Export

The past year, excluding its last months, were successful for Lithuanian exporters. Not only because of the dramatic growth but also because of a decrease in export deficit. According to the data presented by the Department of Statistics, in 2008 the value of exported goods totalled LTL 55,5 billion and that of imported ones – LTL 72,6 billion. Foreign trade deficit of Lithuania totalled LTL 17,1 billion and was by as much as 6.5 per cent smaller than that in 2007. Last year, as compared with 2007, export grew by as much as 28.4 per cent. Export of goods of Lithuanian origin increased by as much as 31.3 per cent.

 
The leap of Mažeikių nafta AB
It is true, successful export of Mažeikių nafta AB products had the greatest effect on this growth. Last year, fuel sales agreements of the largest Company in the country, as well as the growing consumption on the world markets enabled it to considerably increase export and to markedly improve statistical indicators of export. The following fact shows what part Mažeikių nafta plays in export statistics: having subtracted products exported by this enterprise, sales of Lithuanian goods on foreign markets increased by as little 5.4 per cent only. During nine months of the past year the largest taxpayer in the country Mažeikių nafta AB paid to the budget about LTL 3 billion in taxes. At the same time this Company is the largest exporter of the country, exporting about three quarters of its production abroad. The first half of 2008 was especially successful. However, since summer things have begun to go worse. Between January and October Mažeikių nafta earned LTL 220,5 million of profit according to the standards of international financial accountability. However, the third quarter was already unprofitable: with petroleum prices falling, the reserves of the Company depreciated by as much as $ 60 million, therefore the total losses amounted to almost LTL 60 million. According to the representatives of the Company, to ensure that the Company should constantly work at profit, it is necessary to keep the price of petroleum stable. Thus, export of refined petroleum oils and oils obtained from bituminous minerals, which has increased by as much as 2,5 times, had an impact on the export growth.

Export of fertilizers improved export
The second largest exporter in country is Achema AB. The successful sale of fertilizers of Achemos grupė abroad enabled this Company to earn 35 per cent more than last year. However, the decreasing demand for nitrogen fertilizers and high prices of raw materials can direct the things in the opposite direction. Since November this Company has used only as little as 15-20 per cent of its capacities.

The successful sale of fertilizers of Achemos grupė abroad though allowed this Company to earn 35 per cent more than the year before last.

Another Lithuanian manufacturer of fertilizers Lifosa, which lives on export that accounts for about 95 per cent of the total income of the Company, also received the record profit last year.

All in all, last year’s export of fertilize increased by as much as 65.1 per cent. On the whole, export of chemical industry increased almost twofold. But again this was determined by the successful activity of two fertilizer plants.

What conclusions can be drawn from the last year’s export tendencies? First of all, the export growth was determined by a successful breaking of the country’s two largest enterprises into foreign markets. However, if due to some reasons the activity of all largest enterprises begins to go awry this year, really hard times are in store for our country. Exports of other branches of industry are much less essential. By the way, the year before last Neo Group, which manufactures PET pre-forms and plastic bottles was the third largest exporter in the country. However, last year it lost this title.

The greatest quantities of products were sold in Russia
Last year the quantities of Lithuanian grain sold abroad were 2,1 times larger than those sold the year before last. That was determined by the previous year’s rich harvest and sufficiently high prices, which allowed Lithuanian farmers to earn. The situation in the sphere of export started to change in the late autumn, and in some districts even earlier. Therefore in December, as compared with November, export decreased by as much as 15 per cent already. Having eliminated the seasonal influence, export has decreased by as much as 5.5 per cent. In 2008, traditionally the largest quantities of products were sold on the Russian market (16.1 per cent). Lithuanian milk processing enterprises successfully exported their production to that country. On the whole, food industry is rather markedly related to the Russian market and indicators of our food manufacturers depend on the material well being of that country to a great extent. As much as 11.6 per cent of all exported goods are exported to neighbouring Latvia where the largest network of retail trade of Lithuanian capital operates. 7.2 per cent of goods is exported to Germany and 5.8 per cent to Poland. In 2008 mineral products (25 per cent), machinery and mechanical, electric equipment (10.6 per cent), products of chemical industry and branches of industry related to it constituted the largest part of Lithuania’s export (9.7 per cent).