Rojas SIA «Banga LTD» is a large employer in the region. Since listing the company’s bonds on the stock exchange Nasdaq Riga Baltic First North in the market, by making investments and increasing production capacity, around 160 employees are currently employed, however, the number could increase in the strategic development plan.
“Banga Ltd” is a manufacturer of sterilized canned fish, whose activity is focused only on the production of canned fish. The five-hectare area contains production buildings, where the full-cycle production process takes place - starting from the storage of raw materials and materials, pre-processing of fish, preparation of products, as well as post-processing – gluing and packaging – preparation of goods for shipment to buyers.
“Portfolio” with a wide range
The business concept of the fish processing company “Banga Ltd” originally envisaged a wide range of products, and this year the product ”portfolio” was supplemented with new products – tuna and salmon salad, smoked herring, smoked mackerel. The company also expanded the requested salmon production in various recipes. “Currently, we have around 60 products and we work with several types of fish raw materials - Baltic Sea raw materials such as sprats and herring, of course, also Atlantic Ocean fish – mackerel and herring. We also have niche products that are relatively in demand – mussels, cod liver, saira and tuna products,” says the company’s sales director Raivis Veckāgans, adding that one of the main products from the basic assortment is the production of canned Atlantic salmon.
“We produce a lot of canned salmon raw materials, but of course we also actively cooperate with our fishermen here in Latvia – in Roja and Ventspils, buying Baltic Sea raw materials from them. However, the fact that the catch limits decrease every year does not contribute to maintaining or even reducing the production cost level, on the contrary – as the price of the main raw material, namely fish, increases, the cost of this production increases, as a result of which we are forced to increase the price of our finished products to customers, and also future forecasts do not indicate anything good,” says R. Veckāgans. This factor is not evaluated positively in the industry as a whole, therefore, in order not to depend on only one type of fish production and to balance costs, a diversification model is being developed within the framework of which fish raw material from Scandinavia, mostly salmon, from Norway and the Faroe Islands in the North Atlantic is used. fish such as mackerel and herring, while mussels are supplied from as far away as South America.
“The strategic direction of our company’s development, if we talk about positioning in the market, is the production of high-quality and healthy canned fish, because more and more people use fish as a healthy product,” said R. Veckāgans. Currently, “Banga” products are sold to more than 40 countries, and this year the company has opened new markets: at the end of South America it is Chile and Colombia, and at the end of Asia - Qatar, the United Arab Emirates and Vietnam. Also, the shipment of goods to traditional markets in Europe and Central Asia, including Georgia, Ukraine and Uzbekistan, where the demand for canned goods has been stable and consistently high, continues to be active. Based on the introduction of new products on the market and the attraction of new partners, the company has also ensured an increase in financial results compared to the previous year. In the six months of 2024, the net turnover amounted to 7.76 million euros, which is 16.2% more than it was in the previous six-month period. R. Veckāgans admits that ”distant markets” are one of the most interesting: “The product is easily transported by sea containers and has a sufficiently long shelf life (2-4 years), compared to food products with a shorter shelf life. We have no distance limitations in the transportation of canned fish – practically any country is within our reach. It is more difficult to trade in “distant markets”, but more interesting, because there we are able to sell the product at relatively better prices, so in the results of six months we counted that 60% of the production is sold outside the European Union».
Manual work that cannot be automated
By making investments and increasing production capacity, the company has also increased the number of employees this year, which is currently around 160 employed people. A positive example of a company is the transportation of employees to and from the company to make the workplace more accessible.
Raivis Veckāgans, director of the sales department, explains that it is important for “Banga” to create jobs so that locals want to work here instead of going abroad for profit. “Our vision of a high-quality and healthy producer of canned fish means that manual work is necessary, because certain types of production, for example, when producing sprats, which are in high demand, require manual work, and there automation is hardly possible. It is not always necessary, because the unique production and packaging technology creates a story that is interesting for the buyer,” said R. Veckāgans.
Various company financing instruments have been used over time
Although the development of the capital market in Latvia is relatively slow and inactive, this market exists, and it was possible to attract financial resources for the development of the company by issuing bonds. Raivis Veckāgans points out that the financial resource is a bit more expensive, but the advantages that the company can get are much more: «We are becoming more accessible in terms of information, because the development of the company can also be followed in the public environment. The listing of bonds on the stock exchange also imposes the obligation to improve the management of the company».
