Baltic Business Quarterly: Winter 2021

W I N T E R 2021

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30 | Interview

Synonym for sustainability Kęstutis Juščius, CEO of Auga Group

80 | Bio drinks

Straight from nature

84 | Gift basket

Mix your Baltic taste

26 | COV E R S TO RY

Hidden Champions of Organic Farming

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2 | EDITORIAL

How the pioneering Baltic spirit could help to win the fight against COVID-19 The Baltic countries are a leading player when it comes to all things digital.

They have also been extremely innovative in the digital battle against Covid-19.

Estonia launched a hackathon in March 2020 to generate ideas for tackling the pandemic. It was organized in a matter of hours and went global, attracting participants from 20 nations. The winning entries included a ventilator which utilizes a standard hospital airbag. Another team created an interactive medical volunteer database which enables doctors to get the help they need in a crisis. And inventions are still continuing.

Using predictive analytics and artificial intelligence, the Lithuanian company Convious introduced Crowd Control as a reservation tool for new and pre-sold tickets & season passes, visitor spread management, online check-ins, crowd prediction, crowd insights, and contactless payments to ensure safety and control by preventing overcrowding at all times.

The Latvian companies E. Gulbja laboratorija, JK Energy and JSC Latvijas Finieris created innovative, contactless Covid-19 testing labs, where tests can be carried out around the clock and no medical staff are required.

In addition, Baltic countries were among the first in the world to introduce Covid-19 contact tracing apps. For example, the Latvian app “Apturi Covid” uses Bluetooth to anonymously detect nearby smartphones that also have this app installed. This makes it possible to find out faster if you have been exposed to COVID-19 because when it comes to viruses, it is vital to trace every contact person and implement a quarantine. This is the only way to break the chain of infections and to defeat the virus. In this activity, speed and precision

Baltic Business Quarterly is a publication of the German-Baltic Chamber of Commerce (AHK) and is released four times a year.

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are essential. So far, no country has managed to keep the contact tracing fast and precise in a manual way. My own country Germany effectively ended contact tracing by the local health administration several weeks ago. Even 15,000 additional military personnel sent to enforce the understaffed human resources teams in the local health administrations could only delay the collapse by a few days.

If we could link the technological tools in a smart way with the right legal rules, we could win the fight against COVID-19 – like they did in China. I believe that there must be a way to do this in a democratic society.

Protecting the rights of citizens, but also using modern tools fully and smartly to combat this pandemic. A core element would be a COVID app, which would be mandatory to use. It traces to see if you had contact with a COVID-infected person and also registers your test results, so that if you are tested positive, ALL your contacts are informed automatically. This would, in return, give us the opportunity to leave shops, restaurants and other public places open, because holistic contact tracing would make it possible to keep up with the pandemic much better. Entering a shop, restaurant or public office would only be allowed if you have activated the app on your smartphone and if it shows that you have no, or a just low, risk profile. People with an infection and in quarantine will not be able to enter. So paradoxically, mandatory activation of the app automatically means more freedom for society as a whole. Let’s make use of the possibilities of the digital age. Which Baltic city, municipality, village or community could be ready for such a pilot project and lead Europe’s way out of the COVID pandemic?

In the meantime, I wish you all a Merry Christmas and a healthy and successful New Year!

Yours, Florian Schröder – CEO

Deutsch-Baltische Handelskammer in Estland, Lettland, Litauen German-Baltic Chamber of Commerce in Estonia, Latvia, Lithuania

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4 | CONTENT

6 Business in Picture 12 Guest Commentary:

The Baltics hold almost unlimited potential

13 What’s hot?

Upcoming cultural events

16 What’s cold?

Typical winter topics

18 Business Agenda:

Where you need to be

20 Baltic Business News 26 Cover Story: Hidden

24

MY OFFICE

56

BUSINESS LOCATION

Normunds Staņēvičs, CEO of Food Union Europe

Champions of Organic Farming

30 Interview: Sustainable

business practices can lead to success, Kęstutis Juščius, CEO of AUGA group

32 Organic Baltics:

The organic food producers

52 Trend Analysis: Organic

is good for us and nature, Scientist, Professor and Dietary Physician about healthy eating

58 Law & Tax: Applying for

state aid during COVID-19 crisis in Baltics

64 AHK Member Articles:

Tilde, Linde and Lidl in focus

69 AHK Special: Your reliable partner for fiscal services in the Baltic states

76 Travel: Culinary routes in the Baltics

84 Gift Basket:

Mix your Baltic taste

86 AHK Members: Who’s new in AHK’s Baltic network?

88 Shooting star:

PiparkoogiMaaniaMesmerising gingerbread

Klaipėda – a city with an ambitious strategy

70

EVENT REPORTS

60

TRADE FAIRS

Start of the era of virtual fairs and the experience of an entrepreneur

IMPRINT Magazine “Baltic Business Quarterly” Founder: German-Baltic Chamber of Commerce in Estonia, Latvia, Lithuania (AHK), Breite Straße 29, D-10178 Berlin, Germany Executive Board Member: Florian Schröder Editorial office: Strēlnieku iela 1-4, LV1010, Riga, Latvia, +371-67320718, www.ahk-balt.org Publisher: SIA “Žurnālu izdevniecība Lilita”, Brīvības iela 85 - 4, Rīga, LV-1001 20004547, lilita@lilita.lv, www.lilita.lv

78

Reprint allowed only with a written agreement with the Founder. ©2018.AHK

CHRISTMAS DINNER

Delicious festive dishes from Riga and Tallinn

Printed in printing house “Lietuvos Rytas Print”, Lithuania Cover photo: Publicity photo of Auga group AB Editor in chief: Līva Melbārzde, +371 6 732 0724 Reporters: Vilma Arėškienė, Anda Asere, Raivis Bahšteins, Sandra Dieziņa, Santa Dunaiska, Eva Eirich, Wilhelm Felk, Ilze Jankeviča, Tomas Mickus, Louisa Niermann, Gustavs Norkārklis, Mari Peegel, Marko Pilv, Vineta Šķērīte, Monta Šķupele, Katarina Talumäe, Alexander Welscher Photographers: Kaspars Filips Dobrovoļskis, Matīss Markovskis, Ritvars Skuja, Alexander Welscher, Artūras Žukas Art Director: Vitalijs Suseklis Advertising Director: Līva Melbārzde Tech Director: Gints Mucenieks Advertising Editor: Jānis Rožkalns, reklama@lilita.lv Digital editions: App Store and Google Play

80

DRINKS

Straight from nature

ISSN 2592-2570

Publisher is a member of Association of Press Publishers of Latvia. lpia.lv

OUR PREMIUM MEMBER S

BAVARIA - PARTNER S TATE 2020

6 | BUSINESS IN PICTURE

BUSINESS IN PICTURE | 7

ONLINE SUMMIT OF THE THREE SEAS ECONOMIES

“The Three Seas Initiative has also been one of the more positive examples of trans-Atlantic cooperation and has increased unity within the European Union.

This is shown by the high-level participation of the European Commission at our events. Today, for example, we were joined by the European Commission Executive Vice-President Margrethe Vestager. I believe that the

Three Seas will help us jointly build a stronger, greener, smarter and more prosperous Europe”, said the President of Estonia Kersti Kaljulaid on the day of the summit.

The summit focused on new investments and the smart connectivity concept to ensure that the Three Seas region continues to drive economic growth in Europe.

The Three Seas initiative brings together 12 EU Member States between the Baltic, Black and Adriatic seas: Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. Its key partners are Germany, the European Union and the United States. LM

Photo: Photo: Three Seas / Annika Haas

The online Three Seas Initiative Summit was held in Tallinn on 19 October. The purpose of the summit was to give the Three Seas Initiative a more practical dimension and to turn it from a discussion platform into a more concrete cooperation.

8 | BUSINESS IN PICTURE

INTEGRATING THE BALTIC ENERGY GRID

Photo: EC - Audiovisual Service / Etienne Ansotte

The European Commission will invest €720 million to connect the Baltic states’ electricity grid with the rest of Europe in an effort to decrease their dependency on Russia. Most of the funding will be used to build a subsea interconnector called Harmony Link between Lithuania and Poland.

Meeting with the Lithuanian President and the Prime Ministers of Estonia, Latvia and Poland on 2 October in Brussels, EU Commission President Ursula von der Leyen said, “Today is a very important day for Europe. It is a landmark moment in ending the isolation of the Baltic energy market.”

The electricity systems of Estonia, Latvia and Lithuania were, for historic reasons, developed as an integral part of the Russian and Belarusian power grid. The networks are still operated in a synchronous mode, meaning they depend on each other to maintain stable power supplies and prevent blackouts. Joining the continental European network would allow the Baltic states to start operating on the same electric current frequency as Poland and other European countries. AW

BUSINESS IN PICTURE | 9

10 | B U S I N E S S I N P I C T U R E

Photo: Office of the President of the Republic of Lithuania / Robertas Dačkus.

HISTORICAL VISIT OF MONSIEUR LE PRÉSIDENT French President Emmanuel Macron arrived on a historical visit of Lithuania and Latvia from 28 to 30 September – the first visit by a French head of state to both Baltic countries in nearly two decades. Accompanied by his spouse Brigitte and a delegation of ministers and cultural representatives, Macron had a busy schedule in Vilnius and Riga. The French leader talked EU, security and other topical issues with his Baltic counterparts and explained in detail his aspiration to have a closer dialogue with Russia, which is viewed with scepticism in the Baltics. Macron also promised to act on Belarus and met with the opposition leader-in-exile Svetlana Tikhanovskaya in Vilnius. But he did not leave with empty hands and, among other official gifts, took some “Baltic gold“ back to Paris – a piece of amber presented to him by Lithuanian President Gitanas Nausėda. AW

B U S I N E S S I N P I C T U R E | 11

12 | C O M M E N T

THE ASSOCIATION OF LATVIAN ORGANIC AGRICULTURE, AGRICULTURAL POLICY EXPERT

The Baltics hold almost unlimited potential

w

elcome to the decade that will make organic food the daily food of Europeans!

2020 has been a turning point in the organic farming sector, which is, one might say, politically legitimate. At the same time, it is a global signal of a clear tendency from a region that is not only producing food, but also consuming a lot, and can therefore set the tone far beyond its borders.

There are many organic farms in the Baltics, where the new generation has started work, continuing what their parents and grandparents began.

A very valuable legacy of generations is in their hands. However, there is also some legacy that would better be left behind. And this is the old agricultural policy, which is no longer viable in today’s society, neither in the Baltics, nor in Europe in general.

However, taking into account the strong lobbying of conventional agricultural, pesticide and agrochemical producers, the publication of Green Course strategies has stirred things up dramatically across Europe, and the Baltics will be no exception. For example, in Latvia, which is the leading country of organic areas in the Baltics, the strategy was perceived as cautiously as when tasting some new exotic

Spring 2019

fruit for the first time. I remember 20 May, when the text of the Farm to Fork Strategy was published along with the requirement to significantly increase the organically managed land areas and to provide an even greater reduction in the use of chemical pesticides, fertilisers and antibiotics. It was as if the strategy text written was glowing on my computer screen, but it wasn’t a dream. This was the result of a question that had been growing in the minds of people: why should society continue to distribute billions of euros out of its common wallet into agricultural practices that ruthlessly deprive future generations of one of the most precious resources – living soil and biodiversity? The European Commission has expressed quite clearly that organic farming is the most realistic tool available to repair the faulty food production system.

However, the real agricultural policy is not to state commitment, it is to redistribute agricultural subsidies accordingly. And here the problems begin.

The European Parliament has partly turned the Green Course into a large-scale green deception, filling the scales of the new Common Agricultural Policy (CAP) with pesticides instead of living soil.

Photo: Matīss Markovkis

by RAIVIS BAHŠTEINS

Fortunately, there is a bright side to everything; it turns out that even the long-stagnant agricultural policy has one. In October when MEPs voted in favour of the CAP, the public sighed with disappointment, as political bargaining had once again rushed ahead of common sense. Everyone will agree that it is not easy to take away a subsidy blanket from someone, who has been kept warm under it for a long time. Nevertheless, with a heavy poll one of the voting sessions was for the expansion of organic farming. The Member States will have to take this into account.

Returning to the situation in the Baltics, it is gratifying that in the three neighbouring countries of the Baltic Sea, the organic farming sector has been able to develop quite well, even despite the lack of political will. In the Baltics the organic farming community often speaks on behalf of the public, as so far the government has not taken the impact of current farming practices on the environment seriously, and on public health even less. In addition we invite you to see the competitive advantage in the gradual transition to organic production practices and the creation of value-added products.

In any case, the organic food train has started its movement and can no longer be stopped. This is also confirmed by the industry itself – several of the most influential food companies in the Baltics are investing the largest funds in their history in increasing organic produce capacity.

Another example – in Latvia, starting from 2020 organic products finally must also be included on the menus of state and local government institutions, as well as schools.

In addition, the organic producers are holding a very important weapon in their hands: almost unlimited potential of development. Taking the market trends, even during the Covid-19 pandemic into account, the one that continues to grow is the organic food segment.

Events and their dates applied when the Baltic Business Quarterly went to print. However, some dates may change due to the spread of the coronavirus and the protective measures to stop it

W H AT‘S H OT | 13

What‘s hot ESTONIA

05.12.2020 Alatskivi Alevik (Estonia)

Alatskivi Castle Christmas Market

The smell of gingerbread and spruce fir in the castle brings Christmas to your mind. The halls on the ground floor of the castle are used to sell handicraft and Christmas food. Different concerts will take place in the Tubina Museum hall on the first floor. In the cellar, you will find a cafe, handicraft workshops, and, for the first time, a children’s play area. There will also be a lottery. You are welcome to buy and sell!

19.12.2020, Narva, Ida-Virumaa (Estonia) photo: Adobe stock, publicity photos

Winter Fair in Narva

The Winter Fair will take place at Ida-Virumaa Vocational Education Centre in Narva, near the monument of Paul Keres, and as usual, offers plenty of various surprises. Additionally, the guests can participate in different master classes. The Winter Fair is a perfect place for the residents and visitors of Narva to buy Christmas presents and spend time with their family.

27.12.2020 Rakvere (Estonia)

Run Winter Special Viking Line Estonian Night

After the Christmas season and before New Year’s Eve, you can participate in both the 5 km and the 10 km run in Rakvere. Fireworks, the city’s Christmas decorations, and a light show – all of this will inspire health sports enthusiasts to go to Rakvere three days before the New YearThe Estonian Night Run is the most unique running event in the Baltics.

Here, the most important thing is the experience of running, not winning.

04.12. – 06.12.2020 Kesklinna linnaosa, Tallinna Lauluväljak (Estonia)

Tallinn Handicraft Fair

The handicraft fair takes place in the Tallinn song festival grounds and a wide selection of unique and handcrafted goods will be sold, made from different materials like wood, porcelain and textile. The fair aims at popularizing handicrafts and the entry is free.

14 | W H AT‘S H OT

What‘s hot LA T V I A

Until 2.5.2021 Riga (Latvia)

Joint Museum Exhibition – Latvia's Century

28.11.2020 – 08.01.2021 Riga (Latvia)

“What is Latvia?”. This is the main question the organisers had asked themselves when they came up with the idea for the exhibition hosted in the National History Museum of Latvia. In collaboration with over 60 museums from all over the country, the exhibition is so far the largest one since the restoration of independence. It presents over 1,500 historical objects from all the regions of Latvia - Kurzeme, Sēlija, Vidzeme, Zemgale and Riga. These exhibits should help to answer the initial question by composing a mosaic-like picture of Latvian culture of the last 100 years. Erase what you thought you knew about Latvia and glance at the country’s culture like you never have before!

Old Town Christmas Fair

Together with the winter, the Christmas fair is sneaking into the old town of Riga. In a magical winter wonderland atmosphere, you can meet your friends, raise your cups filled with mulled wine and say cheers to the arriving Christmas season! The fair is open from 28 November to 8 January. Besides tasty mulled wine, you can drink Christmas coffee and tea, eat some traditional Latvian meat dishes, and buy handcrafted Christmas gifts, such as woolly socks and artistically beautified wood candlesticks. At the moment of printing, we here in the editing office do not know what the restrictions for the Christmas fair will be due to the current pandemic, but we hope to be able to enjoy this cosy event in some way!

13.12.2020 Riga (Latvia)

27.12. – 30.12.2020 Riga (Latvia)

Jazz Concert – Roberto Fonseca feat. Danay Suarez

New Year Gala at the Opera

The rain is coming down in sheets, while the cold wind is blowing in from the Baltic Sea. If you live in Riga, you have probably already experienced such a day. If 13 December is such a day, you will have the unique possibility to forget the unpleasant weather for a moment by listening to the vivacious and tropical tunes from the Caribbean Jazz star Roberto Fonseca! He will perform together with his fellow compatriot Cuban R&B jazz artist Danay Suarez at the VEF Culture Place on 13 December at 7.00 pm.

The performance will mark the end of the Rigas Ritmi Festival, an annual event that celebrates all kinds of musical genres. Artists from all over the world have enchanted Riga with their gigs, making it a stronghold of musical indulgence for several months. In addition, the organisers offer seminars and workshops held by experts to enrich the knowledge and skills of aspiring young musicians. If you have not experienced the Ritmi Festival before, this performance is the chance to impart your December a musical touch of tropical Caribbean warmth!

At the end of December, the Latvian National Opera will stage several great operas performed by soloists, a choir, and an orchestra of the Latvian National Opera. The opera’s chief conductor himself, Mārtiņš Ozoliņš, will conduct the performances, which will be played at different times within a few days. Fill up your glasses with the finest champagne and let the year come to an end with some lovely tunes from harmonic operetta melodies!

W H AT‘S H OT | 15

What‘s hot LITHUANIA

20.06.2020 – 31.01.2021 Vilnius (Lithuania)

MO Museum Exhibition “Why Is It Hard to Love?”

12.12.–13.12.2020 Vilnius (Lithuania) photo: Monta Tigere/LNOB, Valters Lācis/ National History Museum of Latvia, Go Vilnius, Publicity pictures

Grand Christmas Fair In Vilnius

The fourth year in a row the biggest festive fair is organized in the capital of Lithuania, which this year will invite visitors to the Exhibition and Congress Center LITEXPO on December 12-13. Visitors will be greeted by nearly 700 manufacturers of various goods, food suppliers, giftware, merchandise, interiors, beauty, styling, fashion and segmented into areas.

The exhibition “Why Is It Hard to Love?” is curated by innovative Dutch multimedia artist and director Saskia Boddeke, together with one of the most original and important filmmakers of our time, Peter Greenaway. The exhibition becomes a work of art itself as Greenaway and Boddeke present site-specific immersive installations in relation to the highlights of Lithuanian contemporary art from the MO Museum and other collections.

“Why Is It Hard to Love?” is a story of how we, as humans, strive for equilibrium in life by arranging the good and the bad, eliminating differences between the poor and the rich as well as the unsatisfactory inequalities between men and women, the antagonism between the young and the old, the friction between the races.

20.12.2020 Vilnius (Lithuania)

Eurovaistine Christmas Run

Christmas comes early for runners in Vilnius. Positive vibes, fun costumes and a great track along the streets of Vilnius – a real Christmas present. Thousands of runners will warm up the air at the 45th edition of the oldest running event in Vilnius. There is a choice of 3, 6 or 12-km runs, and children can have a blast on the 200-metre track.

28.11. – 07.01.2021

Christmas in Vilnius

What can be more beautiful than a Christmas fairy tale along the narrow streets of Vilnius Old Town? Enjoy the festive atmosphere and magical mood all month long. See one of the most impressive Christmas trees in Europe, get your gingerbread at a Christmas fair, enjoy the festive concerts, or ride everyone’s favorite Christmas train.

There’s fun everywhere you look. Check out the free events, too, and create the most beautiful family memories.

16 | W H AT‘S C O L D

Christmas tree on the Riga town hall square

Oh Christmas tree, oh Christmas tree ...

Where was the first public Christmas tree put on display? In Latvia, everyone tells you that it was in Riga. But neighbouring Estonia sees things differently. And Lithuania has its very own answer to the question.

by ALEXANDER WELSCHER

t

he Christmas tree is one of the most popular and widespread symbols of Christmas. Setting up a festively decorated tree is a tradition in many countries around the world. But where was the custom actually established and who placed the first piece of tinsel on the classic evergreen? The question has caused a not-so-serious battle and seasonal dispute in the Baltics that has branched out to all three capitals.

In the end, it all depends on who you ask. For many Latvians, the answer is clear: Riga. The city claims that it is the site of what was believed to be the world’s first decorated tree in 1510. A memorial plaque set in the cobblestones on the town hall square proudly marks the spot where it was allegedly set up in eight languages. Some years ago, the city also erected a permanent Christmas tree sculpture made of bronze on top

of it. The legend is presented in the Museum of the History of Riga and Navigation too, where visitors have the opportunity to see an ancient Christmas tree decoration: a small glass ball with a forged metal hook from the 17th century.

Nearly 300 kilometres north of Riga, however, the inhabitants of the Estonian capital Tallinn sing a different carol. They claim the first decorated Christmas tree in their city already appeared in 1441 – 69 years earlier than in Riga. Every year ahead of Christmas, this leads to a friendly feud between Latvia and Estonia over which of the two cities has the right to be called the birthplace of the Christmas tree. The only thing Riga and Tallinn are in agreement about is who first erected and decorated the tree in each capital: both contending accounts trace the tradition back to the mid-winter season ceremonies by the Brotherhood of the Blackheads – a medieval guild made up of young, unmarried German merchants living in both Hanseatic cities on the Baltic Sea.

The rivalry is deep and tense.

A proposal several years ago by a Latvian Parliamentarian suggesting that both sides agree that Livonia is the home of the Christmas tree was rebuffed by the then Estonian Prime Minster faster than one could say “Merry Christmas“, even though he later agreed on this diplomatic definition together with his Latvian counterpart.

However, Tallinn has still taken a policy of total non-recognition when it comes to Riga’s claim – not least because the city fathers believe that the first festive ceremony in their town in 1441 involved a real tree: a spruce. In Riga, the historic guild records indicate that the merchants probably put up a treeshaped wooden candelabrum in 1510, decorated with dried flowers, fruit and vegetables, and even straw toys.

While some historians from both countries support and underpin each of the different versions with historical

View on the Christmas tree on the Tallinn town hall square

Photo: Alexander Welscher, Visit Tallinn, Go Vilnius, LVM GEO

Land of the first Christmas tree?

W H AT‘S C O L D | 17

Christmas tree on the Cathedral Square in Vilnius

under the evergreen branches for quite some time, Vilnius has now also entered the battle for Christmas tree supremacy. Having no rival claim to be home of the first Christmas tree, the Lithuanian capital has entered the fray with ever more spectacularly decorated trees in recent years. Vilnius seeks to gain the limelight without any historical interpretations but by putting up a majestic towering tree on Cathedral Square adorned with tens of thousands of bulbs and a gigantic mantle of lights covering the Christmas market around it.

data, others are sceptical and stress that there is actually not enough contextual evidence. Neither Riga nor Tallinn could actually claim from the existing sources to have originated the Christmas tree, they argue in a Grinch-like manner. For them, the legends circulated by both cities are no more than a myth and a modern marketing gimmick to attract tourists to the Baltics in the coldest

and darkest time of year. Being the birthplace of the Christmas tree is a big selling point after all in the wintertime season – at least in non-Covid times.

Vilnius lights up the Christmas tree battle While Riga and Tallinn have been engaged in good-natured jousting and poring over historical documents

However, the essence of the controversy and the bickering over which nation first started decorating the Christmas tree is the notion that the tradition was born in the region – be it in Riga or in Tallinn. The public argument made international headlines and helped both cities – and to a lesser extent also Vilnius – to acquire international attention and notoriety.

TRADITION MEETS TECHNOLOGY: CHRISTMAS TREE APPS

In

Estonia and Latvia, people love the forests and have traditionally headed to the woods with an axe or a saw to bring home their own Christmas tree. Still being considered something special in the festive time and an integral part of Christmas, especially for families, most tree-hunters now probably have a smartphone in their hands to find a suitable tree in the often snow-covered landscape. In both countries, the state forest administration companies – Riigimetsa Majandamise Keskus (RMK) in Estonia and Latvijas valsts meži (LVM) in Latvia – have launched a mobile application which allows people to look

for and pick out a Christmas tree on their own. The app helps users to navigate their way through the plentiful forests and shows the areas managed by the governmentowned companies where people can chop down their DIY holiday greenery.

Both state forest companies encourage people to pick trees located beneath power lines, along the edges of roads and ditches or other places where they would have no hope of growing anyway. Taking out evergreen firs or spruces from public nature parks, especially protected nature territories and privately-owned

forest areas, is forbidden in Estonia and Latvia.

W

hile a tree may be felled free of charge in Latvia, Estonians have to pay for the tree before cutting it down and pulling it out of the woods. The prices for the selfcut green are based on the tree’s height. Payments can be made directly in the forest by mobile phone or in advance via online banking. Anyone caught carrying a tree without proof of payment can expect a fine. However, there are no strict controls. At Christmas, most people are honest and pay for their tree, according to an RMK spokesperson. AW

18 | B U S I N E S S A G E N D A All the listed events and their dates applied when the Baltic Business Quarterly went to print. However, some dates may change due to the spread of the coronavirus and the protective measures to stop it.

