Present  financial  and political turmoil in Russia make impact on "AVE

LAT Grupa" export activity, especially on fish processing plants, trade

volume of those to Russia is essential. Taking into account that no one

agreement  has  been  stopped, uncertainty on financial settlement make

both partners cautious. According to statistics, fish processing plants

of  group  "AVE  LAT Grupa", - a/s "Kaija" and a/s "Salacgrīva`95" have

made  accumulation  of  production for Ls 2 mln., that is approximately

four  week  sales. Accumulated production is canned fish. At the end of

1997  accumulation  of production were Ls 2.1 mln. At present situation

has  been made decision to continue production at a/s "Salacgrīva `95",

but  decrease  production  at  a/s "Kaija" cannery division . Marketing

strategy  for  1998 was concentrated on culinary production and in this

field some draft was made in Baltic region market. A/s "Kaija" culinary

production  sell  in Latvia and Lithuania. According to "AVE LAT Grupa"

market  researches, a/s "Kaija" market share in Latvia is approximately

20%.