Severomorsk dairy plant may be completely closed down

Severomorsk dairy plant may be completely closed down

Severomorsk dairy plant may be completely closed down
Severomorsk Dairy Plant JSC (SDP), a well-known producer of milk and cream on the Kola Peninsula, will be closed down. The decision to liquidate the organization in 2022 has already been made by the owner of the company.  The city authorities have so far refused to comment on the situation, advising local journalists to contact the Ministry of Natural Resources.

The alleged closure of the enterprise, which took the leading position in the Murmansk region (about 50% of the volume of whole milk products), was reported by the bloger51 Telegram channel. It is assumed that the owner may try to sell the enterprise to a new investor, but so far it is a question of complete closure.

The information that the production of milk is likely to be curtailed is also confirmed by the insiders from among the deputies of the regional Duma.  One of the MP’s said that there were economic reasons for the decision to withdraw the company from the market.
Growing prices for electricity and livestock feed lead to unnecessary costs, which inevitably affects business results.
According to data from open sources of ‘SDP’ JSC, in 2020, the company's losses amounted to more than 10 million rubles.  The company's revenue over the past year also fell from 719.1 million rubles at the end of 2019 to 624 million rubles by the beginning of 2021.

The company was known in the region under the LATONA brand and produced products of the Latoshka, Latona and Polyarnaya Zvezda brands.  Agricultural enterprises of the Murmansk, Vologda and Leningrad regions acted as suppliers of raw materials for the plant.
The production has existed in Severomorsk since 1973.
The first batch of products was released on October 5, 1973.  Initially, it was only milk, kefir, cottage cheese and sour cream.  Now the company produces more than fifty types of dairy products.

03.12.2021