Required Report - public distribution

**Date:** 1/24/2006

**GAIN Report Number:** LH6001

LH6001

**Lithuania**

**Exporter Guide**

**Lithuania Exporter Guide**

**2005**

**Approved by:**

![](media/image1.wmf)Charles Rush

US Embassy

**Prepared by:**

International Business Network, Vilnius, Lithuania

**Report Highlights:**

In recent years Lithuania\'s economy has been one of the fastest growing
in Central and Eastern Europe. The private sector accounts for more than
80 percent of the gross domestic product (GDP). The retail and food
sectors were among those with the highest growth in part due to European
Union (EU) accession.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Warsaw \[PL1\]

\[LH\]

Table of Contents

[Market Overview 3](#market-overview)

[Lithuania Agricultural Trade 6](#lithuania-agricultural-trade)

[Country Group 9](#country-group)

[Third countries 9](#third-countries)

[Market indicators: 11](#market-indicators)

[Supplier Strengths / Weaknesses -- Market Opportunities and Competitive
Threats
12](#supplier-strengths-weaknesses-market-opportunities-and-competitive-threats)

[Food Sector Structure 13](#food-sector-structure)

[Local Business Customs/Practices 13](#local-business-customspractices)

[Consumer Tastes and Preferences 14](#consumer-tastes-and-preferences)

[Labeling Requirements 14](#labeling-requirements)

[Food Additives Regulations 15](#food-additives-regulations)

[Market Sector Structure and Trends
16](#market-sector-structure-and-trends)

[Wholesale and Retail Sector 16](#wholesale-and-retail-sector)

[Hotel, Restaurant and Institutional Sector
18](#hotel-restaurant-and-institutional-sector)

[Key Contacts and Further Information
20](#key-contacts-and-further-information)

[Lithuanian State Institutions, Associations, Chamber of Commerce
20](#lithuanian-state-institutions-associations-chamber-of-commerce)

[Main Lithuanian Food and Agricultural Sector Companies
22](#main-lithuanian-food-and-agricultural-sector-companies)

[Trade Fairs in Lithuania 24](#trade-fairs-in-lithuania)

[Appendix 1. Statistics 25](#appendix-1.-statistics)

[Key Trade and Demographic Information
25](#key-trade-and-demographic-information)

[Employment by Economic Sector 26](#employment-by-economic-sector)

[Household consumption expenditures (percent)
27](#household-consumption-expenditures-percent)

[Average annual retail prices for main foodstuffs (\$ per kilo)
27](#average-annual-retail-prices-for-main-foodstuffs-per-kilo)

[Producer price indices of agricultural products (2001-2003)
28](#producer-price-indices-of-agricultural-products-2001-2003)

[Producer prices of crop products (\$ per ton)
28](#producer-prices-of-crop-products-per-ton)

[Consumption of main foodstuffs per capita (kilograms)
29](#consumption-of-main-foodstuffs-per-capita-kilograms)

[Foodstuffs and agricultural products exports and imports
30](#foodstuffs-and-agricultural-products-exports-and-imports)

[Trade between Lithuania and USA; 32](#trade-between-lithuania-and-usa)

[Foreign Trade in Agricultural and Food Products in 2004
34](#foreign-trade-in-agricultural-and-food-products-in-2004)

#  Market Overview

Lithuania's economy has shown robust growth in recent years and has not
been hindered by the economic slowdown plaguing EU-15 countries. It has
successfully recovered from the Russian economic crisis of 1998 and is
among the fastest growing economies in Central and Eastern Europe. The
private sector now produces about 80 percent of Lithuania's GDP.

Lithuania's GDP grew 8 percent in the second quarter of 2005 compared
with the same period of 2004. In 2003 Lithuania's GDP edged up a
dramatic 9.7 percent, the fourth most robust in the world, only
Tajikistan, Armenia and Kazakhstan posted higher GDP growth.

**Economic Indicators**

  -------------- --------- -------- --------- -------- --------- -------- --------- ---------
  Indicator      2001      Annual   2002      Annual   2003      Annual   2004      *Annual
                           change             change             change             change
                           (%)                (%)                (%)                (%)*

  Real GDP                 6.4                6.8                9.7                *6.7*

  Nominal GDP    17,035    6.3      18,184    6.7      19,781    8.8      21,795    *10.2*
  (billion \$)                                                                      

                                                                                    

  Exports of     8,515     18.3     9,652     13.4     10,254    6.2      11,491    *12.1*
  Goods and                                                                         
  Services                                                                          
  (billion \$)                                                                      

                                                                                    

  Imports of     9,433     14.8     10,666    13.1     11,399    6.9      12,862    *12.8*
  Goods and                                                                         
  Services                                                                          
  (billion \$)                                                                      

                                                                                    

  Current        4.7                5.2                6.9                7.2       
  Account                                                                           
  Deficit (% of                                                                     
  GDP)                                                                              

  Inflation (%)  2.0                -1.0               -1.3               2.9       

  Average        383       1.3      403       5.3      425       5.5      461       *8.5*
  Monthly                                                                           
  Earnings (\$)                                                                     

  Unemployment   17.4               13.8               12.4               11.4      
  Rate (%)                                                                          

  Average        8.13               6.08               5.07               5.64      
  interest rates                                                                    
  on loans                                                                          

  Loan portfolio 2,290     26.3     2,793     22       4,260     52.5     5,950     *39.7*
  of commercial                                                                     
  banks (billion                                                                    
  \$)                                                                               

  *Deposits and  *3,668*   *21.2*   *4,112*   *12.1*   *4,780*   *16.2*   *6,289*   *31.6*
  Letters of                                                                        
  Credit*                                                                           
  -------------- --------- -------- --------- -------- --------- -------- --------- ---------

Lithuania's economy stabilized when the Lita was pegged to the Dollar in
1994 at a rate of \$1 = 4 Litas, and later, in February 2002 by
re-pegging the Lita to the Euro at 1 Euro = 3.4 Litas. This change is
credited with attracting foreign investments into manufacturing, energy,
the food industry, services sector, and other sectors of the economy.

A new income tax rate of 27 percent (currently 33 percent) will be
introduced in mid-2006 and is expected decrease to 24 percent in 2008.
The reform is expected to increase disposable income as well as improve
Lithuania's appeal to foreign investors.

![](media/image2.wmf)

![](media/image3.wmf)

Inflation remained low in 2004 at 2.9 percent; however, it has been on
the rise in 2005, mainly due to constant increases in prices for energy
resources, raw materials, salaries, and companies' production
expenditures. Inflation was negative in 2002 and 2003 leading to
increased consumer purchasing power. The appreciation of the Lita with
respect to the Dollar and relatively cheaper imported goods; lower
prices for agricultural and food products; relative overproduction of
food products in the domestic market due to slower export growth all
contributed to Lithuania's robust economy. Lithuania is expected to join
the Euro zone in January 2007.

![](media/image4.wmf)

The increase in consumption is a result of higher incomes, decreasing
unemployment, better access to financial services (credit and leasing
requirements are more flexible) as well as the shadow economy which
accounted for 20 percent of the GDP. Earnings continue rise, reaching
\$462/month in the 2004. Unemployment has significantly decreased from
17.4 percent in 2001 to 11.4 percent in 2004, and decreased further to
7.2 percent in the third quarter of 2005.

In 2004 foreign direct investment (FDI) amounted to \$5.70 billion
(16.19 billion Litas) an increase of 18 percent compared with 2003. FDI
per capita in Lithuania was \$1,664. FDI in Lithuania soared to \$0.76
billion in 2004, from \$194.44 million in 2003.

![](media/image5.wmf)

Foreign investment in equity amounted to \$307.99 million, reinvestment
to \$400 million, and privatization proceeds to \$40 million. The
manufacturing sector received the largest percentage of the FDI, at
\$410 million, followed by the utilities sector with \$92 million,
wholesale and retail trade with \$86 million and banks and other
financial institutions with \$77 million. The manufacturing sector
accounted for 34 percent of FDI in 2004, wholesale and retail trade for
16 percent, financial institutions for 14.4 percent, and transportation,
warehousing and telecommunications for 14.3 percent.

**Cumulative FDI by Sector as of January 1, 2005**

  ------------------------------ ---------------------- -----------------
  **Sector**                     **Amount (million      **Percent of
                                 \$)**                  total**

  Manufacturing                  1.9                    34%

  Trade                          909                    16%

  Financial intermediation       823                    14.4%

  Communication services         817                    14.3%

  Real estate                    485                    8.5%

  Other                          729                    12.8%
  ------------------------------ ---------------------- -----------------

The largest investor was Denmark with 15.2 percent of FDI, followed by
Sweden with 15.0 percent, Germany with 11.4 percent, Russia with 8.4
percent, Finland with 7.8 percent and Estonia with 7.6 percent. The
EU-25 countries accounted for 76.3 percent of the total investment, the
EU-15 for 63.7 percent and the CIS for 8.7 percent.

**Top Foreign Investors in the Food Sector**

+-------------+-----------+------------------+------------+-----------+
| *           | *         | **Joint          | Industry   | Million   |
| *Investor** | *Origin** | Vent             | Sector     | \$        |
|             |           | ure/Investment** |            |           |
+-------------+-----------+------------------+------------+-----------+
| Philip      | USA       | Philip Morris    | Tobacco    | 102       |
| Morris      |           | Lietuva          | Products   |           |
| In          |           |                  |            |           |
| ternational |           |                  |            |           |
+-------------+-----------+------------------+------------+-----------+
| Carlsberg   | Sweden/   | Svyturys         | Brewery    | 95        |
| Breweries   | Finland/  |                  |            |           |
| A/S; Baltic | Denmark   |                  |            |           |
| Beverages   |           |                  |            |           |
| Holding     |           |                  |            |           |
+-------------+-----------+------------------+------------+-----------+
| Mars Inc.   | USA       | Masterfoods      | Pet Food   | 53        |
|             |           | Lietuva          |            |           |
+-------------+-----------+------------------+------------+-----------+
| Bryg        | Denmark   | Kalnapilis       | Brewery    | 47        |
| gerigruppen |           |                  |            |           |
|             |           |                  |            |           |
| (The Danish |           |                  |            |           |
| Brewery     |           |                  |            |           |
| Group)      |           |                  |            |           |
+-------------+-----------+------------------+------------+-----------+
| Dansico     | Denmark   | Sugar Factories  | Sugar      | 47        |
| Sugar A/S   |           |                  | Production |           |
+-------------+-----------+------------------+------------+-----------+
| Kraft Foods | USA       | Kraft Foods      | Con        | 45        |
| In          |           | Lietuva          | fectionary |           |
| ternational |           |                  | & Snacks   |           |
+-------------+-----------+------------------+------------+-----------+
| The         | USA       | The Coca-Cola    | Soft       | 44        |
| Coca-Cola   |           | Bottlers Lietuva | Drinks     |           |
| Company     |           |                  |            |           |
+-------------+-----------+------------------+------------+-----------+
| Danish      | Denmark   | Vilniaus Tauras  | Brewery    | 15        |
| Brewery     |           |                  |            |           |
| Group       |           |                  |            |           |
+-------------+-----------+------------------+------------+-----------+

# Lithuania Agricultural Trade 

Foreign trade revenue in 2004 was \$21.03 billion. Exports were valued
to \$9.06 billion, while imports were valued at \$12 billion. In 2004
Lithuania's exports and imports increased 21 percent and 16 percent
respectively.

