Financial Aspects of the Economic Activity of the Latvian Fish Processing Sector

Abstract :

Since embargo imposed by Russia and deterioration of the situation in markets, the Latvian fish processing sector has faced difficult times. Due to political situation, fish processing companies had to lose important export channels, which led them to rapid worsening of solvency, and to improve the financial situation production was partly (in separate companies even completely) suspended and also the employees were dismissed for (in)definite period. To acquire new markets and stabilize the situation, the support of the European Maritime and Fisheries Fund and the state was used; it provided an opportunity for companies to participate in several international exhibitions. The progress made at the international exhibitions suggest that the export market is going to stabilise in the future. The aim of the research is to evaluate and reflect the most significant aspects in the Latvian fish processing sector, at the same time providing proposals for improvement of financial stability of enterprises, operating in the sector. On the basis of the available data and selected indicators, the most important aspects in the Latvian fish processing sector related to financial situation were analysed and reflected, paying greater attention to the existing situation in micro, small medium-sized and large enterprises, and simultaneously providing an insight in the need of structural reforms. The information reflected in the research can assist the institutions, entrepreneurs and researchers involved in establishment and implementation of fisheries policy to understand and plan the common policy of the sector more successfully.