How Lithuania could aid the Scandinavian agriculture sector?

April 4, 2008 at 11:42 am 1 comment

Nordic FlagsLithuania has always been known for its Agriculture sector.  However, the steep rise of the other sectors left the agriculture sector lagging behind and the sector’s contributions to the national GDP is in constant decline.

Never the less, apparently doomed industry is experiencing a revival.  This process is not confined only to Lithuania; this is the world’s tendency.  The recent grab of the ‘Agrowill Group’ stock in the auction only reveilles that the sector is on the way to recovery.  Especially encouraging sign for the company and for the sector as a whole is that the Scandinavian funds bought about 95% of all shares.

Interestingly enough, the business daily ‘Verslo Zinios’ (owned by the Swedish capital) announced an interesting article.  Minister of the Foreign Affairs, Mr Vaitiekunas paid a visit to Kuwait last month.  He also brought a large delegation of the Lithuanian businessmen with him.

Apparently the representatives of the Lithuanian Agriculture sector had a proposal from the Kuwaiti businessman to replace the Danish agriculture products in Kuwait.  This is of course an aftermath of the caricature scandal in 2005.  As the article claims, the Lithuanians have a great opportunity to replace all Scandinavian products in the Gulf States.  According to the paper the Gulf States imported USD12 bln worth of the agriculture products in 2006, or 98% of all agriculture products.

The Lithuanians are shocked with the proposal and admit that this would be a huge challenge to the sector.  Not the major concern I guess but rather important to the Lithuanians how to not offend our strategic partners! Hence, the Lithuanian businessmen are considering cooperating with their Scandinavian colleagues and becoming an intermediate between the Gulf States and Scandinavia.  The Scandinavians could send their products to Lithuania and the Lithuanians could pack them into the Lithuanian packages and provide the products to the Gulf States!  The wolf is fed and the sheep is intact!

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Entry filed under: Baltic States, Denmark, Economics, Finland, Lithuania, Northern Europe, Norway, Politics, Scandinavia, Sweden.

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1 Comment Add your own

  • 1. Bieksia  |  April 7, 2008 at 7:25 am

    This is quite a dilema for the Lithuanian political machine. It will be intersting to see how this developes. You mentioned the possibility that the Danes might consider shipping their produce to Lithuania and that Lithuania inturn could act as a middle man in the process.
    I’m not so sure that the arabs would accept this. Of course each countrie’s policiies will vary. I am reminded by a freind who held an assistant ministers title in Saudi Arabia. He once told me that from time to time Israeli farmers attempt to sell their produce in arab markets by similar methods. Once discovered the shipments are confiscated and destroyed. Perhaps some arab states will turn ablind eye to such an arrangement in this situation? i have a felling that the powers that be are simply trying to please those who continue to be angered by the Danish incident. (What they don’t know won’t hurt them…)
    Is the Lithuanian Agricultural sector capable of meeting such production demands? More important, how would this affect supply and demand within Lithuania? The last thing any population needs is a suddend rise in the cost of food staples as a result of
    exportation demands.

    Reply

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