EU accession had a significant impact on Lithuania's foreign trade in
foodstuffs. In 2004, compared to 2003, exports of Lithuanian
agricultural and food products increased 24 percent and imports 23
percent. The negative food product trade balance decreased to \$4
million. Exports to EU-15 countries and new member countries increased
50 percent, while exports to third countries decreased 10 percent,
compared to 2003.

The increase in food product imports from EU-15 and new member countries
was smaller, 10 percent and 40 percent respectively. In 2004 the largest
agricultural and food products export partners were Germany, Latvia,
Estonia, The Netherlands, and Poland. Trade with these countries
represented 57 percent of the total value of foreign trade in 2004. The
value of imported agricultural and food products (for internal
consumption) were valued at \$1 million as were exports of these
products.

**Lithuanian Foreign Trade in Agricultural and Food Products in 2004
(Million** **\$)**

![](media/image6.wmf)

Animal product imports increased 40 percent in 2004 compared with 2003.
Imports of vegetables, oils, prepared food products increased 20
percent. The most significant negative trade balance is in vegetable
products, primarily due to unfavorable climate conditions which make
such production impossible.

Lithuanian Foreign Trade in Agricultural and Food Products by Product
Group 2004 (Million \$)

![](media/image7.wmf)

**Structure of Exports and Imports of Lithuanian Agricultural and Food
Products by Product Group in 2004**

![](media/image8.wmf)

![](media/image9.wmf)

**Foreign Trade in Agricultural and Food Products by Country Group in
2004** (**Million \$)**

+---------------------------------------+---------+---------+--------+
| # Country Group                       | 2002    | 2003    | 2004   |
+---------------------------------------+---------+---------+--------+
| Exports                               | 433.1   | 490.4   | 736.8  |
+---------------------------------------+---------+---------+--------+
| Imports                               | 650.4   | 669.1   | 803.9  |
+---------------------------------------+---------+---------+--------+
| Balance                               | -217.3  | -178.7  | -67.2  |
+---------------------------------------+---------+---------+--------+
| Of which:                             |         |         |        |
+---------------------------------------+---------+---------+--------+
| ###### EU-15                          |         |         |        |
+---------------------------------------+---------+---------+--------+
| Exports                               | 250.3   | 284.5   | 429.3  |
+---------------------------------------+---------+---------+--------+
| Imports                               | 425.1   | 426.6   | 470.9  |
+---------------------------------------+---------+---------+--------+
| Balance                               | -174.8  | -142.1  | -41.6  |
+---------------------------------------+---------+---------+--------+
| ###### EU-10 (new members)\*          |         |         |        |
+---------------------------------------+---------+---------+--------+
| Exports                               | 182.7   | 205.9   | 307.4  |
+---------------------------------------+---------+---------+--------+
| Imports                               | 225.2   | 242.5   | 333.0  |
+---------------------------------------+---------+---------+--------+
| Balance                               | -42.5   | -36.6   | -25.6  |
+---------------------------------------+---------+---------+--------+
| # Third countries                     |         |         |        |
+---------------------------------------+---------+---------+--------+
| Exports                               | 248.2   | 338.9   | 293.9  |
+---------------------------------------+---------+---------+--------+
| Imports                               | 127.7   | 169.4   | 230.7  |
+---------------------------------------+---------+---------+--------+
| Balance                               | 120.5   | 169.5   | 63.2   |
+---------------------------------------+---------+---------+--------+
| > Of which:                           |         |         |        |
+---------------------------------------+---------+---------+--------+
| ####### CIS countries                 |         |         |        |
+---------------------------------------+---------+---------+--------+
| > Exports                             | 150.1   | 236.6   | 242.7  |
+---------------------------------------+---------+---------+--------+
| > Imports                             | 55.5    | 78.7    | 87.7   |
+---------------------------------------+---------+---------+--------+
| > Balance                             | 94.6    | 157.9   | 155.0  |
+---------------------------------------+---------+---------+--------+
| ####### USA                           |         |         |        |
+---------------------------------------+---------+---------+--------+
| > Exports                             | 68.3    | 55.7    | 22.2   |
+---------------------------------------+---------+---------+--------+
| > Imports                             | 10.7    | 15.7    | 20.0   |
+---------------------------------------+---------+---------+--------+
| > Balance                             | 57.6    | 40.0    | 2.2    |
+---------------------------------------+---------+---------+--------+
| ####### Other countries               |         |         |        |
+---------------------------------------+---------+---------+--------+
| > Exports                             | 29.9    | 46.6    | 29.0   |
+---------------------------------------+---------+---------+--------+
| > Imports                             | 61.5    | 74.9    | 123.0  |
+---------------------------------------+---------+---------+--------+
| > Balance                             | -31.7   | -28.3   | -94.0  |
+---------------------------------------+---------+---------+--------+

\*New EU member countries since May 1, 2004

Cheese continued to be the number one export in 2004 as it was in 2003,
with exports valued at \$155.63 million, about 15 percent of all
exports. The majority of cheese exports were to the United States in
2003, however, in 2004 only 11 percent of cheese was exported to the
United States, with 29 percent exported to Russia and 22 percent to
Italy. The decreasing value of the Dollar exchange rate against the
Euro, was the primary reason for the change.

Baby food, special and medical purpose foodstuffs, sugar and sweeteners,
were the largest imports with a total value of about \$49 million. These
products were imported primarily from Germany (19 percent), Poland (11
percent), Denmark (9 percent) and Austria (8 percent). Other major
imported food products were fish fillet and fish meat, with a total
import value of \$41.55 million in 2004. About 19 percent of fish was
imported from the United States, 17 percent from Iceland and 13 percent
from Norway.

There were significant changes in imports and exports of food and
agricultural products in 2004. As export to EU-15 and EU-10 countries
increased 50 percent (\$144.72 and \$101.41 million, respectively)
exports to third countries were only 90 percent of the previous year's
level. Imports from EU-10 and EU-15 countries also increased, but at a
slower pace, 10 percent (\$44.37 million) to EU-15 and 40 percent
(\$90.49 million) to EU-10 countries. There was an increase of 40
percent in imports from third countries in 2004. Although the
agricultural and food products trade deficit with EU countries remains,
it did decrease.

Major import partners and products:

\- Germany (13 percent or \$139.08 million): soybean oil, coffee, baby
food, special and medical foodstuffs;

\- Poland (11 percent or \$113.73 million): pork, coffee, apples, and
various foodstuffs;

\- The Netherlands (10 percent or \$102.46 million): poultry, citrus
fruits and nuts.

**Agricultural and Food Product Exports and Imports 2002 - 2004
(Thousand Dollars)**

  ------------------- ------------ ------------ ------------ ------------ -------------- --------------
                      2002                      2003                      2004           

                      Export       Import       Export       Import       Export         Import

  Total (01-24        681,323.17   778,056.69   829,278.20   838,462.04   1,041,009.26   1,040,358.70
  product groups)                                                                        

                                                                                         

  Germany             99,515.81    118,348.87   99,418.70    113,292.82   142,887.89     139,121.41

  Poland              10,528.17    51,295.88    21,619.08    55,720.99    29,302.11      113,913.20

  The Netherlands     32,559.72    42,917.39    41,081.62    46,054.51    46,986.62      102,534.68

  Latvia              123,932.43   45,705.63    121,936.48   50,203.80    178,301.90     97,455.53

  Estonia             46,490.25    40,218.91    57,333.91    52,707.15    87,478.77      81,469.30

  Denmark             25,156.90    43,797.54    21,825.11    42,108.80    30,869.65      60,468.42

  Russia              98,371.97    19,536.80    132,469.15   37,485.85    132,541.44     38,509.05

  Spain               7,637.29     28,992.18    6,209.54     33,444.37    19,316.09      35,215.81

  France              13,120.56    29,379.26    26,498.24    30,279.12    35,904.65      31,213.84

  Ukraine             9,779.79     23,045.35    60,191.27    26,203.84    20,120.42      31,120.63

  Hungary             172.99       21,250.11    2,130.42     19,911.30    4,407.04       26,775.95

  Italy               14,425.21    19,792.71    18,796.76    21,056.34    54,534.05      23,463.35

  Belgium             3,593.10     26,611.23    5,739.72     25,022.85    12,488.13      19,883.42

  USA                 68,268.98    30,766.16    55,669.15    23,872.75    21,534.08      19,226.16
  ------------------- ------------ ------------ ------------ ------------ -------------- --------------

Source: Lithuania Statistics Department

## Market indicators: 

-   Lithuania is a relatively small county with a population of 3.4
    million, a considerable percentage of which (33 percent) resides in
    rural areas.

-   From 1995 -- 2005 the number of children (age 0 -- 14) and people
    age 15 -- 59 decreased 26.7 percent and 2.7 percent respectively,
    while the number of elderly people increased by 9.2 percent.

-   The average gross monthly wage was about \$461 in 2004, an increase
    of 7.9 percent compared with 2003.

-   About 18 percent of employment is in the agriculture sector
    including hunting and fishing

-   Food and non-alcoholic beverages account for almost 40 percent of
    total consumption expenditures. Alcoholic beverage consumption is
    2.3 percent, and tobacco is 1.5 percent.

-   Average household consumption expenditure for food and non-alcoholic
    beverages was \$67.71 (per capita per month), \$3.87 for alcoholic
    beverages and \$2.64 for tobacco products.

## Supplier Strengths / Weaknesses -- Market Opportunities and Competitive Threats

  ----------------------------------- -----------------------------------
  **Advantages**                      **Challenges**

  Economic stability. Fast growing    Strong competition among
  economy and rising incomes.         manufacturers of food products,
                                      especially for traditional foods -
                                      milk products, bread, meat.

