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Dairy plant developed by Piena Cels and Estonian cooperative might be launched in 2021.

RIGA, Aug 23 (LETA) - The dairy plant which Latvia's Piena Cels dairy cooperative is developing in Estonia together with Estonia's E-Piim cooperative might be launched in 2021, LETA was told at the Latvian Agricultural Cooperatives Association.

The association's representatives noted that Piena Cels and members of E-Piim cooperate unanimously voted to establish a joint Latvian-Estonian cooperative E-Piim Societas Cooperative Europaea Limited (SCE E-piim) in line with the European Union's (EU) standards.

The new cooperative will be tasked with setting up a joint milk collection system, process the milk at powerful dairy plant and export the dairy products to the world's markets with an aim to raise the milk purchase price to the EU average.

"The merger is necessary not only to consolidate the Baltic dairy market but also to conquer a position on the global market, which can be easier done together. The merger will provide an opportunity to boost the existing plants' competitiveness, sort out dairy logistics and jointly position our Latvian-Estonian cooperatives' plat and products on local markets," said Martins Neibergs, chairman of the Piena Cels supervisory board.

Construction of the new high-capacity dairy plant will begin in the Estonian city of Paide in 2019. Production at the new plant is scheduled to begin in 2021. Funding for the projects is available from the European Investment Bank (EIB), several European commercial banks, as well as EU funds. One of the dairy farm's investors is the Netherlands-based Interfood B.V., one of the world's leading industrial dairy product distributors.

As reported, Latvian dairy cooperative Piena Cels plans to team up with Estonian cooperative E-Piim and invest EUR 100 million in a new dairy plant in Estonia for processing milk supplied by Latvian and Estonian farmers.

According to information published on Latvijas Vestnesis official gazette, Piena Cels has made a decision on restructuring and will merge with E-Piim into a new organization E-Piim Societas Cooperativa Europaea Limited.

According to Firmas.lv, Piena Cels in 2018 generated EUR 18.065 million in sales, which is by 9.3 percent more than a year ago, and earned EUR 140,266 in profit in contrast to a loss a year ago.

Piena Cels was founded in 2004.

E-Piim belongs to more than 100 Estonian farmers and is one of the largest cheese and butter producers in Estonia, processing more than 120,000 tons of milk a year.

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Publication:LETA
Geographic Code:4EXES
Date:Aug 23, 2019
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