Latvia grows plenty of rapeseed, but there is a lack of capacity for its further processing. As a result, we export a large amount of rapeseed while simultaneously importing a great deal of rapeseed oil; some of this imported oil is first sent to Estonia for refining, as Latvia lacks the necessary facilities and equipment.

Industry professionals surveyed point out that the volume of rapeseed processing in Latvia is significantly lower than the country's actual rapeseed harvest, and it appears this situation will not change in the near future. In 2022, 355,000 tonnes of rapeseed were harvested, while the processing volume was more than three times lower. It should be noted that in 2022, the volume of rapeseed exports was 342,000 tonnes, which is only 13,000 tonnes less than the harvest gathered the year before. According to several people surveyed, these figures need to be studied in detail, because, on the surface, this implies not only significant stocks in warehouses but also the presence of imported rapeseed. Furthermore, there is a possibility that the rapeseed export volumes from Latvia also 'include' imported rapeseed, which inflates export revenues and improves statistics.

Rapeseed turned into biodiesel

Indulis Stikāns, board member and production director of SIA Bio-Venta, Latvia's largest rapeseed processing company, points out that their rapeseed processing capacity is 100,000 tonnes per year, which is utilised at 90-95%. 'Most of the processed rapeseed is purchased from Latvian farmers; there are times when seeds are imported, especially in spring, when domestic produce is no longer available because it has been exported to other countries,' explains I. Stikāns. He notes that oil (crude) is extracted from the rapeseed using the hot-press method, which can be used for various purposes; the company carries out the cleaning and processing of this into biodiesel. 'Since the mandatory biodiesel blend for diesel fuel was suspended in Latvia for a year and a half, the product was exported. From 2024, the mandatory blend is being restored, which means that, in all likelihood, some of the biodiesel obtained from rapeseed will also be sold on the domestic market,' answers I. Stikāns to the question regarding biodiesel sales markets. He admits that the company is evaluating the idea of producing food-grade (rapeseed) oil, as the firm is also registered as a producer of edible oil, and small volumes are sold for animal feed. 'At present, people cannot use the rapeseed oil produced by the company for food. To do so, refining is required; we do not have such technology, so we can sell to companies that need the relevant product, but the buyers must handle the refining issues,' explains I. Stikāns.

Producing food oil

'Last year we processed 8,000 tonnes of rapeseed; we grow it ourselves and purchase it from Latvian farmers, as well as from EU countries,' explains Sanita Celitane, production manager at SIA Iecavnieks, the largest producer of cold-pressed edible oil in Latvia. She notes that the oil yield is about 35% and it is sold for both food and animal feed purposes. 'Of the amount produced, about 40% is used for food purposes – packaged products for retail chains, the catering sector, and culinary use, as well as being sold for refining in Estonia. After refining, the oil 'returns' and is used in the fish industry, in cooking, the catering sector, and food manufacturing,' describes S. Celitane. As there are no refining plants in Latvia, all refined oil available in the country is imported.

Rapeseed oil in tinned fish

'In the production of tinned fish, we use cold-pressed refined rapeseed oil, which in several criteria is even better than sunflower or medium-quality olive oil in terms of its properties,' explains Arnolds Babris, chairman of the board of the fish canning company A/S Brīvais vilnis. He points out that Latvia is a significant rapeseed grower and there are also rapeseed processors, yet the most significant drawback is the lack of rapeseed oil refining capacity. 'In Latvia, cold-pressed rapeseed oil is taken to a refinery in Estonia, and after processing, it 'returns' and is used, including in the production of tinned fish,' notes A. Babris regarding the 'travels' of rapeseed oil. He stresses that rapeseed oil is rich in omega-3, omega-6, and omega-9 fatty acids, which many people take to improve their health. 'If a refining line were installed in Latvia, cold-pressed unrefined rapeseed oil would not need to be 'shipped' to our northern neighbour, and it would be a benefit for everyone,' responds A. Babris to the question about rapeseed oil refining in Latvia.

Processed in Germany

Ringolds Grāpis, chairman of the board of the cooperative society Jurgensburg Agro, emphasises that there are two larger and several smaller rapeseed processors in Latvia, yet the produce grown by the cooperative's members is primarily exported. 'The members grow a product of organic farming – black mustard seeds, which are exported to Germany, where they are pressed for oil. Of course, they also grow traditional (conventional) rapeseed, which is sold both in Latvia (to wholesalers) and abroad,' describes R. Grāpis regarding the situation in product sales markets. He explains that black mustard is a different relative of rapeseed. 'In organic farming, you cannot use various plant protection products; rapeseed has problems with insects, and it is very difficult to grow without spraying. On the other hand, black mustard flowers a little earlier than rapeseed, it is easier to fight pests, and black mustard seeds are not processed in Latvia, so the only solution is export,' explains R. Grāpis. He reminds that in 2023, prices for both conventional rapeseed and organic black mustard were lower compared to 2022, for example.

Maximum processing in Latvia

Minister for Agriculture Armands Krauze believes that everything grown in Latvia should be processed locally as much as possible, both to increase employment and tax revenue and to boost export income. 'By processing only what we grow annually in Latvia, rather than exporting it in an unprocessed form, export revenues would increase by several billion euros annually,' A. Krauze is convinced. He emphasises that this is a goal to strive for, but everything is not as simple as it looks from the outside. 'Building processing plants requires large investments – several tens or hundreds of millions for just one plant – and even if funding is secured, that could be done, but the second equally important issue is capturing a market for the produced goods, which is also not a quick and easy process. That is precisely why processing capacities in several segments are as they are, and for the most part, with few exceptions, they are aimed at meeting the needs of the domestic market,' explains A. Krauze regarding the current situation. He notes that taking cold-pressed rapeseed oil to Estonia for refining is 'better than nothing', but refining could also be done right here in Latvia.

'At the moment, there are programmes where it is possible to obtain EU structural fund support for the processing of products obtained in Latvia,' the Minister for Agriculture answers the question of whether there are any state support instruments. He hopes that solutions and opportunities will be found so that Latvia has not only rapeseed oil refining equipment but also a pea protein plant, as well as capacity for processing crop and livestock products. As a result, the relevant products would be manufactured in Latvia with much higher added value, rather than manufacturing finished products abroad from Latvian raw materials and then consuming them in Latvia. 'For now, it seems there are wishes and ideas that do not align with the possibilities,' adds A. Krauze.