  Well-developed food industry that   Significant competition from EU
  has gone through privatization and  food manufacturers.
  restructuring after regaining       
  independence in 1990.               

  Well developed distribution and     Long shipping distance increases
  retail trade systems, rapidly       lead-time and price of American
  increasing number of supermarkets.  food products.

  Constant increase of agricultural   Undeveloped business relations
  and food product imports.           between Lithuanian importers of
                                      food products and U.S. exporters.

  Significant inflows of EU           Lack of information about American
  Structural Funds into agriculture,  achievements and innovations in the
  the food industry and rural         agricultural and food processing
  development in Lithuania.           sectors.

  Food producers and processors are   Some EU import restrictions on food
  open to innovations and place a     produced in U.S.
  premium on the quality of raw       
  materials and food additives.       

  Need for safe and environmentally   The agricultural sector is still
  friendly food technologies.         undergoing reform, and most small
                                      farm production is inefficient.

  High quality of American food       High market entrance fee.
  products.                           

  The value of the Litas has grown 33 Market is not very big (3.4 million
  percent against the Dollar since    inhabitants), and food consumption
  being pegged to the Euro.           is low.

  With the increase of real incomes   More favorable trade conditions in
  Lithuanians can afford higher       the EU-25 marketplace.
  quality food products, organic food 
  and dietary products, etc.          

  Purchasing habits are changing      Lithuanians tend to buy domestic
  fast, and more people are           food products.
  increasingly using shopping centers 
  instead of marketplaces.            

  Geographical location favorable for Lack of entrepreneurial culture and
  east-west transit.                  lack of access to capital for small
                                      and medium enterprises.
  ----------------------------------- -----------------------------------

# Food Sector Structure

The food industry is one of the key sectors of Lithuania's economy. Food
and beverage production accounted for 16 percent of total industrial
output. It accounts for 4 percent of the GDP, 16 percent of industrial
enterprises, and approximately 17 percent of the total employment. The
food industry uses a significant amount domestically produced
agricultural raw materials, and is closely linked to the agriculture
sector. Lithuania has competitive milk products, cheese, meat, poultry,
sugar, soft drinks and alcoholic beverage producers. EU subsidies were
very important to the competitiveness of Lithuanian food products in
third countries.

![](media/image10.wmf)

## Local Business Customs/Practices

For business meetings (both in the office and restaurant) it is common
to wear a suit and tie. Jeans and sneakers are acceptable casual wear.
During office meetings quite often soft drinks, tea, coffee, cookies,
and similar snack are served. It is common in Lithuania to shake hands
and exchange business cards. Business cards in English are sufficient as
English is widely spoken by business people.

It is recommended that company brochures, products specifications and
other printed materials be available for meeting participants.
Lithuanians may be delighted if one makes an effort to say few words in
Lithuanian at the beginning of the meeting.

During the first meeting usually product quality, technical
specifications, supply terms and similar questions are discussed, while
contracts and agreements are signed after a series of meetings or even
later. Contracts should be clear, concise, and translated into both
Lithuanian and English.

As there is strong competition on the foodstuffs market, importers may
require deferred payment terms even if they buy products from
manufacturers or wholesalers for the first time. Letters of credit are
possible, but not popular due to higher costs and additional
bureaucratic formalities that banks require. Western manufacturers and
exporters have established subsidiaries or joint ventures in Lithuania
which generally manage logistics, payment and advertisement.

## Consumer Tastes and Preferences

Lithuanians are increasingly interested in food quality and safety. They
became more concerned in the wake of outbreaks of BSE in the United
Kingdom and bird flu in Asia. However, no cases of BSE or other
dangerous diseases have been reported in Lithuania. Lithuanians are
increasingly aware of genetically modified food products, although there
is a lack of knowledge about this issue in Lithuania.

The average monthly salary in Lithuania is about \$461, however, 20
percent of all employed people earn a minimum salary of \$194, as a
result Lithuanians are very price sensitive. In light of this, most
trade centers are primarily oriented toward cheap foodstuffs, however,
some offer more expensive products. An example of this trend is IKI's
(major retailer) current development of a network of low price shops.
These shops known as Leader Price, will offer about 1,800 food items
usually with longer shelf life or frozen food; many of which will be
imported from Poland. Another retailer, "RIMI Lietuva" is adopting this
strategy and in the summer of 2005 opened extra-low price shops known as
SupperNetto. Lidl, a German company has also begun developing a network
of low price shops in Lithuania.

According to a recent opinion poll conducted by RAIT Market Research,
almost three-fourths of Lithuanians prefer locally produced food to
imported food. About 72 percent of those polled indicated product origin
significantly influences their buying decisions. Only about 11 percent
indicated a neutral attitude toward the origin of products, and 17.4
percent indicated that origin of product was not considered when
purchasing food. As for manufactured goods, nearly 33 percent of those
polled indicated a preference for domestic products. Among those who
prefer domestic food to imports, about 61 percent indicated that
Lithuanian products were of higher quality, another 35.6 percent
indicated that they wanted to support local producers, 11.5 percent said
that local products were cheaper, and 2.2 percent indicated that they
were environmentally safer. The poll found that the origin of food
products was more important to women than men. The percentage of those
who indicated a preference for domestic food was about 76 percent among
women and 67.3 percent among men. The poll was conducted February
17--22, 2005.

## Labeling Requirements

The rules for labeling products sold in Lithuania are regulated by the
Ministry of Economy in accordance with the rules for Labeling and
Providing Information on Prices of Goods Sold in Lithuania (State News,
2002, No 50-1927, 2002 May 15, No. 170), as amended on May 8, 2004
(State News, 2004, No. 76-2630) and June 20, 2004 (State News, 2004, No.
96-3551) to be harmonized with relevant EU legislation of foodstuff
labeling: European Parliament and EU Council directives 2000/13/EC
(labeling, presentation and advertising foodstuffs), 79/112/EEC
(labeling foodstuffs), 90/496/EEC (nutrition labeling for foodstuffs),
89/396/EEC (identifying the batch of foodstuff).

This Order and its amendments are available at Seimas (Parliament of
Lithuania) data base at:
<http://www3.lrs.lt/cgi-bin/preps2?Condition1=166589&Condition2>,
<http://www3.lrs.lt/cgi-bin/preps2?Condition1=232834&Condition2> and
<http://www3.lrs.lt/cgi-bin/preps2?Condition1=235710&Condition2>.

The labeling order also lists other legal acts related to labeling,
importing and storing agricultural products, foodstuffs and food
additives. These laws apply to all entities importing, selling,
transporting or packaging foodstuffs: manufacturers, importers, and
representatives of manufacturers, distributors, and sellers.

According to the requirements of the Order "Regarding Rules on Labeling
and Providing Information on Prices of Goods Sold in the Republic of
Lithuania" The following information is required on all labels to be
placed on foodstuffs:

> \- Name of the product;
>
> \- Name of the manufacturer or trademark;
>
> \- For imported goods -- name of the country of residence of the
> manufacturer;
>
> \- Country of product origin, if it is different from the country of
> the manufacturer's residence;
>
> \- Name of the importer or trademark and address;
>
> \- Date of expiration of the product. Depending on the product, terms
> 'Suitable for use until...', 'Best until...' can be used;
>
> \- Date of manufacturing of the product;
>
> \- Storage conditions;
>
> \- Purpose of product, if it is not clear from its name; instructions
> for use, if needed for the safe and proper use of product;
>
> \- Sale price and price of one standard unit of product;
>
> \- Composition (ingredients) of the product, in descending order by
> mass of the ingredient.

All labels must be in the Lithuanian language, visible, easily readable,
non-erasable, clear, and not misleading to consumers. Information
describing product safety requirements, product purpose, and product use
can be in graphical form, but pictures cannot be used instead of the
name of the product. Adhesive labels in the Lithuanian language are
allowed.

## Food Additives Regulations

Hygienic Norm HN 53:2003, (State News, 2004, No. 45-1491), regulates the
use of food additives in Lithuania. It is available at
<http://www3.lrs.lt/cgi-bin/preps2?Condition1=230886&Condition2> (in the
Lithuanian language). It contains a list of food additives, food
additives allowed for use by Quantum Satis principle, antioxidants,
sweeteners, colors, and the maximum allowed concentrations in different
foodstuffs.

This Hygienic Norm is harmonized with the following EU legislation on
food additives:

\- Directive 2003/52/EC of the European Parliament and of the Council of
June 18, 2003 amending Directive 95/2/EC as regards the conditions of
use for a food additive E 425 konjac;

\- Directive 97/60/EC of the European Parliament and of the Council of
October 27, 1997 (third amendment) Directive 88/344/EEC on the
approximation of the laws of the Member States on extraction solvents
used in the production of foodstuffs and food ingredients;

\- Directive 96/83/EC of the European Parliament and of the Council of
December 19, 1996 amending Directive 94/35/EC on sweeteners for use in
foodstuffs;

\- Decision No 292/97/EC of the European Parliament and of the Council
of December 19, 1996 on the maintenance of national laws prohibiting the
use of certain additives in the production of certain specific
foodstuffs;

\- European Parliament and Council Directive no 95/2/EC of February 20,
1995 on food additives other than colors and sweeteners;

\- European Parliament and Council Directive 94/34/EC of June 30, 1994
amending Directive 89/107/EEC on the approximation of the laws of Member
States concerning food additives authorized for use in foodstuffs
intended for human consumption;

\- European Parliament and Council Directive 94/35/EC of June 30, 1994
on sweeteners for use in foodstuffs;

\- European Parliament and Council Directive 94/36/EC of June 30, 1994
on colors for use in foodstuffs;

\- Council Directive of December 21, 1988 on the approximation of the
laws of the member states concerning food additives authorized for use
in foodstuffs intended for human consumption (89/107/EEC);

\- Council Directive of June 13, 1988 on the approximation of the laws
of the member states on extraction solvents used in the production of
foodstuffs and food ingredients (88/344/EEC).

As the list of allowed food additives may vary slightly from country to
country, it is recommended that U.S. exporters check whether the product
to be exported to Lithuania meets all local ingredient requirements. All
food additives are required to be identified on the product label. Food
additives must be marked with the letter E followed by the three-digit
or four-digit European Union registration number. Foodstuffs are not
required to have labels in the Lithuanian language upon entry into
Lithuania. Usually labels in the Lithuanian language are affixed at the
wholesale and retail levels; however, it is mandatory that each product
be labeled in the Lithuanian language prior to being sold.

