As part of the project, three new laying hen houses with a total area of 7,380 m² are being constructed in Alūksne, alongside the modernisation of the egg grading and packing centre and the development of an organic fertiliser production facility. In Preiļi Municipality, new pullet-rearing infrastructure is planned, increasing the efficiency of the entire production chain and strengthening the company’s operational independence. Upon completion of all projects, the company’s annual egg production will increase by 56%, from the current 180 million eggs to approximately 280 million eggs.
Hermanis Dovgijs, Chairman of the Management Board of Alūksnes Putnu Ferma Ltd., said: “The involvement of two major financial partners enables us to undertake one of the most ambitious development phases in the company’s history. The financing will allow us not only to expand our production capacity and modernise our infrastructure, but also to optimise the company’s financing structure and establish a solid foundation for future investment. By expanding production in Alūksne and Preiļi municipalities, we will strengthen our export potential, create new jobs and demonstrate the ability of Latvia’s regions to develop modern and internationally competitive food production.”
Swedbank has provided Alūksnes Putnu Ferma with total financing of EUR 25 million, covering both the implementation of the development project and the refinancing of the company’s existing debt, thereby significantly reducing interest costs.
Elīna Salava, Head of Large Corporate Banking at Swedbank, said: “Alūksnes Putnu Ferma’s development plans demonstrate the company’s ambition to systematically increase production capacity while investing in modern infrastructure and laying hen welfare. Investments of this scale strengthen not only the company’s own position but also Latvia’s food production and export potential. We highly value the professionalism of the company’s management team and are pleased to work alongside ALTUM in providing financing for this important stage of development.”
Under the state aid programme “Loans with a Capital Rebate for Large Investment Projects”, ALTUM has granted Alūksnes Putnu Ferma a loan of EUR 8 million with a maturity of up to 2036. The financing will be disbursed gradually in line with the progress of the project until the end of 2027.
Reinis Bērziņš, Chairman of the Management Board of ALTUM, said: “The Large Investment Support Programme was established to facilitate projects that drive business growth and make a significant contribution to Latvia’s economy. The total project cost is approximately EUR 27 million, of which ALTUM has provided EUR 8 million in the form of a loan with a capital rebate. Once the project targets have been achieved, the eligible portion of the ALTUM loan will be written off, significantly shortening the investment payback period and improving the project’s economic viability. Support instruments of this kind make it possible to implement investment projects whose scale and development benefits would otherwise be considerably more difficult to achieve. Cooperation between public and private financing also plays an important role in delivering the project, helping to bring ambitious and strategically important development plans to fruition.”
The Alūksnes Putnu Ferma development project forms part of the EUR 30 million investment programme launched this year by AS Agrova Baltics in Alūksne and Preiļi municipalities. The programme aims to increase production capacity in response to rapidly growing demand for cage-free eggs in European export markets and to develop one of the most advanced fully integrated egg production complexes in the Baltics.
The shares of AS Agrova Baltics are admitted to trading on Nasdaq Baltic First North Market.
About AS Agrova Baltics |NASDAQ: EGG| (formerly AS APF Holdings) is a Latvia-based agri-foods holding company managing a vertically integrated group operating across poultry farming, egg production, and egg and egg-protein-based products.
Agrova Baltics Group is engaged in poultry farming, egg production and wholesale trading, as well as the processing of eggs into liquid and dry egg products and egg proteins, serving food industry and functional nutrition applications. In addition, Agrova Baltics develops biogas and organic fertilizer production linked to poultry farming processes.
Agrova Baltics Group’s portfolio includes SIA Alūksnes putnu ferma (poultry farming and egg production), SIA APF Trading (wholesale trading of eggs and egg products), SIA Oluksne (poultry farming and egg production services), SIA Agrova Energy (biogas and organic fertilizer production), and SIA Preiļu putni (pullet rearing).
Founded in 2017 with the objective of acquiring and developing a poultry business in Alūksne with a long operational history, Agrova Baltics has evolved into a fully integrated agri-foods platform. Today, the Agrova Baltics Group covers the entire value chain – from pullet rearing and egg production to the processing of eggs into value-added egg products and egg proteins, wholesale distribution, and the sustainable utilization of by-products for energy generation and organic fertilizer production.