JSC  Kaija net turnover in first 6 month of 2002 reached LVL 6 352 745

that  is  by  40.6% more compare to 6 month of last year. In 6 month of

2002  JSC  Kaija  produced  3894  tons  of  fish  production,  90% were

different canned fish ( 80% were exported). Company overall performance

during this time has been satisfactory. JSC Kaija profit for 6 month of

2002 is LVL 211 608 by LVL 194 020 more than last year.

During  first  6  month  of  2002 several strategic goals were reached.

During 2002 export markets were re-structured and sales have grown.

  * Sales  in  Eastern  Europe  - Check Republic, Slovakia, Hungary and

    Poland grew 2.7 times;

  * Sales of preserves begun  in USA;

  * Sales  activities  in  other  new  markets  such as Azerbaijan were

    started

  * More canned fish was produced using Baltic Sea fish.



HACCP  system was partly introduced and conditions for certification of

JSC  Kaija production in compliance with world and EU requirements were

set.  This  certificate  will  open western sales markets for JSC Kaija

production.

Working  group  of  HACCP  is working in company to meet the production

safety  and quality requirements. So that JSC Kaija production would be

listed among production of companies exporting to EU.

JSC   Kaija  has  set  business  development  priorities  that  require

specialised  production  and  investments  in development of production

units that meet world quality requirements and consumer demand. Working

group on ISO quality system implementation has begun work.

In  2002  JSC  Kaija  continued  to  develop sales markets in Baltic's,

Europe,  Russia  and  CIS countries. In Latvia JSC Kaija had to compete

with  growing  competition  from Western and Lithuanian fish processing

companies.  During 2002 many new products were developed. Modernisation

of  production  lines and preparation of documentation to meet required

sales  conditions  for  Western  markets with large sales capacity took

place. The long-term concept of new product development based on market

needs  and internal technical abilities to use competitive advantage in

development of new products is being developed.

Investment  in  production  means  in  the  amount  of  LVL 102 462, in

thorough  repairs  -  LVL  4  660  were  made.  New  packaging line was

launched.   Those   measures  will  improve  ability  to  compete  with

Lithuanian fish processing companies.

Company sales strategy is directed towards increase of sales. This will

be achieved by:

  * Widening  packed frozen fish assortment;

  * Increase  of  sales in potential markets such as African countries,

    Mongolia, Caucasus and some of Russian regions;

  * Establishing  of  joint  ventures  in Eastern markets, work closely

    with retail market;

  * Modernisation of production lines.