AB Akola Group, one of the largest agricultural and food production groups in the Baltic States, is launching dairy farm modernization projects worth more than €4.8 million at its Sidabravo and Žibartoniu agricultural companies (ŽUB). Advanced milking equipment and upgraded infrastructure will be installed, and later the herd of milking cows will be increased to achieve significant growth in milk production.
"These investments are a strategic step towards increasing the efficiency of our Group's farms and ensuring competitiveness in the market. This will allow us to increase production volumes, reduce costs, improve working conditions, and ensure higher sustainability standards. In this way, we will create value for both our shareholders and the entire milk supply chain," says Mažvydas Šileika, CFO and member of the board of AB Akola Group.
The majority of the planned investment - more than €2.6 million - will be allocated to construction work, while the remaining €1.9 million will be used to purchase and install modern BouMatic milking equipment. The latter will reduce the workload, increase milk yields, and further improve the welfare of cows on farms.
The planned investment in BouMatic milking equipment will automate up to 90% of the milking process, save up to 30% in labor costs, ensure up to 15% higher milk yield per cow, and maintain the highest milk quality standards. In addition, modern systems record the productivity and health indicators of each cow, allowing for more accurate farm management decisions, reducing stress levels for livestock, and, in the long term, helping to ensure stable farm profitability and competitive advantage in the market.
In total, Sidabravo ŽUB will invest more than €2.3 million in modernization and expansion, while Žibartoniu ŽUB will invest €2.5 million. Both companies have already obtained building permits and have started construction work.
Once the first stage of the farms' expansion has been completed - i.e. once construction and equipment modernization have been finished - the number of cows is expected to increase. The Žibartoniu ŽUB herd is expected to expand by 200 milking cows, while the Sidabravo ŽUB herd should increase by another 170 cows. This is expected to increase milk production from 24 to 32-33 tons per day at Žibartoniu ŽUB and from 18 to 25-26 tons per day at Sidabravo ŽUB, representing a 33-44% increase in milk production.
"We see a clear trend in the milk production sector - market participants are expanding or planning to expand their production capacities. Therefore, it is very likely that Lithuanian milk processors will need more high-quality milk in the near future. By expanding our farms, we aim not only to meet this demand but also to further strengthen our position in the market," emphasizes M. Šileika. According to him, depending on the milk purchase price, the payback period for the Group's planned investments will be 3-5 years.
The construction and equipment upgrade work at both farms is scheduled to be completed by the end of April 2026. Once the projects are implemented, both farms will need 1-2 additional employees.
The modernization and expansion of the farms is partly financed by the European Union (EU), which has allocated €908,000 in funding.
AB Akola Group owns the largest agricultural and food production group in the Baltics, employing over 5 thousand people. The group operates along the entire food production chain from field to fork, producing, preparing and selling agricultural and food products, as well as providing goods and services to farmers. The Group's financial year begins on 1 July. The consolidated revenue of AB Akola Group for the twelve months of 2024/2025 financial year amounted to EUR 1,580 million. This was 4.9% higher than in the corresponding period of the previous year. The Group achieved the second highest profit in its history during this period, exceeding €62 million.
More information:
Mažvydas Šileika, Chief Financial Officer and Member of the Board of AB Akola Group
E-mail: m.sileika@akolagroup.lt
Mob. +370 619 19 403