# Market Sector Structure and Trends 

## Wholesale and Retail Sector

Retail trade is one of the most rapidly developing sectors in
Lithuania's economy. With domestic demand rapidly increasing, retail
sector revenue totaled \$6.9 million in 2004 a 9.3 percent increase
compared with 2003. Revenue for sales of alcoholic beverages and tobacco
products increased 7.2 percent. Retail trade revenue at market places
totaled \$428 million in 2004, a 1.1 percent decrease compared to 2003.

In 2004 the largest retailers continued to expand rapidly both
domestically and regionally. These retailers have expanded to
neighboring counties including Latvia, Estonia, Poland and well as
Romania. The potential for developing shopping centers beyond the major
cities of Vilnius, Kaunas and Klaipeda remains high.

There are in general five categories of retail outlets: supermarkets,
small- and medium-sized stores, kiosks, gas stations and marketplaces.
The total number of shops in the retail sector has stabilized at 16,000,
however, the tendency toward market concentration into hyper- and
supermarkets may influence the numbers downward. As major retailers
continue to develop large shopping centers, small retailers are being
forced into bankruptcy or into forming retail associations.

VP Market continues to be the largest retail company in Lithuania with a
22.4 percent share of the retail market and 34.5 percent share in the
food product category. Other important retail chains are "Iki" (10.1
percent), "RIMI Lietuva" (5.3 percent), "Aibes mazmena" (5 percent) and
"Norfos mazmena" (4.2 percent). Food retailers source supplies primarily
through wholesalers or directly from food producers. These retail chains
account for about 47 percent of the retail market in Lithuania. This
level of market penetration is considered low compared to the level of
retail penetration in Western countries, where they usually account for
80-90 percent of the market.

The largest Baltic retail chain, VP Market is a privately owned
Lithuanian company with sales in 2004 of \$1.4 billion. VP Market has
grown into an international chain and now owns 195 shopping centers in
Lithuania, 89 in Latvia, 21 in Estonia, 8 in Romania and 1 in Bulgaria.
In 2005 VP Market plans to open 100 new shopping centers, an investment
of about \$120 million. VP Market has subsidiaries such as Minima,
Media, Maxima, Maxima Baze and Hyper Maxima.

VP Market and Rimi have developed large hypermarkets. Rimi and Maxima
hypermarkets offer a range of products from food to household tools, car
accessories and electronics, while "Iki" continues to develop
neighborhood supermarkets and stores offering a similar range of
products at low prices. Supermarkets and hypermarkets in major cities
are becoming more popular, as they attract significant flows of
customers, serving as host to restaurants, cinemas, and dry cleaning,
etc.

**Market Shares of Major Retail Chains** (2002)

  ----------------------- --------------- --------------- ---------------
  Retail chain            Market shares                   
                          of major retail                 
                          chains                          

                          Total Billion   Type:           
                          \$                              

                                          Food products   Non-food
                                                          products

  Revenue                 2,938.35        1,545.56        1,392.78

  VP Market               22.4%           34.5%           8.9%

  IKI                     10.1%           16.5%           3%

  RIMI Lietuva            5.3%            8%              2.2%

  Norfos mazmena          4.2%            6.8%            1.3%

  Aibes mazmena           5%              6.9%            1.9%
  ----------------------- --------------- --------------- ---------------

**Major Retail Chains** (2002)

  -------------- -------- ----------- -------- ----------- ------------- ------------- -------
  Retail chain   Shops                Size of                                          
                                      shops by                                         
                                      sales                                            
                                      area                                             

                 Number   Sales area, Up to    394-1,309   1,312-3,276   3,280-8,197   8,200
                          sq. feet    394                                              sq feet
                                                                                       and
                                                                                       above

                                      sq. feet sq. feet    sq. feet      sq. feet      

                                                                                        

  Total          8,049    4,189,170   19,942   4,747       1,151         475           85

                                      75.5%    18.0%       4.4%          1.8%          0.3%

                                                                                        

  VP Market      161      369,397     16       305         131           52            23

                                      3%       57%         24.8%         9.9%          4.3%

                                                                                        

  IKI            107      271,919     10       135         108           92            6.5

                                      2.8%     38.3%       30.8%         26.2%         1.9%

                                                                                        

  RIMI Lietuva   35       148,047     0        16.4        72\.          16.4          10

                                      0        14.3%       62.9%         14.3%         8.6%

                                                                                        

  Norfos mazmena 45       109,632     0        49          62            33            3.28

                                      0        33.3%       42.2%         22.2%         2.2%

                                                                                        

  Aibes mazmena  362      235,872     708      400         55.7          19.6          3.28

                                      59.6%    33.7%       4.7%          1.7%          0.3%
  -------------- -------- ----------- -------- ----------- ------------- ------------- -------

Source: Competition Council of the Republic of Lithuania

According to a recent AC Nielsen survey, the number of small and average
size shops is decreasing, as large trade centers dominant the retail
market. There are 9,700 food retail stores in Lithuania, although trade
centers (with sales space of 984 -- 8,202 sq. feet) and hypermarkets
(more than 8,202 sq. feet) account for only 3 percent of the total
number of stores (compared with 20 percent in Western Europe). This is
significant because they now represent nearly 56 percent of the retail
market. During 2004 revenue from retail trade for the four largest
retail chains increased 8 percent and represented 66 percent of total
retail trade.

![](media/image11.wmf)

According to the survey, the average Lithuanian visits large trade
centers -- supermarkets or hypermarkets every other day and spends 93
percent of his/her total expenditure there. Market places remain
competitive with big trade centers for products such as vegetables and
fresh meat, while kiosks and gas stations compete with supermarkets in
sales of such products as cigarettes and alcoholic beverages.

## Hotel, Restaurant and Institutional Sector

Hotels, restaurants and the catering sector began to develop in the late
eighties and gained momentum during the 1990s. Over the past several
years, revenue for restaurants, bars and catering enterprises has
increased steadily. In 2003 the increase was 17 percent above the 2002
level.

**Restaurant and Bar Revenue (million \$ VAT excluded)**

  ---------------- ------------- ------------- ------------- -------------
                   **2000**      **2001**      **2002**      **2003**

  Retail sale of   2.0           1.9           2.1           2.3
  food products,                                             
  alcoholic                                                  
  beverages and                                              
  food products                                              

  Retail sale of   1.3           1.4           1.5           1.6
  non food                                                   
  products                                                   

  Restaurants,     123           127           151           178
  bars and other                                             
  catering                                                   
  enterprises                                                
  ---------------- ------------- ------------- ------------- -------------

In 2004 revenue for restaurants, bars and catering enterprises was \$206
million, a 14 percent increase compared with 2003. This high growth can
be attributed to the constantly increasing number of foreign tourists
(3.6 million visitors in 2004), especially from Western Europe, and an
increasing number of Lithuanians who can afford to dine at restaurants.

Revenue from tourism was \$800 million in 2004, 17 percent more than in
2003. The total number of guests in Lithuania's lodging establishments
rose 32.5 percent to 1.12 million in 2004. At least 53 percent were
foreign visitors. For instance, hotels and other lodging in Vilnius
posted a 42.7 percent rise, to 378,200, in total number of guest s in
2004. The number of foreign guests surged 45.6 percent to 221,200.
Budget airline Ryanair planed to begin operations in Kaunas by the end
of 2005, as a result tourism is expected to continue to grow. The
following international hotel chains are present in Lithuania: Holiday
Inn, Le Meridien, Novotel, Radisson SAS, Reval, however, the majority of
the hotels in Lithuania are owned by local entrepreneurs and are
generally small to medium size and located in major cities and resort
areas.

Pizza restaurants are gaining in popularity, especially with young
people, in addition to the popularity of foreign cuisines, such as
French, Italian, Russian, but in particular Asian. Chinese restaurants
can be found in major Lithuanian cities. The highest quality catering
companies are located in major cities and health resorts. Most
restaurants are locally owned and small to medium in size. As for
American restaurant chains, only McDonalds has several restaurants in
Vilnius, Kaunas and Klaipeda.

**Number of Restaurants and other Catering Enterprises**

  ----------------- ------------- ------------- ------------- -------------
                    **2000**      **2001**      **2002**      **2003**

  Number of         2,489         2,433         2,563         2,752
  Restaurants, bars                                           
  and canteens                                                

  Number of seats,  108           107           116           130
  thousands                                                   

  Average seats per 43.4          44.0          45.3          47.2
  catering unit                                               
  ----------------- ------------- ------------- ------------- -------------

