Russian crisis affects Ave Lat Group exports

RIGA (BNS) - The Russian crisis has adversely influenced the export operations of the Latvian Ave Lat Grupa food concern, especially those fish processors that are very active in Russia.

The concern has submitted a statement to the Riga Stock Exchange (RSE) saying that no contracts have been terminated so far, but unclear accounting prospects make both sides cautious.

Ave Lat Grupa's fish processing enterprises have accumulated stocks of unsold products worth two million lats,($3.3 million), which equal the sales volume of four weeks.

At the end of 1997, unsold products accounted for 2.1 million lats. In both cases the goods concerned are canned fish products.

The group's Salacgriva '95 fish cannery will not halt production in September. Kaija's cannery plant will work at a reduced capacity and use the time for repair works.

Kaija's marketing strategy is now to step up activities on the Baltic market offering more prepared fish products. Presently Kaija sells its goods in Latvia and Lithuania. In Latvia it has a market share of about 20 percent, Ave Lat Grupa estimated.

Kaija's shares are quoted on the official list of the RSE, while Salacgriva '95 trades on the second list.

Ave Lat Grupa earned a profit of 3.3 million lats in 1997 and 1.34 million lats in the first half of this year.

Ave Lat Grupa includes the companies Laima, Kaija, Salagriva '95, Hanzas Maiznica, Latvijas Balzams, Rigas Vini, Balticovo, and Rigas Piena Kombinats.