The Bread Market in Latvia is Gradually Shrinking 0 12

The market is influenced by both demographic factors and rising prices. As local producers stated, although they are currently trying not to raise bread prices, the coming months will be crucial.

In the middle of the day, the bakery "Lielezers" is bustling with activity - the ovens are baking continuously, and the lines are running without stopping. On average, more than five tons of products are produced here daily. Although production volumes at the enterprise remain stable, changes in the industry are becoming increasingly evident.

"The distribution between different segments of baked goods is changing - whole grain bread and sweet sourdough bread. We have observed that for ten consecutive years, the consumption of heavy bread - rye - has been slowly declining, while the consumption of sweet-sour bread is growing," said Valters Kanopa, a representative of "N. Bomja maiznīca 'Lielezers'".

The overall picture in the industry is not optimistic - the market is shrinking. This is influenced by both population decline and changes in eating habits. Exports are also not a salvation due to the short shelf life of bread. Moreover, bread has its own traditions and tastes for each nation or population group, said Karlis Zemešs, chairman of the Latvian Bakers' Association.

"Exports are small, up to five percent. Unfortunately, the local market is shrinking, and I do not see potential for growth in our segment because there is currently strong pressure on prices. Therefore, we are focusing more on products that are beneficial for us to export," said Normunds Skaugis, a board member of "Lāči".

In addition to declining demand, the industry is also suffering greatly from rising costs. "Of course, fuel prices have risen - last month, if I am not mistaken, our expenses for the fleet increased by a whole 3000 euros just for fuel, not counting everything else," said the production manager of "Lielezers".

"We are most affected by both services and now all energy resources. Mainly, it is fuel," added a board member of "Lāči".

According to industry representatives, the coming months will determine whether the price of bread on store shelves will rise. "If fuel prices rise, then prices for everything rise - including small services and auto parts. Everything is getting more expensive. This affects us, and there are difficult moments when we have to raise prices. However, if we look at this from the perspective of a year or months, it becomes clear - no, it is no longer profitable," said Kanopa.