Latvian fish processing industry faces new challenges: demand may outstrip supply
After losing Russian markets, Latvia's fish processing sector has successfully reoriented to Western markets, but industry leaders warn that growing demand may soon exceed production capacity.
Jānis Endele, President of the Latvian Fishery Association and co-owner of SIA "Karavela", says the industry is currently profitable and stable, but in the next three to four years, demand may outpace supply. Following the loss of Russian and CIS markets in 2014, Latvian fish processors quickly reoriented to new markets, including the USA, Germany, Japan, and Spain, where they have become significant suppliers.
Industry development plans
Endele revealed a vision for the Latvian fish processing industry for 2028–2034, aiming to achieve turnover of 500 million euros, with about 90% from exports, and to provide employment for over 4,000 people. The industry has already recovered from the severe blow in 2014 and is now focusing on growth.
Key challenges
Rapid growth brings risks – demand exceeds supply, and if Latvian producers cannot ensure stable deliveries, retailers will replace their products with those from other countries. Endele stresses that price increases are inevitable, but stability is paramount. The industry also faces a labor shortage: after many Ukrainian workers left, companies are seeking workers from more distant regions, such as Vietnam.
State policy is crucial – Endele calls for clear regulations on fish resource use and an immigration policy that allows industries to attract foreign labor. He warns that without such measures, Latvia's economy cannot sustain growth, citing Poland as an example where foreign workers are integrated into the food industry.
Latvia's advantages
Latvia's fish processing industry has built a reputation for high-quality canned fish globally. Endele notes that traditional products like sprats are labor-intensive, but the greatest growth potential lies in industrial products. He adds that the Baltic states do not directly compete with each other, as each has its own specialization.