# Key Contacts and Further Information

## Lithuanian State Institutions, Associations, Chamber of Commerce

+---------------+---------+------+------+-----------------------------+
| Organization  | Address | P    | Fax  | Email, web address          |
|               |         | hone |      |                             |
+---------------+---------+------+------+-----------------------------+
| Parliament of | G       | +(37 | +(37 | <bendrasis@lrs.lt>          |
| the Republic  | edimino | 0-5) | 0-5) |                             |
| of Lithuania  | av. 53, | 239  | 239  | http://www.lrs.lt           |
| (Seimas)      | V       | 64   | 63   |                             |
|               | ilnius, | 03   | 69   |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Government of | G       | +(37 | +(37 | <mp.sekretore@lrvk.lt>      |
| the Republic  | edimino | 0-5) | 0-5) |                             |
| of Lithuania  | av. 11, | 266  | 266  | http://www.lrv.lt           |
|               | LT-2039 | 38   | 38   |                             |
|               | V       | 49   | 77   |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Ministry of   | G       | +(37 | +(37 | <zum@zum.lt>                |
| Agriculture   | edimino | 0-5) | 0-5) |                             |
| of the        | av. 19  | 239  | 239  | http://terra.zum.lt         |
| Republic of   | (Le     | 10   | 12   |                             |
| Lithuania     | levelio | 32   | 12   |                             |
|               | str. 6  |      |      |                             |
|               | ),      |      |      |                             |
|               | L       |      |      |                             |
|               | T-2025, |      |      |                             |
|               | V       |      |      |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Ministry of   | G       | +(37 | +(37 | <kanc@ukmin.lt>             |
| Economy of    | edimino | 0-5) | 0-5) |                             |
| the Republic  | av.     | 262  | 262  | http://www.ekm.lt           |
| of Lithuania  | 38/2,   | 24   | 39   |                             |
|               | LT-     | 16   | 74   |                             |
|               | 2600    |      |      |                             |
|               | V       |      |      |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Ministry of   | V       | +(37 | +(37 | <regina.zilinskiene@sam.lt> |
| Health of the | ilniaus | 0-5) | 0-5) |                             |
| Republic of   | str.    | 266  | 266  | http://www.sam.lt           |
| Lithuania     | 33,     | 14   | 14   |                             |
|               | LT-2001 | 00   | 02   |                             |
|               | V       |      |      |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| State Food    | Siesiku | +(37 | +(37 | <vvt@vet.lt>                |
| and           | str.    | 0-5) | 0-5) |                             |
| Veterinary    | 19, LT  | 240  | 240  | [http://www.                |
| Service       | 2010    | 43   | 43   | vet.lt](http://www.vet.lt/) |
|               | V       | 61   | 62   |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| National      | J.Kair  | \+   | \+   | vvt@vet.lt                  |
| Veterinary    | iukscio | (37  | (37  |                             |
| Laboratory    | str.    | 0-5) | 0-5) | http://www.vet.lt           |
|               | 10,     | 278  | 278  |                             |
|               | LT-2021 | 04   | 04   |                             |
|               | V       | 70   | 71   |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Border and    | Siesiku | +(37 | +(37 | <ptvvt@vet.lt>              |
| Transport     | str.    | 0-5) | 0-5) |                             |
| State         | 17,     | 240  | 240  | <http://vetlt1.vet.lt/>     |
| Veterinary    | LT-2010 | 43   | 43   |                             |
| Service       | V       | 40   | 41   |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Lithuanian    | A       | +(37 | (+37 | <info@cust.lt>              |
| Customs       | .Jakšto | 0-5) | 0-5) |                             |
|               | str.    | 212  | 212  | http://www.cust.lt/en/      |
|               | 1/25,   | 64   | 49   |                             |
|               | LT-2600 | 15   | 48   |                             |
|               | V       |      |      |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| State         | L.      | +(37 | +(37 | info@litfood.lt             |
| Enterprise    | St      | 0-5) | 0-5) |                             |
| Lithuanian    | uokos - | 268  | 268  | <http://www.litfood.lt/>    |
| Agricultural  | Guce    | 50   | 50   |                             |
| and Food      | vičiaus | 50   | 61   |                             |
| Products      | st. 9 - |      |      |                             |
| Market        | 12      |      |      |                             |
| Regulation    |         |      |      |                             |
| Agency        | V       |      |      |                             |
|               | ilnius, |      |      |                             |
|               | LT --   |      |      |                             |
|               | 01122,  |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Association   | J.      | +(37 |      | info@chambers.lt            |
| of Lithuanian | Tumo-Va | 0-5) |      |                             |
| Chambers of   | ižganto | 261  |      | http://w                    |
| Commerce,     | st.     | 2102 |      | ww.chambers.lt/en/index.php |
| Industry and  | 9       |      |      |                             |
| Crafts        | /1-63a, |      |      |                             |
|               | V       |      |      |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| American      | L       | (37  | (37  | acc@acc.lt; acc@iti.lt      |
| Chamber of    | ukiskiu | 0-5) | 0-5) |                             |
| Commerce in   | st. 5,  | 261  | 212  | <http                       |
| Lithuania     | Room    | 11   | 6128 | ://www.acc.lt/en/index.php> |
|               | 204     | 81   |      |                             |
|               |         |      |      |                             |
|               | LT      |      |      |                             |
|               | -01108, |      |      |                             |
|               | V       |      |      |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Lithuanian    | A       | +370 | +370 | info@aludariai.lt           |
| Association   | ludarių | 5    | 5    |                             |
| of Breweries  | s       | 249  | 249  |                             |
|               | t..1/2, | 8495 | 6916 |                             |
|               | 2649    |      |      |                             |
|               | V       |      |      |                             |
|               | ilnius. |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Lithuanian    | Verkių  | +370 | .    |                             |
| Association   | st.5,   | 5    | +370 |                             |
| of            | 2005    | 275  | 5    |                             |
| Agricultural  | V       | 24   | 275  |                             |
| Machinery     | ilnius. | 52   | 2452 |                             |
+---------------+---------+------+------+-----------------------------+
| Lithuanian    | Vykinto | :    | :    | <pie                        |
| Association   | 7-3     | +370 | +370 | nocentras@post.omnitel.net> |
| of Dairy      | st.,    | 5    | 5    |                             |
| Enterprises   | 2004    | 271  | 271  |                             |
| \"Pieno       | V       | 55   | 55   |                             |
| centras\"     | ilnius, | 52,  | 53,  |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Association   | A.Vi    | :    | :    |                             |
| of Lithuanian | enuolio | +370 | +370 |                             |
| Food          | st. 8,  | 5    | 5    |                             |
| Produc        | 2600    | 262  | 212  |                             |
| ers\"Lietuvos | V       | 70   | 44   |                             |
| maisto        | ilnius. | 22   | 47   |                             |
| pramonė\"     |         |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Lithuanian    | A.S     | :    | :    | <lpga@gmx.net>              |
| Association   | metonos | +370 | +370 |                             |
| of Grain      | st.     | 5    | 5    |                             |
| Processing    | 8-5,    | 210  | 262  |                             |
| Enterprises   | 2600    | 71   | 51   |                             |
|               | V       | 00   | 04   |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Lithuanian    | A.Vi    | +370 | +370 | <lmpa@takas.lt>             |
| Association   | enuolio | 5    | 5    |                             |
| of Meat       | st. 8,  | 212  | 212  |                             |
| Processing    | 2600    | 68   | 68   |                             |
| Enterprises   | V       | 14   | 14   |                             |
|               | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+
| Lithuanian    | Kaštonų | +370 | +370 | <asocukrus@takas.lt>        |
| Association   | st.     | 5    | 5    |                             |
| of Sugar      | 3-8,    | 262  | 262  |                             |
| Industry      | 2001    | 84   | 84   |                             |
| Enterprises   | V       | 22   | 22   |                             |
| \"Cukrus\"    | ilnius, |      |      |                             |
|               | Li      |      |      |                             |
|               | thuania |      |      |                             |
+---------------+---------+------+------+-----------------------------+

## Main Lithuanian Food and Agricultural Sector Companies

  ------------------ ------------ -------------- ------------- --------------- -------------------- ------------------------------ -----------------
  **Company**        **Turnover   **Main         **Number of   **Address**     **Tel./Fax**         **Email, Web Page**            **Contact Name**
                     in 2004,**   activities**   Employees**                                                                       
                     Thousand \$                                                                                                   

  VP Market, UAB     1,281,097    Trade in food  20,570        Vilnius,        +370                 vpmarket@vpmarket.lt,          Gintarasa
                                  and non food                 Savanorių st.   (5)2686787/2686700   www.vpmarket.lt                Marcinkevicius,
                                  products,                    247                                                                 General Director
                                  management of                                                                                    
                                  retail chain                                                                                     

  Palink, UAB        363,609      Trade in food  5,300         Vilnius,        +370                 info@iki.lt, www.iki.lt        Aidas
                                  and non food                 Lentvario st.   (5)2601700/2601781                                  Mackevičius,
                                  products,                    33                                                                  General Director
                                  management of                                                                                    
                                  retail chain                                                                                     

  Sanitex, UAB       313,380      Wholesale      1,650         Kaunas,         +370                 sanitex@sanitex.lt,            Andrius Joneikis,
                                  trade,                       Raudondvario    (37)401111/401111    www.sanitex.lt                 Director
                                  logistics                    rd. 131                                                             

  MG Baltic          282,125      Wholesale      n.d.          Vilnius,        +370                 info@mgbaltic.lt,              Darius Mockus,
                                  trade,                       J.Jasinskio st. (5)2786219/2786206   www.mgbaltic.lt                President
                                  logistics                    16                                                                  

  Norfos mažmena,    276,107      Trade in food  3,308         Vilnius, Verkių +370                 norfa@norfa.lt, www.norfa.lt   Audrius
  UAB                             and non food                 st. 29          (5)2700046/2737032                                  Pocevičius,
                                  products,                                                                                        Director
                                  management of                                                                                    
                                  retail chain                                                                                     

  Rokiškio sūris,    158,941      Dairy          1,998         Rokiškis,       +370                 rokiskis@rsuris.lt;            Antanas Trumpa,
  AB,                             production                   Pramonės st. 3  (458)55200/55300     www.rsuris.lt                  Director

  Rimi Lietuva, UAB  157,746      Trade in food  2,000         Vilnius,        +370                 info@rimi.lt , www.rimi.lt     Inga Skisaker,
                                  and non food                 Savanorių pr.   (5)2461100/2461033                                  General Director
                                  products,                    16                                                                  
                                  management of                                                                                    
                                  retail chain                                                                                     

  CBA Aibė           146,831      Trade in food  n.d.          Vilnius,        +370                 aibe@aibe.lt, www.aibe.lt      Ingrida
                                  and non food                 Savanorių pr.   (5)2686686/2686665                                  Zostautaite,
                                  products,                    247                                                                 Director
                                  management of                                                                                    
                                  retail chain                                                                                     

  Pieno žvaigždės,   139,969      Dairy          2,882         Vilnius,        +370                 info@pienozvaigzdes.lt,        Aleksandr Smagin,
  group of companies              production                   Laisvės pr.125  (5)2461414/2461415   www.pienozvaigzdes.lt          General Director

  Žemaitijos pienas, 119,357      Dairy          2,253         Telšiai, Sedos  +370                 z.pienas@telsiai.omnitel.net   Algirdas
  AB                              production                   st. 35          (444)22201/74897                                    Pažemeckas,
                                                                                                                                   General Director

  Masterfoods, UAB   111,202      Production of  n.d.          Gargzdai,       +370                                                Audrone
                                  animal food,                 Statybininku    (46)394901/394909                                   mateviciene,
                                  wholessale                   st. 2                                                               General Director
                                  trade in                                                                                         
                                  foodstuff                                                                                        

  Švyturys-Utenos    106,620      Brewery        469           Vilnius, Metalo +370                 sua@sua.lt , www.svyturys.lt,  Rolandas
  alus, UAB                                                    st. 2           (5)2397600/2397610   http://www.utenosalus.lt       Viršilas, General
                                                                                                                                   Director

  Litagros grupė,    89,192       Production and 714           Vilnius,        +370                 office@litagra.lt;             Gintaras Kateiva,
                                  sales of                     Savanorių pr.   (5)2361600/2361601   http://www.lytagra.lt/         General Director
                                  agricultural                 173                                                                 
                                  products                                                                                         

  Kraft Foods        83,883       Production of  600           Kaunas, Taikos  +370                 www.kraftfoods.lt              Gintaras
  Lietuva, AB                     foodstuffs,                  pr. 33          (37)305110/305244                                   Rimšelis,
                                  trade                                                                                            Director for
                                                                                                                                   Baltic countries