International Conference on Intersemiotic Translation 08. – 11. December, University of Tartu, Tartu (Estonia)

Estonia International Conference on Intersemiotic Translation aims at bringing together scholars from disciplines interested in textual transfers across languages, genres and media, among them Translation Studies, Semiotics, and Adaptation Studies, and to promote a more complex understanding of the transmedial processes and phenomena in culture, particularly of the diverse and novel theoretical perspectives, concepts and methods used in various disciplines for approaching these processes and phenomena. sTARTUp Day (startupdayfest) 27. – 29. January 2021, Tartu (Estonia) sTARTUp Day is the biggest business festival in the Baltics, bringing together over 4400 startup-minded people to celebrate entrepreneurship

Intellektika 11. February 2021, Tartu (Estonia) Intellektika is a fair that aims to develop people’s entrepreneurial attitude and attitude to life. It provides intellectual educational institutions and businesses with an

excellent opportunity to inform their target groups about the opportunities, services and innovations they offer.

World Finance & Banking Symposium (5 – 6.12.2020) Riga (Latvia) Annually, the symposium brings together different ideas from the areas of research, teaching and managing by organising presentations and discussions in a multi-day conference. This year’s conference, hosted by the Faculty of Business, Management and Economics of the University of Latvia in Riga, will be held online. The conference’s keynote speakers are Sascha Steffen from the Frankfurt School of Finance &

Photo: Adobe Stock, Publicity Photos

in the smart city of Tartu. It’s a threeday festival with a marvelous stage program, effective matchmaking, hands-on seminars, exhibition area full of innovation and vibrant side events. Highlights: Inspirational talks & hands-on seminars, Effective matchmaking & speed dating with investors, Unique festival vibe

B U S I N E S S A G E N D A | 19 Latvian Book Fair 2021 26 – 28.02.2021 Riga (Latvia)

For a few days, from 26 to 28 February, the International Exhibition Centre Ķīpsala will fill its halls with bookloving people from all over Latvia. Publishers, authors, and translators will gather and present the visitors with their written pieces. Foreign publishing companies will also attend the trade fair to show the latest works from the international stage. Keep your hunger for literature on hold and satiate it pleasurably at Latvia’s most important book fair!

the world. The exhibitors, education organisations and institutions from 14 countries will give the visitors the possibility to have a look at their programmes and scholarships. If you are already planning to study but have not specified the place of your upcoming academic journey, this event is ideal for you! Do not miss the chance and find out about the exact event dates and times, which could change in the next months due to the current situation. At the time of printing, the status is that the Skola trade fair will be held from 26 to 28 February in the Ķīpsala district of Riga.

Breakbulk Baltic Conference 04.12.2020, Radisson Blu Hotel Lietuva, Vilnius (Lithuania)

Management and Andrei Kirilenko from the Cambridge Judge Business School.

In the run-up to the conference, the organisers invited interested parties to submit their research papers for possible presentation at the conference.

Only previously chosen papers will be presented by their authors at the conference. The best submitted papers will be awarded afterwards.

Skola - 27th International Education Fair (26 – 28.02.2021) Riga (Latvia) The Skola trade fair provides prospective students with information on their possible educational opportunities in Latvia, the EU, and

The Breakbulk Baltic Conference provides the attendees with the opportunity to meet the lead cargo owners / shippers, carriers, forwarding agents, ports and terminals which are interested in stablishing stronger business relations in the Baltic Sea region. The focal topics include best practices of delivering oversize loads to Russia, Belarus and Kazakhstan through the regional ports, competition for cargoes between the Baltic, Finnish and Russian ports, Ro-Ro and container services as an alternative to bulk carriers, the Baltic factor, EU programs for sea transport, the ways in which they are helping the regional ports, and much more.

EURETINA Winter Meeting 26-27. 02.2021 (Vilnius), Lithuania The EURETINA Winter Meeting actively promotes new diagnostic developments, advances in vitreoretinal surgery, the development and application of new drugs, and changes in the treatment of macular degeneration. The main aim of EURETINA is to educate young vitreoretinal surgeons and to encourage the pursuit of its sub specialty among newly qualified ophthalmologists.

Organizer of the event is European Society of Retina Specialists.

20 | B A LT I C B U S I N E S S

Latvian start-ups attract investments worth €13 million Latvian start-ups collected investments worth €13 million in the first eight months of 2020. They continued the positive trend of investment growth of last year, reported Diana Lāce-Davidova, the executive director of the Latvian association of start-ups, Startin.

LV. Two start-ups received the highest investments: the developer of software for localisation and translation, Lokalise (€5 million), and Juru (€4.8 million).

There are over 400 start-ups in Latvia, of which 230 are active, as the Startin.LV data indicates. 35% of the start-ups operate in the software-as-service sector (SaaS), 25% in the financial technology sector (FinTech), and 10% in the deep technology sector (DeepTech). The former sector provides software solutions for scientific or engineering challenges.

Two Latvian technology companies have built a prototype of a 5G router LMT (Latvijas Mobilais Telefons) and MikroTik, two Latvian companies operating in the cellular network industry, have finished their joint work on a prototype of a 5G router. 5G (fifth generation), the planned successor to the currently used 4G networks, is the latest technology standard for broadband cellular networks and its importance is steadily increasing.

According to LMT’s spokeswoman, the 5G router will be available in stores next year. The jointly led lab is in the historical VEF building, being once the biggest manufacturer of communication devices throughout the region. Earlier this year, a 4G router was created in the lab and has already been put up for sale. The lab is also researching future communication hardware which will be able to use 5G advantageously.

B A LT I C B U S I N E S S | 21

AdobeStock, Publicity picture, Ken Mürk

Lithuania’s PayRay enters Latvian market PayRay, a Lithuanianbased company that began operating as a bank in October after obtaining a commercial banking license, has started offering loans and factoring services to businesses in Latvia, with plans to add other lending solutions in the future.

“In that market, we see many similarities with Lithuania. For example, the structure of the small and medium-sized business segment is very similar in both countries”, Renato La Fianza, CEO of PayRay Bank, said in a press release.

The company said it is considering expanding into other markets, too.

The license granted to PayRay by the European Central Bank in December 2019 allows the company to provide the full range of banking services.

PayRay is wholly owned by 2404 S.A., a Luxembourg-based holding company.

New Biscuit and Wafer Factory will be built in Ādaži After tender process the construction company Merks was selected as the builder of the new Orkla Biscuit Production biscuit and wafer factory in Ādaži (Latvia). The total contract amount is almost 32 million euros. The new plant will specialize only in the production of biscuits and wafers and will be the largest of its kind in the Baltic States and Scandinavia. In addition to construction, significant investments in new equipment and production lines will follow, creating the largest investments in the Latvian food production sector in recent years, which will create about 250 new jobs. In total, about 75% of the products produced at Orkla Biscuit Production will be exported. It is planned that the new plant will start operating in 2023.

Belarusian companies on their way to Latvia 17 Belarusian companies have decided to move their business fully to Latvia due to the political circumstances in their country. At least three companies have started their business in Latvia, while the other ones are preparing their relocation. Fifty more companies are in contact with the Latvian Investment and Development Agency (LIAA) because of their plans to move. Therefore, the Ministry of Economy and LIAAset up a special team, consisting of further experts from other institutions, to assure the companies’ successful move to Latvia.

The communication between LIAA and the Belarusian companies had started at the end of August. In the next months, the arriving companies, at least half of whom are from the Belarus High Technologies Park, will create around 1,000 new jobs, said Latvian Economics Minister Vitenbergs.

Lithuania’s PayRay enters Latvian market

Germany’s Hella plans further expansion in Kaunas German automotive components manufacturer Hella, which set up its business in Lithuania’s second-largest city of Kaunas two years ago, plans further expansion by investing several dozen million euros into the Kaunas production facility by 2025 and create around 250 new jobs.

Tobias Pohlschmidt, managing director at Hella Lithuania, says the planned investment is another move to step the production facility’s potential, especially taking into account the kay market tendencies in the car industry, for example, autonomous driving.

Hell built its new production facility in Kaunas District for 30 million euros in August, 2018, and currently employs over 180 people.

22 | B A LT I C B U S I N E S S

WHO to cooperate with Estonia on Digital Health In October, Prime Minister of Estonia Jüri Ratas and Head of the World Health Organization (WHO) Tedros Adhanom Ghebreyesus signed a memorandum of understanding (MoU) for developing digital infrastructure to provide health solutions for the COVID-19 pandemic and other global health challenges.

Estonia’s cooperation with the WHO is a significant step in exporting Estonian digital solutions to the world, and is likely to accelerate the demand for digital solutions from Estonia.

Estonia has world’s best tax code for businesses According to the freshly published Tax Competitiveness Index 2020, Estonia has the best tax code in the OECD for the seventh year in a row. The report stresses the benefits of the Estonian tax system where there are no taxes on corporate income if the profits are not distributed but re-invested, no taxes on capital and no property transfer taxes. Furthermore, Estonia’s tax system has a low compliance burden as stated in the report, which means it is relatively easy for companies to do their taxes and they spend less time on tax compliance than they would in any other country in the OECD.

Lithuania halts electricity trade with Belarus Lithuania has halted electricity trade with Belarus after the neighboring country connected the Astravyets nuclear power plant to its energy system. In line with Lithuania’s “antiAstravyets law” that bans electricity imports from Belarus once the plant launches production, Litgrid set the capacity for commercial electricity flow from the neighboring country to zero.

Shutterstock, Pixabay

B A LT I C B U S I N E S S | 23

Apartment prices in Tallinn rise over 6 Percent Average apartment prices per square meter in Tallinn rose over 6,3 percent on year to October, to €2,165.28. In whole Estonia, prices grew over 23 percent over the same period, to €940.1.

The data published by the Estonian Land Board further specifies that the median price-per-square-meter for apartments outside Tallinn stood at €820.68, 49.5 percent higher than the previous year.

Compared with September, the median price increased 16.8 percent.

The median price-per-square meter of apartments in Tallinn meanwhile rose 6.9 percent on year to €2,105.41, with a 1.8 percent rise on the previous month.

Tallinn to run for European Green Capital 2023 title The Tallinn City Government authorized Mayor Mihhail Kõlvart in a sitting in October to sign the application for the European Green Capital 2023 title and instructed Tallinn’s Urban Environment and Public Works Department to submit the application to the European Commission. The Estonian capital made it to the finals this year but was unsuccessful. The initiative aims to improve the living environment of European cities, to present activities and to recognize the efforts that cities are making to improve the environment and the quality of life. Kõlvart said that as a finalist of European Green Capital 2022, Tallinn has already started many initiatives and projects that the city will implement when moving forward. “On the running, our aim and value will be the journey and also the processes that will be activated during the candidacy. During the application process we are able to get feedback on steps we have already taken when moving towards being a greener city. Also, we have the opportunity to fix our current and future projects,” explained Kõlvart.

Nortal AS - Exporter of the Year 2020 The winners of the Entrepreneurship Award issued

by Enterprise Estonia and the Estonian Employers’ Confederation were announced at the award ceremony on 8 October. The Entrepreneurship Award 2020 is the highest state recognition for entrepreneurs and aims at highlighting entrepreneurship even in difficult economic times.

The best enterprises in five categories were Nortal AS Exporter of the Year, Elcogen AS - Innovator of the Year, Mainor AS - Family Enterprise of the Year, Ampler Bikes OÜ - Design Applier of the Year, and Ericsson Eesti AS Foreign Investor of the Year.

24 | MY OFFICE

There is a “Food Union” value map on the wall. It is like a reminder to oneself and others about the 3 pillars of the company’s philosophy. First Boldness – to challenge ourselves and to act boldly, secondly Commitment – to work responsibly and thirdly Fun – to create joy in everything and inspire others.

Photo: Kaspars Filips Dobrovoļskis

NORMUNDS STAŅĒVIČS CEO OF FOOD UNION EUROPE Food Union Group was founded in 2011 by merging two leading milk processing companies of Latvia – Rīgas piena kombināts and Valmieras piens. But the origins date back to 1923, when a dairy cooperative was established in Valmiera, which is considered to be the cradle of dairy industry traditions in Latvia. In Latvia, Food Union is the leading food producer and market leader in the production of ice cream (55%) and dairy products (30%). The production facilities of the company are located in Latvia, Lithuania, Estonia, Denmark, Norway, Romania, Belarus, Russia and China. The company’s products are exported to more than 20 countries around the world – to the Baltics and the CIS, Scandinavia and Europe, as well as to the USA and Australia.

Export to East Asia was initiated this year.

The company employs more than 1150 people in Latvia, and over 3100 in Europe.

Normunds Staņēvičs has already been working at Food Union for seven years. “Each day is like a new adventure. And besides, here you can eat unlimited amounts of ice cream,” says Normunds Staņēvičs about the work at Food Union. He spends about 70% of his working time at the Food Union headquarters in Riga, Latvia.

In fact the only decor in the office is 3 cactuses – although they were gifted to Normunds by 3 different people, the cactuses are all very similar, so it pleasantly refreshes the laconic interior of the office, bringing a bit of nature to it.

As a supporter of an active lifestyle and a passionate cyclist, Normunds has chosen a standing table for himself. In his opinion, in this way the work progresses more dynamically.

MY OFFICE | 25

A clean environment helps Normunds to concentrate better. He is not willing to clutter this room with unnecessary items or items that are only decorative – firstly it tends to overwhelm and distract, and secondly, it is not sustainable, as it generates unnecessary waste.

The most important work equipment for Normunds Staņēvičs is his smartphone and various online video and audio conferencing programs (MS Teams, Zoom), as regular and high-quality internal communication with the team is vital for him.

He often connects the phone to the TV screen located right in his office. This is especially useful when there are more colleagues participating in video calls – the better you can see them, the better contact can be established, which is also followed by better work results.

26 | C O V E R S TO RY

Photo: Matīss Markovskis

by GUSTAVS NORK ĀRKLIS HE A D OF THE A SSOCIATION OF L AT VIA N ORG A NIC AGRICULTURE

Hidden Champions of Organic Farming

t

here is still great potential for organic food in the Baltics and it is gratifying that the willingness among farmers to switch to growing and producing organic food is quite high. Unfortunately, in recent years the transition to organic farming has stagnated due to a lack of funding.

The structure of the organic food market in all three Baltic states has developed convincingly. The most stable and long-lasting sector in organic food production here is dairy farming. Meat production live-stock farming and grain farming are also developing well. The weaker chain is the growing of fruit and vegetables,

but in recent years growth can also be observed in this area. The free niches with great potential are organic poultry farming and egg production, but organic pork farming can be considered an entirely vacant niche, as there are only a few companies operating at a professional level in this field.

The origins can be traced back to Germany

When comparing the organic production of all three Baltic states, Estonia stands out slightly, as the segment of home producers there has developed more successfully, focusing more on innovative

products, although there are also companies operating in classic industries such as live-stock farming and grain farming. In Lithuania, grain farming has developed at a higher level in recent years. In the Baltics the top position in terms of organically managed areas is held by Estonians according to percentage value, but Latvia is the leader in many areas of organic farming. It is interesting that the first forms of organic farming in Latvia emerged 30 years ago during Soviet times, thanks to the initiative and interest demonstrated by the Germans. They came here, accompanied then by the KGB, to talk about organic farming

C O V E R S TO RY | 27

and to establish the biodynamic movement. It can be said that in Latvia the processing of organic food began to develop rapidly in around 2010-2012, and the development still continues. If in 2010, there were two organic milk processing companies in Latvia, now there are already well over ten. A similar trend can be observed in grain farming.

Latvia also has one of the largest production plants of organic potato starch in the world – Aloja Starkelsen.

Challenges and risks

Interest in the organic food sector is now especially huge, but back in 2010 many still looked at the industry with great scepticism, considering it to be nonsense. However, the market situation is forcing the processing companies to change, as the greatest demand can be observed for exactly organic food, and its share in the market is growing worldwide. Also, the direct trade of organic food is very well developed, and it is used by people who are willing to make the least impact on the environment by buying high-quality, clean food without intermediaries. Over the last five years various direct buying groups and also markets of organic goods have grown in popularity. Basically, the opportunities to buy organic food in the Baltics are vast and in terms of price it is not particularly more expensive; however, if a person is accustomed to the convenience of grabbing semi-processed food at the supermarket, then the choice may not seem so vast. However the supply of organic food is also growing in this area. Currently the amount of organic food in supermarkets is growing by several hundreds of percent every year, and this is a common trend in Europe and worldwide. It is frightening, as the economy is not familiar with constant rapid growth.

This calls for caution, as there have already been separate cases in Europe of organic food overproduction.

We are concerned about third world countries such as Russia, Ukraine, Kazakhstan, which are large food producers and have recently transferred very convincingly to the organic food sector. This means that we will have to think about how to compete with these countries, which have large and fertile land resources and can therefore offer lower prices, or we will have to think about how to provide greater protection of the internal European market, as this is not a problem just in the Baltics, but a problem of a European scale.

The risk of pollution is high, but the problem is that precaution must be observed by organic farmers. It should be the other way around – the polluter should create some kind of protective zone. It is also a common European problem, particularly visible in beekeeping.

We have a very high proportion of organic honey in the Baltics, but the areas where bees can harvest safely without the presence of pesticides, are shrinking more and more. Organic beekeepers feel very vulnerable here, as particular industrial farmers may even receive EU support payments for their polluting activities. Thus, beekeeping serves as a litmus paper that demonstrates the common agricultural policy and its faulty course. It is easy for us to increase organically managed areas in the Baltics to 25%, as required by the EU. We can increase them by as much as 30% by 2030, but the thinking of politicians needs to change fundamentally, which is particularly distorted when it comes to the policy of subsidies.

At least 50% for export

The main export countries for Baltic organic food, especially grain products, are Europe and especially Germany. Milk will definitely become an export product in time, but, for example, the production of Preiļi

siers is exported to the Asian market, the production of Tukuma piens is sold in the United Arab Emirates and the large food processors themselves admit that the only way to develop is to operate in the organic food segment, which is demanded. Meat production live-stock farming is developing, as 99% of the cattle bred here are exported, and honey is also exported in large amounts, the same as grain. We are producers of raw materials, as locally we are not even consuming half of what is produced.

Organic growers and producers are particularly active in the field of innovations. Sea buckthorn, blackcurrant, potato starch, pea and bean flour are products that currently hold the leading positions in the field of innovations. Innovations that could be offered in the dairy segment should be examined. Our development in growing Southern plants is also positive – due to climate change watermelons, grapes, soybeans, as well as naked-seeded pumpkins can now be grown not only in the south of Germany, but also in the Baltics. One might say – why should wine be produced in the Baltics, if there are wine countries such as France, Italy and also Germany? But the berries grown in our climate zone are richer in antioxidants and vitamins, thanks to the geographical conditions. We can also produce very good cider, as the example of Naukšēni proves.

And birch water, along with wine and champagne made from it, should be mentioned! Buckwheat is a traditional dish in this region, but its value is gradually also being recognised in Western Europe.

Likewise, kefir and cottage cheese, that are our traditional and healthy products, may also look innovative in the cuisines of other countries.

Therefore, what we take for granted can be innovative, if we look at it from a different point of view.

28 | C O V E R S TO RY

Organic Baltics Land use in organic agriculture (ha) Estonia

Latvia

Organic shares of total agricultural land (%)

Lithuania

Estonia

280 383

21,6

239 691

206 590

total organic agricultural land

148 677

141 428

109 335

Latvia

15,4 arable land crops

5 989 2 877

2 449

permanent crops

94 806

Lithuania

8,3

136 078

Average in the European Union 7,5

85 024

permanent grassland

10 years growth of organic agricultural land (2008-2018)

117,1%

(+111 423 ha)

75%

(+120 208 ha)

85,7%

1 year growth of organic agricultural land (2017-2018)

(+110 636 ha)

5,2%

Estonia

Latvia

Lithuania

4,3%

2,4%

+10 149 ha

+11 513 ha

+5557 ha

Estonia

Latvia

Lithuania

C O V E R S TO RY | 29

Organic produce Cereals, organic area (ha)

Organic market 45591

Organic producers and other operator types

1948

4178

Estonia

Latvia

Lithuania

Organic livestock

2476

95428

Dry pulses, organic area (ha)

9526

9659

29755

Temperate fruit, organic area

Bovine animals

Organic food exports, million €

50621

(ha)

(2017)

27

51

45

41499

96423

57884

449

1309

997

Oilseeds, organic area (ha)

Poultry

Retail sales, million € (2017)

Data source: FIBL&IFOAM THE WORLD OF ORGANIC AGRICULTURE 2020 (mostly data on the situation in 2018)

4971

42

51

51

1167

5988

Vegetables, organic area 36212

The organic food market, € per person

37417

(ha)

16719

Pigs

217

(2017)

379

446

Organic aquaculture, production (metric tons)

32

6

18

458

1845

142 156

Sheep

7

605

Number of organic beehives

32901

39407

24158

2384

28090

883

30 | I N T E RV I E W

Sustainable business practices can lead to success The ambition of the Lithuanian company AUGA group is to deliver organic food with no cost to nature and become a synonym for sustainability.

by ANDA A SERE

in

2019, the AUGA group sales revenue was €71.13 million – an increase of 30% compared to 2018 and confirmation that such an aim can be financially sustainable as well. In the following interview, AUGA group CEO Kęstutis Juščius talks more about the company’s vision and future ambitions.

How would you describe people’s demand and willingness to choose organic food? Has it changed in the last few years?

What are the main trends in the organic food market today?

In 2018, global organic sales reached €92 billion. In 10 years, consumers have more than tripled their consumption of organic products, and demand continues to grow.

The global COVID-19 pandemic has also impacted the growth of the consumption of organic food.

According to market research conducted in Germany and France in 2020, the consumption of organic products grew faster than conventional consumption in many categories. And two main factors have a positive effect on the organic product market: increased concerns about health and nutrition, as well as the possibility to choose more organic ingredients when preparing food at home.

There are many surveys which show the demand and growing responsibility of consumers: especially young people

are worried about the future and are willing to change their consumption habits and buy sustainable products.

According to Nielsen, 75% of 21-34year old people say they would change their consumption habits to reduce their environmental impact.

Together with the KOG Institute of Marketing and Communication Sciences, AUGA group also conducted a survey in the three biggest Lithuanian cities in June 2020. The main aim was to understand the perception of sustainability as well as the reasons for purchasing among Lithuanians, and the results showed that 71% of respondents would choose a sustainable brand, while 76% of them would agree to pay more.

AUGA group has been conducting research in Lithuania on organic food consumption for several years in a row. Based on the study’s findings, the main consumer habits change a little over the years. According to research, consumers most purchase organic vegetables and dairy products.

What are the biggest challenges of working in the organic sector?

The main challenges of working in this sector are closely related to each other. Consumption of organic food is not enough and, as a result, companies incur high production costs. From the customers’ perspective, they said that organic food is too expensive.

However, higher consumption would allow companies to produce more efficiently, reduce operating costs, and make products more affordable.

AUGA group

Sector: production of production of Food & Beverages Founding year: 2014 Revenue: 71.1 million euros (2019) Export: 70% of production is exported to more than 30 countries worldwide, including Scandinavian and Baltic countries, Germany, France, other EU countries, USA, Japan, United Arab Emirates, and others.

Number of employees: 1200 Production facilities: Lithuania

AUGA group works with organic food. How long has passed since this step was implemented?

After the merger of the Baltic Champs and Agrowill Group in 2014, a new vision of organic farming began to develop. We formed a new management team comprising the best experts on the market to implement our ambitious goals during the transformation.

In 2015, we moved towards organic agriculture and started the certification process. The following year, we changed our name to the AUGA group and developed a new line of products called AUGA. Today, the AUGA group is the largest vertically integrated organic food company in Europe. Our group manages approx. 39,000 ha of organically certified arable land and follows a sustainable business model. This year, we introduced a new strategy with the ambition to deliver organic food with no cost to nature and become a synonym for sustainability.

The Group seeks to transform the traditional agriculture sector, and

I N T E RV I E W | 31

“The Group seeks to transform the sector of traditional agriculture, and the new face of the AUGA group is an asset-light, Agtechdriven company, based on a self-sufficient circular model that presents the world with an opportunity to live more sustainably”, says Kęstutis Juščius, CEO of AUGA group.

from households. The management of the AUGA group does not expect significant negative effects on the results of the Group due to the COVID19 pandemic in the short term. But we are considering all the possible threats to the Group’s key business areas and are working to alleviate their effects.

Photo: Publicity photo of Auga group AB

the new face of the AUGA group is an asset-light, Agtech-driven company, based on a self-sufficient circular model that presents the world with an opportunity to live more sustainably.

How successful was last year for the AUGA group? Which business fields have been the most successful?

During the twelve months of 2019, AUGA group results showed improvements in all business segments. Higher sales in the mushroom segment, higher sales and production efficiency in the dairy segment and, despite the unfavourable weather conditions, significantly improved results for the crop segment (compared to the previous year) all contributed to the overall results of the Group.

