Latvia's toughest week: worst summer storm since 1966 and a major dairy takeover
A powerful storm on the night of August 23 became Latvia's worst summer storm since 1966, killing one person and cutting power to more than 277,000 households, while separately an Estonian company moved to buy the Rīgas Piena kombināts dairy business.
Latvia's most significant event this week was a powerful summer storm that struck the country on the night of August 23, causing damage unseen since 1966. One person died in the storm and 14 others were injured. More than 277,000 households temporarily lost electricity, and restoring power took an unusually long time in many areas.
Arvis Zīle, head of the Crisis Management Centre, openly acknowledged that the country's readiness for a crisis of this scale was weak, rating it just 4 out of a possible 10. In response, the government decided to set up so-called resilience points in municipalities to help residents during future crisis situations.
Dairy sector shake-up
Alongside the storm's aftermath, a notable business development also emerged this week. Falber Investments, the parent company of Estonian agricultural group Agrone, has reached an agreement to acquire Latvian dairy processor AS Rīgas Piena kombināts along with its subsidiary Valmieras Piena. The deal still requires approval from competition authorities, and the purchase price has not been disclosed.
Rīgas Piena kombināts is known as the maker of the popular Kārums curd snack, though the company posted a loss exceeding 610,000 euros in its last financial year.
Together, the two developments show a demanding week for Latvia — one marked by a large-scale natural crisis on one hand, and continuing consolidation in the local dairy processing sector on the other.
