A Latvian company spent two million euros on Russian chicken feed last year.

Regarding Latvia, Russian grain is not an integral component, unlike animal feed. According to the Central Statistical Bureau, in 2023, Latvia imported "food industry waste, prepared feeds" from Russia worth approximately 94.5 million euros. These goods were declared upon crossing the Latvian border as being shipped by 12 companies, including feed producers and traders, among them Balticovo, a well-known egg producer.

Tom Aushkaps, Director of Communications and Development at Balticovo, explained that in 2023, they purchased 6.5 thousand tons of sunflower meal from a wholesaler of animal feed registered in the EU in Estonia. This product was produced in Russia. However, the supply contract was terminated. Aushkaps noted that at that time, the company did not have alternative options to provide feed for a large number of chickens due to the disruption of shipments from Ukraine caused by the activities of Polish farmers.

Two million euros for Russian sunflower meal for Latvian chickens?

The amount of money paid for this delivery and the Estonian wholesaler involved in this transaction were not disclosed by Balticovo. They reported that the purchase of 6.5 thousand tons of meal took place from May to November 2023. Balticovo maintains 3.5 million chickens consuming about 120 thousand tons of feed per year. They produce their own grain for feed production, but meal, which is an important source of protein, fiber, and minerals for seeds, has to be imported.

A representative from Balticovo stated that this product has no alternative, and in significant quantities, it is produced only in Russia, Ukraine, and Argentina. However, the product from Argentina is not available to Balticovo. Currently, the company is entering into agreements with wholesalers for the supply of feed ingredients only from Ukraine.

Currently, Farmit.lv offers Ukrainian sunflower meal delivery to Latvia at a price of 365 euros per ton. Therefore, even if we assume that the Russian product was cheaper than the Ukrainian one last year, the current market offer in Latvia suggests that Balticovo spent at least two million euros on Russian sunflower meal for their chickens last year.

Recipients – transit companies, feed traders, and wholesale confectionery traders

According to the State Revenue Service, based on customs data, 19 companies imported "food industry waste, prepared feeds" from Russia into Latvia last year.

According to representatives of the State Revenue Service, goods released for free circulation acquire the status of EU goods and can be used throughout the European Union, including Latvia, without customs procedures. However, there are no exact data on how much of the goods are actually purchased and consumed in Latvia after being released for free circulation.

The Central Statistical Bureau does not collect detailed data on the consumption of animal feed in Latvia. However, the balance of grain production and consumption shows that in 2022, 579 thousand tons of animal feed were used in Latvia. But the total volume of animal feed imported from Russia is almost a million tons, nearly doubling this figure.

Animal feed may contain grain and other agricultural products listed in other statistical categories, such as corn and grain. However, there is no exact information on who imports these products. The total value of corn and grain is lower than the amount paid for the aforementioned feed.

How much Russian feed will remain in Latvia after the import ban?

The issue of banning the import of agricultural products and animal feed has been raised in the Saeima this week. Latvia ranks second in the EU in terms of agricultural product and feed imports, with the majority consisting of feed, grain, legumes, and rapeseed oil.

In the current version of the draft law being discussed in the Saeima this week, it is proposed to ban the import of agricultural products and feed from Russia and Belarus, as well as from third countries, including products and feeds of the specified origin. The list of agricultural products subject to the ban is being discussed by the Ministry of Agriculture together with farmer organizations.

Representatives of the Ministry of Agriculture have suggested that the ban may affect goods from the combined nomenclature group, which in 2023 accounted for 96% of the total import volume from Russia. However, this ban will not prevent Latvian companies from purchasing Russian-produced feed from neighbors or other European countries if they are imported through the borders of other countries. Therefore, there is currently no data on how these changes will affect the competitiveness of Latvian enterprises.