AB Akola Group to build a seed factory for EUR 9.5 million

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The factory, which is expected to be operational by mid-2025, is being built by the subsidiary SIA Dotnuva Seeds on its own land in Iecava.

2024.03.27

AB Akola Group to build a seed factory in Latvia

Mažvydas Šileika, the Chief Financial Officer of AB Akola Group

The future factory will have a total area of 4,550 square meters. It will include a production unit, a warehouse, and a two-story administrative building with a laboratory, office workstations, and technical facilities.

Jonas Bakšys, a Member of the Management Board of AB Akola group and CEO of SIA Dotnuva Seeds

Last year, two seed production companies were set up in Lithuania and Latvia to strengthen the production of certified seeds. The seed factory in Dotnuva, Lithuania, annually produces around 27 thousand tons of ‘Dotnuva Seeds’ branded seeds. Seeds are traded by another subsidiary of AB Akola group, AB Linas Agro, headed by Jonas Bakšys since March. The company sells certified seeds in all Baltic countries and exports some to other European countries. In the first half of the 2023/2024 financial year, which ended on 31 December, the company sold more than 20 thousand tons of seeds, an increase of almost 14% compared to last year.

“The demand for certified seeds is growing as farmers understand the returns these seeds generate. Today, we can sell more seeds than we produce. Five years ago, we produced around 20 thousand tons of seed within the year – even a little less than we sold in the last six months. We plan to produce around 20 thousand tons of cereal and legume seeds in Latvia annually when the factory starts up. If the market continues to grow, we will increase the factory’s capacity to 30 thousand tons of seeds,” says J. Bakšys.

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