Lithuania’s dairy producers back in red

Three of four Lithuania’s dairy companies listed on the NASDAQ OMX Vilnius Stock Exchange, i.e. Rokiskio Suris, Zemaitijos Pienas and Vilkyskiu Pienine, reported losses for the first quarter of this year. Pieno Zvaigzdes made a profit between January and March, which, however, slumped by more than one-third from the same period last year.

“The losses were mainly triggered by apathy seen on the export markets from the very beginning of this year. I could not single out any particular direction or country – the world is global and when the demand declines in the West, it also declines in the East. It’s just that past few years were very favorable for us and now we are in for correction,” Dalius Trumpa, Rokiskio Suris chairman, told the daily.

Pieno Zvaigzdes CFO Audrius Statulevicius explained that the performance figures had worsened due to a decline in the prices of products and a drop in revenues generated on export markets.

Meanwhile, analysts believe that the dairy companies may still generate a profit this year.

“Milk purchase prices and, accordingly, the production costs, have declined, hence the dairy companies still have chances to get back in black soon. It might happen in the second half of this year or in fall,” Dalius Gerulaitis, a broker with Orion Securities, told the daily.