  Bennet             64,789       Wholesale      250           Vilnius, Metalo +370                 info@bennet.lt, www.bennet.lt  Jaunius Žiogas,
  Distributors, UAB               trade,                       st. 2b          (5)2131611/2339184                                  General Director
                                  logistics                                                                                        

  Marijampoles pieno 51,783       Production of  647           Marijampole,    +370                 info@milk.lt, www.milk.lt      Vydas Damalakas,
  konservai, UAB                  foodstuffs,                  Kauno st. 117   (343)98450/98431                                    General Director
                                  trade                                                                                            

  Krekenavos         46,709       Meat           1,011         Panevėžys       +370                 valdas@krekenavosagr.lt,       Anicetas Daukšas,
  agrofirma, group                processing                   distr.,         (45)505300/505331    www.krekenavos.lt              General Director
  of companies                                                 Krekenava                                                           

  Danisco Sugar      44,636       Sugar          n.d.          Panevezys,      +370                 panevezys@danisco.com          Liudas Bruzas,
  Panevezys, AB                   production                   Imoniu st. 22   (45)503666/503630                                   General Director

  Malsena, AB        36,543       Grain          295           Panevėžys,      +370                 info@malsena.lt,               Mindaugas
                                  processing                   J.Janonio st.   (45)461133/466235    www.malsena.lt                 Gedvilas, General
                                                               12                                                                  Director

  Kalnapilio-Tauro   35,402       Brewery        n.d.          Panevėžys,      +370 (5)2123754      info@kalnapilis.lt,            Valdas Tekorius,
  grupė, AB                                                    Taikos al. 1                         www.kalnapilis.lt              General Director

  Alita, AB          35,286       Production of  413           Alytus,         +370                 alita@alita.lt, www.alita.lt   Vytautas
                                  alcoholic                    Miškininkų st.  (315)57243/79467                                    Junevičius,
                                  beverages                    17                                                                  General Director

  Kretingos grūdai,  33,419       Grain          126           Kretinga,       +370                 info@kgrudai.lt,               Ovidijus Bartkus,
  AB                              processing                   Tiekėjų st. 41  (445)77066/77072     www.kgrudai.lt                 General Director

  Agrovet, UAB       33,099       Meat           240           Klaipėdos r.,   +370                 info@agrovet.lt,               Augenijus
                                  processing                   Kretingalė      (46)446576/446515    www.agrovet.lt                 Gudžiūnas,
                                                                                                                                   General Director

  Stumbras, AB       31,612       Production of  650           Kaunas, K.Būgos +370                 stumbras@stumbras.lt,          Česlovas
                                  alcoholic                    st. 7           (37)308800/308833    www.stumbras.lt                Matulevičius,
                                  beverages                                                                                        General Director

  Nematekas, ŽŪB     26,831       Meat           573           Kaišiadorių     +370 (346)46723      nematekas@nematekas.lt\        Egidija
                                  processing                   distr.,         /69377               , http://www.nematekas.lt/     Vaicekauskienė,
                                                               Rumšiškių sen.,                                                     Director
                                                               Dovainonių                                                          
                                                               village                                                             

  Vilkyškių pieninė, 26,461       Production of  403           Pagėgių         +370                 info@cheese.lt , www.cheese.lt Gintaras
  UAB                             milk products                municipality,   (441)55330/55242                                    Bertašius,
                                                               Vilkyškiai                                                          Director

  Ragutis, AB        22,852       Brewery        191           Kaunas,         +370                 info@ragutis.lt,               Vytautas Meištas,
                                                               Kaunakiemio st. (37)324345/321503    www.ragutis.lt                 General Director
                                                               2                                                                   

  Kraitenė, UAB      22,239       Production of  700           Marijampolės    +370                 kraitene@kraitene.lt,          Rolandas Rutėnas,
                                  fish and milk                distr., Fabriko (343)92745/92747     www.kraitene.lt                General Director
                                  products,                    st. 8                                                               
                                  distribution                                                                                     
                                  of frozen food                                                                                   

  Kaišiadorių        21,981       Poultry        683           Kaišiadorys,    +370                 pastas@kaispauk.lt,            Gedas Šmulkštys,
  paukštynas, AB                  production                   Paukštininkų    (346)51034/52310     http://www.kaispauk.lt/        General Director
                                                               st. 15                                                              

  Alvas ir Ko, UAB   18,310       Wholesale      150           Panevėžys,      +370                 info@alvas.lt, www.alvas.lt    Almantas
                                  trade                        Rėklių st. 1a   (45)516131/508586                                   Variakojis,
                                                                                                                                   General Director

  Gubernija, AB      17,736       Brewery        338           Šiauliai, Dvaro +370                 http://www.gubernija.lt/       Romualdas
                                                               st. 179         (41)591900/591911                                   Dunauskas,
                                                                                                                                   General Director

  Delano, UAB        14,472       Catering       729           Vilnius,        +370 (5)2744 608/    delano@delano.lt,              Julius
                                                               Naugarduko st.  2744 603             www.delano.lt                  Numavičius,
                                                               99                                                                  General Director

  Lupra, UAB         13,098       Wholesale and  291           Šiauliai,       +370                 lupra@takas.lt                 Valdas Čeilutka,
                                  retail trade                 Pramonės st. 21 (41)501032/540181                                   Director
  ------------------ ------------ -------------- ------------- --------------- -------------------- ------------------------------ -----------------

> \* - as of December 2004
>
> n.d. - data not available
>
> UAB - closed stock company

AB - stock company

## Trade Fairs in Lithuania

+------------------------+---------------------------------------------+
| **Show dates**         | **Organizers**                              |
+------------------------+---------------------------------------------+
| May 10 -- 13, 2006     | Agrobalt                                    |
|                        |                                             |
|                        | Trade fair for agriculture, food and        |
|                        | packaging industry                          |
|                        |                                             |
|                        | Lithuanian Exhibition Center \"Litexpo\",   |
|                        | Laisves ave. 5, LT- 04215 Vilnius           |
|                        |                                             |
|                        | Project Manager Mrs. Saulė Skacevičienė     |
|                        |                                             |
|                        | phone: (+370-5) 2686829,                    |
|                        |                                             |
|                        | fax: (+370-5) 2686826,                      |
|                        |                                             |
|                        | e-mail: saule@litexpo.lt,                   |
|                        | http://www.litexpo.lt                       |
+------------------------+---------------------------------------------+
| November 09 -- 11,     | BaltShop.BaltHotel.BaltGastro International |
| 2006                   |                                             |
|                        | Exhibition of Shop, Hotel, Restaurant       |
|                        | requisites and Grocery                      |
|                        |                                             |
|                        | Lithuanian Exhibition Center \"Litexpo\",   |
|                        | http://www.litexpo.lt                       |
|                        |                                             |
|                        | Project Manager Mrs. Saulė Skacevičienė     |
+------------------------+---------------------------------------------+

# Appendix 1. Statistics

## Key Trade and Demographic Information 

+----------------------------------------------------+-----------------+
| Territory                                          | 65,300 sq. kl   |
|                                                    |                 |
|                                                    | 25,206 sq.      |
|                                                    | miles           |
+----------------------------------------------------+-----------------+
| Total population (as of January 1, 2004) / Annual  | 3,445,857 /     |
| Growth Rate (%)                                    | -3.0%           |
+----------------------------------------------------+-----------------+
| Urban Areas / Annual Growth Rate (%)               | 2,297,400 /     |
|                                                    | -1.7 %          |
+----------------------------------------------------+-----------------+
| Rural Areas / Annual Growth Rate (%)               | 1,148,457 /     |
|                                                    | -5.6%           |
+----------------------------------------------------+-----------------+
| Density, population per sq. km                     | 52.8            |
+----------------------------------------------------+-----------------+
| Real GDP Growth                                    | 6.7 %           |
+----------------------------------------------------+-----------------+
| Labor force                                        | 1,641,900       |
+----------------------------------------------------+-----------------+
| Employed:                                          |                 |
+----------------------------------------------------+-----------------+
| Public sector                                      | 403,900         |
+----------------------------------------------------+-----------------+
| Private sector                                     | 1,034,100       |
+----------------------------------------------------+-----------------+
| Unemployed                                         | 203,900         |
+----------------------------------------------------+-----------------+
| Labor force employment rate (age 15 -- 64):        |                 |
+----------------------------------------------------+-----------------+
| Males                                              | 63.7%           |
+----------------------------------------------------+-----------------+
| Females                                            | 58.4%           |
+----------------------------------------------------+-----------------+
| Unemployment rate (in 2005)                        | 7.2%            |
+----------------------------------------------------+-----------------+
| Average monthly gross earnings (in 2004)           | \$462           |
+----------------------------------------------------+-----------------+

The Lita is pegged to the Euro at a rate of 1 EUR = 3.4528 Litas. An
exchange rate of \$1 = 2.84 LTL was used to convert Litas into US
dollars. This is the official Central Bank of Lithuania exchange rate as
of August 22, 2005.

