Feb 19 • 02:39 UTC 🇱🇻 Latvia LSM

Estonian dairy factory 'E-Piim' facing bankruptcy; owes millions to Latvian farmers

The Estonian dairy company 'E-Piim' is on the brink of bankruptcy, causing concern among Latvian farmers who supplied milk to the company.

The financial troubles faced by the Estonian dairy company 'E-Piim' are raising alarms in the Baltic dairy industry, particularly among Latvian suppliers. Jānis Šolks, the chairman of the Latvian Central Union of Dairy Farmers, highlighted the potential knock-on effects of 'E-Piim's' situation. Though he noted that the separate Jaunpils dairy operations should remain unaffected, there is significant concern about the farmers dependent on 'E-Piim'.

Farmers who have been selling milk to 'E-Piim' for a long time are particularly anxious about their outstanding payments. Šolks expressed uncertainty regarding the exact nature of previous settlements, indicating that there may have been delays in payments which raises questions about how these issues will be resolved moving forward. The ripple effect of the company's financial collapse could impede local agricultural operations and the livelihoods of many dairy farmers in the region.

As 'E-Piim Tootmine' has filed for bankruptcy due to its unsustainable financial position, stakeholders are urging prompt action to address the concerns of affected dairy farmers. The situation underlines the interconnectedness of the Baltic dairy market and the need for robust support mechanisms to shield local producers from systemic risks associated with the closure of major dairy enterprises.

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