The Board manager of JSC Rigas Miesnieks commentary to Dienas Bizness


Rīgas Miesnieks: It's Important to Make Fast Decisions                          

In the current economic situation, it is important to make fast decisions and   
cut costs.                                                                      

(Dienas Bizness, Sandra Dieziņa, sandrad@db.lv, 67084441) 

This was said by Aldis Škutāns, Board Manager of A/S Rīgas Miesnieks, Latvia's  
largest meat processor, at the breakfast for business people organised by the   
newspaper Dienas Bizness. He pointed out that it is important to strengthen the 
existing successful products and services and to identify the needs of          
customers. If the company has permitted few mistakes and has not been           
considering further future, then now it is doing everything to analyse the weak 
points, and decisions are taken as quickly as possible because "there is no time
for discussions right now”. Furthermore, every decision should be based on data.
Assessing the situation in the market, Aldis Škutāns pointed out that the       
competition has remained unfair because "one company imports illegal meat,      
another company has tax debts, and another company pays illegal salaries”. There
are currently about ten major and about thirty minor players in the market and  
these numbers affect it considerably. Aldis Škutāns thinks that the solution to 
this is the specialisation of the companies, which would result in not more than
five major players. According to him, the share of illegally imported meat in   
the market is 30 per cent; it is, however, less than before, when the alleged   
share of illegal meat was even up to 50 per cent. Furthermore, his opinion is   
that strict standards should be implemented for meat products, like they were in
the Soviet times, when the meat content in meat products was regulated.         
With a market share of 21 per cent, Rīgas Miesnieks is Latvia's market leader;  
currently, the company is considering export opportunities. It plans to increase
its export to Russia already this autumn; for this, the company needs to receive
the export permit, in which it has not succeeded so far. Aldis Škutāns named    
dumplings, smoked products and cooked sausages in natural casing as export      
products in the Baltic countries.                                               
According to the unaudited data, the company's turnover in 2008 was 26.65       
million lats, which was 3.3 million lats more than in 2007. In the first month  
of this year the turnover of Rīgas Miesnieks was similar to that in January     
2007.