As a company, we are gaining more experience and preparing the soil better every year, and the improvements are visible even in adverse weather conditions.

According to the company’s data, the sales revenue amounted to €71.13 million in 2019, demonstrating

an increase of 30% compared to 2018. The Group’s gross profit for 2019 amounted to €11.92 million, representing 225% growth and was therefore €8.26 million higher than in 2018.

What has changed in the AUGA group business during the Covid-19 period?

All companies at the AUGA group have been operating at the required capacity, corresponding to the season.

Additional measures have been taken to ensure the safety of the company’s employees and the continuation of its daily activities. Activities in farm fields and production facilities have been rearranged to minimize unnecessary contacts. Other employees were working on a remote basis in spring, then returned to the office with the possibility to continue to work from home, depending on the circumstances.

In general, agricultural production companies stand out as some of the least affected at this point in the crisis, given the nature of the products and increasing demand

What can we expect from the AUGA group for this year?

Overall, the focus of all organization is on the implementation of the new AUGA strategy, announced in April 2020. The company is aiming to improve efficiency across all business segments in the short term and develop new technologies that would significantly reduce greenhouse gas emissions from agricultural operations in the future.

Through to the end of 2020, AUGA group will also continue to expand its export opportunities and the focus will be on the EU, North America and developed markets in Asia.

How do you see the future of the organic food sector? Will it someday be as popular and available as conventional food?

As we can see from various surveys and research mentioned previously, the demand for sustainable products is growing constantly. It means that the variety of organic food grown in the most sustainable way possible will also grow and this will meet the expectations of consumers and become more popular. Moreover, as mentioned before, higher demand would boost opportunities to ensure organic food affordability.

32 | O RG A N I C B A LT I C S

l

iivimaa Lihaveis unites 100 farmers in their dedication to breed cattle for organic meat production, meaning that cows are only fed with grass and not with any additional feed such as corn or other grains. All farmers who are part of the grass-fed quality scheme are monitored by the Estonian Veterinary Board to ensure that the cattle are kept according to the rules. “When we started in 2011, the idea of grassfed beef was still very much ahead of our time. People didn‘t believe that feeding beef cattle with grass only would still lead to good meat”, Airi explains. She adds that when she looks at other European countries, where cattle fed exclusively with grass is still a rare sight, she realizes that there remains much work to be done. And that is what she does, apart from raising her own cattle.

Together with ten other farmers, she founded Liivimaa Lihaveis MTÜ. The non-profit organization advocates grass-fed, organic beef by way of organizing seminars and workshops for interested parties like other farmers and strategic purchasers of large Estonian supermarkets.

Airi explains that it is important to inform and educate people about high-quality organic meat. She hopes that soon, products sold under the Liivimaa Lihaveis quality scheme will become more visible in supermarkets and that more and more farmers will realize the opportunities of grassfed cattle farming. “Keeping cattle on pastures is a very natural way of maintaining the grassland and keeping it in a good condition. There are about 800,000 ha of unused land that would be ideal as pastures for cattle”, says Airi. But the challenges are plentiful, and some farmers had to

Towards sustainable cattle farming A two-hour drive from Tallinn, at the banks of river Pedja, lies the cattle farm of Airi Külvet. As one of the first farmers in Estonia to breed grassfed cattle for organic meat production on her Puutsa farm, Airi Külvet founded a quality scheme for grass-fed organic beef: Liivimaa Lihaveis.

Airi Külvet, owner of organic cattle farm Puutsa talu

give up grass-fed only cattle farming in the past few years. “In Estonia, there are no subsidies for cattle farming, which makes it very hard to compete with the meat industry from other countries, where breeding cattle is often highly subsidised.”

Fortunately, Liivimaa Lihaveis MTÜ is able to apply for some funding for different innovative projects related to organic grass-fed cattle farming from different regional

and European bodies. It is this funding that helps the farmers to continue their work and increase the share of organic beef in Estonia.

The growth of Liivimaa Lihaveis has been “slow but even”. In 2018, around 800 animals were sold under the quality scheme, while that number increased to 1,000 last year.

Currently, the meat is only being exported to Latvia, but an agreement

Photo: Louisa Niermann

by LOUISA NIERMANN

O RG A N I C B A LT I C S | 33

with a Finnish company that wants to sell the Liivimaa Lihaveis meat to Finnish supermarkets is in the works and about to be concluded. The farmers are hopeful that their brand will continue to grow and, as the interest in organic meat continues to rise internationally, enable their expansion to other markets.

Choosing beef cattle

On Puutsa farm, Airi Külvet usually breeds and cross-breeds Simmentals and Angus, but has now also started to breed Wagyus. “At first, I was very sceptical about Wagyus and thought it was impossible to sell them in Estonia, but after seeing the extraordinary quality of the meat and my customers’ interest and satisfaction with it, I will definitely continue producing it”, enthuses Airi and goes on by saying, “The grass-fed Wagyu meat is full of meat, if you know what I mean, and you can easily share a 200g steak with friends.” She believes that there is a market for high-quality meat such as this one, where prices for certain parts like the sirloin or entrecôte can be between €90 and €400 per kilogram. Airi sells all of her beef under the Liivimaa Lihaveis quality scheme, mostly directly to consumers and restaurants, some to supermarkets and some to schools and kindergartens that she

cooperates with. Not all of it is so expensive: minced meat, for example, is also sold in lower price ranges and therefore available to a broader range of consumers who want to buy organic meat of a high quality.

Research to further improve sustainable cattle farming

For Airi, the grass-fed cattle are not only about high-quality meat. She is passionate about improving and maintaining the well-being of her animals and takes a deep interest in protecting the biodiversity of the grasslands on her farm and in the entirety of Estonia. This is why her Puutsa farm, as well as six other farms, are part of an innovation cluster that aims to scientifically investigate certain aspects of grassfed cattle farming: The first study intends to find the optimal density of cows per pasture.

As Airi explains, there is a certain number of cows that should be grazing on a certain area of land for a certain time in order to maintain the good condition of the land.

If that ideal number of cows is found, the cattle takes care of the pasture perfectly – not destroying it but fertilizing it naturally.

A second study is about understanding whether the composition of grass, weeds and

clovers on a pasture has an effect on the biodiversity of a certain patch of grassland or on cattle health and meat quality. Through the creation of different kinds of pastures with different grasscompositions, the farmers try to find the ideal pasture to benefit the natural fauna on their lands, their cattle, and the meat quality.

In a third project from the innovation cluster that will last until 2022, Airi and her colleagues are examining natural ways of protecting their cattle from insects. “This study is my favourite one. We are trying out different natural oils to find the one that is most effective in keeping the insects at bay without killing them or harming other parts of the natural flora and fauna”, says Airi. So far, she has experimented with Neem oil, a naturally occurring pesticide that is known to act as an insect repellent while practically being non-toxic to birds, mammals, bees, and plants. Next year, she plans to use oil from the catnip plant, which is also supposed to have a repelling effect on insects and, as an additional advantage, can be grown in Estonia. Research on natural insect repellents for farm cattle is unique to Europe, according to Airi. She explains that due to a yearlong use of pesticides and chemicals in agriculture, most grasslands in Europe are only inhabited by very few insects. Therefore, the Estonian grasslands are rather exceptional in their natural state.

Airi hopes that the knowledge gained from the research projects will be helpful to other farmers who breed or intend to start breeding grass-fed cattle in the future.

She happily announces that the results will be published and made available in a booklet. This will be another step towards a future where more and more cattle are bred in a sustainable, ecologically sound and animal-friendly way.

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Photo: publicity pictures

Dobeles dzirnavnieks will Strengthen its Positions in the Organic Niche In order to promote the export of high value-added products, the largest full-cycle pre-processing and processing infrastructure of organic grain in the Baltics will start its operation in Dobele at the end of 2020.

by SANDR A DIEZIŅA

in

test mode the new plant will start its operation in late November, early December. Kristaps Amsils, Chairman of JSC Dobeles dzirnavnieks Board, says that the idea of establishing such a production plant was born more than two years ago: “Three years ago, when we started producing organic flakes, we saw that the potential in this niche of organic flakes for Latvia and the Baltics is great.

Farmers grew raw materials, but there was a lack of adequate infrastructure, which resulted in organic grain being exported outside the country.

We decided to build a completely separate infrastructure, starting from the acceptance of grain to the finished product. By completing this project we will be able to call ourselves one of the largest producers of organic flakes in Europe. It will benefit the entire industry.” The total investments exceed 20 million euros and this is a strategically important project for the whole industry.

It is expected that more than 95% of the organic grain flakes produced by the company will be exported, thus significantly promoting and increasing the export of high value-added products and enabling Latvia to take a competitive position in the global organic market. The global demand for organic food is growing – statistics show that the retail turnover of organic food is growing by 10% every year. This is proof that the industry is growing.

“In 2019 Dobeles dzirnavnieks processed 40% more organically grown grain than a year earlier – this confirms that the production of organically grown products is a rapidly growing niche in the world and in many places it is not yet covered. It is an opportunity for the farmers and entrepreneurs in Latvia to conquer their place in the global market,” Kristaps Amsils explains. This project will enable the local processing of organic grain in Latvia and farmers will not have to worry much about the selling process of what has been cultivated.

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Plans to Become the Largest

Dobeles dzirnavnieks is planning to become the largest full-cycle processing company of organic grain in the Baltics. Already in the first half of this year, 19 organic grain storage silos and related technological equipment were commissioned for use, buildings for accepting and precleaning of organic grain were built, as well as an organic grain dryer was installed, thus concluding the first development stage of the ambitious investment project. According to K. Amsils, by the end of this year, by investing another 10 million euros, the largest production plant of flakes from organically grown grain in the Baltics will start its operation in Dobele. “We are proud of the fact that the full cycle pre-processing and processing of organic grain accepted during the harvest season of this year was carried out in the newly built infrastructure – this is an important step in the overall development of the organic industry in Latvia. The response of the farmers during the harvest was surprisingly high; we accepted oats, wheat, barley,” he added. Most likely, we will even have to consider additional storage capacity for organic grain. Farmers have approved their readiness

Kristaps Amsils, Chairman of JSC Dobeles dzirnavnieks Board

to increase the areas, as long as there is demand. It should be taken into account that organic grain is also grown in both neighbouring countries – Lithuania and Estonia, and this is the reason why we should look towards these countries as well. “We have already announced ourselves as the biggest player and, thanks to the new production plant, we will announce our positions with new vigour,” emphasises K. Amsils.

The Number of Farms is Growing

It is already evident that the work on project development has given a very positive signal to the organic sector – the company is supplied with organically grown grain from more than 200 farms in Latvia and interest in environmentally friendly and green farming is only growing.

In terms of organically certified areas, Latvia is the leader among the Baltic states, and the trend is positive – both the number of organically certified farms and the amount of grain produced are growing every year. “For example, the area of organically certified oats in Latvia has grown by more than 34% in the last two years,” K. Amsils points out,

emphasising that the Association of Latvian Organic Agriculture, which is a close cooperation partner of Dobeles dzirnavnieks, also plays an important role in this issue.

However, so far, faster development of the organic sector has been hindered by insufficient resources and infrastructure in the field of organic grain pre-processing and processing, thus the new full organic grain processing cycle project of JSC Dobeles dzirnavnieks”will have a significant impact on the development of the sector in general.

Already now JSC Dobeles dzirnavnieks is the largest producer of organic flakes and the only producer of organic fodder in Latvia. After the implementation of the project, the amount of organic grain processed by the company will exceed 40 thousand tonnes, which is six times more than in 2017. “We expect that within five years after the implementation of the project, the proportion of organic grain grown in Latvia will increase from the current 3% to 10% in 2026,” explains K. Amsils. The project “Development of organic grain full sales cycle infrastructure, creating high added value and profitability in the long-term development of the organic sector in Latvia” is co-financed by the European Union European Agricultural Fund for Rural Development (EAFRD) Latvian Rural Development Programme 2014-2020 annual measure “Investments in tangible assets” sub-measure “Aid for investments in processing”. The project is supported by the Ministry of Agriculture and the Rural Support Service.

Dobeles dzirnavnieks was founded 1991, the true beneficiaries are from Estonia- Lausing Uuno and Puhk Romet. The turnover of the company 2019 was 129.6 million euros. 95% of the production are for export and the biggest export markets are Germany, France and Italy.

36 | O RG A N I C B A LT I C S

Photo: Publicity Photo

Turning gifts of nature into products “This would enable sustainable food production for direct consumption rather than warehouses and help retain valuable nutrients in the food. Currently, the world offers a massive selection of various foods.

We like variety, but food that is made for warehousing requires preservatives, antioxidants and other additives that prevent it from going bad. Despite that, there are millions of tonnes of food that, for one reason or another, end up in a landfill every year – even though there are people starving in the world”, says G. Vyskupaitienė.

by ANDA A SERE

Family business

MĖTA is a family business founded by Gražina and Mindaugas Vyskupaičiai in 1989 in Lithuania. Today, the company’s product selection includes ecological fruit juices, cold teas, organic preserves, yeast-free wholegrain rye and wheat bread, whole-grain flour baked goods, kvass, and natural confectionary.

“If the bigger part of conscious humanity does not come to the profound understanding of ecology as the integrity of all nature’s parts, the loving mother nature will become a vengeful step-mother”, says Gražina Vyskupaitienė, co founder of MĖTA.

All of it is mostly organic and it is grown and produced on the family land of the MĖTA founders.

This year, the company will be celebrating its 20th anniversary of being a certified organic producer. But company’s roots go back earlier. “1762 marks the beginning of our family traditions when our Vyskupaičiai ancestors started farming in Lithuania, where we later founded MĖTA”, Vyskupaitienė explains. Mint essential oil was the first essential oil produced by the company – that is why the company is called by the herb’s Lithuanian name, which was short, unambiguous and clearly communicated the nature of the business. “The

O RG A N I C B A LT I C S | 37

company has survived all the economic challenges that came with the restoration of Lithuanian Independence”, she proudly adds.

From children to seniors

According to Vyskupaitienė, MĖTA customers are sustainabilityconscious people who choose to live an eco-friendly lifestyle. The company has a large consumer circle that includes young families with small children, nostalgic seniors missing old-time recipe flavours, and even foodies. “Our goal is to change the habits of food consumption and to encourage a healthy lifestyle. The demand for our produce has been steadily growing, therefore we are sure that our experience adds to the broadcasting of these ideas. Our organic food production focuses on new processing technologies for local raw materials within a short food supply chain”, she says.

Vyskupaitienė adds that the organic food certificate is only a guarantee that the product was made using reliable materials that do not contain pesticides, herbicides or GMO residue, and that no dangerous contaminants have been introduced during the production process.

This could be a good choice for families with small children or for sick people. “In a manner of speaking, organic produce is a safety-catch for overproduction and food waste”, she argues.

Not a commercial message

“The growth of organic food consumption depends not only on its price and flavour but also on our value appraisal. Ecology should not be a commercial message, a lure or an enticement for people who are trying to help conserve nature.

Ecology is, first and foremost, the guarantee of human survival.

Therefore, it is not enough to recycle

or buy biodegradable packaging. If the bigger part of conscious humanity does not come to the profound understanding of ecology as the integrity of all nature’s parts, the loving mother nature will become a vengeful step-mother. I don’t mean to exaggerate, but I am using my opportunity to send the message that everything in nature is connected. If we do not see or feel it, it does not mean that the law of nature is not there”, Vyskupaitienė emphasizes.

She suggests we view ecology in a wider perspective. Organic food, much like any other, must provide people with the necessary nutrients for their bodily functions while supporting the eco-balance. “It is unfortunate to consider that we do more damage than good when we look at organic food and certain food consumption habits or diet fads from the commercial standpoint”, Vyskupaitienė believes.

New product takes time

Although there is a wide variety of medicinal plants in Lithuania, the MĖTA spotlight is currently on the birch. “We are very pleased that our birch cosmetics line, including Birch Hydrolate, Blend of botanical Extracts for Hair Strengthening and Baby Bath, have gained consumer acclaim not only in Lithuania, but also internationally”, says Vyskupaitienė.

When releasing a new product, the company first considers how it will serve people and maintain harmony with nature. Before starting any production process, the founders think which local plants can be used in creating new products. When it comes to a new product, they study the technology that is used to extract the necessary active substances, as well as where and how to use the secondary raw materials obtained during the production process.

Also – how to sustainably use our

energy resources and water. Little by little, the company is moving toward wasteless technology. “We are not the kind of manufacturer that overwhelms the market with new products each year. The course of creating one product and testing its properties sometimes takes many years. Firstly, we test it on ourselves and our family members.

Then, we share it with our circle of friends and neighbours. We collect their feedback and with that in mind improve the composition, packaging and description of the product”, reveals Vyskupaitienė.

Everything is connected

Even during the first year of production, the company realised that producing essential oils is only skimming the cream. Many biologically active substances in the plants would go unused if the herbal hydrolate – a by-product of essential oil production – was to be discarded. Therefore, they began concentrating the aqueous phase into a stable and self-preserving concentrate of biologically active substances, thus expanding the use of herbal distillates and extracts. “In fact, a person who has not studied this might find it mind-boggling just how powerful the “production” of biologically active organic compounds within plants is. Nature looks after our body and well-being.

We don’t need to add anything. Our purpose lies in carefully extracting all these wonderful substances gifted to us by nature, then in retaining and presenting them to the consumer.

After all, everything is connected in nature and all its parts complement each other, from inanimate nature to flora and fauna. The human, homo sapiens, is also part of it.

However, unlike other animals, we still need to work hard to stay in harmony with nature”, she adds.

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Photo: Ritvars Skuja

by SANDR A DIEZIŅA

With BIO Products to Export Markets This year the milk processing company JSC Tukuma piens opened a new organic production plant and intends to double its export in the coming years.

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In total almost 10 million euros have been invested in the production of various BIO products in the almost 10 years since the production of BIO products was initiated, part of which – in the new production plant that began its operation this spring.

The new plant has allowed production

capacity to be increased and provides more extensive automation options for the reduction of manual labour.

The investment project provides greater stability while at the same time reducing various risks.

Focusing on Export

Most of the ECO products are sold in the local market in Latvia, but the company focuses on organic products in export, as it is difficult to start exports with traditionally produced goods. JSC Tukuma piens does not produce industrial products, but focuses on consumer products for retail. The main export markets are Estonia, Lithuania, Finland, Poland, Germany, Great Britain, Ireland, the USA and Canada. It is significant that in Poland, which is itself a large producer of dairy products, there is a lack of organic milk and the farmers of Tukums have managed to

break into this market with organic cottage cheese, butter and yoghurts.

Tukuma Piens is the leader in the yoghurt market of Latvia holding more than 40% market share, and it is exactly the yoghurt of Tukums farmers that is the most demanded product in Poland. Sales in Poland are growing and the same can be observed in the neighbouring country Lithuania, where Tukuma piens sells its products under the Aiste brand.

However, the largest export market is currently Germany, where the most popular are cottage cheese and cottage cheese products and here the demand for the products of Tukums farmers is growing rapidly.

Part of the frozen products are sold in the USA and the direction of North America is possibly promising according to the Director’s opinion.

Finland also demonstrates great interest in the organic production.

Publicity photos

he company started the production of organic products in the spring of 2011 and since then the range of organic products has significantly expanded. The company product portfolio includes milk, kefir, cream, sour cream, cottage cheese, butter, yoghurt, sweet curd. The products are made from organic milk, which the company mainly purchases from the nearest farmers in Kurzeme and Zemgale. If additional volumes of BIO milk are required, more of it can be purchased in both Vidzeme and Latgale. There are also regular negotiations taking place with interested farmers, who would be ready to switch from conventional farming to organic farming, says Ints Poškus, the director of JSC Tukuma piens.

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Stable Demand

Currently the sales of ECO products in the Latvian market are relatively stable and no major changes are predicted in the near future. It should be noted that the number of consumers in the domestic market has decreased. But the company cannot stand still, it must develop, therefore the only option is export. For it to be successful the company needs a BRC certificate, which is the global food safety standard. Tukuma piens obtained such a certificate in June last year and thus now takes an active part in the export markets.

The demand for BIO products is particularly growing in the world, which cannot be said about Latvia.

“We see that the market of organic products in Latvia has been stable for several years. We have carried out a number of studies in this area,

concluding that 60% of consumers who do not buy organic products doubt that these products are organic. And in addition, when compared to an earlier study, the mistrust has even increased,” says the director. In Scandinavia, on the other hand, opposite processes are taking place and there the sales of BIO products are growing.

Will there be enough organic milk for the production of organic products?

I. Poškus says that there is a lot of milk “in the papers” and currently more than 200 milk producers in Kurzeme and Zemgale supply milk to the company, but Vidzeme and Latgale have not been mastered yet.

As the volumes continue to grow, we will have to buy milk in other regions as well, but then we will have to deal with higher costs.

The company assortment includes more than 300 different product names. The company management would be happy to reduce the wide range in order to specialise in a particular assortment. Taking into account the trends in the world, Tukuma piens will also focus on the production of products for vegans.

Oat milk and vegan soy tofu desserts are already in production, but more products could be created, such as vegan yoghurts and coconut drink.

This market is gradually growing, especially in Scandinavia, where consumers are more environmentally conscious and are choosing other beverages instead of milk, as agricultural production, and especially dairy farming is to blame for the increase in CO2 emissions.

This trend may still change, therefore the manufacturer is still considering the possible response to the changing demand. One of the market trends – the demand for products with high protein content has increased in recent years.

This year it is planned to exceed 60 million turnover, thanks to the new production plant and the growing export. “We continue to work on diversifying our product portfolio, developing more and more new and interesting products for the local market. The plans include strengthening our positions in the domestic market, but the largest growth is planned exactly in export. Currently the total share of export is about 5%, but in the next two years the share of export must be increased at least twice – to 10%,” says Ints Poškus.

Last year Tukuma piens operated with a turnover of 57.895 million euros, which is 5.1% more than a year earlier, but the profit decreased by 44.2% and was 2.589 million euros, according to information available at Firmas. lv. The management report demonstrates that last year the company cooperated with more than 217 milk suppliers. In the future the management of Tukuma piens plans to strengthen its leading position in the strategic segments and to develop the production of new promising products for the local market and exports. Work is also planned on optimising the assortment and strengthening the quality of raw materials. In order to provide greater competitiveness, “Tukuma piens” plans to continue investing in the modernisation and expansion of production.

Along with the limitations for the restriction of the spread of Covid19 virus at the beginning of the year in Latvia and other countries of the world, economic development has decreased and is uncertain.

Currently the company has no significant operating restrictions, however, the future developments of the situation are unclear.

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by LOUISA NIERMANN

Buckwheat: grain of the future From bees to buckwheat- this is the story of Tõrvaaugu Mahe Talu, which is also a member of the German-Baltic Chamber of Commerce (AHK)

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Back in 2008, the family-owned farm had not been used for agricultural production for over a decade. Only a small population of bees was kept by the family to make their own honey. And that is how it all started.

“We had the bees and therefore had to find flowers that blossom late in summer”, explains Janek.

They found buckwheat and started planting it on a small patch of land to feed the bees. “The first yield of the buckwheat was so good that we decided to make something out of it.

In the autumn of 2012, we became organic producers and processors.”

Today, Tõrvaaugu is one of the biggest organic buckwheat producers

Janek Kuusik, owner of Tõrvaaugu Mahe talu

in Estonia. Last year, the plant was cultivated on almost 200 hectares of land and around 100 tons of raw buckwheat were processed. The products, of which some are even exported to Finland, are all handmade in the farmhouse kitchen by Janek and his family. For the muesli, the buckwheat is roasted in a small oven and then mixed with raisins or dried apples. Finally, honey is added until the right degree of ‘crunchiness’ is achieved. The finished product is then filled into sustainable paper packages sporting the farm’s unique logo – a grain of buckwheat, a bee and a lamb, symbolizing the environmentally-friendly way of agriculture practiced at Tõrvaaugu.

The family keeps around 140 Suffolk sheep that take care of the land and fertilize it naturally. The sheep are as essential as the bees to the sustainable cultivation of buckwheat.

The demand for organic buckwheat has seen a significant increase over the past few years. “People care more and more about what they eat”, says Janek, who is dedicated to

providing a product that is beneficial to consumers’ health. “We want to produce natural buckwheat that supports our customers’ well-being.”

Buckwheat is known to lower the blood pressure and can help against varicose veins. It also has a positive effect on cholesterol levels and the liver.

Despite people’s growing interest in buckwheat products, it is difficult for the Tõrvaaugu farm to remain competitive. “Industrially produced products imported from Lithuania and Ukraine are often cheaper than our hand-made, organic ones”, explains Janek and adds that his family is considering investing in new production facilities in order to be able to step-up production. “But our products will always remain organic and hand-made”, he promises and adds that they are about to launch a new product too: a baking mixture for buckwheat bread. “So far, we only bake fresh bread and sell it directly on the farm. But from December onwards, consumers will also be able to buy our baking mixture to bake their own buckwheat bread.”