## Employment by Economic Sector

![](media/image12.wmf)

  ----- ----------------------------------------- ------------ ------------
                                                  **2002**     **2003**

  1     Agriculture, hunting, forestry and        17.8         17.9
        fishing                                                

  2     Mining and quarrying                      0.3          0.4

  3     Manufacturing                             18.5         18.4

  4     Electricity, gas and water supply         2.0          1.9

  5     Construction                              6.7          7.4

  6     Wholesale and retail trade; repair of     15.0         14.9
        motor vehicles, motorcycles and personal               
        and household goods                                    

  7     Hotels and restaurants                    2.0          2.0

  8     Transport, storage and communication      6.2          6.4

  9     Financial mediation                       1.0          1.2

  10    Real estate, business activities          3.9          3.7

  11    Public administration and defense,        5.8          5.2
        compulsory social security                             

  12    Education                                 9.9          9.4

  13    Health and social work                    6.7          6.9

  14    Other community, social and personal      3.8          3.8
        service activities                                     

  15    Private households with employed persons  0.4          0.5
  ----- ----------------------------------------- ------------ ------------

## Household consumption expenditures (percent)

  ------------------------------------------------------- ---------- ----------
                                                          **2002**   **2003**

  Consumption expenditure                                 100.0      100.0

  Food and non-alcoholic beverages                        38.4       39.5

  Alcoholic beverages                                     2.0        2.3

  Tobacco                                                 1.6        1.5

  Clothing and footwear                                   7.9        7.9

  Housing, water, electricity, gas and other fuel         13.2       12.7

  Furnishings, household equipment and routine            5.3        3.8
  maintenance of the house                                           

  Health care                                             5.3        4.9

  Transport                                               7.1        8.6

  Communication                                           5.0        5.2

  Recreation and culture                                  4.9        4.3

  Education                                               0.6        0.8

  Hotels, cafes, restaurants, canteens                    4.3        4.2

  Miscellaneous goods and services                        4.4        4.3
  ------------------------------------------------------- ---------- ----------

## Average annual retail prices for main foodstuffs (\$ per kilo)

  --------------------------------------------- ---------- ---------- ----------
                                                **2001**   **2002**   **2003**

  Beef with bone (I category)                   3.66       3.32       2.20

  Chicken boilers (I category)                  3.37       2.75       2.15

  Boiled sausages                               4.60       4.46       4.00

  Alive carp                                    2.27       2.85       2.47

  Butter                                        2.99       3.60       4.03

  Pasteurized milk (2.5% fat)                   0.49       0.48       0.57

  Sour cream (25% fat)                          2.32       2.01       2.15

  Curd (9% fat)                                 2.78       3.02       3.38

  Hen\'s eggs, per 10 pieces                    0.98       0.81       0.97

  Sugar                                         1.05       1.13       1.14

  Wheat flour, best quality                     0.49       0.47       0.46

  Rye-wheat bread                               0.76       0.76       0.75

  Rice                                          0.70       0.62       0.56

  Potatoes                                      0.26       0.43       0.26

  Vodka produced in Lithuania of 40% alcohol,   8.77       8.42       8.44
  per liter                                                           
  --------------------------------------------- ---------- ---------- ----------

## Producer price indices of agricultural products (2001-2003)

  ---------------------------------------- ---------- ----------- ----------
                                           **2001**   **2002**    **2003**

  Total index                              114.7      99.6        89.2

  Crop products                            113.3      112.6       90.0

  Cereals                                  95.5       104.3       98.3

  Soft wheat                               93.4       101.2       98.0

  Rye                                      95.5       107.5       95.2

  Barley                                   96.8       108.7       97.9

  Industrial crops                         97.6       96.3        99.3

  Rape seed                                109.3      107.7       100.6

  Sugar beet                               93.2       92.4        99.8

  Flax fiber                               65.4       92.3        100.1

  Protein crops                            103.7      91.7        94.2

  Vegetables                               97.1       75.1        172.2

  Tomatoes                                 113.2      80.3        130.7

  Cabbages                                 79.3       98.0        161.8

  Cucumbers                                123.7      51.0        235.5

  Carrots                                  92.6       58.9        217.4
  ---------------------------------------- ---------- ----------- ----------

## Producer prices of crop products (\$ per ton)

  ---------------------------------- ------------ ------------ ------------
                                     **2001**     **2002**     **2003**

  Cereals grain                                                

  wheat                              132          136          133

  rye                                136          138          137

  barley                             130          135          125

  oat                                100          106          111

  triticale                          106          113          110

  buckwheat                          254          169          179

  Dried pulses                       192          170          160

  Sugar beet                         57           53           50

  Flax fiber                         339          312          325

  Rapeseed                           244          262          264

  Potatoes                           152          90           86

  Vegetables                         381          301          383

  cabbages                           140          225          182

  cucumbers                          680          406          586

  onions                             160          235          295

  beetroot                           116          127          139

  carrots                            168          195          229

  tomatoes                           871          645          871

  Fruit and berries                  34           49           53

  apples                             32           43           49

  strawberries                       652          842          1268

  black currants                     632          442          394
  ---------------------------------- ------------ ------------ ------------

## Consumption of main foodstuffs per capita (kilograms)

  ---------------- ------- ------- ------- ------- ------- ------- -------
                   1997    1998    1999    2000    2001    2002    2003

  Meat and meat    51      53      54      50      44      52      59
  products                                                         

  excluding        43      44      45      43      40      48      54
  category II                                                      
  edible meat                                                      
  offals                                                           

  Milk and dairy   203     190     208     272     281     283     287
  products                                                         

  Eggs, pieces     187     187     180     175     204     216     211

  Bread and grain  153     153     142     137     131     130     124
  products                                                         

  Potatoes         129     136     132     135     130     119     118

  Vegetables       73      81      87      88      86      81      95

  Fruit and        62      63      58      63      62      62      61
  berries                                                          

  Sugar            28.0    30.6    27.1    27.9    32.4    27.5    26.0

  Oil and          13.3    13.4    13.1    16.5    16.8    15.6    \...
  margarine                                                        

  Fish and fish    11.8    13.0    13.2    13.9    14.4    12.0    \...
  products                                                         
  ---------------- ------- ------- ------- ------- ------- ------- -------

Source: Statistical Yearbook of Lithuania 2004

## Foodstuffs and agricultural products exports and imports

(2002 - 2004 and first quarter of 2005), thousand \$

  ---- ------------------------ --------------- --------------- --------------- --------------- --------------- ---------------- ---------------- ---------------
                                Exports                                                         Imports                                           

                                **2002**        **2003**        **2004**        **2005 I Q**    **2002**        **2003**         **2004**         **2005 I Q**

       **Total**                **6,731,493**   **7,486,842**   **9,059,142**   **4,320,371**   **9,675,626**   **10,365,487**   **12,005,629**   **5,497,626**

       **Foodstuffs and         681,323         829,278         1,030,626       476,048         778,057         838,462          1,034,636        483,057
       Agricultural products**                                                                                                                    

       **Section I 01-05**      **254,174**     **270,798**     **388,288**     **160,538**     **144,308**     **158,256**      **213,261**      **105,447**

       **Live animals; animal                                                                                                                     
       products**                                                                                                                                 

  1    Live animals             15,852          13,048          16,880          7,884           3,128           3,461            6,558            3,052

  2    Meat and edible meat     14,370          16,097          33,353          20,839          25,848          37,382           74,016           30,223
       offal                                                                                                                                      

  3    Fish and crustaceans,    35,993          48,886          59,371          31,806          80,463          83,269           92,216           47,555
       molluscs and other                                                                                                                         
       aquatic invertebrates                                                                                                                      

  4    Dairy produce; birds\'   186,656         190,720         275,159         98,470          19,428          16,069           18,858           13,174
       eggs; natural honey;                                                                                                                       
       edible products of                                                                                                                         
       animal origin, not                                                                                                                         
       elsewhere specified or                                                                                                                     
       included                                                                                                                                   

  5    Products of animal       1,305           2,046           3,525           1,539           15,440          18,076           21,612           11,444
       origin, not elsewhere                                                                                                                      
       specified or included                                                                                                                      

       **Section II 06-14**     **108,159**     **202,135**     **224,122**     **119,249**     **222,194**     **249,525**      **289,195**      **143,346**

       **Vegetable products**                                                                                                                     

  6    Live trees and other     581             1,032           2,005           613             6,827           8,069            12,790           5,974
       plants; bulbs, roots and                                                                                                                   
       the like; cut flowers                                                                                                                      
       and ornamental foliage                                                                                                                     

  7    Edible vegetables and    18,784          36,829          44,466          9,343           31,324          40,991           51,683           18,835
       certain roots and tubers                                                                                                                   

  8    Edible fruit and nuts;   15,638          19,656          32,811          17,947          79,561          91,423           108,944          56,572
       peel of citrus fruits or                                                                                                                   
       melons                                                                                                                                     

  9    Coffee, tea, maté and    6,915           9,064           8,010           4,115           43,715          43,211           43,129           20,413
       spices                                                                                                                                     

  10   Cereals                  39,634          92,355          88,156          61,430          15,387          23,084           23,882           9,152

  11   Products of the milling  2,004           4,542           12,178          6,447           22,444          21,113           19,222           8,909
       industry; malt;                                                                                                                            
       starches; inulin; wheat                                                                                                                    
       gluten                                                                                                                                     

  12   Oil seeds and oleaginous 24,457          38,362          36,087          19,128          20,432          19,432           26,221           21,837
       fruits; miscellaneous                                                                                                                      
       grains, seeds and fruit;                                                                                                                   
       industrial or medicinal                                                                                                                    
       plants; straw and fodder                                                                                                                   

  13   Lac; gums, resins and    114             186             318             174             2,431           2,078            3,152            1,557
       other vegetable saps and                                                                                                                   
       extracts                                                                                                                                   

  14   Vegetable plaiting       32              107             93              51              72              123              172              97
       materials; vegetable                                                                                                                       
       products not elsewhere                                                                                                                     
       specified or included                                                                                                                      

       **Section III 15**       **17,246**      **14,755**      **20,997**      **10,395**      **64,983**      **65,112**       **75,820**       **35,543**

  15   Animal or vegetable fats 17,246          14,755          20,997          10,395          64,983          65,112           75,820           35,543
       and oils and their                                                                                                                         
       cleavage products;                                                                                                                         
       prepared edible fats;                                                                                                                      
       animal or vegetable                                                                                                                        
       waxes                                                                                                                                      

       **Section IV 16-24**     **301,744**     **341,591**     **397,219**     **185,865**     **346,572**     **365,570**      **456,360**      **198,721**

       **Prepared foodstuffs;                                                                                                                     
       beverages, spirits and                                                                                                                     
       vinegar; tobacco and                                                                                                                       
       manufactured tobacco                                                                                                                       
       substitutes**                                                                                                                              

  16   Preparations of meat, of 42,323          50,322          62,628          33,296          19,495          17,201           21,351           9,702
       fish or of crustaceans,                                                                                                                    
       molluscs or other                                                                                                                          
       aquatic invertebrates                                                                                                                      

  17   Sugars and sugar         14,220          20,135          39,651          20,234          17,846          25,549           57,911           16,730
       confectionery                                                                                                                              

  18   Cocoa and cocoa          23,261          34,692          32,030          12,971          24,345          35,582           29,019           13,729
       preparations                                                                                                                               

  19   Preparations of cereals, 8,816           10,788          17,853          9,015           23,257          25,397           35,337           16,736
       flour, starch or milk;                                                                                                                     
       pastrycooks\' products                                                                                                                     

  20   Preparations of          17,929          21,067          17,558          6,764           38,330          39,238           43,097           22,444
       vegetables, fruit, nuts                                                                                                                    
       or other parts of plants                                                                                                                   

  21   Miscellaneous edible     22,321          23,146          32,486          13,832          71,088          73,195           87,908           40,089
       preparations                                                                                                                               

  22   Beverages, spirits and   16,714          14,460          17,461          7,231           59,207          64,760           79,334           31,355
       vinegar                                                                                                                                    

