AB Akola Group's Strategic Investment in Dairy Farms
AB Akola Group, a leader in agricultural and food production in the Baltic States, is embarking on an ambitious modernization project at its Sidabravo and Žibartoni? dairy farms, set to enhance their operations significantly. With a substantial investment exceeding €4.8 million, the initiative aims to install advanced milking equipment and upgrade the necessary infrastructure, which will enable a substantial increase in milk production.
Modernizing Operations for Future Growth
According to Mažvydas Šileika, the Chief Financial Officer at AB Akola Group, these strategic investments are vital for improving farm efficiencies and meeting market demands. This project will not only boost production volumes but also lower operating costs, enhance working conditions, and raise sustainability standards, ultimately benefiting shareholders and the broader milk supply chain.
The allocation of investment is noteworthy, with over €2.6 million directed towards construction efforts and €1.9 million earmarked for purchasing state-of-the-art BouMatic milking equipment. This advanced technology will significantly alleviate labor burdens, enhance milk yields, and improve animal welfare within the farms.
Impact of BouMatic Milking Equipment
The introduction of BouMatic systems promises to automate nearly 90% of the milking process. These innovations are projected to decrease labor costs by up to 30%, improve yield per cow by 15%, and uphold the highest milk quality standards in the industry. Additionally, modern monitoring systems will track the productivity and health metrics of each cow, enhancing decision-making on the farm, reducing stress among livestock, and ensuring consistent profitability and competitiveness in the market.
Investments in Dairy Farm Expansion
Sidabravo Ž?B will invest over €2.3 million into these modernization efforts, while Žibartoni? Ž?B will contribute €2.5 million. The necessary building permits have already been acquired, and construction activities are underway.
Upon completing the first phase of this expansion—which includes renovations and equipment installation—the milk-producing herds are expected to grow substantially. Specifically, the Žibartoni? Ž?B herd is anticipated to add 200 new milking cows, and Sidabravo Ž?B will see an increase of 170 cows. These additions are projected to elevate daily milk production significantly, from 24 tons to about 32-33 tons at Žibartoni? Ž?B and from 18 tons to approximately 25-26 tons at Sidabravo Ž?B—indicative of a 33-44% rise in production capacity.
Future Market Positioning
With a growing trend of expansion in the milk production sector, M. Šileika emphasizes that this strategic move positions AB Akola Group to meet upcoming demands for quality milk from Lithuanian processors. The anticipated payback period for these investments is projected to be between 3 to 5 years, heavily dependent on milk purchase prices.
The completion of construction and modern upgrades at both dairies is expected by the end of April 2026, with potential additions of 1-2 employees once the new systems go live.
It’s also important to note that this modernization effort is partially funded by the European Union, which has allocated €908,000 specifically for this initiative.
AB Akola Group stands out as the largest agricultural and food producer in the Baltic region, employing over 5,000 people. The company manages the end-to-end food production process, from cultivation to distribution, all while providing essential goods and services to farmers. In the financial year 2024/2025, the group reported a consolidated revenue of EUR 1,580 million, reflecting a 4.9% growth compared to the previous year and achieving a remarkable profit of over €62 million.
Frequently Asked Questions
What is AB Akola Group's recent investment for?
AB Akola Group is investing €4.8 million to modernize and expand its dairy farms to increase milk production and improve operational efficiency.
How will the investment impact milk production?
The investment is expected to increase milk production by 33-44% at the respective farms due to an increase in the herd and the use of advanced milking technology.
What technology is being implemented in the dairy farms?
AB Akola Group will install BouMatic milking equipment, which will automate up to 90% of the milking process, resulting in higher yields and improved animal welfare.
When will the modernization be completed?
The construction and modernization are scheduled for completion by the end of April 2026.
How is this projects being funded?
The modernization effort is partially financed by a €908,000 grant from the European Union.
