Luminor bank has granted financing in the amount of three million euro to one of the largest Latvian milk cow farms SIA Agro Kakenieki. The company mainly plans to use the received loan for the purchase of agricultural land and construction of silage storages.
With the received Luminor bank financing the crop production and dairy farming company SIA Agro Kakenieki has purchased additional 109 hectares of agricultural land. At the same time, silage tanks and a manure storage will be constructed for the granted funds.
“Dairy farming makes up a significant part of the total value of Latvian agricultural products, moreover, the biggest part or about 60% of the industry’s products is exported. Although dairy farmers were affected by the pandemic, for example due to declining export volumes and milk purchase prices, the industry has managed to remain stable, which can be explained by the increased demand for dairy products. We believe in the industry’s prospects, therefore we continue to support both farmers and cattle breeders and dairy farmers in various ways”,
-says Ilze Zoltnere, Head of Luminor Corporate Department in Latvia.
Agro Kakenieki SIA has one of the largest herds in Latvia with 1605 cattle, 883 of them are milk cows. Currently, the company manages a total of 2 046.4 hectares of agricultural land, of which 81.92 hectares are already owned by the farm, another 100.35 hectares will be purchased, while the rest of the land with the area of 1,931.58 hectares is leased.
“The purchase of additional agricultural land will both expand the territory of the farm and allow us to obtain the raw materials required for fodder more efficiently. An important step in the further development of the company is also the construction of silage storages, which thus improves the storage conditions of fodder required for cattle. The construction of new manure storages will give a possibility to store manure in accordance with the environmental requirements”,
-indicates Vasilijs Pravdivecs, Chairman of the Board of Agro-Kakenieki.
About SIA Agro Kakenieki
SIA Agro Kakenieki is a crop production and dairy farming company which started its activities in 1998. The company is located in Dobele Municipality, Annenieki Parish, Kakenieki and is one of the largest farms in the region. Milk produced by the company is almost entirely exported abroad, while crop products are sold here in Latvia.
Luminor is the third-largest provider of financial services in the Baltics, with some 870 000 clients and 2 300 employees. In the Baltic region, it has a market share of 14.9% in deposits and 16.9% in lending as at the end of March 2021. Luminor has total shareholders’ equity of 1.7 billion EUR and a CET1 ratio of 23.4%.