  23   Residues and waste from  119,283         134,867         130,804         62,731          58,919          58,938           67,624           32,090
       the food industries;                                                                                                                       
       prepared animal fodder                                                                                                                     

  24   Tobacco and manufactured 36,877          32,115          46,747          19,790          34,083          25,709           34,777           15,846
       tobacco substitutes                                                                                                                        
  ---- ------------------------ --------------- --------------- --------------- --------------- --------------- ---------------- ---------------- ---------------

## Trade between Lithuania and USA;

2002 -- 2004 and January -- April 2005, Thousand \$

  ---- ------------------------ ---------------- ---------------- --------------- -------------- --------------- --------------- --------------- ---------------
                                Exports                                                          Imports                                         

                                **2002**         **2003**         **2004**        **2005** 01-04 **2002**        **2003**        **2004**        **2005** 01-04

       **Total**                **137,391.27**   **111,583.59**   **44,517.43**   **3,905.70**   **69,722.50**   **52,194.23**   **52,833.35**   **27,675.88**

       **Section I 01-05**      **124,530.81**   **99,539.37**    **34,813.45**   **888.17**     **31,084.26**   **28,699.89**   **27,309.96**   **13,452.39**

       **Live animals; animal                                                                                                                    
       products**                                                                                                                                

  1    Live animals             273.20           188.52           336.94          59.30          \-              2.61            15.28           0.88

  2    Meat and edible meat     117.08           23.45            52.46           65.32          2,839.47        1,374.44        4,681.76        6,279.12
       offal                                                                                                                                     

  3    Fish and crustaceans,    954.54           598.84           518.80          185.14         27,322.57       27,258.91       22,534.37       7,147.82
       molluscs and other                                                                                                                        
       aquatic invertebrates                                                                                                                     

  4    Dairy produce; birds\'   123,185.77       98,728.56        33,905.21       578.38         17.50           13.66           20.18           \-
       eggs; natural honey;                                                                                                                      
       edible products of                                                                                                                        
       animal origin, not                                                                                                                        
       elsewhere specified or                                                                                                                    
       included                                                                                                                                  

  5    Products of animal       0.18             \-               \-              \-             904.72          50.32           58.38           24.58
       origin, not elsewhere                                                                                                                     
       specified or included                                                                                                                     

       **Section II 06-14**     **3,048.84**     **2,609.44**     **1,094.08**    **107.46**     **6,742.50**    **5,445.88**    **5,756.09**    **1,117.85**

       **Vegetable products**                                                                                                                    

  6    Live trees and other     26.48            5.81             11.65           0.14           7.99            3.06            \-              0.18
       plants; bulbs, roots and                                                                                                                  
       the like; cut flowers                                                                                                                     
       and ornamental foliage                                                                                                                    

  7    Edible vegetables and    970.70           1,151.62         350.67          4.08           63.66           44.19           52.29           0.46
       certain roots and tubers                                                                                                                  

  8    Edible fruit and nuts;   386.44           324.89           429.79          \-             4,667.50        4,687.92        4,991.44        1,082.92
       peel of citrus fruits or                                                                                                                  
       melons                                                                                                                                    

  9    Coffee, tea, maté and    1,440.18         872.64           203.20          69.54          28.87           19.26           92.92           0.18
       spices                                                                                                                                    

  10   Cereals                  7.57             1.30             1.06            \-             208.63          192.61          33.38           \-

  11   Products of the milling  72.54            169.19           31.65           3.77           \-              1.06            \-              \-
       industry; malt;                                                                                                                           
       starches; inulin; wheat                                                                                                                   
       gluten                                                                                                                                    

  12   Oil seeds and oleaginous 135.99           79.19            66.06           29.93          1,694.01        470.35          544.96          34.12
       fruits; miscellaneous                                                                                                                     
       grains, seeds and fruit;                                                                                                                  
       industrial or medicinal                                                                                                                   
       plants; straw and fodder                                                                                                                  

  13   Lac; gums, resins and    \-               4.75             \-              \-             71.83           27.43           41.09           \-
       other vegetable saps and                                                                                                                  
       extracts                                                                                                                                  

  14   Vegetable plaiting       8.94             \-               \-              \-             \-              \-              \-              \-
       materials; vegetable                                                                                                                      
       products not elsewhere                                                                                                                    
       specified or included                                                                                                                     

       **Section III 15**       **43.17**        **19.23**        **12.82**       **-**          **50.70**       **62.32**       **135.46**      **45.56**

  15   Animal or vegetable fats 43.17            19.23            12.82           \-             50.70           62.32           135.46          45.56
       and oils and their                                                                                                                        
       cleavage products;                                                                                                                        
       prepared edible fats;                                                                                                                     
       animal or vegetable                                                                                                                       
       waxes                                                                                                                                     

       **Section IV 16-24**     **9,768.49**     **9,415.56**     **8,597.08**    **2,910.07**   **31,845.07**   **17,986.13**   **19,631.83**   **13,060.07**

       **Prepared foodstuffs;                                                                                                                    
       beverages, spirits and                                                                                                                    
       vinegar; tobacco and                                                                                                                      
       manufactured tobacco                                                                                                                      
       substitutes**                                                                                                                             

  16   Preparations of meat, of 3,183.59         1,997.32         1,665.25        392.22         39.08           16.76           42.71           44.89
       fish or of crustaceans,                                                                                                                   
       molluscs or other                                                                                                                         
       aquatic invertebrates                                                                                                                     

  17   Sugars and sugar         223.52           184.65           339.65          18.73          47.15           303.35          72.57           \-
       confectionery                                                                                                                             

  18   Cocoa and cocoa          497.43           507.92           693.13          241.51         0.63            2.08            7.15            3.52
       preparations                                                                                                                              

  19   Preparations of cereals, 2,426.51         2,966.97         1,895.88        678.94         0.63            7.43            8.20            24.19
       flour, starch or milk;                                                                                                                    
       pastrycooks\' products                                                                                                                    

  20   Preparations of          638.77           1,519.82         925.00          102.46         536.27          268.45          138.35          2.22
       vegetables, fruit, nuts                                                                                                                   
       or other parts of plants                                                                                                                  

  21   Miscellaneous edible     1,424.79         1,265.21         1,225.63        1,174.12       8,834.15        8,997.11        6,237.25        2,767.11
       preparations                                                                                                                              

  22   Beverages, spirits and   1,055.39         862.50           1,707.64        289.44         388.10          183.13          520.00          58.52
       vinegar                                                                                                                                   

  23   Residues and waste from  318.45           111.16           144.86          12.68          7,236.65        1,373.87        137.61          88.13
       the food industries;                                                                                                                      
       prepared animal fodder                                                                                                                    

  24   Tobacco and manufactured \-               \-               \-              \-             14,762.36       6,833.98        12,467.96       10,071.44
       tobacco substitutes                                                                                                                       
  ---- ------------------------ ---------------- ---------------- --------------- -------------- --------------- --------------- --------------- ---------------

Source: Lithuania Statistics Department

## Foreign Trade in Agricultural and Food Products in 2004

Source: Lithuanian Statistics Department, million \$

  -------- ------------------------- ------------ ------------ -------------- -------------
  **CN     **Commodity**             **Export**   **Import**   **Turnover**   **Balance**
  Code**                                                                      

  1        Live animals              16.9         6.5          23.5           10.3

  2        Meat and edible meat      33.3         74.0         107.4          -40.7
           offal                                                              

  3        Fish and crustaceans,     59.4         92.2         151.6          -32.9
           mollusks and other                                                 
           aquatic invertebrates                                              

  4        Dairy produce; birds\'    275.2        18.9         294.0          256.3
           eggs; natural honey;                                               
           edible products of animal                                          
           origin, not elsewhere                                              
           specified or included                                              

  5         Products of animal       3.5          21.6         25.1           -18.1
           origin, not elsewhere                                              
           specified or included                                              

  6        Live trees and other      2.0          12.8         14.8           -10.8
           plants; bulbs, roots and                                           
           the like; cut flowers and                                          
           ornamental foliage                                                 

  7        Edible vegetables and     44.5         51.7         96.2           -7.2
           certain roots and tubers                                           

  8        Edible fruit and nuts;    32.8         108.9        141.8          -76.1
           peel of citrus fruit or                                            
           melons                                                             

  9        Coffee, tea, mate and     8.0          43.1         51.1           -35.1
           spices                                                             

  10       Cereals                   88.2         23.9         112.0          64.3

  11       Products of the milling   12.2         19.2         31.4           -7.0
           industry; malt; starches;                                          
           inulin; wheat gluten                                               

  12       Oil seeds and oleaginous  36.1         26.2         62.3           9.9
           fruits; miscellaneous                                              
           grains, seeds and fruit;                                           
           industrial or medicinal                                            
           plants; straw and fodder                                           

  13       Lac; gums, resins and     0.3          3.2          3.5            -2.9
           other vegetable saps and                                           
           extracts                                                           

  14       Vegetable plaiting        0.1          0.2          0.3            -0.1
           materials; vegetable                                               
           products not elsewhere                                             
           specified or included                                              

  15       Animal or vegetable fats  21.0         75.8         96.8           -54.8
           and oils and their                                                 
           cleavage products;                                                 
           prepared edible fats;                                              
           animal or vegetable waxes                                          

  16       Preparations of meat, of  62.6         21.3         84.0           41.3
           fish or of crustaceans,                                            
           mollusks or other aquatic                                          
           invertebrates                                                      

  17       Sugars and sugar          39.6         57.9         97.6           -18.3
           confectionery                                                      

  18       Cocoa and cocoa           32.0         29.0         61.1           3.0
           preparations                                                       

  19       Preparations of cereals,  17.9         35.4         53.2           -17.5
           flour, starch or milk;                                             
           pastry cooks\' products                                            

  20       Preparations of           17.6         43.1         60.7           -25.5
           vegetables, fruit, nuts                                            
           or other parts of plants                                           

  21       Miscellaneous edible      32.5         87.9         120.4          -55.4
           preparations                                                       

  22       Beverages, spirits and    17.5         79.3         96.8           -61.9
           vinegar                                                            

  23       Residues and waste from   130.8        67.6         198.4          63.2
           the food industries;                                               
           prepared animal fodder                                             

  24       Residues and waste from   46.8         34.8         81.5           12.0
           the food industries;                                               
           prepared animal fodder                                             

           **Total**                 **1030.7**   **1034.7**   **2065.4**     **-4.0**
  -------- ------------------------- ------------ ------------ -------------- -------------