Latvia's Dobeles Dzirnavnieks Draws Nearly 70% of Revenue from Exports

Dobeles Dzirnavnieks, the largest food producer in Latvia, reported a turnover of 289 million euros last year. A substantial share of that figure came from outside the country — roughly seven out of every ten euros in revenue originated from exports to foreign markets.

Challenges behind the numbers

Company head Kristaps Amsils says the extensive list of export destinations did not come easily. Behind it lies a daily struggle on several fronts. One challenge is government subsidies granted to producers in Turkey, which give Turkish companies a competitive edge in international markets and make fair competition more difficult.

The company also has to navigate geopolitical tensions that affect its operations and planning. Additional difficulties stem from logistics complications linked to the situation in the Black Sea region, which create obstacles for transporting raw materials or finished products and disrupt supply chain stability.

Competing for the pasta market

Another obstacle the company faces is a widespread stereotype that genuine, high-quality pasta can only be produced in Italy. This perception complicates Dobeles Dzirnavnieks' efforts to convince international buyers of the quality and competitiveness of pasta made in Latvia.

Despite these obstacles, the company continues to expand its production capacity and strengthen its position as one of Europe's leading food producers, actively competing with traditional market leaders, including Italian manufacturers, for customers and orders in international markets.