EUROPE – Akola Group, a prominent player in the agricultural sector in the Baltics, has announced a substantial investment of EUR 9.5 million (US$ 10M) in the establishment of a cutting-edge seed factory in Latvia.
The subsidiary responsible for this ambitious project is SIA Dotnuva Seeds, and the factory is slated to commence operations by mid-2025 on its own property in Iecava.
With an anticipated annual capacity of approximately 30,000 tons, the site will primarily produce cereal and leguminous plant seeds.
The future factory will encompass 4,550 square metres, housing a production unit, warehouse and a two-story administrative building with a laboratory, office workstations and technical facilities.
“We plan to leverage a promising new seed preparation technology, which we’ve observed in action at a recently visited facility. This cutting-edge technology underscores our commitment to sustainable seed production, and we anticipate that our investment will yield significant returns within seven years,” said Mažvydas Šileika, Chief Financial Officer of AB Akola Group.
Šileika added that the company is collaborating with 30 breeders across Europe to introduce new seed varieties tailored to regional climates, providing farmers with an expanded range of choices.
On his part, Jonas Bakšys, a member of the management board of Akola and CEO of SIA Dotnuva Seeds added that the future factory will allow faster access to Latvian and Estonian farmers, shortening the logistics chain.
The investment in this new venture aligns with Akola Group’s broader efforts to fortify seed production across the Baltic region.
In Lithuania, a similar initiative has resulted in the annual production of 27 thousand tons of ‘Dotnuva Seeds’ branded seeds at the Dotnuva seed factory.
Additionally, AB Linas Agro, another subsidiary under Akola Group’s umbrella led by Jonas Bakšys, has been instrumental in distributing certified seeds throughout the Baltic states and beyond.
The company witnessed a substantial uptick in sales during the first half of the 2023/2024 financial year, with sales surpassing 20 thousand tons—an increase of nearly 14% from the previous year.
“The escalating demand for certified seeds underscores the value farmers place on quality,” Bakšys noted.
Once operational, the company projects that the Latvian factory will contribute significantly to meeting this demand, with an annual production target of 20 thousand tons initially, poised to expand to 30 thousand tons if market conditions continue to favor growth.
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