Food Union to invest €2.2 million in production automation

The Latvian dairy processor and ice cream producer, Food Union, is planning a major investment project to further develop and modernise its main production facility, Rīgas piena kombināts, in 2023. The investment of over €2.2 million will go towards automating the company’s production processes. 

“We have declared 2023 a year of new achievements, because the way we planned and measured success in the past will now be fundamentally redefined. All our resources will be focused on being even closer to our customers and delivering what they want. We will do this both by investing in automating our production processes, thereby reducing the cost of the products, and through unprecedented product innovation,” commented Irēna Holodnaja, General Director of Food Union Latvia.

With the support of Latvia’s Rural Support Service, the project will allow Food Union to purchase three machines: an automatic ice-cream packaging system, a curd snack packing line and a cream cheese packing line. 

Shows resilience in face of economic challenges
This year, Food Union will select equipment suppliers via public procurement, with installation to happen in spring 2024. The project will increase Food Union’s production capacity, which in turn may boost sales of its most popular export products: ice cream, cottage cheese and cream cheese.

“Although the current economic situation continues to be challenging and the market is experiencing a decline in the consumption of dairy products, as a leading dairy processor we still see it as our duty to look to the future and continue to invest in the modernisation of our production processes, as this will bring comprehensive long-term benefits. Firstly, we will be able to improve our own economic performance, i.e. work more efficiently and also more sustainably. Secondly, the investment will also allow us to focus more on workforce development,” said Holodnaja.

In 2021, Food Union in Latvia reported a turnover of €111.5 million, which is a 4% increase compared to the previous year. However, the company’s gross profit decreased by 5% to €25.5 million. Food Union’s group turnover in Europe in 2021 was €291 million.

Author: Lelde Beņķe (labsoflatvia.com). Publicity photo.