Lithuanian cheese makers suffer from dollar drop

Jun 06, 2002

Lithuanian cheese producers, which have become one of the largest cheese exporters to the United States, have found themselves in an unenviable situation due to the falling U.S. dollar rate.

Since the litas repeg to the euro on Feb. 2, the dollar has fallen by as much as 7.36 percent against the litas, the daily Lietuvos Rytas reported on June 4.

The litas currently stands at 3.77 to the dollar, compared to a fixed rate of four before the repeg.

Because of the fall producers are paying the same domestic costs but receiving less revenue from exports.

"This is our biggest problem at the moment," said Antanas Trumpa, managing director of the cheese maker Rokiskio Suris.

Rokiskio Suris exports about 50 percent of its production to the United States. The volume of trade with the United States accounts for 30 percent of the total turnover of Rokiskio Suris dairy group.

"If this trend continues the only remedy will be reorientation of exports to the European Union. We will soon carry out a 'landing operation' in the EU," Trumpa was quoted as saying.

In the first-quarter of this year, the Rokiskio Suris Group posted a consolidated turnover of 69.3 million litas ($16.24 million), down 17 percent compared to the same period last year.

Zemaitijos Pienas, the only large dairy company to turn a profit so far this year, earned a profit of 1.3 million litas. Like others, however, it is suffering from the falling dollar.

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