RAKVERE LIHAKOMBINAAT

ANNOUNCEMENT

02.06.99

 

 

Rakvere Lihakombinaat hereby presents its evaluations about the 

effects of duties imposed by the Latvian Parliament on pork imports 

on the Rakvere Lihakombinaat group.

 

 

1) Until 01.06.1999 Rakvere Lihakombinaat provided its Latvian-based 

subsidiaries Rigas Miesnieks and Rigas Miesnieks Trading with 

pork. After imposing of import duties, the direct production costs 

of Rigas Miesnieks will increase in 7 months by 20.3 million EEK.

2) Production facilities of Rakvere Lihakombinaat group are 

specialized, e.g. Rakvere Lihakombinaat produces certain goods to 

the Latvian market under trademark of Rigas Miesnieks, and Rigas 

Miesnieks produces certain goods to the Estonian market under 

trademark of Rakvere Lihakombinaat. After imposing of import 

duties on pork, the direct production costs of Rigas Miesnieks 

Trading will increase in 7 months by 1.2 million EEK.

3) As of 01.06.1999, Rakvere Lihakombinaat will reduce buying-up of 

pigs (except subsidiary AS Ekseko), since the company lacks sales 

channels to Latvia. Workload of the abattoir of Rakvere 

Lihakombinaat will then decrease by approximately 35%, i.e. price 

of raw materials for sausage factory will increase by 3 EEK/kg. 

After imposing of import duties, the direct production costs of 

Rakvere Lihakombinaat will increase in 7 months by 10.5 million 

EEK.

4) Total estimated costs to AS Rakvere Lihakombinaat group: 32 

million EEK.

 

 

 

Teet Soorm

Financial Director

AS Rakvere Lihakombinaat