Photo: Louisa Niermann, publicity photos

uckwheat is originally not native to Estonia, this pseudo-cereal has become an integral part of the country’s cuisine and can now be found in most people’s homes. But this doesn‘t mean that there is nothing new to be discovered about it: Janek Kuusik invited us to Tõrvaaugu Mahe Talu, his family’s organic buckwheat farm, to show us the incredible diversity of this healthy grain. From bread, to muesli, pasta, and cookies, the Kuusiks can make almost anything out of buckwheat. That is even more impressive when considering that making buckwheat products was never the family’s plan.

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Viktorija Kraujutaitė, Mamuko Sales Director and the founder of Mamuko Šarūnas Stumbrys

by ANDA A SERE

Feeding the little ones Today Mamuko is the most popular baby food brand in Lithuania and is now becoming more widely known in other countries too.

“O

ur mission is to tell as many mothers as we can about the health of their babies and how it is affected by the food we buy”, says Viktorija Kraujutaitė, Mamuko (UAB Biogami) Sales Director. She thinks organic food is important not just because it’s organic. Nowadays “organic” is not enough – it has to be made in an organic way as well. Usually, it is complicated to combine different grain porridge for a baby – but Mamuko already offers that. Therefore, in a porridge which needs to be cooked, all the essential trace elements and nutrients of the grains are preserved, while instant porridges offer no natural vitamins and valuable nutrients. “And the whole global baby food market is “instant”. We are happy to be one of the first highly valuable baby porridge providers in the market”, Kraujutaitė adds.

Long- term experiments

Mamuko customers are families who truly understand the meaning

of really healthy food from the first bites of their babies. “Our customers do really understand what is natural grain and how it is made.

They care a lot about their babies’ health”, Kraujutaitė emphasizes.

Talking about the beginnings of Mamuko, she says that the founder of Mamuko – Šarūnas Stumbrys – had his daughter in 2010. After one year, his baby girl was about to have additional nutrition besides her mother’s milk. However, none of the baby products in the market were suitable for her digestion: after having one of the porridges she was constantly sick. Šarūnas had an idea of cooking organic grains for 20 minutes and blending the results – this alternative seemed to work for the baby and she started her new diet. At that moment, the family was consulting a gastroenterologist who had agreed to such a nutrition alternative, and Šarūnas started to think how to ease the process of preparing porridge, which took a relatively long time. In addition to that, the longer the grains are cooked, the less valuable the elements inside remain. He decided to grind the grains, but then again – some of them remained large and could not be cooked easily. After a while, he started grinding and sieving the grains, separating larger ones and then cooking them for 5-8 minutes.

Once it worked, Šarūnas began experimenting with different types of grains and their taste on the porridge.

Wide scope for organic food

“As a pharmacist, Šarūnas studied ingredients of the popular porridges in the market and sadly all of them contained starch, large quantities of sugar and other impurities that complicate liver functions for the baby. Also, extruded instant food is not healthy at all, even if it is organic.

Recipes and product technology spread out among acquaintances and demand for new porridges started to increase. This is how Mamuko was founded”, Kraujutaitė outlines.

The company sees a wide scope for such a healthy choice of organic baby food. Because it is the only product that stays unextruded and preserves its natural state, vitamins and minerals by itself. “So we just need the world to notice this important message. We believe that very soon organic food will become “normal” and people will understand its impact on our health and that of our babies,” Kraujutaitė argues.

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by LĪVA MELBĀR ZDE

The Key to Success – Striving for Results Liene and Ričards Kalnciemi moved from the city to the countryside five years ago, and they are selling organic chickens for the second season. From its very beginning the farm was established as an organic farm, acquiring all the required certification, as organic farming is a strong belief of the Kalnciems family.

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Slower-growing broiler chickens are now reared at Karotīte farm.

This breed has been created in France and is specially adapted for organic farming, which means that the birds reach their optimal weight in 81 days. For comparison, a conventional broiler grows in 36-40 days. This in turn significantly changes the texture and quality of the meat. The product produced

by Karotīte farm is organic chicken

meat, therefore the company is also proud of its certified slaughterhouse and processing plant, so that the meat can be delivered for retail throughout Europe in accordance with all the requirements. Currently the products produced by Karotīte are sold in Latvia and Estonia. The future plans of the company for the next few years include expanding the range of products to be able to also offer high-quality meat products.

The owners of Karotīte farm would also like to enter the Lithuanian market with their products. “We believe that the size of our farm corresponds to the size of the Baltic market. We are too small to look far into the outside world, if we are willing to retain our current working values,” says Liene Kalnciema, adding that the farm constantly has about 3000 birds of different ages, therefore the work process is cyclical – from the incubation period to the chicks and then onwards to the birds that have reached the age of slaughter.

She points out that the market demand for organic chicken meat is constantly growing and, in her

opinion, will continue to grow. New parents are especially considering the quality of meat they are giving to their children. “It is important for us to maintain a consistently high quality of products, so that those people, who have already chosen high quality food do not feel disappointed at any time,” emphasises Liene Kalnciema. “With regard to the choice of products, it must be understood that each product has its own buyer. It is not realistic to say that the entire world can switch to only organic food right away, although progress in favour of organic food is very rapid. Organic products are no longer something that has to be specifically sought after, they are also available in supermarkets. Our products are bought by people, who are thinking about their health on a daily basis, not only in terms of food,” explains the owner of Karotīte farm. When asked about what Liene considers to be the greatest success in her work so far, she mentions with certainty, the pursuit towards the results: “You must never give up and always look for a way out, no matter what the situation may be.”

Photo: Publicity Photo, Getter Kuusmaa

he decision in favour of rearing chickens was made, as the purchased property did not have much land. Thus organic farming of such animals that do not require large pastures was only possible, i.e., the choice between rabbits and chickens was considered.

The disadvantage of rabbit farming was that at the time the regulation on organic farming had not been fully developed. The decision in favour of chickens was followed by a two-year process of trial and error to find the most suitable breed of birds and to approbate the rearing process itself. The owners of Karotīte farm are grateful to have found the organic chicken breeding company Hubbard in France, which with its long-term experience has been able to significantly help the new owners.

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by LOUISA NIERMANN

Big brand – small kitchen La Muu ice cream is so well known in Estonia that, upon arrival at the production facilities, one might expect a huge factory where ice cream is produced en masse. But the contrary is true!

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a large extent, the organic ice cream is still hand-made and produced directly in the Telliskivi district, next to the La Muu Café. In the heart of modern Tallinn, I met with sales and marketing manager Birgit Tell and talked to her about the success of the company, sustainability, and La Muu’s plans to expand to other European markets.

The company was founded in 2012 by two friends, Rasmus Rask and Priit Mikelsaar, united by one clear vision: to produce organic food in Estonia. They had noticed that most of the organic products available on the Estonian market were imported from abroad. By producing their own organic ice cream, the friends set out to change that.

Most of the organic ingredients of La Muu ice cream are available in Estonia, giving La Muu the chance to work with local suppliers. “All the dairy products that we use come from only two farms, the milk from Lõunapiim farm and the whipped cream from Pajumäe Talu in the south of the country”, explains Birgit Tell and points out that the company tries to make its ice cream as sustainably as possible.

“Unfortunately, it is a bit complicated to make plastic-free, non-laminated packages for frozen foods such as ice cream but we are still working with suppliers to improve our packaging and make it more eco-friendly”,

Tell assures me and adds that it is possible for customers to bring their own reusable container to the La Muu Ice Cream Café in Telliskivi to get it filled there and receive a 10% sustainability discount.

Last year, La Muu, which has a market share of 22% in the halflitre container segment, produced a total of 120,000 kg of ice cream, mostly for the Estonian market.

To be able to serve the growing demand, the company has recently invested in a new ice cream machine and now has a production capacity of 2,000 kg of ice cream per day.

The company aims at increasing its current 2% market share in Estonia’s ice cream sector by developing new products and flavours. “Recently we launched the family-sized 1-litre package and wafer cones in order to target a broader group of consumers”, Tell says of the company’s strategy.

The La Muu product range already offers anything from the classic flavours Vanilla, Stracciatella and Dark Chocolate to extraordinary creations such as the Raspberry Prosecco Sorbet, Blood Orange Sorbet and Rhubarb Ice Cream. Furthermore, a variety of very popular vegan ice creams like Brownie, Peanut Butter and Banana-Chocolate ice cream is on offer, “and those are not only popular among people who abstain from animal products”, adds Tell,

referring to the great success of the brand’s vegan options. “And new creations are already being worked on”, she promises.

The current economic situation also impacted La Muu’s business, especially the café in Telliskivi, which had to close during spring. But the young company quickly came up with an idea to get them through the crisis – they started an online shop and delivery service in Tallin. “We thought about bringing ice cream to people’s doors and in two days we had it up and running”, remarks Tell proudly. The delivery service was frequently used during the pandemic and is still going strong.

So far, expanding to markets outside of Estonia has proven to be more challenging for La Muu, but the company is hoping that it will soon export its ice cream to the whole Baltic region, as well as to the Scandinavian countries. In Germany, La Muu’s ice cream is already available for purchase in selected stores.

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by ANDA A SERE

People who live in the Baltics tend to eat various kinds of mushrooms, especially in the autumn. Due to the region’s climate, this is the main season for wild mushrooms.

There is no seasonality at Baltic Champs altic Champs is part of the AUGA group and the company’s mushrooms grow in closed farms, so seasonality does not affect the growing process at all. Regarding the sales, the main peaks are around the Christmas and Easter holidays. “We have also noticed that grilled mushrooms become increasingly popular during the summer due to the changing eating habits of our consumers”, says Gediminas Judzentas, Head of Marketing at AUGA group.

The AUGA assortment includes is a wide variety of mushrooms: Grilling and white mushrooms, chestnut, baby button, eryngii, oyster, portobello mushrooms and shiitake. Talking about the popular ones, he says that consumers mostly tend to choose white mushrooms, but also points out that in the summertime grilling mushrooms are

becoming more and more popular among the company’s clients.

Largest in Europe

Baltic Champs is one of the largest mushroom producers in Europe, and is involved in both growing and trading mushrooms, as well as in R&D activities. Since the beginning of the company’s activities, new technologies have been implemented in the daily production processes.

According to the AUGA group 2019 annual report, the company sells more than 12,000 tonnes of mushrooms per year. According to the latest figures, the sales of mushrooms significantly increased during the first quarter of 2020 (3,288 tonnes), compared to 2,877 tonnes for the previous year. The biggest export markets for the company’s mushrooms are Scandinavian countries: Sweden, Denmark and Norway, as well as the Baltic

neighbours Latvia and Estonia.

“As Baltic Champs is part of the AUGA group, the future of both companies is highly oriented towards sustainability. The key goals of the AUGA group’s future agenda are to reduce greenhouse gas emissions and improve efficiency in existing business units. We will also pay plenty of attention to the sustainability of packaging and will create a more sustainable way to invest and receive financial returns for our lenders and shareholders”, adds Judzentas.

Key decision – organic farming How did it all start? Almost 10 years of traditional farming experience – gained from farming on 24,000 hectares of land and by rearing more than 3,000 cows – has supplemented the idea of an organic agriculture, which has been evolving in the mind of Kęstutis Juščius, the owner of Baltic Champs, for three years. After the merger of two companies in 2014, a new common business vision and new goals emerged. In 2015, the group made the key decision to switch to organic farming, thus starting the process of certification. The following year, the company changed its name to the AUGA group and developed a new line of products called AUGA. The interview with Kęstutis Juščius is published on page 30.

Photo: publicity photos, Ritvars Skuja

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O RG A N I C B A LT I C S | 45

by MONTA ŠĶUPELE

Sees the potential of sea buckthorn The family company SIA Kronīši AK is cultivating organic sea buckthorn seedlings and berries, and recommends others to do the same.

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IA Kronīši AK was founded in 2017, when Kristīne and Andis Bogdānovi decided to move from Riga to the countryside in North Vidzeme. “I was the one who was not fond of the city, and I couldn’t stand the traffic jams and working from 9 to 5. I wanted to do something in the countryside, but I didn’t yet know exactly what,” says K. Bogdānova, owner of SIA Kronīši AK. The decision to establish an organic farm was self-evident, as it was clear that the owners were not willing to use any chemicals for protection of the plants and in production. “My parents had grown sea buckthorn before, but the soil where they did it was too clayey and heavy, which is not suitable for sea buckthorn.

On the land where potatoes had

Kristīne Bogdānova, owner of SIA Kronīši AK

been grown before, we put in the first 38 000 seedlings, of which 80% survived,” recalls K. Bogdānova.

equip her farmland with irrigation and hopes that in 3 years they will already be able to export berries from 14 ha.

80-90% for export

Very good business opportunity

In the first year a total of 6 ha of sea buckthorn orchards were planted, but the following year there was a five week-long drought and they all died. Only this year did the farm renew the areas with new seedlings.

“We found a mentor, who knew how to grow, and taught and told us about the process of growing seedlings,” says K. Bogdānova. This year 106 000 sea buckthorn seedlings were planted on 0.7 ha of the farm, which are intended for planting commercial sea buckthorn gardens, but about 50 000 survived, as the summer did not bring the best weather conditions.

This year about 80-90% of Kronīši AK sea buckthorn seedlings are exported.

“We have established good relations with Estonians and Lithuanians. They have no sea buckthorn nurseries at all. There are three farms in Latvia that grow a lot and then there are those who grow a little.

We are the only organic sea buckthorn nursery in the Baltics,” comments K. Bogdānova. The owner of Kronīši AK also plans to

According to her, the Baltics, Finland, the Czech Republic, Poland, Germany, Ukraine, as well as the south of Sweden and Norway, and also Canada have an appropriate climate for the cultivation of sea buckthorn. Already today, the Baltic states supply all of Europe with sea buckthorn berries. “If all Baltic growers were to unite and offer something to China, I think we would still not be able to provide it, as just the trials require a 20-foot container,” reveals K. Bogdānova. In the coming years the farm plans to export frozen berries, as well as is thinking about processing sea buckthorn berries, for example, pressing sea buckthorn oil. Currently the export price of this oil, to the US for example, is 250500 dollars per litre. “To all those who are telling us that they have free land, we say to grow sea buckthorn.

There is a lack of sea buckthorn! The price is also quite stable. I think this is a very good business opportunity.

We also look beyond the borders of the Baltics, as our capacity grows every year. The goal is to grow the volume, so that we can produce at least 100 000 seedlings a year or more,” says the owner of Kronīši AK.

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Karin Tiit, manager of Tammejuure Mahe Talu

Two years ago, the farm was awarded the title of “Best Estonian Organic Producer 2018”, which helped the business to grow even further.

“Most Estonian supermarkets and organic food stores wanted to sell our products because of that award and still do”, explains Karin Tiit, who is also interested in exporting her products. Currently, she is in contact with business

Striving for innovation Tammejuure Mahe Talu is a 600-hectare organic farm in the west of Estonia. Here, many different field crops such as wheat, oats, peas, turnip rape, rye and poppy have been planted for agricultural use for over 30 years. But one stands out: hemp.

by LOUISA NIERMANN

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partners from Denmark to carry out these plans. But her products are already available via online resellers in the UK and Germany.

In 2010 when Karin Tiit had just finished her marketing studies, she decided to start producing organic hemp. “I wanted to do something here”, she says, “something special”, and adds enthusiastically that “hemp was used by our ancestors decades ago in Estonia, and then people started to rediscover it and I wanted to be part of that and bring the hemp trend back to Estonia”. And that is what she did. Today, hemp

The growth of Tammejuure farm has been significant in the last years and Karin Tiit invested in a new cereal terminal, a bio-heater for drying, and production facilities. In order to make these processes as innovative as possible, the farm produces its own renewable energy. Since 2019, the electricity used on Tammejuure comes from their own solar panels.

During most of the year (February to October), they produce excess energy that is fed into the Estonian power grid, while in winter (November to

arin Tiit, manager of Tammejuure, talked to Baltic Business Quarterly about why she started to grow organic hemp and how she tries to be as innovative as possible.

January) the farm has to buy some electricity – but less than the excess in the rest of year, as most energy is needed in summer when the cereals are harvested and processed. The bio-heater that is used to dry the hemp works with wood chips from the ditch bush that must be cut every year anyway. These aspects make production at Tammejuure extraordinarily sustainable.

Karin Tiit also founded Läänemaa OTT, a non-profit organization that aims to sell agricultural products directly to consumers, often via farmers’ markets. On an organic farmers’ trip to France in 2012, she learned about how to sell from the producer directly to the consumer at small scale markets. “I got so much power and energy from there – it is a social event, a community thing, and I was impressed by how many people visited these markets in France and how much was sold within two hours”. When she came back to Estonia, she successfully started her own “producer to consumer market”, Läänemaa OTT, whose chairperson she remains today.

Photo: Manuel Kroha, publicity photos

is grown on 80 hectares on Karin Tiit’s farm and around 60 tons of raw hemp are harvested each year.

Tammejuure sells a variety of around 10 different hemp products: From hemp oil and seeds, to hemp flour and tea, through to extraordinary products such as hemp spa-cream and even a hemp animal supplement.

O RG A N I C B A LT I C S | 47

by ANDA A SERE

Demand for organic products will grow When identical twins Ignas and Vilius were 17 years old, they caught sight of a bee swarm living in their grandfather’s hive.

He has never considered working inside four walls. In Ignas’ mind, working outside in nature with bees is pure pleasure – fresh air, the sun, the smell of honey and the humming of bees is a dream job to him. “Sometimes you don’t even take a rest, as you aren’t tired”, he says.

Knowing their products are healthy and help people gives the brothers even more pleasure. These priorities have encouraged them to choose natural and organic products.

“t

hat was the biggest challenge. Every summer day was a waiting game.

Will the bees be able to survive?

Will they not leave me and fly in search of better homes? These thoughts spun around in my head and annoyed me. So we started making frames of boards we found.

After the first frames followed beehives and later we built a bee farm. These projects helped to create the idea of Brolių medus. Now the real Lithuanian honey comes from family to family and added warmth and love – to everyone who has tasted it”, explains Ignas.

Brolių medus apiary is located in the north of Higher Lithuania, in the Kupiškis district. Ignas says that the bees are kept in an ecological environment near to a stretch of meadows and forests.

The apiary participates in a program

of exceptional quality, so it is constantly inspected. The provided certificate guarantees the quality of honey and other products.

“First and foremost, farmers are strongly involved in the human ecosystem and, secondly, they all want to live more healthily and choose organic products. Looking to the future, the demand for organic products will only grow. After all, people want to live more healthily and give up all modified products. Everyone thinks not only about his or her own health, but also about the environment.

So this trend will certainly remain in demand”, Ignas predicts.

“People are fascinated by our sincerity, organic products, handicrafts, and our love of bees. They get acquainted with all the processes from honey extraction through to the packaging, Our clients come back and bring their friends and acquaintances. We dare to call ourselves family honey”, says Ignas.

Characterizing clients of Brolių medus, he says they are often older men with a family and grandchildren wanting to take care of their own health. When clients see the environment where the bees fly, the whole story spreads from mouth to mouth. That’s the reason why Brolių medus already feels the growing demand and why the sale of their products increases every year.

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Blackcurrants of Latvia for the World The grower of organic blackcurrants SIA Krogzeme promotes the cultivation of blackcurrants, encouraging others to make profit from it.

by MONTA ŠĶUPELE

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IA Krogzeme initiated its operation in 2009 as a nursery of ornamental plants.

However, since 2014 the company has specialised in the design of commercial blackcurrant gardens – it grows blackcurrant seedlings, sets up blackcurrant commercial gardens, as well as produces organic blackcurrant berries. “We ended up with blackcurrants by accident. When we bought this property, blackcurrants were growing in one of the overgrown land plots. The Autumn Seedling Parade was approaching, in which we participated with ornamental seedlings and also took along blackcurrant seedlings with us, in case anyone would be interested in buying them. As a result, almost none of our ornamental plants were bought in this market, but the blackcurrant plants were all gone, literally within half an hour. And so we thought, why not grow blackcurrant

plants? In the first year we grew relatively little – 2000 to 3000 plants. We sold them in an instant, as customers who were willing to buy in larger quantities appeared,” said Andris Krogzems, Development Manager of SIA Krogzeme.

Currently SIA Krogzeme has planned 56 ha for berry growing and 6 ha for growing blackcurrant plants. The majority of blackcurrant plants are sold in the Latvian market. In turn, practically all of the blackcurrant berries are exported, as the Latvian market is saturated and the volume of berries exceeds the amount that can be consumed in Latvia multiple times.

This year, most of the blackcurrants were exported to the Netherlands berry exchange, from where they travel all over the world, as well as some were exported to Poland.

Usually about 3.6 tonnes of berries per hectare are harvested at the farm.

Varieties for industrial cultivation are carefully selected, which can be harvested with a combine and are

Photo: Ritvars Skuja, publicity photos

Andris Krogzems, Development Manager of SIA Krogzeme

resistant to diseases and pests. “We are the only ones growing organic blackcurrant seedlings. The demand for organic berries is also stable enough with a tendency to increase, as the consumption of organic food is also growing,” says A. Krogzems.

In his opinion, the potential for berry growing in Latvia is huge. Fruit and vegetable production are sectors, where the yield per hectare is three to five times higher than for crops and livestock. “There is a huge potential to increase volumes, if it is necessary.

First of all, it would be the Asian market. However, the reason why we are not planning to move in this direction is the volumes. We tried to produce juices and customers from South Korea found us, who would be willing to purchase the trial batch of our juices, but they would require 2 sea containers that are 40 feet large and contain 80 tonnes of juice, which is about 140 tonnes of berries.

This year, the whole cooperative of 20 farms harvested 170 tonnes of berries. There is also no processing company in Latvia that would undertake to squeeze 80 tonnes of juice,” explains A. Krogzems.

He believes that finished products have potential in the Asian market.

It is necessary to not only grow blackcurrants, because there is a lack of various berries in Latvia. Another direction in which to develop is the pre-processing of berries. The farm has invested almost 400 000 euros in the berry cleaning line. In the future SIA Krogzeme hopes to build a small freezer complex as well.

O RG A N I C B A LT I C S | 49

Turning buckwheat into a heatlhy snack “We have great organic farmers in Lithuania who grow the main ingredient of our healthy snacks – buckwheat.

This superfood is a nutritious and well-liked plant,”

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by ANDA A SERE

ays Silvija Baranauskienė, the founder of Lithuania’s snack brand Tundra. She is a mother of five children. She was concerned about the welfare and health of her children. It was hard to accustom them to choose healthy and good quality food when there were so many temptations. Usually, children’s favorite snacks are not of much nutritional value. Research shows that, while snacking, children consume as many calories as there are in their regular dinner. The new snack brand was therefore born out of necessity. Tundra offers bars, mini bars, sprouted buckwheat crispbread and sprouted dried buckwheat.

“We believe in the benefits of organic food and, at the same time, noticed that the demand for organic products in Lithuania is increasing. This makes us think that organic food is the food of the future”, says Silvija.

Buckwheat has been growing in Lithuania for ages and could even be called the country’s national heritage.

Tundra products are oriented towards urban people who lead a healthy and active lifestyle. The company’s customers care about the quality of the food they eat. They choose products without added sugars or preservatives and which are made out of natural ingredients only. “Our snacks with sprouted buckwheat are exactly what they are looking for. All our products are made of

The founder of Lithuania’s snack brand Tundra Silvija Baranauskienė (from left), production manager Arijus Viskanta and order manager Astra Jastrumskytė

nutrition, and choose naturally grown food without pesticides, herbicides, hormones, and other pollutants. In addition, organic farming is environmentallyfriendly and not harmful to consumers. “We believe that due to the increasing number of people who understand the benefits of organic farming, depending on their abilities, they will grow their own organic food or buy it from trustworthy suppliers”, she thinks.

100% natural ingredients, sweetened only with dates. Our snacks are suitable for vegans, gluten intolerant people, and children. Our biggest success to this day is that our brand Tundra has become well known and liked in Lithuania. We are proud to produce snacks that not only taste good but are good for your health and are suitable for both children and adults”, Silvija emphasizes.

“Since introducing organic products to our range, we have received a positive response from our clients, which only encouraged us to work on expanding our selection of organic snacks in the future”, adds Silvija.

More and more people are becoming aware of the kind of food they consume. They take good care of their

Silvija believes demand for organic produce will only grow. People are more and more conscious these days about the effects that the food industry has on our planet. Organic producers try their best to minimize that impact. “Moreover, we noticed that people started paying much more attention to what they put in their mouths. They want the food to be beneficial to their bodies.

That’s what organic food does. It is not treated with any chemicals, genetically modified, so in turn it is better for our health”, says Silvija.

However, there are certain challenges that come with producing organic food – the costs are usually higher and shelf life is shorter. That is the reason why it is hard to predict if organic food will ever be as popular as conventional food is nowadays.

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Photo: Ritvars Skuja

Jānis Garančs, Director of Aloja Starkelsen standing in front of the bags of organic potato starch

by MONTA ŠĶUPELE

Creates Future Products Aloja Starkelsen is not only continuing the production of potato starch, but also developing products, the markets of which are still emerging.

