The management of the dairy plant 'E-Piim' in Estonia, owned by Latvian and Estonian farmers, has filed for bankruptcy as it is unable to meet its financial obligations.
According to Latvian Radio, the Estonian enterprise owes millions of euros to Latvian farmers for milk deliveries. The plant's management claims that they will try to save the enterprise so that it can continue operations.
What does this mean for farmers and the Latvian enterprise "Jaunpils pienotava" associated with "E-Piim"? "The news about the enterprise 'E-Piim' is currently not the best for the entire industry on a Baltic scale," says Janis Sholks, chairman of the Latvian Central Union of Milk Producers (LCUMP). He hopes that the situation will not affect the enterprise in Jaunpils.
"These are two different things, as 'Jaunpils pienotava' operates autonomously and is part of a broader system with other Latvian dairy processing enterprises," noted Sholks.
However, concerns remain regarding the farmers who supplied milk to the Estonian enterprise. "Some of our milk producers have been selling milk to the Estonian enterprise for a long time. I currently do not have precise information on how the payments were made. There may have been delays, so there are questions about how the situation will develop and whether our milk producers will be able to recover the resources they invested by supplying milk to this enterprise," said the head of LCUMP.
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