Balticovo expects a decline in turnover this year

Photo – Karina Miezāja

The Egg-making and egg-product company AS "Balticovo" expects this year a drop in its turnover compared to 2017, acknowledged the president and co-owner of the board of directors of the company, Valdis Grimze.

He recalled that the company had been a great success in 2017, producers in other countries facing various problems, including those related to the spread of bird diseases, which resulted in a shortage of fish. eggs on the market. The price of products manufactured by "Balticovo" grew in deficit and the company used it successfully last year to increase its turnover.

However, this year, the eggs are surplus and poor harvests of cereals lack quality. As a result, Balticovo will have to look for them not only in countries other than Latvia, but also to buy higher quality, more expensive cereals.

According to Grimz, for the above reasons, the company's results this year are not as bright as a year ago. "The decline in sales is now being felt because sales prices are significantly lower – they are actually back to the level of 2016," said Grimze, pointing out that cereal prices are higher than in any other region. ;about 30%.

Tomas Auskaspis, board member of Balticovo, added that the tensions related to overproduction of eggs have now decreased, as European producers, seeing that products from other countries arrive on their markets, ask themselves if they wish to work at their maximum capacity. Last year, egg producers were keen to maximize their production capacity because egg prices rose due to a deficit and their offer did not allow for coverage the demand. "All European manufacturers have tried to maximize the capacity of all peat bogs, so the supply has exceeded demand," recalls Auskaspes.

Grimze added that there is a worldwide demand for quality eggs at affordable prices. Since these criteria can be fulfilled by "Balticovo", the sales figures of the company outside of Europe have not diminished. "We are no longer [cenu svārstībās] so easily influenced as ever, and we are proud of it. We are going to the European markets, we are looking for new markets in Europe and Southeast Asia. For example, we have already harmonized certificates in Hong Kong. We also work in South Korea and in other directions, "he said.Last year, the company began to actively work to sell its products in South Korea, another of Southeast Asia.

"It's not so easy to get into a market in another country – first, countries are protecting their markets, as an exception I can mention the United States, who at the time had developed an egg deficit due to an outbreak of avian influenza.They turned to Europe, especially to help us.The certificates needed to import products to the States They were treated within two weeks.This happened very quickly because they needed it.In the case of Hong Kong, when we want to enter our market themselves, the procedure is a lot more difficult and long, "he said.

Grimz added that shipping to Southeast Asia and distant Asia would take about 50 days and that shipping products could be a challenge due to limited lead times. As a result, the company would most likely export high value frozen products, including frozen liquid eggs, such as egg or egg yolk cultures, with special properties such as blending. gluten-free pancakes that do not contain lactose because a large part of the Asian population is lactose intolerant.

It has already been reported that the Balticovo business turnover amounted to 52.3 million euros in 2017, or 17.3% more than in 2016, while the The company's profit rose to 10.8 million euros, four times more than in 2016..

The main business of "Balticovo" is the production and sale of chicken eggs, egg powder, liquid liqueurs to eggs, boiled eggs without shells, d & rsquo; Chopped and cooked eggs. The main owner of the company is BCO, which holds 95.42% of the shares.