Latvian dairy firm Food Union has invested in a new plant producing the company’s Karums brand of curd snacks.

The facility is operated by one of Food Union’s subsidiaries, SC Rigas Piena Kombinats, with new production equipment included in the investment. More than 100 workers are now stationed at the factory.

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With a new plant in place in the capital of Riga, the company plans to increase production of curd snacks to meet demand domestically and for export. Under the Karums brand, Food Union also manufactures yogurts, desserts, cream and fresh cheeses and ice cream.  

The new production site is part of the firm’s project, Excellence Center of Fresh Dairy Products, launched in 2018 with a total planned investment of EUR6.25m (US$7.3m).

Food Union allocated EUR2.25m for the construction of the new plant, and EUR3.25m for the purchase of new equipment. The remainder was funnelled into modernisation of its infrastructure.

Normunds Stanevics, the CEO of Food Union Europe, said in a statement: “The story of Karums’ changes began with the need to increase curd snack production capacity due to growing demand. We saw potential in both the further strengthening of the Karums brand in the Baltics, which has now become the home market of Karums, and in export markets, as well as in the development of the curd snacks category in new formats.”

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Curd snacks are consumed in Latvia as a breakfast item and started out in the 1940s before undergoing a name change to Karums in 1993. Food Union is also now implementing a redesign of the packaging.

Food Union claims to be the largest dairy company in Latvia and the business is made up of three units: Rigas Piena Kombinats, Valmieras Piens, and Rigas Piensaimnieks. In 2018, Food Union said it opened two dairy plants in China. The group realised a turnover last year of EUR277m.

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