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loja Starkelsen, one of the largest processors of organic agricultural products in Latvia, was founded in June 1991 in cooperation between the employee cooperative ALOJA and the farmers’ cooperative LYCKEBY from Sweden as the first food company in Latvia having foreign capital. Also today, the owners of the company are about 500 Swedish farmers. Over the years Aloja Starkelsen has become the only producer of potato starch in the Baltic states, as well as one of the largest producers of organic potato starch in the world. “We are not just building the company as a producer of potato starch, we see ourselves as a craft starch producer, just like craft beer producers. We immediately realised that we cannot compete with simple, conventional potato starch,” Jānis Garančs, Director of SIA Aloja Starkelsen reveals.

The production of organic potato starch was begun in 2008 and currently it accounts for about twothirds of Aloja Starkelen’s production.

It is also exported to North America and Asia for example, but about

a third remains in Europe. In addition to the production of potato starch, the company produces a number of other food products, the best known of which in the Baltic states and Scandinavia are Aloja jelly, baking powder and vanilla sugar. And one of the company’s business directions is also the development of new products. “Our development and growth is based on developing new, innovative things that have never existed in the world before. We are looking for opportunities in the world, as more than 85% of the company products are exported. We are looking for directions of development in the world,” says J. Garančs.

Since 2006, Aloja Starkelsen has been part of the sister company Culinar Group, the main business of which is to develop food recipes and production technologies for other food companies. For example, if others have an idea of producing dairy, bread, meat products or even mayonnaise and ketchup, Aloja Starkelsen will develop the exact product recipe and technology.

This is a significant milestone in the company’s development, as Aloja Starkelsen is one of the largest companies developing organic recipes not only in Latvia, but also in Europe.

“If you look at Baltic companies, except for manufacturers of beverages, almost every food company has a product that we have developed,” comments J. Garančs. “Such a situation has even developed, where it would be quite difficult to buy vanilla sugar in Sweden that was not produced in Latvia. There the canned baking powder that is produced by Aloja Starkelsen occupies up to 90% of the market,” says J. Garančs. Currently, there is a growing demand not only for organically grown products, but also for plant-based products. Aloja Starkelsen is also working in this direction. In 2017 the company also began processing organic grey peas and field beans, thus expanding the range of gluten-free and vegan organic food raw materials. About 80% of the production is exported to the European Union countries, the USA and Asia.

“We believe in the development of organic products. A good basis for developing organic products here are the raw materials. They form more than fifteen percent of all agricultural land in Latvia that is organically certified. The raw materials are here, so it is necessary to develop processing in Latvia and the Baltics. Huge potential exists here,” says J. Garančs.

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Organic is good for us and nature!

Dr Anne Luik is a scientist at the Estonian University of Life Sciences and a firm believer that the future of food lies in organic farming. After all, this is the best - and probably only - choice for people and our environment.

What are the benefits of growing organic food for a farmer?

by MARI PEEGEL

Let’s start from the practical side: If we have the choice of buying quite expensive organic potatoes or regular potatoes for half the price, which one would you recommend to buy?

Regardless of the higher price, I would still recommend buying the organic potatoes because, as a rule, they are free of pollutants.

This means there are no residues of pesticides or plant protection products. In conventional production, potatoes are sprayed several times during the summer to control both leaf rot and potato beetles.

Unfortunately, there are residues of both products in potatoes. In most cases, it is below the so-called maximum level, but it should be known that the level is set for one active substance. In conventional products, however, there are more and more residues at the same time, in which case the effect may be enhanced hundreds of times through interaction – as has been shown in experiments with honeybees.

Insecticides primarily interfere with nervous processes, while plant disease control products interfere with hormonal functions, and the interaction has shown a reliable increase in the lethal effects of the former. In the gastrointestinal tract, food comes into contact with our microbes, which play a very

than conventional soils, which instead emit carbon dioxide. There is also significant water pollution from conventional soils. In processed organic products, only a limited number of natural additives is used.

In conventional products, however, there is a very wide range of different additives, such as preservatives, which suppress microbes and the like.

important role in the regulation of the entire metabolism, including the immune system. Studies have shown that lactic acid bacteria are inhibited by even small amounts of pesticide.

Organic products have a better reputation than intensive production and the label “organic” is already a selling point for many. But what does science say? Are organic products measurably better?

Today, the evaluation of products is based not only on their direct quality but also on their environmental impact. In both respects, organic has significant advantages over conventional. Studies have shown that organic plant products are richer in antioxidants and dry matter and they are free of contaminants, including antibiotic residues. Organic animal products have better fatty acid composition and a higher content of antioxidants. Organic production requires a diverse life in both soil and production. Comprehensive research has shown that organic production has a diverse biota, as it is also a prerequisite for production.

In conventional production, however, the biota is constantly suppressed by pesticides, which causes great damage to ecosystems. Organic soils have higher organic matter content and sequester 10 percent more carbon

Organic production certainly supports farmers’ health because they have no direct exposure to harmful chemicals. They also eat health-promoting food and keep their environment ecologically viable. In fact, conventional farmers are constantly destroying their production potential – the diversity in the soil, production and the surrounding area. Organic production keeps its agro-ecosystem functioning, as it operates on the principle of growing its own nutritious crops, keeping crop rotation as diverse as possible, thus ensuring plant health. It also keeps the production landscape diverse, with as many habitats as possible for various organisms, which helps to prevent possible plant damage and at the same time ensure cleaner water and functional soil. Organic farmers can be more independent by creating the input needed for production, as conventional farmers have to buy it.

Can different eco-labels in food stores and markets be trusted? How effective is the control of the quality of organic products in Estonia?

Organic labels can be trusted because the rules are consistent between countries. In the EU, you can spot them by a leaf-shaped sign. Compliance with the rules is checked everywhere. In Estonia,

T R E N D A N A LY S I S | 53

ANNE LUIK IS ONE OF THE FIRST RESEARCHERS TO STUDY AND APPLY ENVIRONMENTALLY FRIENDLY METHODS IN AGRICULTURE IN ESTONIA. UNDER HER LEADERSHIP, THE FIRST INTERNATIONAL SCIENTIFIC CONFERENCE ON ORGANIC FARMING IN ESTONIA WAS HELD IN 2009.

Photo: Anni Õnneleid

we can be happy that 22 percent of arable land is organic, which definitely has a positive effect on our environment. The Estonian Veterinary and Food Board monitors food annually and one third of their samples are organic. They are usually clean, and there have been only a few contaminants that have come from a conventional field as a spray drift into wheat grains or rapeseed.

I suggest buying from an organic farmer nearby, whose activities can be monitored and where fresh products can be bought on the spot.

The From Farm to Table movement is widespread in Estonia, but the problem is that large industries are not sufficiently involved in organic processing. We have enough organic rye, the price of which is the same as the conventional version, but organic bread is not widely available.

Only a few small bakeries bake it.

Conventionally grown produce in Estonia is relatively safe according to the Estonian Veterinary and Food Board.

Wouldn’t simply eating local be enough for staying healthy?

On average, it can be pointed out that two thirds of the imported regular food and one third of the local Estonian food has pesticide residue. What is worrying is that more and more products contain several residues at once. In Estonian products, the maximum number of residues has not exceeded five, while in imported products there have been more than ten, for example in lemons and grapes. However, it has rarely been above the permitted limits for individual active substances. But it is important to note that the effect of accumulation can also make small amounts of residue very impactful.

Please predict the future of food. Can we expect a breakthrough towards ecologically clean food production, or vice versa – will intensive agriculture intensify further?

Given the current state of the environment, where intensive agriculture plays an important role in destroying biodiversity, healthy soil and clean water, there is no alternative to sustainable food production other than ecological intensification, i.e. the development of environmentallyfriendly production methods and organic leadership based on ecological principles. Of course, new knowledge and technological developments are needed for this.

Organic is good for us and nature!

54 | T R E N D A N A LY S I S

by SANDA DUNAISK A

The switch to organic food will happen ANATOLIJS DANILĀNS, PROFESSOR AT RIGA STRADINS UNIVERSITY, GASTROENTEROLOGIST OF P. STRADINS CLINICAL UNIVERSITY HOSPITAL

Asked about this organic food trend, Professor Danilāns says that it is not really a new trend. It has always been there and its popularity has bobbed up and down like a wave, but he agrees that it has now reached one of its highest peaks.

As for organic food, there are different types of them too. He says that even GMO can be an organic food type when scientists make changes on a genetic level by adding some minerals and so on. “Right now, there are two extremely different opinions about organic food in the medical field. This is good and I really approve of it! Some say that biofood and GMO is complete nonsense.

Oh, my goodness, where will this lead us? We will become robots, or they will make us appear as horses while feeding us some suspicious oats” laughs Professor Danilāns adding that there is also an opinion that organic food is something good and necessary. Professor Danilāns

notes that without organic and GMO food, millions of people on the planet would have died as so many countries are not very good with food supplies and cannot grow it by themselves. In this context, Latvia is a very lucky country!

“This is a very modern perspective and a (longstanding) scientific direction, in which scientists make changes to the products on a genetic level, so that grains and other foods become different and quite often even much better. You may ask how a scientist can get it right when changing the genetics of food and not creating some sort of poison? This is the main point that people opposed to this kind of food use as an argument. I know that in a world where scientific methods are being introduced, these scientific foods are approved as healthy. They are thoroughly tested for years on thousands of people, both women and men. And if any side-effects are noticed, the bio

product in question is cut out and there can be no question about it!” states Professor Danilāns.

Also regarding the changes and evolution of food, Professor Danilāns says that it has always changed and adapted to the soils, needs and climate. As we evolve, so does our food. Sometimes it can go a bit wrong, but if the change is good and helps is to live a longer and healthier life then it is just for our benefit. “The organic change will happen, and it does not matter if we want it or not.

I remember in my childhood that the cucumbers were very bitter, but very good. Then some scientists made biological changes and the cucumber became sweet and tasty, so we picked out the seeds to cultivate the tasty ones and for 2-3 years it worked.

However, nature had its own ideas and the cucumbers became bitter again, and this can also happen with organic food – it can be turned back”.

What makes organic food even better in the opinion of Professor Danilāns is competition. Because the competitors are the ones that make the producers take more tests and comply with the standards and quality levels.

Better to eat diverse and varied food ASSOC. PROF. LAILA MEIJA MD, PHD, ASSOC. PROF. AND LEADING RESEARCHER AT RĪGA STRADIŅŠ UNIVERSITY, DIETARY PHYSICIAN AT PAULS STRADIŅŠ CLINICAL UNIVERSITY HOSPITAL AND CAPITAL CLINIC RIGA

I strongly support the increase in producing organic food although it is important to understand the pros and cons of this type of food production.

There is strong evidence that organic food is safer regarding pesticides. And any potential harm from pesticides,

such as an increased risk of oncological diseases and possible disruption of the endocrine system, is well known. Risks of added antibiotics are well known too.

At the same time, this doesn’t mean that organic food produced to a high agricultural standard might contain other toxic substances like mycotoxins and harmful pollutants from the environment, including the water or soil.

What’s more, it is not possible to claim that organic food is more nutritious

as this varies depending on the food grown. It is definitely better to eat diverse and varied food than only organic with limited food choices.

Finally, thinking globally we must not forget the health of the planet, because pesticides accumulate in the water, the soil, as well as in the bodies of animals and humans.

Reducing the use of pesticides is one step in healing our environment and the planet we all live on.

T R E N D A N A LY S I S | 55

by SANTA DUNAISK A

Testing is a must Specifically for organic food, the GMO tests are the most popular ones but for beekeepers the honey moisture refractometer (tester) leads.

It is one thing to know the rules and definitions of what is organic, but it is also important to know if you meet the standards. We met Gints Rotčenkovs, the CEO of Latvian company SnapTest.

LV which delivers different tests to Estonian, Latvian and Lithuanian environmental agencies as well as to different laboratories. He showed us how things happen behind the papers and told us what tests the company offers for tracing GMO remains.

What does your company do and specialize in?

We deliver rapid tests for water safety and food safety control throughout the Baltics, both in factories for selfmonitoring and in official control laboratories. Microbiology, hygiene, allergens, GMOs, mycotoxins, and so on. We also supply measuring instruments, laboratories and production testing equipment.

Photo: Santa Dunaiska, publicity photo

How is organic and GMO food determined?

Organic food testing is identical to conventional (non-bio) food testing.

The main differences are in the documentation, traceability, work process and additional certification process. Testing of GMOs can be carried out by the cereal grower or the food producer to understand whether the culture is conventional or GMO, or mixed. For example, organic food must not contain GMOs. Are these tests mandatory?

Binding national legislation provides for a series of mandatory tests, i.e.

“Minimum required”. But larger and quality-oriented manufacturers

The SnapTest leading team – Gints Rotčenkovs, CEO of the company in the middle

additionally carry out internal selfmonitoring to reduce their risks, and to eliminate problems faster and more cheaply. The HACCP (Hazard analysis and critical control points) system is mandatory for food producers and food businesses, but it does not usually impose specific tests.

What are the most important points to consider for organic food to be high quality?

How to test the quality?

First of all, it cannot contain GMOs and it cannot contain pesticides above the permissible levels. We need to keep track of the fertilizers that are being used to control pests in non-organic fields.

What tests do you offer and how complex or easy are they?

We offer to buy (not conduct) allergen tests (gluten, eggs, milk, nuts, mustard, etc.), GMO tests, microbiological tests, E.Coli / Coliforms, Salmonella, Listeria Monocistogenes, Pseudomonas Aeruginosa, Legionella Pneumophila, and so on. The tests are different.

Quick hygiene tests to check the cleanliness of surfaces take 10-15 seconds. Allergen tests in products take 11 minutes. Microbiology tests take from 3, 5-6, 18-24 hours and more. Self-monitoring tests are generally suitable for non-specialist use. The most complex tests in accredited laboratories require prior knowledge of biology or chemistry.

And what tests do you offer specially for organic food?

Quality tests are for organic and non-

organic products, but we also offer a GMO test for grains to find traces of GMO in the crops to see whether laboratory-produced GMO hybrid grains treated with harsh chemistry have been mixed in or not. With our GMO test, you can understand whether you have bought pure BIO grains or a mixture of BIO and GMO grains. The demand for this specific test is steady as it is a very specific one and is not meant for ordinary people. It is for the big BIO farmers, or grain bases. After the Tallinn Food exhibition, one Estonian company was interested in us for the soy GMO test, because if BIOsoy is grown, a test must be carried out to prove that it is pure BIO. What is the most interesting or popular tester?

That is the Hygiena “EnSURE TOUCH” tester for checking the cleanliness of production equipment and hands. And the honey moisture refractometer (tester) for beekeepers.

Has the demand for testers increased in recent years? If so, for which ones exactly?

Allergen tests and hygiene tests are rapidly growing in demand.

Water tests for the detection of Coliforms / E.Coli in drinking water and for the detection of Pseudomonas in swimming pools or mineral waters are also gaining in popularity, as our marketed tests have acquired LVS and ISO status. They are actively used by both self-monitoring and official water testing laboratories.

56 | B U S I N E S S LO C AT I O N

Klaipėda – a city with an ambitious strategy The third largest city in Lithuania – Klaipėda – has long been one of the key economic engines in the country. Boasting a leading sea port, a highly successful Free Economic Zone, as well as deep traditions in logistics and manufacturing, this city is taking brave further steps into the future.

by LĪVA MELBĀR ZDE

t

he Klaipėda State Seaport has always been an inseparable part of the city. The port makes Klaipėda the most important and biggest Lithuanian transport hub, connecting sea, land and railway routes from East to West. Many industries such as logistics, ship building and repair as well as manufacturing benefit greatly from the strong international ice-free port and the access to the global supply chain that it provides.

A modern ecosystem has formed around the port and the possibilities it opens up. The Klaipėda University Marine Research Institute leads in the fields of Marine Biotechnology and Hydrology. The Lithuanian Marine Academy trains professionals in Marine Engineering, IT, Logistics and Port technologies.

In addition, the Klaipėda Science and Technology Park and the Baltic Maritime Digital Innovation Hub work to bring innovations to the maritime industries in the region.

These and other stakeholders have also joined their efforts in forming the Lithuanian LNG cluster that works to develop and commercialize clean LNG-related technology and establish Klaipėda as an LNG technology and distribution center in the Baltic Sea region.

Aquaculture is another industry where promising projects are

taking place. In cooperation with scientists from Klaipėda University and abroad, the Klaipėda Science and Technology Park has started an industrial shrimp farming initiative.

The University Business Incubator is gaining valuable experience in shrimp production and looking to share it with businesses.

Rich in natural energy sources

The rich sources of geothermal waters that are found under most of Klaipėda city provide opportunities for efficient energy as well as recreation, health and wellness businesses. New developments are being planned in the city resort areas.

The wind and the sea are other two powers that shape Klaipėda and bring investment opportunities. Klaipėda is preparing for the construction of an approx. 700-megawatt wind farm in the Baltic Sea. Planned investments can reach more than €1 billion and create about 1,400 direct and secondary jobs. In addition, this development is sure to boost the establishment of a wind farm maintenance base in Klaipeda port and create new business niches related to the assembly and production of components required for power plants, logistics, maintenance, and so on.

Klaipėda Free Economic Zone The Klaipėda Free Economic Zone is another crucial member of the Klaipėda economic ecosystem.

Population:

149,157 1,322.4

2020

Average gross salary (euro):

Number of manufacturing companies in Klaipėda city

519

Number of working people in companies in Klaipėda city

59,749 25,219

Employment in manufacturing sector 2018

The fastest growing sector – Information and communication

+11.8% 46.26 81.5%

2017-2018

Port cargo turnover (mil.t) 2019

of companies operating in Klaipėda are micro companies with less than 10 employees SOURCE: KLAIPĖDA ID

The city is becoming famous as a summer office for Lithuanian and foreign freelancers, business representatives and creatives who want to combine their work with an active and healthy lifestyle.

B U S I N E S S LO C AT I O N | 57

The port makes Klaipėda the most important and biggest Lithuanian transport hub, connecting sea, land and railway routes from East to West.

Photo: Klaipėda ID, Klaipėda State Seaport Authority

Recently, the Klaipėda FEZ received an honourable recognition for sustainability solutions in the annual Free Zones of the Year ranking, conducted by fDi Intelligence.

Klaipėda FEZ is the main plastics hub in the Baltics and the companies such as NEO GROUP, Retal Baltic and Orion Global PET all continuously invest in research and innovative solutions for chemical recycling, improved re-use of secondary raw materials and the development of the circular economy.

Klaipėda FEZ and industrial territories in the south of the city are also becoming hot spots for electric vehicles, electric equipment, autonomous systems, robots and robotic equipment, thereby creating much added value. One of the star projects is the production of electric buses called Dancerbus. The nature-friendly Dancer is made with significant use of recycled materials, can be charged in a few minutes and is entirely powered by green energy.

Klaipėda city is working to establish a bio-economic cluster, uniting the region’s chemical and wood industry, as well as other bioeconomic companies and academic institutions. The plan is to produce

bio-products that have little or no impact on the environment.

On the road to diversification

In addition to strengthening its key industries, Klaipėda is targeting a major diversification of its economy and business environment by developing the global business services (GBS) industry.

Lithuania as a country is becoming an international hotspot for GBS businesses and Klaipėda is working to attract its share of investors in this industry. The time is right as the current trends show international GBS businesses moving to smaller, less saturated cities. Klaipėda aims to become the most attractive city in the region for the maritime, transport and logistics GBSs. The service centre of an international logistics company Greencarrier is a great example of the success of a logistics service centre in Klaipėda.

Workation rhythm of life

Klaipėda is a city that combines what often seems incompatible: a balance between history and modernization, city life and nature, technological achievements and

cultural heritage. The city is becoming famous as a summer office for Lithuanian and foreign freelancers, business representatives and creatives who want to combine their work with an active and healthy lifestyle.

On top of all the other benefits, Klaipėda is also consistently one of the top cities for quality of life in Lithuania.

Due to its geographic location, Klaipėda has great connectivity. It offers all possible inter-city travel options: by road, by rail, by air from the nearby airport in Palanga and, of course, by sea with ferry lines connecting more than a handful international ports.

This city by the sea boasts a comfortable infrastructure for families and those enjoying active lifestyles. Klaipėda is the regional capital of water sports featuring great surfing, kitesurfing, sailing, wakeboarding, or kayaking infrastructure and communities.

A convenient location and good infrastructure create no significant traffic jams – it takes 20 to 30 minutes from the south of Klaipėda to the north. By choosing Klaipėda, therefore, one gets the benefits of a metropolitan city together with the advantages offered by a small town.

58 | LA W & TA X

Applying for state aid during COVID-19 crisis in Baltics

ILZE JANKEVIČA PARTNER FROM LEADELL FOGELS & VĪTOLS

to

TOMAS MICKUS SENIOR ASSOCIATE FROM LEADELL BALČIŪNAS & GRAJAUSKAS

help companies survive difficult times and avoid mass bankruptcies, the European Commission adopted on 19 March 2020 a Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak. In a nutshell, the initial framework provides for five different types of state aid: (i) direct grants, repayable advances or tax advantages; (ii) guarantees on loans; (iii) subsidised interest rates for loans; (iv) guarantees and loans channelled through Credit institutions or other financial institutions; and (v) Short-term export credit insurance.

Estonian support measures

Perhaps the most extensive state aid measures the undertakings have the right to apply for, are loan guarantees, investment loan, working capital loan and land capital support (for owners of agricultural land for sale-and-leaseback transactions).

In general, all measures can be applied for either directly through the Rural Development Foundation (agricultural holdings) or through

MARKO PILV PARTNER FROM LEADELL PILV

a bank and/or eKredEx (all others).

As for the loan guarantees, the loan applicant must be a sustainable and solvent Estonian company which was not in difficulty as of 31.12.2019 and has no overdue debts (excl. the deferred ones) to the Tax and Custom Board or credit institutions, which have incurred before 01.01.2020.

Nor may the company be the subject of bankruptcy or liquidation proceedings. As for the extent of a guarantee, Both KredEx and Rural Development Foundation are ready to secure a maximum of 90% of the loan or lease amount (for a proportional guarantee), or up to 35% of the loan or lease amount (for a fixed guarantee), with an interest rate of up to 8% per annum. As a general rule, the maximum guarantees are limited to an amount not exceeding double the salary cost of the entrepreneur for 2019 or 25% of the entrepreneur’s turnover in 2019. Nevertheless, if justified, this amount can be increased. It should be borne in mind that there are many exceptions - for example, KredEx is ready to guarantee loans in the accommodation, catering and tourism sectors in

KATARINA TALUMÄE ASSOCIATE FROM LEADELL PILV

full. Applying for a loan guarantee is usually done through a bank.

The intended purpose of the extraordinary investment loan is to finance investments in fixed assets, to overcome the temporary difficulties of an entrepreneur caused by the outbreak of COVID-19. As the Rural Development Foundation will no longer issue loans due to the exhaustion of funds, the following will focus only on the requirements of KredEx. The general requirements for obtaining an extraordinary investment loan are much higher than for a guarantee, including: from 12 March 2020, the applicant has not paid dividends or made other equity-reducing payments to the owners; the applicant does not have valid payment defaults and there were no payment defaults of more than EUR 640 in the period from 01.04.2019 to 01.03.2020 and outstanding tax debts of more than EUR 640 as of the first date of each month. The applicant must also substantiate the link between the need for the loan and the COVID19 crisis and provide an action plan to overcome the difficulties and

LA W & TA X | 59

repay the loan obligations. The applicant’s financial indicators must also meet certain conditions. The loan period is 24 to 72 months and the amount of the loan is once again set to depend on the company’s 2019 salary costs and turnover.

Kredex also provides extraordinary working capital loans up to 10 million euros per applicant for a loan and a group of enterprises related to the applicant. The loan period is up to 24 months.

It is also important to pay attention to the fact that an undertaking operating in the tobacco, alcohol, arms or casino business is not entitled to an extraordinary guarantee/loan. Certain restrictions also apply to the IT sector.

Latvian support measures

The Latvian COVID-19 state aid package includes various tax holidays.

For instance, local governments of Latvia have the right to determine other time limits for the payment of the immovable property tax in 2020 which are different from the time limits determined by law.

A taxpayer who has been affected by the COVID-19, has the right to apply for an extension of the time limit for the payment of taxes (by 30.12.2020).

This applies in particular to taxpayers whose income from economic activity has decreased by at least 30% in March, April, May or June 2020 in comparison with the average income of 2019; or whose income from economic activity has decreased by at least 20% in March, April, May or June 2020 in comparison with the average income of 2019 (additional conditions apply). The tax administration has the right to divide the payment for late tax payments in instalments or to defer it for a period of up to three years as of the date of submitting the submission. In order to apply for this, the taxpayer shall, submit a justified submission to the tax administration within 15 days after the deadline

but no later than by 30.12.2020.

From the 01.01.2020, a payer of personal income tax shall not make the advance payments of personal income tax for the income from economic activity for the taxation year 2020.

Loans for current assets is liquidity support for economic operators merchants, farmers and fishermen, whose activities have been affected by Covid-19. Such aid shall be granted until 31.12.2020 or until expiry of the application period pursuant to the EU law.

