Smiltenes piens: growth between traditional tastes and innovation
With over a hundred years of experience, the factory in Smiltene is upholding craftsmanship passed down from generation to generation in producing cheese and dairy products. Today Smiltenes piens is one of the leading cheese producers in Latvia with a steady position among the top 5 dairy processors in the country. The past year has been particularly successful for the company – in 2024, its turnover reached EUR 30.6 million, which is a 13.8% increase over the previous year, and it also showed significant growth in exports. The company bases its growth on two areas: the development of its production and product range, and a well-considered investment policy. Equally important, Smiltenes piens skilfully uses various state support tools in its development, which allows it to modernise processes and strengthen competitiveness in a targeted manner.
In recent years, Smiltenes piens has become one of the most dynamic exporters in the Latvian food industry. In 2024, the company’s exports grew by 43.7% compared to the previous year, reaching 20.3% of total turnover. Currently, Smiltenes piens products are sold in 18 countries around the world, with the main export markets being Italy (29.7%), Poland (23.3%), Israel (13.5%), Moldova (10.7%) and the United States (5.5%). The company’s products can also be found in Estonia, Finland, the Czech Republic, Azerbaijan, the United Kingdom, Canada, Sweden, and elsewhere in the world, proving that dairy products from Vidzeme can successfully conquer both European and overseas markets.
“Each new market is like a small victory for us, proof that Vidzeme can reach the world with high-quality, authentic products. Our main export destination, Italy, is a special story. We are very proud that our products, including cheese, are appreciated in a country with such a long tradition of cheese making,” says Ilze Ābele, spokesperson for Smiltenes piens.
Balance between innovation and tradition
The company’s production capacity is currently up to 120 tons of milk per day, working with 50-60 milk suppliers from the Vidzeme region. All products are made from 100% natural milk, without preservatives, building on more than a century of milk processing traditions. The company manufactures products under its own brand as well as private labels, including in cooperation with retail chains Rimi and Top.
Cheese accounts for the largest share of the company’s product range, at more than 34%. However, Smiltenes piens also boasts a wide range of other dairy products: cottage cheese, cream, kefir, milk, butter, and even cakes. Smiltenes piens is also the only company in Latvia that produces the unique and exclusive Latvijas siers, a cheese with a strong flavour and a distinctive aroma and character.
“Our goal is not just to produce, we want to create products that people like, that remind them of their childhood, but at the same time surprise them with a new taste or form,” Ms Ābele emphasises.
It is precisely this desire to experiment and develop new ideas that has given life to several successful products, including the now customer-favourite Siera kraukšķi (cheese crisps) and Piena spēks, a protein-rich drink popular with athletes and active lifestyle enthusiasts.
Making use of state support
The support provided by the Investment and Development Agency of Latvia (LIAA) has also played a significant role in the company’s development. In 2024, Smiltenes piens applied for the LIAA digitalisation support programme, purchasing a modern MilkoScan fresh milk and dairy product analysis device, which was manufactured and assembled by FOSS specifically for the company’s needs. The cost of the equipment was approximately EUR 92 000, 50% of which was co-financed by the state support programme.
“The previous analysis equipment was outdated and required a lot of manual work. The new technology has reduced analysis time by half and significantly improved the accuracy of the results. This is very important in milk processing where every minute and every percentage point in quality counts,” Ms Ābele explains.
The company is currently implementing two more digitalisation projects in cooperation with LIAA, which aim to improve warehouse processes by introducing technical equipment and software for real-time data exchange and traceability, which will eliminate the need for paper documents and increase work efficiency.
Latvian cottage cheese available as far away as Korea
LIAA support has also helped the company to promote exports by participating in trade missions and international exhibitions. This year, Smiltenes piens participated in a business delegation to Israel led by the Minister of Economics and represented Latvia at the national stand at the ISM Cologne exhibition. Also, this year, with the support of LIAA, company representatives attended the international food industry exhibition Seoul Food 2025 in Korea. It was this trip that opened new opportunities for the company – for the first time, a test batch of frozen cottage cheese was exported from Latvia to Korea, travelling to this distant destination in a container by sea.
“We were pleasantly surprised that there is interest in Latvian products even in countries that are so exotic to us. Thanks to the support of Mārtiņš Baumanis, Head of the LIAA Representative Office in Korea, we were able to establish valuable contacts at the exhibition, which we hope will form the basis for successful export cooperation in the future,” says Ms Ābele.
The company currently employs around 140 people, and the team is growing in line with the company’s ambitions. In the coming years, Smiltenes piens plans to continue investing in expanding its production capacity, innovation, and exports, with a particular focus on sustainable production principles and the introduction of digital solutions.
Information material prepared with the support of the Recovery Fund. The author is solely responsible for the content of this publication. The views expressed herein do not reflect the official position of the European Union or the European Commission.
