Good Practice - Project
Increasing the production capacity of the “Jaunpils Dairy” factory in Latvia
In response to the changing global markets, a dairy used Rural Development Programme (RDP) support to reorient its production and maintain its export potential.
General information
RDP Priority
- P3. Food chain and risk management
RDP Focus Area
- 3A: Agri-food chain integration & quality
RDP Measure
- M04: Investments in physical assets
Summary
During the 2007-2013 programming period, the ‘Jaunpils Dairy’ made investments supported by the European Union, which resulted in the reconstruction of its cheese factory to target the Russian market. When the Russian trade embargo began, the company was forced to make certain investments to adjust production to the new market realities.
The main investment went towards the expansion of the cheese production space, the purchase and installation of cheese/curd vats, the purchase of curd block forms and a foreign object detector. A cheese packer was purchased and installed as well as the construction of an industrial wastewater pre-treatment station.
Results
Turnover is predicted to increase from 11.5million euro in 2017 to 12.3million euro in 2018, an increase of 7%.
Payments to farmers are predicated to increase from 6.8million euro in 2017 to 7.5 million euro in 2018, an increase of 10.3%.
Industrial wastewater pollution reduced by 38% in 2018, from 50 milligrams/litre of total nitrogen in 2017 to 31 milligrams/litre of total nitrogen in 2018.
Employment rose by 1.5% in 2018, going from 135 employees in 2017 to 137 in 2018.
Promoter
JSC ‘Jaunpils Pienotava’
Funding
Total budget 570 393 (EUR)
RDP contribution 228 157 (EUR)
Private 342 236 (EUR)
Ressourcen
gp_lv_jaunpils_dairy_project_499_web_fin.pdf
(PDF – 440.54 KB)
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