The maximum amount of loans for one enterprise and a group of persons linked thereto shall be up to EUR 1 000 000. The enterprise may receive several loans if at the moment of granting of the loan the total amount of the loans to be granted and outstanding amount of the loans received previously does not exceed the maximum amount of loans. Loans to enterprises are granted by the Development Financial Institution Altum. Like in Estonia, it shall be proved in the application that the enterprise is economically viable and the loan for current assets is necessary in order to reduce the effects of COVID-19 on its economic activity.

Altum also grants capital investments to the merchants, who are economically viable and needs financing to reduce the temporary impact of COVID-19 on its economic activities or to transform the current business model by adapting it to the market demand. Besides other requirements for obtaining investment, the merchant shall receive private co-financing in the amount of at least 50% of the total amount of the investment, and its business must create added value for the Latvian economy. The total amount of investments in one merchant may not exceed 10,000,000 euros, and may be granted until 30.06.2021.

Lithuanian support measures

Lithuanian state aid measures differ significantly from both Latvian and Estonian measures – namely, the SMEs can receive loans under crowdfunding (partially state financed up to 40 % oft the loan amount) “Aviete”. However, companies threatened with insolvency cannot be financed through this measure, nor can the loan be used to finance low-rated business projects or to refinance other. If the loan application is submitted before 31.12.2020, the maximum loan period is 12 months (for SME loans). From 2021, loans can be taken for up to three years.

SMEs that have a valid loan (investment, leasing) may also apply for interest compensation of up to 95% for maximum period of 36 months. The compensation, however, shall not be provided, inter alia, if the funds of the loan are intended for the acquisition of noncommercial vehicle(s) (except if the applicant carries on the business of car leasing, transport, ride-sharing or driving school); shares; or bonds.

The exemptions are also related to the company’s field of activity - companies engaged in forestry, fishing, gambling, and betting cannot apply for interest exemption.

In some cases, SMEs may receive interest compensation of up to 100%. To this end, the SME must have a valid loan agreement, the fulfilment of the obligations arising from which has been postponed within the period from 16.03.2020 until 31.12.2020. Also, the company’s financial position must be sustainable in the long run and the interest rate should not be raised during the loan payment postponement period. As in the previous example, the initial loan may not be used to (re) finance other liabilities.

Companies engaged in forestry, fishing, gambling, and betting cannot apply for interest exemption.

60 | T R A D E F A I R S

The main value of virtual fairs lies in database access and the readiness of companies to make new contacts. An e-mail, which otherwise would be quickly deleted, will reach the proper addressee much more easily during a virtual fair. This fulllength article is published on the Enterprise Estonia website and is translated and shortened here with permission.

1oT, a modern provider of data communication services for smart devices, is one of the very few Estonian companies to actively participate in virtual fairs.

Why are they doing it? What are the advantages of a virtual fair?

How to get the most out of them?

Prior to the corona crisis, 1oT visited different professional fairs 3-4 times a year. Each time, thorough preparations were undertaken beforehand. Otherwise, the outcome would have been a waste of time for the company and others. The same also goes for virtual fairs, although attending them is a very different experience.

Taavi Jõgeva, the company’s sales manager, points out that fairs held on virtual platforms cannot be compared to those taking place physically.

There is no substitute for face-toface meetings and even the simple matter of a handshake cannot be substituted for virtually. Also, you cannot get very specific with the other party at virtual fairs. On the other hand, there are also benefits.

Experience from a fair in Germany Recently, 1oT attended a large virtual fair: Hannover Technology and Business Days 2020. So,

they already knew what to do.

Jõgeva says that first you need to create your profile – biography, photo, corporate information, as well as product or service descriptions, and an image bank.

At the time of the interview, Jõgeva was participating in the London Tech Week virtual fair, as a representative of 1oT, where he once again obtained confirmation in regards to what he had seen in Hannover – that it seems as if for some companies there is really no interest in participating. There is no profile picture, information is

Taavi Jõgeva, sales manager at 1oT

incomplete, no effort has been made.

‘If you come like this, there is no point in coming. The marketing side must be strong.

This raises interest. The number of participating companies is really high and you never know how many of them are searching especially for you’, says Jõgeva.

Talks start

When your profile is complete, you select the marketing segments you are interested in. Now it’s time for the algorithms to do their work and start creating connections for you. You will get a sense of whom it is that you could begin arranging meetings with.

The system also includes a calendar, where all of your agreed upon meetings could be listed.

‘The platform has its own conversation modules, meaning there is no need to agree on video meetings. Indeed, I have held these with many, but you may also simply take two hours of your day, look for suitable companies and write to them. If there is any interest, you will exchange e-mail addresses and communicate at a more suitable time’, said Jõgeva.

Here, however, he points out a deficiency found in a platform used by some fairs – you cannot share your screen with the other party.

This makes it more complicated to introduce your products and services.

At the Hannover fair, each meeting also had a time limit of 20 minutes. This turned out to be a problem, as many had tight schedules and if someone was late for the meeting, also the schedule of the people at 1oT shifted.

Jõgeva commends the solution where you can look for suitable companies using search words. The lists are long and it would not be reasonable to go through all of them one by one. Engines are top level.

Photo: 1oT OÜ

Start of the era of virtual fairs and the experience of an entrepreneur

T R A D E F A I R S | 61

What does 1oT do?

1oT is an independent provider of 2G, 3G, 4G. NB-IoT and LTE-M data communication service for global companies engaged in the Internet of Things. 1oT consolidates various mobile operators on one platform and enables the manufacturers of smart devices to obtain a network connection in 190 countries from one service provider — together with one self-service platform, invoice and eSIM-card.

Definite timeline

A virtual fair does not mean that you simply log into somewhere and start searching and communicating until you get tired. Every day has its own discussion topics and panels. As a rule, the speakers are representatives of large tech companies, who are also major sponsors of the fair. Discussions often cover interesting topics, with content being the latest technological developments. Chat applications can be used simultaneously; however, video meetings cannot be held during panels. When the panel is over, B2B meetings start again. Even a lunch break has been planned into the program.

Basic functionality is free One of the most important questions for the decision-makers of companies is – how much will it all cost? The experience of 1oT shows that a company can perform all basic operations at zero cost.

By paying, you will get extra benefits – your visibility is better, you will have a logo, even better, a clickable logo.

You may get some more functions from the content side, for example a possibility to export into Excel.

Proper homework guarantees success But how does one prepare for a virtual fair? A week before the event, when

the accounts have already been activated, it is possible to start going through the list of participating companies. Also, the abovementioned filter search can be run. Potential partners and customers can already be selected. And you will also receive inquiries from those who have found you by running a search.

Taavi Jõgeva once again emphasises the profile, to make sure that it has been prepared in an exemplary manner. This is like your fair stand in the virtual environment.

There is also an option of doing nothing

Today, companies have been presented with a fait accompli – virtual fairs are taking place, while physical fairs are not. Jõgeva says that there are two options: either you do nothing, and complain about the hard times, or you take advantage of the offered opportunities.

‘If you believe now that there will be many sales, you will find yourself having a bad day. Then it is complicated indeed. You need to use as many possibilities as you can and move forward with many of the contacts you have made.

Why just sit at the office, if you can prepare one day and participate the

next two?’ Jõgeva notes, and adds sad statistics: ‘There was only one Estonian company at the Hannover fair besides us. Statistics were dominated by companies from Germany, Turkey, and Romania or Serbia. It is really depressing that there were only two companies from Estonia’.

So, the main question is, either you do nothing at all or you attend virtual fairs. The rest of the world is attending.

Another tip

Taavi Jõgeva shares another tip about how to make yourself more visible prior to the fairs. For example, 1oT receives a lot of inquiries from Mexico.

How do they react to this? Before a fair to be held in the US, they start targeted marketing using LinkedIn and even Facebook. The latter is an important environment when doing business in certain regions. They target their campaigns over there.

‘This is psychological. The name of 1oT is flashing somewhere. We try to reach the subconscious minds of entrepreneurs. In the direction of Mexico, we made a blog post and aimed it at their IoT companies.

I am not saying that everyone should do what we did, but this is one possible strategy and manner of preparation’, said Jõgeva.

FAIR TO SHARE

Vilma Aréškiené

Photo: Deutsche Messe

62 | T RA D E F A I R S

Representative of Deutsche Messe AG and Hamburg Messe & Congress GmbH in Lithuania This is the first article in a series of articles about virtual trade fairs, their strengths and weaknesses. The informative part of the articles will be supplemented with a number of practical tips, and we will ask entrepreneurs to share their experiences by participating in and attending exhibitions in the new format.

Benefits of virtual trade fairs

w

ith restrictions on how many people can congregate in the same room and mass event cancellations taking place around the world, there has been a huge upturn in demand for virtual trade fairs.

But what exactly is a virtual trade fair? A virtual trade fair is an online trade fair environment that allows exhibitors and visitors to connect and interact at virtual trade fair booths – basically mini-websites that are built within a larger online event framework. Exhibitors will host a webinar or webcast at their trade fair booth to share their regular sales pitch with an online audience that has registered for that event.

Virtual trade fairs are a great lead-generating tool for B2B marketers and they offer benefits compared to physical trade fairs: • MORE EFFICIENT Costs are reduced due to the elimination of travel, lodging and meals for attendees and exhibitors. What’s more, the exhibitors do not incur costs for renting space, booth shipping and set up, and can therefore reduce staffing.

• MORE ATTENDEES AND LEADS Virtual trade fairs have a global reach and are not constrained by geography, cost, scheduling or space limitations, so they can deliver to a larger audience.

• MORE BRAND ENGAGEMENT Easier opportunities for sharing and interacting with different

content forms and exhibitors.

Experience can be tailored to each attendee – they can view content whenever they want during and after the trade fair.

• ABILITY TO NETWORK AND INTERACT CONTINUALLY Live events don’t allow your attendees to talk and network during presentations and they limit networking to only the people at the event. While attending virtual events, however, attendees can talk to internal and external colleagues continually during live-streamed presentations to share insights and observations relevant to their business.

• SHORTER SALES CYCLES Visitors can view a product, watch a demo and quickly go to the negotiation stage. Online stores can also be provided to convert leads before visitors leave the virtual trade fair.

• GAMIFICATION To generate interest and help lead capture, giveaways and prizes can be offered to attendees if they attend events or download sales collateral.

• ENVIRONMENTALLYFRIENDLY Carbon footprint is reduced due to the elimination of travel, while paper and plastic waste is dramatically cut.

• FREE FROM HEALTH RISKS OF COVID-19 Attendees and exhibitors do not have to worry about travel, trade fair attendance and social distancing.

TRADE FAIR NEWS

H’Up – Hybrid Event Hub As part of its hybrid offensive, Deutsche Messe, together with its subsidiary event it, offers a modern alternative to online, hybrid and live events from a single source.

H’Up – Hanover’s first multifunctional event location with a permanently installed, but variable streaming studio on the exhibition grounds. For this purpose, Hall 18 with its 3,250 square meters will be converted into an urban-chic location with five permanently installed streaming backdrops and technology. The Stage, The Lounge, The Talk, The Product and The MR are different individual stages ranging from the panel discussion of the smaller conversation, to the interview, to the product presentation, to the scenic area for AR/VR mixed reality or holographic technology able to depict everything. The spatial infrastructure, 5G technology and the permanently installed event and streaming technology enable both ad hoc live.streams and elaborately planned event productions of all brands and products. Even the introduction of larger products, such as trucks and production systems, can be displayed without any problems.

Another addition to Deutsche Messe’s hybrid offensive is the Media Factory, which consists of 15 film and sound studios within walking distance of the H’Up. The former NDR broadcasting center was taken over by Deutsche Messe and can be used for online and hybrid events as well as video and audio contributions. A creative hub is also being built on the premises of the MEDIA FACTORY, which specializes in digital B2B communication in industry.

Private 5G campus license The Hanover Exhibition Grounds have received the official certificate from the German Federal Network Agency for the frequency allocation of the private 5G network. It offers customers the full bandwidth of 100 megahertz (MHz) for their various application scenarios and showcases.

Deutsche Messe plans to have the exhibition grounds 5G-ready by the end of the year. Step one includes the necessary cables for all 25 halls, so that afterwards wireless communication is possible from the installed 5G antennae to all devices in the exhibition halls. The first professional applications could be realized, for example, in the field of automated driving or facial recognition at the entrances.

T R A D E F A I R S | 63

JANUARY – MARCH 2021

TR ADE FAIR

INDUSTRY

NEXT DATE 2022-2023

JANUARY 13-15 MUNICH, ONLINE

BAU ONLINE World’s Leading Trade Fair for Architecture, Materials, Systems BAU-MUENCHEN.COM

CONSTRUCTION TECHNOLOGY, MATERIALS AND EQUIPMENT

January, 2023

JANUARY 20-21 BERLIN, HYBRID

IGW PROFESSIONAL International Exhibition for the Food, Agriculture and Horticulture Industries GRUENE WOCHE.DE

HORTICULTURE, LANDSCAPING, AGRICULTURE, FOOD, BEVERAGES

January 21-30, 2022

JANUARY 23-31 DÜSSELDORF

BOOT DÜSSELDORF International Boat Show BOOT.COM

BOATS, BOAT ACCESSORIES, SPORTING GOODS

January, 2022

FEBRUARY 02-05 HAMBURG, HYBRID

SMM The Leading International Maritime Trade Fair

SHIPBUILDING, PORT MACHINERY, OFFSHORE ENGINEERING

September, 2022

FEBRUARY 01-05 MUNICH, ONLINE

ISPO MUNICH ONLINE The Leading Trade Fair for Sport Business Professionals ISPO.COM/MUNICH

SPORTING GOODS, CLOTHING, FASHION, ACCESSORIES

January, 2022

FEBRUARY 24-28 MUNICH

F.RE.E Fair for Leisure and Travel FREE-MUENCHEN.DE

TOURISM, LEISURE, CARAVANS

February, 2022

FEBRUARY 25- MARCH 03 DÜSSELDORF

INTERPACK Processing and Packaging INTERPACK.COM

FOOD PROCESSING AND PACKAGING MACHINERY

Mai, 2023

MARCH 09-12 HANOVER

EURO BLECH International Sheet Metal Working Technology Exhibition EUROBLECH.COM

METALWORKING, WELDING TECHNOLOGY

October, 2022

MARCH 10-14 BERLIN

ITB BERLIN The World’s Leading Travel Trade Show ITB-BERLIN.DE

TOURISM

March, 2022

MARCH 10-14 MUNICH

INTERNATIONALE HANDWERKSMESSE Fair for Construction, Renovation, Refurbishement IHM.DE

CAPITAL AND CONSUMER GOODS

March, 2022

MARCH 12-16 HAMBURG

INTERNORGA Europe’s Leading Trade Show for the HoReCa Industry INTERNORG A.COM

HOTEL AND CATERING, SHOP FITTINGS, BEVERAGE AND LUXURY FOODSTUFF

March, 2022

MARCH 16-18 DÜSSELDORF

ENERGY STOR AGE EUROPE Expo and Conference ESEEXPO.COM

ENERGY

March, 2022

MARCH 16-18 DÜSSELDORF

EUROCIS The Leading Trade Fair for Retail Technology EUROCIS.COM

IT, SOFTWARE, HOTEL AND CATERING, SHOP FITTINGS

March, 2022

MARCH 16-18 HANOVER, ONLINE

T WENT Y2X New Tech. New Business. Digitization T WENT Y2X.DE

IT, SOFTWARE

March, 2022

MARCH 19-23 DÜSSELDORF

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64 | A H K M E M B E R A RT I C L E S

Tilde is Taking a Step Towards Strengthening Europe

by LĪVA MELBĀR ZDE

“We are a language technology company and we believe that multilingualism is a strength of Europe, not a defect.”

t

his is the comment of Andrejs Vasiļjevs, the CEO of Tilde, and Artūrs Vasiļevskis, the Head of the Tilde Machine Translation Solutions in an interview with Baltic Business Quarterly. They talk about what the company, established in Latvia, has already accomplished in strengthening the integrity of the entire European Union and where it sees the greatest future potential.

Tilde is also a member of AHK. What are the solutions developed by Tilde so far, that the company is most proud of?

Our role and direction of activity is to make artificial intelligence multilingual, so that people can communicate without language barriers. We are working to allow the computers to accurately understand what people are saying, and to make these technologies available to the widest possible range of people. For example, our machine translation platform Tilde MT is widely used in companies, public administration and international organisations, as well as for individual needs, which we are very pleased about.

Members of the German-Baltic Chamber of Commerce can also use the legal text translator, specially developed by Tilde. And Tilde also has great accomplishments

in providing machine translation for the European Presidency?

This story already began with the support of the European Presidency in 2015, when Latvia held the Presidency of the Council of the European Union. As the amount of text and information to be translated is very large in this case, people cannot actually accomplish it.

Therefore Tilde developed a secure solution that is easy to use and publicly available to everyone.

The prototype, developed for our Latvian presidency, proved to be very successful and in 2016 we were invited to create a complete machine translation solution for the Estonian presidency and since then \for all the following European presidencies.

The German presidency is already the eighth to use the EU Council Presidency Translator, a custom solution that is constantly being refined and adapted to the needs and requirements of each presidency.

Please say in detail, what can this solution offer exactly?

AI-powered EU Council Presidency Translator provides instant and secure translation of text, documents and websites in all 24 official EU languages. It also instantly translates the official website of the German Presidency in all these languages.

Previously, presidency websites were only available in 2-3 major EU languages. During the 3 months of the German Presidency a total of 42 million words were translated with our system, which is the largest volume of translations so far, as the previous presidencies translated an average of 3-4 million words per month. I think that this is not only due to the fact that Germany is a large country, but also because this solution provides the best translation options, including the ability of each person to improve the translation and thus improve the machine translator. We are also proud to be developer of the hugo.lv platform that serves translation and other language technology needs of the entire public administration of Latvia, and similar solution is in the works for the Vilnius University to serve the residents of Lithuania. We have also helped global companies like Microsoft to develop their machine translation systems. In the Baltics we have developed a special machine translation system for the large-scale Rail Baltica project.

How do we look in Europe in the field of artificial intelligence, when compared to the rest of the world?

Artūrs Vasiļevskis, the Head of the Tilde Machine Translation Solutions

A H K M E M B E R A RT I C L E S | 65

In the field of artificial intelligence, there are three major players – the United States, Europe and China – competing for leadership.

The United States is trying to give as much freedom as possible to technological development. The risks of this approach have been clearly demonstrated in the previous election of the US president, when artificial intelligence helped to manipulate the opinions of people on social media.

In China too, the development of artificial intelligence is very rapid and it has become a powerful weapon of public control there, tracking down people and public groups in opposition. In turn, Europe seeks to develop artificial intelligence based on ethical principles and universal humane values, respecting the privacy of people and data protection.

Tilde works in the field of languages and we believe this to be the European value that needs to be strengthened. Until now in this field, artificial intelligence has made huge advancements in the major languages, as these languages have large markets, strong economies and significant investment opportunities.

We see our role there in making artificial intelligence smart and thus useful to people, not just in English for example, but in all the languages spoken in Europe.

The niche of activity of Tilde is mostly machine translation, but are there any other areas?

In addition to machine translation, our field of activity also includes virtual assistants or chatbots, which provide successful communication between a person and a computer.

These are very rapidly developing technologies worldwide, but we are also working to make successful communication with a computer possible in Latvian, Lithuanian, Estonian and other languages.

Latvia holds leading positions in Europe, demonstrating the

Andrejs Vasiļjevs, CEO at Tilde

extensive involvement of virtual assistants in public administration.

Have you noticed a change in demand for your company products during the Covid pandemic?

We noticed changes in both our machine translation platform translate.tilde.com and the hugo. lv platform. The volume of and demand for translations increased by approximately 30%.

The pandemic period encourages faster and more creative execution.

In particular, in cooperation with Tet we set up a virtual assistant for answering questions about the pandemic and the restrictions. In a short time we created covidbots. lv. Currently, more than 45 thousand users have talked to covidbots and it is already published on the websites of quite a few Latvian institutions.

We also offer the encyclopaedic reference and learning site letonika. lv, which compiles digital teaching aids for schools. The use of this application increased greatly during the pandemic. In my opinion, this is a good example of the fact that society is ready to use technologies very quickly in such circumstances.

I know that in other countries distance learning was not that easy,

but in Latvia, thanks to digital means, good internet coverage and computer equipment, the home schooling process was quite efficient and smooth.

What are the big goals of Tilde for the next 5 or 10 years?

Our goal is multilingual artificial intelligence and our ambition is to be the leading company in Europe in this field. Both machine translation and human-to-computer voice communication have great future potential. We would also like to engage in quantum computing.

Quantum computers are not part of our daily lives yet, but the field is evolving fast. Tilde is already exploring the options of quantum computer software in cooperation with several European universities and companies. Collaboration with companies and researchers in other countries is very important. In this way we can develop new knowledge, as well as new approaches, which unfortunately are underestimated by many companies. It is important to understand that we are all building the future Europe together, and it is important that European values such as multilingualism and cultural wealth are preserved, without dividing them into large and small nations and those having and not having opportunities.

66 | A H K M E M B E R A RT I C L E S

by SANTA DUNAISK A

In its Tallinn branch Linde Engineering sees opportunities and value-add to the execution of their Global Projects and has kept recruiting throughout pandemic crisis. Anti Laiv, Tallinn Branch Manager of Linde Engineering is talking to Baltic Business Quarterly about current challenges and future prospects of the company.

Successful start for Linde Engineering’s new office in Tallinn Could you give our readers a short introduction to your company?

Linde has a long history, looking back on over 140 years of business.

Today we are a leading industrial gases and engineering company with approximately 80,000 employees active in over 100 countries worldwide. In 2019 the company generated turnover of more than EUR 24 billion. The gases Linde produces play an important role in our lives. Gases are essential for electronics production, in labs, for food processing, in medicine and for sea and space exploration. Life as we know it today would be impossible without the gases we produce.

Because we touch so many areas, we like to say, “Linde is everywhere.”

What is Linde Engineering’s focus?

Linde Engineering specializes in the engineering and construction of gas production plants. Over the years we have successfully delivered

more than 4,000 plant engineering projects around the globe. We are a relatively small member of the Linde family with around 7,000 people worldwide. However, we are very important for our bigger sister, Linde Gases, as we are their main supplier of gas-producing facilities.

In addition, we are a valued plant and service supplier for third parties.

In all our projects we take climate protection seriously and strive to contribute to a more sustainable future. Portfolio highlights in this regard include technologies covering the entire hydrogen and clean hydrogen value chain; solutions that utilize renewable energy; methods to avoid CO2 emissions by increasing efficiency; and capturing and utilizing CO2 emissions. We help customers achieve a higher degree of sustainability through services and digital solutions. That could be predictive maintenance, or remote service via live online sessions.

Why did Linde Engineering venture into Estonia?

With time it became increasingly difficult to find skilled personnel for our headquarters in Munich. The decision was then made to open a further location in Europe. By the way, we also have major sites in China, India and the United States. A thorough selection process was initiated and a number of countries in Europe were under consideration. In the end, several factors spoke for Tallinn, Estonia – among them a wide availability of professionals in key areas with a very high educational level and excellent language skills. Factors that make Estonia attractive as a location are the pioneering role the country is taking in digitalization, for example with internet-based public services; its geographical position; and ease of access. The fact that Linde Gases had very good experience with its Tallinnbased business service center also helped tip the scales in Estonia’s favor.

A H K M E M B E R A RT I C L E S | 67

Hydrogen production plant in Leuna, Germany, constructed

by Linde Engineering

Photo: publicity photos of Linde Engineering

What challenges did you face with establishing the branch?

The Linde Engineering Tallinn branch office was established in June 2019 and operations commenced the following August. The key was to quickly recruit professional people and establish processes to align the branch with the rest of Linde Engineering, its customers and service providers. Challenges? To find good and skilled people to join with

Anti Laiv, Tallinn Branch Manager of Linde Engineering

us, to convince them to join when the branch had yet no employees nor established office. Other than that, there aren’t any big ones to point out.

Actually, the bureaucracy involved with establishing the business in Estonia was very minimal – thanks in a large part to the internetbased public services I just referred to. In fact, they also make it easy to run a business in Estonia.

What functions does the branch in Tallinn look after?

The branch office is currently providing IT, logistics and supply chain management services for various new gas processing plants under construction worldwide. Today we have more than 30 people working in Tallinn – 10 of them are taking care of IT system administration and infrastructure-related services, including safety and IOT functions.

Over 20 people are working in logistics services and supporting our global procurement operations.

People in our Tallinn team are having a global roles and responsibilities, and excellent opportunities for personal development in a truly global organization.

What impact has the COVID-19 pandemic had on your operations?

In March we all switched to home office – not only in Estonia but also at most Linde Engineering offices.

Understandably, with so many people switching to remote work at once, the company’s IT infrastructure was put to the test and some of our branch IT staff were directly involved with overcoming the challenge. In the end we coped with the necessary changes very well – thanks in large part to good risk management, state-of-the-art technology and the company’s dedication to safety.

The Tallinn office is heavily involved in Project Logistics, and we definitely felt the impact of the pandemic on the global transportation sector. As

lead times grew, it became more and more difficult to coordinate deliveries to construction sites scattered around the globe – all of which require deliveries on a timely and accurate basis. Sea and air transport were hardest hit, while land transport wasn’t much affected, and shipments continued to reach their destination as planned. All in all, the pandemic and transportation market upheavals resulted in a lot of additional workload for our staff and service providers.

