The Latvian Competition Council (KP) has given the green light for the acquisition of AS Cesvaine Dairy by the dairy processing company AS Smiltene Dairy. This merger will allow Smiltene Dairy to obtain decisive influence over the operations of Cesvaine Dairy. The Competition Council noted that this could impact the fresh milk procurement market within Latvia, although they have left the precise geographical definition of the market open for further assessment.

In its evaluation, the KP also highlighted that the merger would likely affect various wholesale markets related to dairy products. These include hard and semi-hard cheese, fresh cheese, mozzarella, processed cheese, butter, packaged dairy desserts, and sour cream, among others. However, it has been mentioned that the precise geographical definitions of these impacted markets can remain flexible, as the Competition Council did not identify any major concerns regarding competition, even within narrower market confines.

This approval by the Competition Council reflects a broader context in Latvian agriculture and dairy production, where consolidations among companies are increasingly common. By allowing this acquisition, the KP seems to prioritize market dynamics and efficiency while maintaining a close watch on potential changes in competition within the dairy sector.