At the moment, the total value of the assets of “Banga Ltd” is already approaching ten million euros, and the funds that the company invests, starting from the first day of operation, both own financing, financing attracted by banks, financing attracted by bonds, as well as active European Union funds the realization of learning in cooperation with the Rural Support Service leads to the potential directions of production efficiency and development. “We are growing, expanding production, and the presence of raw materials is constantly necessary, therefore one of the nearest directions of development is the expansion of a new cold storage and storage space for raw materials. We are also planning to expand the administrative premises. We regularly invest in ecology – in treatment facilities – and in cooperation with the municipal company, we successfully ensure that this treated wastewater is discharged into the centralized system. At the beginning of the year, we asphalted the surfaces of the driving part of the territory, thus ensuring that the territory is more accessible to both employees, customers and cooperation partners,” said R. Veckāgans.
/K. Poriņa photo/
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What strategies has Banga Ltd implemented to overcome challenges in raw material availability for canned fish production?
Title: Navigating the Future of Canned Fish Production – An Interview with Raivis Veckāgans, Sales Director of Banga Ltd
Time.news Editor: Good day, Raivis! Thank you for joining us today. Your company, Banga Ltd, seems to be making waves in the canned fish industry. Can you tell us a little about the journey of Banga Ltd since it was listed on the Nasdaq Riga Baltic First North?
Raivis Veckāgans: Thank you for having me! It’s been an exciting journey for us. Since listing our bonds, we’ve focused on making significant investments to enhance our production capacity. As a result, we’ve grown to employ around 160 individuals, and with our strategic development plan in place, we’re optimistic about increasing that number even further.
Time.news Editor: That’s impressive growth! Banga Ltd specializes in producing sterilized canned fish. What inspired you to focus exclusively on this niche, and how has your product portfolio evolved?
Raivis Veckāgans: Our business concept initially aimed for a comprehensive range of canned fish products. Recently, we’ve expanded our offerings with items like tuna and salmon salad, as well as smoked herring and mackerel. Today, we have around 60 products and source raw materials from both the Baltic Sea and the Atlantic Ocean, including local sprats and herring. This diversification helps us meet market demands more effectively.
Time.news Editor: You mentioned challenges concerning raw material availability and rising costs. How are these factors shaping your operational strategy?
Raivis Veckāgans: Yes, navigating the challenges of decreasing catch limits has been tough. The rising cost of fish as a key raw material forces us to reconsider our production processes. To balance costs, we are developing a diversification model, sourcing fish from Scandinavia and even as far as South America for mussels. Our goal remains to produce high-quality, healthy canned fish while ensuring that we stay resilient against market fluctuations.
Time.news Editor: With Banga Ltd’s products being sold to over 40 countries, how do you approach entering new markets?
Raivis Veckāgans: Entering new markets requires meticulous planning and adaptability. We recently expanded into countries like Chile, Colombia, Qatar, and Vietnam. Canned fish has a long shelf life, allowing us to transport products over long distances efficiently. While it can be challenging to trade in distant markets, the potential for higher prices and broader consumer bases makes it worthwhile.
Time.news Editor: It sounds like Banga Ltd is doing quite well financially! I understand that your net turnover for the first six months of 2024 increased significantly. Can you attribute this growth to specific strategies or market trends?
Raivis Veckāgans: Absolutely. Our growth is largely due to the introduction of new products and attracting new partners. In the first half of 2024, we reported a turnover of 7.76 million euros, a 16.2% increase from the previous year. The demand for healthy products continues to rise, and our commitment to quality has resonated well with consumers.
Time.news Editor: Jobs play a significant role in local communities. How does Banga Ltd ensure that your employment practices are beneficial for the local workforce?
Raivis Veckāgans: That’s an important aspect for us. We strive to create jobs that keep locals from seeking opportunities abroad. Manual labor is essential in our production, particularly for products like sprats, which require a delicate touch. Moreover, we provide transportation for our employees to make it more convenient for them to work with us.
Time.news Editor: That’s great to hear! Lastly, I’d like to touch upon the financial aspect. You mentioned that Banga Ltd has utilized various financing instruments, including issuing bonds. How has this influenced your company’s growth?
Raivis Veckāgans: Listing our bonds has made us more accountable and has significantly improved our visibility in the market. While the cost of such financing can be higher, the benefits include better management protocols and increased public trust. Our total asset value is approaching ten million euros, thanks to the combination of our resources and the support we’ve received from various financial instruments and EU funds.
Time.news Editor: Thank you, Raivis. Banga Ltd’s commitment to quality and community development is inspiring. I look forward to seeing how your company continues to innovate in the canned fish market.
Raivis Veckāgans: Thank you for the opportunity to share our story! We’re excited about the future and committed to making a positive impact both locally and globally.