In any case, we have mastered the challenge together very well and are now adjusting to the new situation.

Our staff in Tallinn is part of the Linde Engineering headquarters’ organization with numerous interfaces in the daily work. Online communication channels have been very helpful during the pandemic.

However, on the long run we are of course missing occasional direct faceto-face interaction and networking.

So, we are looking forward to bring our teams together again for an efficient exchange of knowledge and techniques and even more important – an inspiring team spirit and company culture across remote teams.

How has the pandemic affected employee numbers in Tallinn?

In fact, it hasn’t! The branch had rather big recruiting plan for 2020. We did some adjustments, but despite of pandemic we have kept on recruiting and successfully onboarding our new team members thorough the year. Obviously, the recruiting and onboarding process has changed and most of it is being done now over electronic channels, instead of faceto-face interviews and meetings.

What is your company proud of?

We are proud that our Tallinn branch got off to a smooth start, that we have onboarded an excellent team of professionals, and that we have been adding value to Linde Engineering’s operations from day one.

68 | A H K M E M B E R A RT I C L E S

Despite the challenging year we are all facing, Lidl is progressing as planned in both Latvia and Estonia.

Raring to go!

O

The new Lidl store in Liepāja

Latvia due to our hiring campaign for future stores and the warehouse. That created a huge interest from applicants.

Despite the challenges related to the Covid-19 measures, we managed to interview thousands of potential employees who will join our teams in the logistics centre and stores. They are undergoing fully paid training courses to prepare for the Lidl way of working and serving customers. We are focused on delivering Lidl’s basic promise - to offer local consumers the best quality products at the lowest prices”, says Josefsson.

Lidl always aims to be the part of local community and economy. Not only

by creating new jobs and tax revenues, but also by investing in the infrastructure of the towns and cities where the stores are located.

Also, in Latvia and Estonia, along with store development, Lidl is building many kilometres of new roads, roundabouts and pedestrian paths. The stores Lidl build, as well as the office and warehouse building are sustainable and use renewable or so called “green electricity” from the largest local river Daugava.

This year, Lidl has been fully focusing on the development of the store network in Latvia and Estonia and the commissioning the new regional logistics centre in Rīga. It is a huge undertaking and a significant milestone to start operations in the two Baltic markets.

We encourage buyers to support small local producers R ADOSTIN ROUSSE V- PEINE CEO OF LIDL LITHUA NIA

w

hen we started our activities in Lithuania in 2016, the products from Lithuanian producers accounted for approximately onefifth of our food product range. We anticipated that this share would grow constantly, because Lithuanian producers had to adapt to the specifics of our business, and some of them had to make additional investments in order to meet our extremely high quality requirements. Four years later, more than a quarter of Lithuanian production

is in the permanent range, and the number of partnerships with Lithuanian producers is approaching one hundred.

We are particularly pleased with the new step taken in the spring, when we invited small farmers to cooperate. The quarantine and the current situation acted as a kind of catalyst, leading to a closer partnership with a large number of Lithuanian suppliers. In this way, we were able to achieve two goals – we not only ensured the stability of small producers’ activities and helped them to improve, but we also started to offer an even wider selection of unique Lithuanian products to our customers.

The connection with local suppliers has become even closer since October, as Lidl

customers will be able to find products manufactured by six retail partners in a permanent range of our stores. From now on, our regular assortment will include curd spreads, curd and sour cream, curd cheese with cranberries from Ilzenbergas manor, the Samogitian national dish kastinys made by ‘UAB Kontena’, coldsmoked skiland sausages, cold-smoked bacon and sour milk from Audrius Banionis farm, fine sausages from UAB ‘Kaimiskas dumas’ and homemade ‘Daujėnai’ bread kvass produced by UAB ‘Saimeta’. We trust that this cooperation will help the country’s small producers during this difficult time, so we want to encourage other small producers and growers in the country to contact us as well.

Photo: Valters Pelns

ver 10 stores have been completed already across Latvia – six in Rīga and the rest in the regional towns of Jēkabpils, Jelgava, Liepāja, Tukums, Rēzekne and Valmiera.

Construction works are ongoing in several cities more (Ogre, Ventspils, Daugavpils). Lidl is also expanding in Estonia, where stores are being built in Tallinn, Tartu, Pärnu and Narva.

Jakob Josefsson, CEO of Lidl Latvija and Lidl Eesti, is convinced that it is a good signal both for investors and consumers that Lidl is dedicated to growing in Latvia and Estonia. It shows that these Baltic markets are business-friendly, open to investments, and are an integrated part of the European consumer market.

“This autumn, Lidl was highly visible in

A H K S P E C I A L | 69

Your reliable partner for fiscal services in the Baltic states What are the main fiscal services offered by the AHK? Our most popular and most frequently requested fiscal services in Estonia, Latvia and Lithuania are payroll and VAT services. In addition, we offer complete financial accounting services for local companies and it is also possible to use our office address when founding a company. For permanent establishments we provide additionally financial statements and services that are necessary once a year. In direction of Germany we offer company foundation and tax services through our German business partner. Also if you need information about German companies, we can help you with excerpts from the German commercial register.

Vadim Samson, Head of Finance at the German-Baltic Chamber of Commerce (AHK)

The customer is always no. 1 for us.

Our strength is expertise and experience both in the Baltic states and with German companies. in every Baltic country, who have more than 10 years of experience in this field. Our customers are very satisfied, and I hardly know of any complaints.

One of the advantages is that we can serve our customers in German as well as in English. Our finance team also regularly participates in educational workshops – twice a year. This way we stay up to date with all changes in fiscal law. We also have an excellent database of lawyers, which we can use when it comes to more complex legal issues.

What is your customer profile?

The customers are mainly German companies operating in the Baltic states. We also have branches of German companies such as Siemens and Bosch, whose parent company is in Sweden.

But we also have enquiries from other foreign English speaking customers working in the Baltics. We gladly help the English speaking companies too, but at the moment majority PLEASE CONTACT US FOR of our customers are FURTHER INFORMATION: German companies.

Photo: Publicity photo

What makes the AHK a particularly competent partner for fiscal services?

We have expertise and experience both in the Baltic states and with German companies. We have employees in the fiscal department

Vadim Samson Head of Finance, Customer Accounting, Fiscal Service at AHK Tallinn, Estonia +372 6276 943 Vadim.Samson@ahk-balt.org Ieva Mālmane Fiscal service, customer accounting at AHK Riga, Latvia +371 67350528 Ieva.Malmane@ahk-balt.org Vida Sirutienė Fiscal service, customer accounting at AHK Vilnius, Lithuania +370 5 263 9115 Vida.Sirutiene@ahk-balt.org

Characterise the AHK Finance Team please? How many employees are there?

We have two employees in each of the Baltic states. So we are not many in number but we are professional and fast.

We adhere to all tax laws and give good information to the German companies.

It is no secret that there are certain

differences between Germany and the Baltic countries in the tax field, so an explanation is necessary and we are happy to do that. If someone from our finance team is absent, another colleague always takes over. This ensures that we are always there for our clients.

Did the demand for AHK financial services change during the Covid period?

During the Covid period, we did not get any new clients in the payroll area, which is understandable as Covid influences travel and hardly any new representative offices have been opened. But in the case of VAT accounting, we have new clients even in these times because goods and services are still moving. Online shops have also become very active, and their business has grown a lot this year.

What helps the AHK Finance Team to cope with the challenges?

Customer satisfaction and professional know-how is always no. 1 for us.

The customer is king and we do everything they want as long as it remains within the legal framework.

70 | EVENTS Photo: AHK

AHK adapts to changing circumstances AHK events continue to adapt to the new reality. Live meetings — hybrid or fully virtual — depend on the current situation and restrictions.

AHK has been working hard to improve the quality of the membership experience and offered various “Members Meetings” in all three Baltic countries this autumn.

On 8 October, Piret Mürk-Dubout, a member of the Tallink Group Management Board, gave our members exciting insights into the complex decisions and strategies of the Estonian company and explained which challenges the tourism sector is currently facing. Afterwards, all guests were able to share their own experiences during the crisis over an excellent meal at Allee Restoran.

Morning coffee with Viktor Voroncov, CEO, Layher Baltic UAB (from right) and Dominic Otto, AHK Deputy Executive Director

On 20 October, our “Security in the physical and virtual world” luncheon took place in the Restoran Korsten Kitchen, where KAPO Director General Arnold Sinisalu gave a presentation on the different kinds of threats to Estonia’s national security that are emerging in today’s world.

We have also introduced a new event formatMorning coffee with a CEO. It’s an informal 30-minute conversation with one of our member-company executives over a cup of coffee. The topics of conversation are diverse - social responsibility, experiences in leading a German company, intercultural differences, business challenges and personal leadership of managers. The first CEO who participated in our morning coffee on 08.10.2020 was Viktor Voroncov, Layher Baltic UAB. The interview was conducted in English by AHK Deputy Executive Director Dominic Otto and other members of the AHK had the opportunity to ask questions.

“The Digital Euro” was our topic at our gettogether on 29 October. Rainer Olt, Head of the Payment and Settlement Systems Department at Eesti Pank, and Luukas Ilves, Strategy Manager at Guardtime, spoke about digital currency technologies and interesting research projects in the field of digitizing the euro.

On 29 October, the Members Meeting with the Transport Minister of Latvia Tālis Linkaits was held digitally. Nevertheless, our members displayed great interest in this meeting and hot topics such as the future of ports, railway plans, the national airline airBaltic and road development were explained in detail. LM

Luncheon with KAPO Director General Arnold Sinisalu

EVENTS | 71

Get-together with Rainer Olt, Head of the Payment and Settlement Systems Department at Eesti Pank

Tālis Linkaits, Transport Minister of Latvia

Florian Schröder, CEO, German- Baltic Chamber of Commerce (AHK) Luncheon with Piret Mürk- Dubout, a member of the Tallink Group Management Board

72 | EVENTS Photo: AHK, the German Embassy in Vilnius

Conference “Together for Europe’s Recovery” On September 9th, 2020, the Conference “Together for Europe’s Recovery” took place in the Presidential Palace in Vinius and was livestreamed on Zoom and Youtube. Organizer of the conference was the German Embassy in Lithuania in cooperation with the German-Baltic Chamber of Commerce (AHK) and other partners. The conference was opened with speeches by H. E. Gitanas Nausėda, the President of the Republic of Lithuania, and H.E. Matthias Sonn, the German Ambassador in Lithuania. The President emphasized the great hopes he was placing on the German EU Council Presidency and added that he would like to see greater cohesion between the EU member states in order to better recover from the effects of the pandemic. The second panel discussion of the conference the topic of “Digitalization as a driver for the green economy and sustainable recovery” was hosted by Dominic Otto, deputy general manager of the GermanBaltic Chamber of Commerce. The guests, among those Marius Skuodis, the Vice Minister of Economy and Innovation, and Stefan Schnorr, the Head of the Digital and Innovation Policy Department at the Federal Ministry of Economy and Energy, Kęstutis Kasakaitis, the Country Sales Manager at SAP Lithuania and Ruslan Sklepovič, CEO at Green Genius UAB, discussed topics such as digitization, sustainability, climate change and lessons learned from the pandemic. EE

Gitanas Nausėda, the President of the Republic of Lithuania

Matthias Sonn, the German Ambassador in Lithuania

Dominic Otto, Deputy Executive Director at AHK hosted the discussion about digitization and green economy

EVENTS | 73 Photo: Artūras Žukas

A new generation of technologies — making Industry 4.0 real Our yearly conference “Making Industry 4.0 Real” about smart manufacturing and digitization was held on 27 October in the Zalgiris Arena of Kaunas. It was also simultaneously livestreamed for all interested parties. Organizers were the German Baltic Chamber of Commerce with its partners, Lithuanian engineering industries association LINPRA and ICT Industry Association INFOBALT. This year’s conference was sponsored by the Ministry of Economy and Innovation of the Republic of Lithuania and the municipality of Kaunas.

During the first part of the program, our AHK members and sponsors of the conference SAP, Phoenix Contact, and Mikron provided the audience with interesting insights from European and local perspectives followed by lively discussions about Lithuanian outlooks in terms of digitization and several specialized talks about the adaptation of fourth generation technologies.

In the afternoon, the Deputy General Manager of the German-Baltic Chamber of Commerce Dominic Otto presented the “Industry 4.0 Star of 2020” award. This year, 24 Lithuanian companies had participated in the competition, which used intelligent solutions and technologies in production processes to improve production and operational processes and develop innovative products.

In the category of large companies “Industry 4.0 Star of 2020”, the telecommunications and Internet-of-Things company Teltonika was rewarded. Among small and mediumsized companies, the IT company Baltic Amadeus received an award, while the public choice award went to 3D Creative, a company providing three-dimensional scanning and printing solutions.

We would like to thank our sponsors SAP, Phoenix Contact, Lenovo TeamViewer, Mikron, Proact, Columbus, doclogíx, INRE, Novigo, AIVA, BCT. We also want to extend our gratitude to all guest speakers, presenters and members who attended the conference, as well as the Zalgiris Arena in Kaunas as host of our conference. EE

The IT company Baltic Amadeus received an award among small and mediumsized companies

74 | EVENTS Photo: Wilhelm Felk

Virtual conference on renewable energy Eight German companies, several speakers from the world of politics, a skilful moderator and one of the future’s major topics: renewable energy. This was the cast of our virtual conference that initiated the digital business trip to Latvia and Estonia. In cooperation with the German Federal Ministry for Economic Affairs and Energy and the German export-supporting initiative energiewaechter GmbH, German-Baltic Chamber of Commerce (AHK) organized online meetings between German companies from the renewable energy sector and potential business partners in Latvia and Estonia from 13 to 30 October. Our aim was to tighten the economic bond between German and Baltic companies, especially in difficult times like nowadays, and to contribute to the important question of how to handle upcoming energy problems.

The virtual conference, which marked the business trip’s beginning and was openly accessible, offered a brief outlook on the current situation of the renewable sector in Europe. It also offered some interesting insights into the state-of-the-art technology of German companies, including solar funnels and ultrasound reactors.

We hope to have helped establish new business relations that will tackle future energy problems and we are looking forward to doing it again! WF

Aet Bergmann, the Regional President of AHK in Estonia

Oskars Priede, the moderator of the virtual conference

EVENTS | 75 Photo: AHK

Apples from our hands into yours In these times you learn to see many things with different eyes. Many things that used to be taken for granted, such as office work and events that recur from year to year, now need to be rethought. And that’s a good thing because it promotes creativity. We, the AHK-team in Latvia, started to think about Christmas presents for our AHK members back in September.

We wanted to offer something special and healthy this year. That’s why we all on went to the “Rīvēni” farm one Friday in the Vidzeme region and spent the whole working day collecting apples so we can give them to our members in winter together with our best wishes. From our hands to yours, as a note of thanks for the trust and successful cooperation! LM

76 | T R AV E L

Travel and taste: Baltic culinary routes Baltic cuisine has something to suit every palate. Sampling the flavours of Estonia, Latvia and Lithuania is a pleasure for both the eyes and the stomach. Take a plunge into the local cuisine and taste it – on special culinary routes that present the extensive culinary heritage of the Baltics.

by ALEXANDER WELSCHER

e

stonian, Latvian and Lithuanian food is a mirror of the pure nature of the Baltics: the countryside, meadows, forests and bodies of water. Nature has been the main source of food and natural ingredients for centuries and in all seasons – with each of the four seasons offering specific products, unique flavours and tasty treats.

Although the cuisine has evolved and changed throughout time, the distinct seasonality and the eating habits have not changed much. People from the Baltics like to know where their food comes from and prefer pure, fresh and seasonal produce. Nowadays, they often still use traditional techniques for their preparation, while the recipes passed down from generation to generation have been adapted to make the structure of dishes lighter and more suitable to contemporary taste palates.

As with the culture of the Baltic countries, traditional and modern food has been infused with influences from neighbouring countries. Historically, traces of Scandinavian, Russian and German cooking can be found in the local cuisine but also other modern mainstream international influences, such as the French nouvelle cuisine, have found their way into the regional kitchen.

Each of the Baltic states has its own special dishes and ingredients, and there are regions within them where people prepare traditional food and meals that differ in character and content from other regions in the country.

Find out about Baltic cuisine on culinary routes that will allow you to learn about the extensive culinary heritage and taste local products and foods. Baltic Business Quarterly provides you with a selection of available options that turn your journey into a very tasty and stomach-filling one.

Lithuania on a plate The hostess with Latvian rye bread

Lithuania Travel has released a set of gastronomic maps to allow people to discover enticing flavours and taste the authentic national cuisine of Lithuania. Embark on a journey to gastronomic locations in various regions and cities across the biggest Baltic state with the map of Lithuanian flavours. The participating venues are marked with the national menu label and will be offering the 15 most popular Lithuanian dishes that were selected with the help of experts and over 10,000 Lithuanians taking part in a poll.

Number one on the list and voted as the most Lithuanian dish is šaltibarščiai. The cold pink soup is traditionally made by mixing kefir with pickled beetroot, spring onions, cucumbers, dill, eggs and potatoes on the side or inside. Nowadays, šaltibarščiai comes in many varieties and hues. More than 30 different takes from restaurants across Lithuania can be found on a map published by Lithuania Travel. It includes deviations from the cold beetroot norms that range from ice cream to boiled crawfish tails and raspberry beer.

For taste-hunters with an adventurous tongue, the tourism agency also released a map listing the most unexpected ice cream flavours offered across the country. Some of

T R AV E L | 77

Food straight from nature and out of the wilderness In Estonia, there are several options to go straight to the source of local food ingredients and taste true flavours right from where they originate. Pluck herbs used for tea blends, health treatment and diverse foods, and learn more about growing and processing local herbs on the study and health trail of the Energy farm (Energia talu) or in the sample gardens of the Tamme farm (Tamme talu). Other rural tourism enterprises offer fishing trips combined with a cooking class for the freshly picked and caught ingredients as well treks into the forest in search of wild berries and mushrooms. Taste and pick them while exploring the swamps and forests on guided walks in the Soomaa National Park. The excursion includes a delicious meal at the end of the day prepared with the produce picked throughout the tour. Different ways of preserving berries and mushrooms are also explored. Those less keen on collecting their own food in the woods can also simply order an outdoor gastronomic experience at the Forest Restaurant (Elamustoitlustus Metsarestoranis).

Photo: Liepaja region Tourism information centre, Karl Ander Adami

the quirkier flavours on the cold dessert locator include smoked mackerel, pine needle, cucumber and linden honey with dill oil. Not missing in the list of flavours is, of course, also beetroot – the main ingredient of šaltibarščiai.

History right on the table In 2018, Latvia and Estonia celebrated the 100th anniversary of their independence. However, many centuries ago, most parts of both countries made up a unified country: Livonia.

The Flavours of Livonia culinary route offers a chance to go back in history. Take a taste trip of Livonian cooking in around 250 spots along the route – taverns, restaurants, lodging houses and farmsteads. There are also special tourist routes that combine culinary experiences with attractive nature sites and nearby places of interest.

Follow the rye grain from the field to the fork Rye bread has always been one of the most important and distinctive parts of Latvia’s culinary heritage. Being a staple of the Latvian diet for centuries, Rudzu maize – as it called in Latvian – has been also included in the Latvian Cultural Canon. Explore the transformation of rye grain into authentic rye bread on the “Rye Road”. This culinary route invites bread lovers on a tour during which they can find out all about this unique comestible in its most authentic and tasty forms. The map lists rural entrepreneurs and farmsteads that make rye bread, using traditional or family recipes perfected from generation to generation, producing various dishes from rye bread or rye flour and serving them to their guests. They are all open to visitors, show how bread is made and invite everyone to get their hands in the dough.

Discover the craft beer scene Craft beer is taking off in Estonia, Latvia and Lithuania, where beer drinkers are increasingly turning their backs on industrial beer and looking for more sophisticated and distinctive beer flavours. Local, small and micro breweries have been springing up all across the Baltics and have started to produce a diverse range of new sorts, styles and tastes. Similar to the mainstream market leaders, they often also offer brewery tours, allowing visitors to learn more about the brewing process and to see the inner workings of the beer they are consuming.

In Latvia, several craft beer brewers have set up the Riga Beer District. Located between the premises of three historical breweries in the hipster district near Miera iela, the Alus kvartāls – as it is called in Latvian – encompasses a number of Latvian small beer producers and pubs presenting the diverse range from their taps and barrels. Guided tours include the tasting of nine different beers with matching snacks.

In an extension of the district tour in the capital, another tasting excursion takes beer enthusiasts to three selected breweries in the Vidzeme region in north-eastern Latvia.

Similar tours are also on offer in Estonia and Lithuania, where tour operators show visitors around breweries, local pubs and bars that serve local brews from all over the countries. Also worth exploring are the ancient brewing traditions in the Biržai region which is also dubbed the Lithuanian beer mecca, and the farmhouse brews that are hand-made on the Estonian islands of Saaremaa, Hiiumaa and Muhu. There is so much on tap in the Baltics!

78 | C H R I S T M A S D I N N E R

Culinary Christmas Wondering what to serve on Christmas Day? Let Latvia’s top chef Mārtiņš Rītiņš help you out with a recipe for an utterly delicious festive dish for the almighty feast that is a star on the menu of his prestigious top-notch restaurant “Vincents” in Riga.

What the chef says: Mārtiņš Rītiņš about his recipe “Venison defines the haute cuisine of Latvia, as it is an aristocratic dish for lovers of purity and the flavour of the forest. It is the hunter’s trophy and tsar’s pride.

From all the wild animals, it is the elk that one will find on the menus of the top Latvian restaurants.

Within the last 10 years, we have seen some of the young chefs and adventuresome diners turn the venison’s future around. Here, I have filleted and crusted this naturally tender, delicate and robust beast with aronia, a favourite berry of wild game. It is the fusion of naturally wild and preserved treasures of our nature.

by ALEXANDER WELSCHER

P

lanning the Christmas dinner menu and searching for a suitable recipe for a delicious holiday meal is always a difficult task – but not this year. Baltic Business Quarterly has approached Latvian celebrity chef Mārtiņš Rītiņš to share one of his glorious recipes for your festive plate. His venison dish makes a superb Christmas main course and serves four persons. “Although this recipe has hearty flavours, it is actually fairly light!”, Rītiņš emphasizes. Bon Appétit and Merry Christmas!

500 gr cleaned elk fillets • 3 stalks of salsify, peeled but with part of the skin left on to look like birch tree bark.

• Cut into 6 cm pieces • 400 ml milk

• • • • • • • • • • • • •

I served this venison dish for France’s President Emmanuel Macron’s State Visit to Latvia on 29 September of this year.

At the end on the meal the President asked me how many Michelin stars Vincent’s restaurant has. The venison dish is now a star on Vincent’s menu.”

Salt and pepper 60 gr unsalted butter 100 gr julienned bacon bits 50 gr brunoise-cut carrots 50 gr brunoise-cut celery root 50 gr brunoise-cut shallots 2 full sprigs of thyme 50 gr morel mushrooms dried 200 gr cooked pearl barley 1 teaspoon sherry vinegar 6 juniper berries 100 ml dry white wine 50 gr dried aronia powder

• • • • • •

20 gr grapeseed oil 2 large kale leaves - blanched 20 gr minced shallots 200 gr venison stock reduction 1 tsp. minced fresh horseradish 1 fresh sage chiffonade

Salsify Simmer the salsify for 10 minutes till tender but still with a bite.

Remove the salsify from the milk.

Puree one third of salsify with milk until smooth - season.

Photo: Mārtiņš Rītiņš, Publicity Photos

Medallions of aronia crusted wild elk - salsify - barley and horseradish - morel infused venison jus

Venison is served on special occasions because it is hard to come by but at Christmas time anyone who has a hunter friend boastfully serves it on Christmas day.

T R AV E L | 79

Remaining salsify; root end sauté with butter until amber brown. Season.

Pearl barley • Cook the bacon bits for a few minutes until the fat has rendered.

• Add the shallot, carrot, and celery root and sauté for a few minutes.

• Add the barley and cook 2 minutes.

• Add the vinegar, season with salt and pepper and thyme.

Venison • Toast the crushed juniper berries in a cast iron pan.

• Add white wine, dried cranberries and sauté until reduced.

• Mash the cranberry mixture roughly and season to taste.

• • • •

Brush the venison with grapeseed oil and season.

Grill over charcoal medium rare.

Cover with cranberry puree and let it rest.

Cut into medallions.

Kale Sweat the shallots in remaining butter, add the torn kale till wilted. Season.

Morels • Soak the morels in minimum amount of water, dry and save the liquid, make sure that there is no grit.

• Sauté in foaming butter - until morels are cooked through and the liquid has evaporated.

Sauce Reduce the venison stock with the morel water - strain - whip in some cubes of butter and grated horseradish to thicken and glaze.

Assembly • Arrange salsify puree and stock reduction in swishes along the plate.

• Place barley and kale at the centre of plate.

• Place medallions on barley and pour some reduction on one side of the medallions.

• Place salsify around the venison, garnish with morels and chiffonade of sage.

