The first week has passed since the Cabinet of Ministers of Latvia declared a state of emergency in the country. Laflora has adapted its operations to the new conditions and continues to operate at its usual level, similar to other years in spring season.
The only concern is an international freight transport in Europe, which is currently significantly slowing down. Immediate active action by both the Latvian government and the European Commission is needed to create efficient freight corridors and avoid the disruptions in the economic cycle.
Spring is the time for planting, and peat products are used to plant vegetables, ornamentals and tree seedlings, and are an important part of the food production chain around the world. This explains why, even in this exceptional situation, the number of orders for peat products and the volume of exports are equal to the spring season of other years and have not decreased in both the domestic and export market segments.
Peat products are produced in the usual volume. Orders are received even from the areas most affected by the virus – Italy and China. In order to ensure the execution of orders, the company has significantly strengthened both occupational safety and trade safety measures.
Logistics is the biggest challenge in the execution of orders– freight transport, including freight queues at borders, which significantly slows down the execution of orders and thus the movement of goods.
All employees of the company are currently employed, and there are no plans to reduce their number. The company employs 242 people; and they will be joined by about 180 more people in the peat extraction season from April to October. Mainly they are residents of Jelgava and Jelgava region. Laflora particularly closely monitors the health of its employees, and instructs them to take all precautions set by the Center for Disease Prevention and Control, to prevent the potential risks of quarantine and downtime. Therefore, we also encourage customers to understand the appropriate security measures. As demonstrated by this state of emergency, the peat sector is a sustainable, self-sufficient and viable sector that plays a key role in the global food production chain. However, the government should, if necessary, support the peat extraction and processing industry with working capital protection in case of delays in settlements with international customers. Laflora strongly supports the precautionary measures announced by the State, with the conviction that human is in the first place in any situation, but at the same time serious consideration must be given to preserving the economy.
