The situation on the Ukrainian-Polish border may cause losses worth at least 30 million for exports of Latvian food products, reports Latvian Federation of Food Companies (LPUF) council chairperson Ināra Šure.
She explains that the Polish truckers’ economic blockade of Ukraine has significantly impacted Latvia’s food industry. If the situation is not resolved, Latvia’s food sector may lose EUR 30 million in a single month’s time.
According to Šure, Ukraine is an important partner for Latvia’s food sector both in terms of exports and supplies of raw materials. The situation on the Ukrainian-Polish border and, therefore, supplies to and from Ukraine are unpredictable at the moment. Supply schedules have been dramatically deviated from two days to up to several weeks because of this situation.
“Many transport units are paralysed, standing on the border between Poland and Ukraine, influencing the completion of other export contracts,” says Šure.
She explains that exports to Ukraine are significantly delayed. Food producers are unsure about supplies of raw materials, which impacts production and threatens with sanctions for failed contracts.
Šure adds that LPUF has identified only the largest Latvian food industry producers, which are the largest exporters and recipients of raw materials from Ukraine. In general the situation in the sector may be even worse.
“Of course, producers are looking for solutions and new markets for supplies of raw materials, but it’s clear that prices of raw materials in other countries will be higher than in Ukraine.
This means producers will be forced to increase product prices and push inflation upwards, because politicians aren’t doing their jobs,”
says LPUF council chairperson.
She said that although the Ministry of Foreign Affairs was expected to provide a fast, decisive and efficient work, currently the sector does not see any signs of responsible institutions looking for solutions.
“This is about Latvia’s economy, and our European affairs and relations expert – the Ministry of Foreign Affairs – needs to prove their political power and find solutions to this emergency through work with Polish officials, because the damage to Latvia’s national economy keeps growing every day,” notes Šure.
Also read: Fish export sector at risk of falling sharply due to Polish truckers’ boycott
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