The nights are getting longer, it is cold outside, and Christmas is just around the corner. How better to spend this time of the year than with a fabulous dinner. The restaurant Tchaikovsky is located in the classy Hotel Telegraaf, which is also an AHK member.

by LOUISA NIERMANN

Christmas Dinner in Tallinn

T

he Tchaikovsky restaurant was established in 2007 when Hotel Telegraaf first opened its doors in the historical old town of Tallinn. This restaurant presents a bold, modern meeting of French tastes, Russian traditions, and Estonian ingredients. When you step inside the restaurant, you will notice that the interior design reflects Tchaikovsky’s most famous ballet – Swan Lake. The elegant and luxurious feel is enhanced by the beautiful gold-framed paintings and the crystal chandelier hanging from the ceiling. Great importance is given to details when it comes to the food and the interior design. The restaurant is also known for its excellent and personalised service.

They have paired the seared scallops with pickled pumpkin because it is one of the most important ingredients for winter.

The pumpkin brings a hint of Christmas

to the dish, while the sweetness of the scallops perfectly balances the flavours.

Seared scallops go well with the wine Grüner Veltliner Federspiel Ried “Kreutles”, Emmerich Knoll. The acidity of the wine nicely matches the buttery structure of the Hollandaise sauce, and the minerality works well with the scallops.

For dessert, the chef recommends the Apple Tart with Cardamom Ice Cream - the beloved spice of Christmas.

The Executive Chef of the restaurant Denis Golik has worked at the Tchaikovsky restaurant for 10 years. His previous job was at the restaurant Egoist, where he met the former Executive Chef of Tchaikovsky Vladislav Djatsuk, who worked closely with Denis and invited him to be a part of the team. Denis also perfected his skills in Finland where he worked at the Michelin-starred restaurant Ollo.

80 | D R I N K S

by ALEXANDER WELSCHER

Baltic fields, meadows and forests may not bear mangos, papaya or pineapples, but they are home to other tasty local fruits and berries.

And a special tree that swells with a healthy elixir in early spring. All of them provide the raw materials for simple, organic and natural drinks that are hugely popular in the Baltics and also enjoyed abroad.

r

arely has there been such unanimity among the panel of investors in the German business casting TV show “Die Höhle der Löwen”[“The Lion’s Den”]. “You are an entrepreneur in the classic sense of the word”, is how finance tycoon Carsten Maschmeyer praised the pitch of the Estonian founder Anne-Liis Theisen. Sales expert Ralf Dümmel also applauded: “A very, very strong performance! One with an asterisk.” In the popular show aired on the TV channel Vox, in which entrepreneurs have to present and promote their business ideas to five prominent investors, Theisen was looking for a cash injection in her start-up ÖselBirch. She pitched for an investment of €60,000 in return for a 20% stake in her family business on Estonia’s biggest island Saaremaa – formerly also known as Ösel. ÖselBirch produces refreshing drinks based on a fermented juice that is well-known in Estonia and the Baltics, but many in Germany have never heard of: birch water.

The drinks are inspired by the tradition of Theisen’s grandmother that saw her head into the woods of Saaremaa every year in early spring to tap and collect the slightly sweet

sap from the tree and ferment the juice to preserve it for a longer time. “So we always had something healthy to drink in the summer”, Theisen told the German audience during her appearance on the show, adding that it is not pasteurized, yet is preservative-free and contains only natural traces of sugar.

Turning birch sap into business

This delicately sweet liquid from her childhood has now become the life­ blood of Theisen’s business. Together with her two sisters and her older brother, she founded ÖselBirch in 2016 and started production in July 2017 – after a successful crowdfunding project on Kickstarter.

The range of drinks the family startup rolled out included the naturally fermented birch water based on their grandmother’s traditional recipe and different flavours like rhubarb, aronia, sea buckthorn and mojito.

Even in Estonia, where birch sap and the tapping process are a national pastime, these fermented variants were fairly new but trying out the market proved to be successful – one sort was even served at the official reception of the Estonian president for the country’s 100th anniversary.

In neighbouring Latvia, Linards Liberts has similarly revamped the rather archaic image of birch sap that has been one of the most popular drinks in the Baltic state for centuries. For a long time, it was only sold in plastic bottles at markets and roadside stalls, but the tree tapper has put the production and marketing of birch juice on a new level.

Liberts started his family business in the central Latvian town of Ikšķile in 2010, using the extracted raw material from behind the white bark of around 200 birch trees close to his small organic farm. On sightseeing tours to his birch juice and wine cellar you can taste the sap not only in its fresh natural form, but also converted into more unique and elegantly bottled drinks like fermented birch sap lemonade with a hint of peppermint, still and sparkling wines, mulled wine and even a grappa-like schnapps.

“Birch sap is one of the freshest and purest drinks on earth. There are so many uses for it – that is why I love it so much!”, Liberts explains enthusiastically in his cellar stacked full of his birch juice products. The innovative sap driller is especially proud of his flagship produce: sparkling wine that is made directly in the bottle according to the Méthode Champenoise – the classic Champagne production method. Rows and rows of bottles are thus going through their round of second fermentation under the vaulted ceiling of the cellar that Liberts recently extended into a successful winery. It takes about two years to get the final product that is sold only in small volumes but at a premium price.

Distributed both in Latvia and abroad,

Photo: Linards Liberts

Straight from nature

D R I N K S | 81

Linards Liberts with birch sap that has been one of the most popular drinks in the Baltic States for centuries

the organic sparkling birch sap wine has already gained international attraction and a good reputation.

Fine wine made in the Baltics

Back then, Liberts was the first person to register a birch juice winery in Latvia. Now there are several producers that share the shelves in liquor stores and supermarkets with other locally produced wines made from berries and fruits. Baltic winemakers in recent years have successfully experimented with the local flora – and the results are fresh, aromatic and definitely out of the ordinary. Some of the producers, such Tori Siidritalu (Estonia),

Abavas Winery (Latvia) and Gintaro Sino (Lithuania), have already been recognised or even awarded at international competitions.

“We are doing quite good things with apples: ciders, sparkling wine, and also some apple wines”, says someone who also knows what he is talking about: Raimonds Tomsons is one of the top wine experts in the Baltics and was recognized as Europe’s best sommelier in 2017.

He sees a growing and dynamic domestic market for wines made in the Baltics which he considers great accompaniments to local products and dishes, but could also be matched very well with other delicacies.

Besides apples, dandelions, rhubarb, primrose, rowan and blackcurrant, strawberries and blueberries are also used for winemaking in the Baltics. What’s more, some wineries cultivate grapes but the problem often lies in the quantity. “Making wine in the Baltics is still a big and resource-intensive challenge due to our rather cool climate with a short growing season. Still, we have some good producers here that are trying their very best”, is how Tomsons acknowledges the efforts of the winemakers in his home country Latvia and the other two Baltic countries.

Even though he finds it difficult to compare Baltic wines with other ones from traditional wineproducing countries, Tomsons sees the trend toward producing local wines positively. “We have to be happy that there are some enthusiastic and passionate people who are making wine in the Baltics”, the wine expert says. “I think this is very good for our guests and tourists.”

Many wineries offer tours of their manufacturing facilities that usually include a degustation in a tasting room and an opportunity to purchase wines. The same goes for the numerous micro-breweries that have been flourishing across the Baltics, offering a large variety of craft beers. If you cannot get there, you can also try the beverages in restaurants serving local food or buy them at food markets and department stores in the capitals.

82 | D R I N K S

Top sommelier and wine expert: Raimonds Tomsons

Everything organic, bio, eco and natural is in demand

For achieving a greater variety of flavours, different fruits and berries are often combined to supplement each other. Or they are pressed and immediately turned into healthy, non-alcoholic alternatives that have increasingly gained a foothold in Estonia, Latvia and Lithuania. Changing lifestyles and altering consumption habits have led to a shift in demand from soft carbonated drinks with high sugar content, artificial colouring, additives and flavourings towards biologically certified natural fruit juices and functional beverages with varied health benefits, such as immuneboosting properties or positive effects on the digestion and metabolism.

This trend can be observed in the dairy product shelves and beverages sections of specialised shops and

mainstream supermarkets across the Baltics. Over the past years, fermented milk products with lactobacillus or bifidobacteria have become widely available and are placed in the store fridges right next to traditional products, such as the ever-popular kefir – a fermented milk drink made with kefir grains.

Rich in calcium and probiotics, kefir was one of the staples in Soviet times too. It used to be drunk pure or with added seasoning and is also available in new flavoured varieties.

Many new and established producers have launched pure and mixed regional, seasonal and ecological beverages, aimed mainly at a young, health-aware and trendconscious clientele that is ready to pay a premium for the various functional advantages. “Staying natural is our key core value”,

states the website of the Latvian berry growing and processing company Very Berry, which produces 100% pure juices in glass bottles. Taarapõllu Talu (Estonia) and Mana (Lituania) have also taken similar approaches in the neighbouring countries. Their entire product range is made from organic raw materials and this is reflected in their packaging design, market communications and price tag.

Supporters of a healthy and natural lifestyle are also targeted by juice and smoothie bars that have popped up on city streets and in shopping malls. Freshly squeezed juices are now directly available from machines in supermarkets, fuel stations and convenience stores across the Baltics. “We will make sure that you do not run out of vitamins” reads one of the many adverts from the convenience store operator Narvesen.

D R I N K S | 83

Photo: TVNOW / Bernd-Michael Maurer, Raimonds Tomsons

The older generation in Estonia, Latvia and Lithuania might only have a weary smile for this claim and the overall trend, as many people, like the grandmother of ÖselBirch founder Theisen, still make their own juice at home anyway. Either used fresh or stored in countless glass jars in the pantry or basement, they have always used everything that their garden and nature has to offer. This includes herbs that are collected and used to prepare healthy teas for any minor ailments. Or they are simply infused together with garden fruits and berries into plain water from the clean, pristine natural springs – as is done in more and more cafés, bars and restaurants in the Baltics.

Other childhood flavours returning to the tables to replace sparkling drinks include mors made from different kind of berries, as well as biological lemonades and naturals soda without artificial sweeteners or aroma-compounds. Still very popular in the Baltics is a ‘bread drink’ with a distinctive and refreshing taste that is known as kali in Estonia, kvass in Latvia and gira in Lithuania. This summertime favourite is traditionally brewed using fermented rye or black bread and serves as a non-alcoholic alternative to beer. While in Soviet times street vendors pushed carts around and poured the drink from big yellow canisters, nowadays you can find bottled commercial versions in any supermarket.

Small-scale producers have revived authentic brews of this ever-soslightly alcoholic, tangy beverage.

Unique drinks from the ‘future’

Some entrepreneurs have now even started combining the flavours of the meadows and produce organic niche beverages. “We squeeze the juice from fresh berries and make real dried herbal tea – like homemade

tea. And then we mix them together and fill the package”, explains Rolands Briņķis, founder and owner of the Latvian company Dabas Dots.

The long-distance runner had the idea to commercialize the combined drink that he used to mix for himself after races to regain strength because

who wants to add other foreign markets with his organic products.

Anne-Liis Theisen has also now managed to get into German supermarkets – even though it was some way to get there. Despite her acclaimed performance and

ÖselBirch founder Anne-Liis Theisen during her investment pitch in the German TV business casting show “Die Höhle der Löwen”

he did not want to drink store-bought food supplements, as the self-made entrepreneur told Latvian television.

Initially, Briņķis experimented at home, but then worked with specialists at the Latvia University of Agriculture on the recipes and final blends that are made up of mainly Latvian and Nordic flavours. The novel tea drinks without preservatives, concentrates, sugar or taste enhancers are now produced in a small modern factory in Nākotne – a village in the middle of Latvia whose name literally translates into ‘future’ in English. From there, the company’s assortment has already reached the shelves of supermarkets in Germany, where the products are available at more than 300 point of sales.

“We are working with the chains ‘Rewe’, ‘Edeka’, ‘Globus’, Alnatura’ and other large chains”, says Briņķis

professional pitch on the TV show, she left the studio empty-handed.

None of the investors was willing to make a financial commitment since they saw a big risk in the seasonality of the birch juice that can only be tapped for a few weeks in spring.

The family company of Theisen thus might not have as much raw material as needed to scale up the ÖselBirch production and cover the demand, the panel argued.

Appearing in “The Lion’s Den” still fired the turbo for the Estonian startup and generated tremendous interest in the birch juice from Saaremaa. ÖselBirch was able to attract a wide network of partners, went through an accelerator program and has taken its first investors on board.

And despite some ups and-downs and delays due to the corona crisis, it can now be found in selected REWE Süd shops. Sap and tap!

84 | LA W & TA X

By Līva Melbārzde, Louisa Niermann and Eva Eirich

Mix your

Baltic taste The time for gifts has come and local food is always a good idea. For your selection, we offer products from the three Baltic countries for a gift basket.

We have picked out the goods ourselves. We kept in mind that there should be something typical but also less well known from each Baltic country and we refrained from clichés like Riga Black Balsam, sprats and šakotis.

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5 6 7

1.

Stylish and hip lollipops TUTU SPOT lollypop gifts design studio has created and patented an array of products. All natural, hand-made, vegan-friendly, allergen-free and non-GMO. 2.

Herbal Mint Raspberry Tea Enjoy a hot cup of delicious Estonian herbal tea during cold winter days.

This organic Mint Raspberry Tea from Põhjala Teetalu OÜ contains real freeze-dried raspberries and peppermint but no added flavourings.

Nordic black tea 3.

With the aim of emphasizing the

benefits of Northern herbal teas and turning them into a healthy lifestyle trend, PLUKT has created a sustainable, eco-friendly premium tea range.

PLUKT has introduced “Nordic black” tea to the market – a healthy, light and caffeine-free alternative to existing black teas.

Natural healthy cookies 4.

The Beginnings almond cookies are made from almonds, gluten free grains, seeds and berries. Free from food additives, trans fats, GMO and other “wonders” of new food technology.

8

Organic Artisan Honey with 5.

Cranberries Honey from Artisan Honey OÜ with wild berries is a perfect component for cooking Christmas feasts. Nordic folk medicine has always valued lingonberries for their vitamins and, as the berries are freeze-dried, these vitamins are retained.

Honey as family tradition 6.

Beekeeping has accompanied the Grimutų family for many years. Grimutų medus – Grimutų honey comes from the Lithuanian region of Dzūkija and has an exceptional rich and delicate taste.

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Sea buckthorn delight The honey and sea buckthorn dessert from Šerkšno medus has a wonderful sweet and sour taste, bright colour and the highest quality. Stay healthy with the Baltic superfood of sea buckthorns!

Luxury handmade truffles 8.

This CAPS! selection of 16 dark, milk and white chocolate creations showcase the epitome of no-regret indulgence. Each delicious creation captures the surprising flavour of real arctic berries and fruits like chokeberry, blackcurrant, cranberry,

gooseberry, strawberry, rowan berry and apple.

9.

Dandelion root coffee Did you know that some decades ago, people around the Baltic Sea collected dandelion roots and prepared their very own coffee from it? UŽUPIŲ MANUFAKTŪRA is doing it now again.

Find it in many traditional Vilnius oldtown coffee shops.

Organic Buckwheat Products 10.

Tõrvaaugu Mahe Talu OÜ pasta made from buckwheat can be an ideal addition to a tasty Christmas meal and the

LA W & TA X | 85

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PHOTO: PUBLICITY PHOTOS

delicious buckwheat-flower tea helps us to feel warm and cosy on cold winter evenings.

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Organic Blood Sausage As winter approaches, blood sausages in the oven fill Estonian houses with a pleasant smell. These SirLoin OÜ organic blood sausages also started out with such a pleasant scent and are made from Estonian organic barley groats and blood. To provide a bit of juiciness, some lard is added to the sausage.

12.

Oil-free Roasted Fava Beans Pupuchi broad beans are roasted with-

out oil, and sprinkled with salt and natural flavours to perfection. It is a smart addition to your daily diet especially for those who lead an active lifestyle, for a healthy diet and for vegetarians.

13.

Aged apple cheese The recipe of Lithuanian apple cheese is over one hundred years old. It is a wonderful natural dessert from peeled apples and boiled, dried cheese.

14.

Biological bread ZeMaize is a small home bakery which produces biological bread with less

sugar and salt, and no yeast. You can also find gluten-free, flour free and sugar free bread here.

mint aroma intertwined with the scents of dried blackcurrants, quinces and apples that enhance the mood, help you feel happy, create a festive mood and allow you to enjoy the flavours.

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Cold Smoked Elk Meat Elk meat is a typically Estonian dish that is served around Christmas and can be prepared in many different ways. This cold smoked marinated elk meat from LINNAMÄE LIHATÖÖSTUS AS with roasted onions was launched in December 2018 and has gained great popularity since then.

17.

Rock candies with drawings LTD Karamelu Darbnica produces hand-made sweets made from natural ingredients. They are especially proud of the pinecone syrup candy, because that is a true Latvian forest flavour.

16.

Organic Christmas tea Tea from Ecoherbs has a wonderful

18.

Organic Wild Berry Juice A 500 ml bottle of LOOVs organic wild

berry juice contains the juice of 1.1 kg of fresh handpicked and wild-crafted berries from pristine Nordic forests.

LOOVs juices are cold pressed and lightly pasteurized, while no concentrate is used, and no sugar or water is added!

19.

Slow-made chocolate If you search for dark, rough and unpolished chocolate made by a very old processing method, look out for Chocolate Naive. They have several collections of this wonderful dessert.

86 | A H K N E W M E M B E R S

INDUSTRY

LarixWood

Riga Lux Apartments Rīga, Latvia Ilze Lismane +371 29269231 info@ larixwood.lv larixwood.lv

LarixWood SIA is a family-owned wooden packaging processing enterprise located in Riga, Latvia, shipping high quality products worldwide. The main product line is stacking frames for pallets.

Pallet collars in all standard sizes for all pallets, lids, dividers, and other accessories allow our customers to easily organize, store and ship their products.

High quality, a competitive price, timely deliveries and excellent customer service – things to which we, LarixWood SIA and our employees are proud of.

INDUSTRY

SERVICE

VIA-S modular houses Liepāja, Latvia Denijs Jaunzemis +371 29351881 denijs.jaunzemis@via-s.lv www.via-s.lv

Rīga, Latvia Dace Mazurenko +371 29 466 244 dace@ rigaluxapartments.com rigaluxapartments.com RIGA LUX APARTMENTS – fullyserviced accommodation apartments for corporate and individual residence preferences of safe and quality environment, supporting short-term as well long-term business and family travel and living needs. “Home is where you are” – the motto inspiring our dedicated team of professionals. We offer 35 apartment-hotel entities, which customers would call a home in the very heart of Riga city center. Portfolio contains apartments of studio-style open space, 1-bedroom and 2-bedroom apartments with convenient kitchen and quality interior design. Welcome!

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ReloKon

VIA-S houses is a company with more than 17 years of experience in modular house building. The company has brought together leading specialists of building industry to make the construction process easier for our customers - with a goal to turn their ideas to turnkey ready houses. VIA-S houses is providing whole chain service and specializes in providing 100% prefabricated high quality summer and dwelling houses, as well as multi-storey buildings. Over the years, VIA-S houses has gained a stable and reliable supplier reputation in the European market especially in Scandinavia and Germany.

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ReloKon offers full relocation management services. Instead of spending time on resettlement, your employees will focus on work from the very beginning of their move. We will be happy to take care of every step of your employee’s relocation: moving in, settling in, legal & taxes and departure at the end of their stay. Besides, we suggest cultural awareness training to understand the local Lithuanian culture and adapt easier. We are professionals, having extensive experience in the international business environment within different business segments, and we are here to save your valuable time and energy while relocating an employee to Lithuania. ReloKon is a proud member of European Relocation Association (EuRa).

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A H K N E W M E M B E R S | 87

INDUSTRY

SERVICE

Lidl Latvija

AS Spodrība Rīga, Latvija Jakob Josefsson +371 6397 5111 info@lidl.lv www.lidl.lv

The Lidl retail company, as part of the Schwarz Group headquartered in Neckarsulm, is one of the leading companies in the food retail industry in Germany and Europe.

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SIA Lidl Latvija was created in February 2018 and currently concentrates on completing its logistics center in Riga and building a store network across Latvia and Estonia.

INDUSTRY

LT Technologies, UAB Vilnius, Lithuania Giedrius Nomeika + 37052494555 info@ltt.lt www.ltt.lt The main activity of the company is metal processing and production of frames and components from precision tubes. The company has been operating for more than 25 years, more than 90% of its products are exported to Scandinavia, EU countries. The company already uses laser tube cutting, computer-controlled cutting, bending, turning equipment and robot welding. The powder coating used in the company uses an automated paint coating center. Production management and supply chain synchronization are provided by the ERP system. ​LT Technologies applies a quality management system in accordance with the requirements of ISO 9001: 2015 and follows the IWAY standard of customers. With the decision to produce green energy, CO2 emissions were reduced by 61 tonnes due to the company’s operations. That number equates to 1,800 trees planted.

Dobele, Latvia Gatis Vizulis +371 63722311 spodriba@spodriba.lv www.spodriba.lv AS SPODRIBA is one of the largest producers of household chemicals, disinfection products and cosmetics in Latvia. Due to the constant growth of the company over the last 100 years, SPODRIBA has gained extensive experience in the production and development of products and a partnership-based cooperation.

The main focus is on the production of disinfectants and ecological products. In order to ensure a range of high quality and solid products, the company has introduced a number of internationally recognised quality standards: ISO 9001, 14001 and 22716 (GMP). Many ecological products meet the criteria of the “EU Ecolabel”.

INDUSTRY

AV Projektai, MB Vilnius, Lithuania Arūnas Gečiauskas +37062226157 kontakt@pineca.de www.pineca.de AV Projektai is the main company of Pineca Group! Our mission is to deliver prefabricated wooden building solutions whilst providing exceptional customer-oriented service. For more than 20 years we have been supplying wooden structures such as garden houses, log cabins, summer houses, residential houses, wooden garages and carports for well-known brands, resellers and direct customers worldwide. In February 2011 our first online shop for the French market was opened and thanks to the great demand, we were also active on the British market a year later. To continue this success story, we opened our German website pineca.de in 2015. German mentality has set us very high challenges for continuous improvement, so we are ready to growth in other markets as well.

88 | SHOOTING STAR

Organizers of the Gingerbread Mania: Mari-Liis Laanemaa (r) and her husband Pelle Kalmo

by ALEXANDER WELSCHER

Photo: PiparkoogiMaania / Mari-Liis Laanemaa

Mesmerising gingerbread What started out as a one-time Christmas experiment in 2006 turned into one of Estonia’s most popular annual exhibitions: PiparkoogiMaania – Gingerbread Mania – is all about gingerbread and regularly attracts a huge crowd, with a different theme every year. Baltic Business Quarterly talked to Mari-Liis Laanemaa, the woman behind the unusual art exhibition in Tallinn.

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hat is the main idea of Piparkoogimaania?

The main idea is to create an exhibition of art, where everything is made of gingerbread and is created by professional artists. In this way, we want to promote creativity, art and design. And animate people to be creative themselves – especially in the dark and cold winter times.

How did you come up with the idea to use gingerbread?

It was actually a Christmas experiment by a group of artists who had done an exhibition together before and wanted to undertake something together again. But we were all from different areas of art and design, and were looking for something where we would all have the same playing field and challenge.

And suddenly it came to my mind, “Why not do a design exhibition with gingerbread?”

This is how we started.

What were the initial reactions to your idea?

At the beginning, it was very difficult to sell this idea to other artists – it did not really inspire them at first but later it turned out to be an interesting challenge for everyone. We found out that throughout history gingerbread was connected to art and also used for it. So in a way we rediscovered this gingerbread art. But back then, of course, we did not know whether it would work out or not, and we also did not know how people

would react. In the end, it was a huge success. Now, every year the exhibition attracts around 20,000 visitors, which is really a huge amount in Estonia.

How complicated is it to use gingerbread for creating art?

Technically it is quite a challenge. Every year, the artists use around 300 kg of gingerbread dough to create the exhibition. Interestingly, nobody has a baking background and the artists invent different tricks in order to create their art from gingerbread dough, because it is very difficult material to work with. To make and bake big 3D sculptures, you really need a creative mind. Everyone takes a different approach based on their skills, and transfers it to the dough. Now even bakers and confectioners are turning to us to learn more about how to create big objects with gingerbread.

How many artists are participating?

We have around 100 artists participating every year. Most of the time they are the same, but

every year there are a couple of new ones too. They are mostly professionals from different fields, including architects, interior designers, ceramic artists, textile artists, fashion designers and so on. And they are not only from Estonia.

We usually have guests from other countries too – from Finland, Hungary, Poland, Russia, the Czech Republic, but unfortunately not this year.

How do you select the theme of the exhibition?

There are no real criteria. The only thing is that the theme has to excite and inspire people to create something interesting.

It usually suddenly comes to my mind in spring or summer.

This year’s theme is fashion Yes. We have our 15th anniversary this year and that is also the reason why we chose a slightly more glamorous topic. Everybody is so tired of bad news all the time and needs some uplifting, so we hope to add a little spark and hope for a better future with our exhibition.