Wheat and meslin flour and cereals market in Latvia

Earlier Report Observations

Between 2018 and 2020, the market volume for wheat and meslin flour and cereals in Latvia declined from 125.8 thousand tonnes to 111.6 thousand tonnes, with production falling from 190 thousand tonnes to 170 thousand tonnes. This reduction in output was partly linked to the low adoption of certified seeds, which affected crop yields and production quality. The COVID-19 pandemic in 2020 influenced the entry of new market participants and shifted consumer demand toward healthier grain products, although the overall market size remained stable during that year.

A significant turnaround occurred in 2021, when the market volume jumped to 133.6 thousand tonnes despite steady production. This surge was driven by high wheat prices fueled by strong import demand abroad and adverse weather in key producing countries, which altered trade flows. Simultaneously, the merger of 'Dobeles dzirnavnieks' and 'Rīgas dzirnavnieks' created a dominant player in the wheat and rye flour market, reducing competition and likely affecting export volumes.

From 2022 onward, additional duties on agricultural imports from Russia and Belarus reshaped supply patterns, while grain transit through Latvia multiplied. Production continued to decrease, reaching 125 thousand tonnes in 2023, but the quality of Latvian wheat improved, with protein content rising to 12.8-13%, enhancing the competitiveness of flour. Local millers maintained premium pricing for quality flour, and government support measures helped farmers cope with natural disasters. Import volumes peaked in 2023 at 30.7 thousand tonnes before moderating, reflecting ongoing adjustments in the market structure.

Production wheat and meslin flour and cereals in Latvia

In kind, 2018-2021, K t

Top producers of wheat and meslin flour and cereals, 2018-2021

World map of production of wheat and meslin flour and cereals, 2018-2021

In 2021, Latvia produced 170 K t of wheat and meslin flour and cereals, remaining relatively stable compared to 2020. Over the period from 2018 to 2021, production decreased by 10.5%, with a compound annual growth rate of 3.6%. The lowest production level was recorded in 2020 at 170 K t, while the largest decline occurred in 2020 with a 5.6% drop.

Annual dynamics of production in Latvia in kind, 2018-2021, K t

Exports wheat and meslin flour and cereals from Latvia

Exports in kind, t

Wheat and meslin flour and cereals exports from Latvia declined for the second consecutive year. In 2021, exports totaled 45 011 t, representing a 33.7% decrease year-over-year. Between 2018 and 2021, exports fell by 36.9%, equating to an annualized decline of 14.2%. The highest export volume was recorded in 2019 at 76 700 t, with the largest increase occurring in 2019 at 7.5%.

Annual dynamics of product's exports from Latvia in kind, 2018-2021, t

From 2018 to 2021, Thailand, Lithuania, and Sierra Leone were the leading destinations for Latvia's wheat and meslin flour and cereals exports in kind. Thailand accounted for 19.8% of exports, Lithuania for 18.9%, and Sierra Leone for 14.5%. Together, these three countries represented 53.2% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Latvia in kind, 2018-2021

Exports in value, K $ US

Latvia's wheat and meslin flour and cereals export value declined for the second consecutive year. In 2021, exports amounted to 17 874 K $ US, reflecting a notable decrease of 24.1% compared to the previous year. Over the period from 2018 to 2021, export value decreased by 27.8%, with a compound annual growth rate of 10.3%. The peak value was recorded in 2019 at 25 931 K $ US, with the largest increase occurring in 2019 at 4.7%.

Annual dynamics of product's exports from Latvia in value, 2018-2021, K $ US

Throughout 2018–2021, Lithuania, Thailand, and Sierra Leone remained the key destinations for Latvia's wheat and meslin flour and cereals exports in value terms. Lithuania accounted for 18.4% of export value, Thailand for 18.1%, and Sierra Leone for 13.6%. Collectively, these three countries represented 50.1% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Latvia in value, 2018-2021

Imports wheat and meslin flour and cereals to Latvia

Imports in kind, t

After two years of growth, wheat and meslin flour and cereals imports to Latvia declined. In 2021, imports reached 8 623 t, which is 8.7% lower than in 2020. Over the period from 2018 to 2021, imports increased by 20.4%, with a compound annual growth rate of 6.4%. The highest import volume was recorded in 2020 at 9 449 t, while the largest increase occurred in 2019 at 15.9%.

Annual dynamics of product's imports to Latvia in kind, 2018-2021, t

From 2018 to 2021, Estonia and Lithuania played the leading roles in Latvia's wheat and meslin flour and cereals imports in kind, together accounting for 88.2% of total import flows. The remaining share was distributed among other countries.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Latvia in kind, 2018-2021

Imports in value, K $ US

The value of wheat and meslin flour and cereals imports to Latvia increased for the third consecutive year. In 2021, imports were recorded at 2 979 K $ US, indicating a modest rise of 1.2% compared to the previous year. Between 2018 and 2021, import value grew by 29.3%, equating to an annualized increase of 8.9%.

Annual dynamics of product's imports to Latvia in value, 2018-2021, K $ US

Throughout 2018–2021, the country structure of Latvia's wheat and meslin flour and cereals imports in value terms was dominated by Estonia and Lithuania, which together accounted for 87.3% of total flows. Other markets contributed to the remaining share.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Latvia in value, 2018-2021