well-structured meat sector for many years and it has fully adopted EU methods to bring it into line with other member states. Sector output was 285 million EUR.

Bread and grains, in different forms, have long formed the foundation of diets across the globe and the Baltic countries are no exception. The last fifteen years have been an exciting time for grain farmers, as the exploitation of the opportunities offered by Latvia’s ideal agricultural soil has been matched by rapid technological advances. The excellent export opportunities for wheat, rapeseed, dried peas and animal feed have helped to develop the expertise necessary to clean, store and distribute grain of consistently high quality.

The country's location makes it perfect for growing many types of fruit and vegetables. Latvia is justly famous for its berry fruits, in particular cranberries. A large proportion of the berry harvest is sold to the fresh market but freezing, jamming, pulping and juicing take care of the remainder. The use of new technologies in producing canned and processed fruit and vegetables is allowing producers to use fewer additives in their products, to preserve the nutrients of fresh fruit and to offer reduced-calorie and diabetic products. Industry output volume is 44 million EUR.

Food and Beverage Output, 2003-2009 (billion EUR)

Source: Central Statistical Bureau of Latvia, 2010

Outside its relatively few urban areas, Latvia possesses a clean, non-industrialised environment and is an ideal place to return to nature. A small proportion of Latvian farmers have pledged to make available food that does not rely on artificial means, such as the use of chemical weed control, for its production. These farmers are able to sell their produce as “organic”, which generally attracts a price premium.

The steadily increasing scientific knowledge about food and nutrition at an international level has been well utilised in Latvia. Research efforts continue through collaboration between our own research scientists and their counterparts all over the world.

Sector Exports
With Latvia becoming a member state of the EU, larger avenues are opening up for its exporters with the EU concluding preferential trade agreements with several countries where Latvian products did not previously benefit from any trade relief.

Food Sector Exports (mln. EUR)

.	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009*
EU-15	29.7	45.3	56.1	61.4	74.8	136.1	149.6	205.6	267.8	248.5
CIS	31.7	65.6	66.3	66.4	77.7	105.6	130.4	170.7	236.9	191.2
Baltics	42.3	55.8	64.0	68.5	109.1	177.6	245.1	336.8	380.7	320.7
Others	13.8	30.5	60.6	34.0	50.5	82.3	93.7	113.9	181.1	191.7
TOTAL	117.5	197.3	247.0	230.3	312.1	501.7	619.0	827.0	1066.5	952.1

* - provisional data
Source: Central Statistical Bureau of Latvia, 2010, exports of live animals and animal products, vegetable products, fats and oils and prepared foodstuffs included

Exports by product groups, 2009*

* - provisional data
Source Central Statistical Bureau of Latvia, 2010

Sector Advantages
Latvia is at the heart of Europe’s fastest-growing region – the Baltic Sea Region. The cultural fusion of the indigenous population and newcomers has influenced Latvian food patterns down the centuries and Latvia is still blessed with a beautiful landscape, wholesome produce and agricultural traditions based on sound ecological practices.

Investment and purchasing decisions depend on the availability of good, economical raw materials, the quantity, quality and cost of labour plus knowledgeable investment partners and suppliers. Latvia has all of these.

Additional information
www.lpuf.lv – Latvian Federation of Food Enterprises
www.zm.gov.lv – Ministry of Agriculture of Latvia
www.lta.lv – Latvian Traders Association
www.pvd.gov.lv –Food and Veterinary Service
www.lad.gov.lv – Rural Development Service
www.lvaei.lv – Latvian Institute of Agrarian Economics
www.vzp.gov.lv – National Board of Fisheries
www.exim.lv - Latvian Export Import Directory