A subsidiary of AB Linas Agro Group, Panevežys District Žibartoniu ŽUB, has signed stock sales-purchase agreement with the owners of the stock of agricultural company ŽUB Nemunas for obtaining 67.15% of the stock of ŽUB Nemunas. The total investment amount to EUR 2,005,000.
Agricultural company ŽUB Nemunas, based in Miegenai village, Kedainiai district, was established in 1992. The company cultivates 1,051 ha of land, from them 243 ha are own. Runs dairy farming, has 496 units of cattle, including 196 dairy cows; also grow cereals and oilseeds - over 3,400 tons per year. The total headcount of the company is 25. In 2019, the revenue of the company exceeded 1 million euros. Assets are valued at EUR 1.89 million.
"We are the neighbors of Nemunas. Our farming company Panevežys District Žibartoniai ŽUB is located nearby. The agricultural company Nemunas is attractive to us because it is close to us and its activities are diversified. We believe to have something to offer to our neighbors, and first and foremost our experience. We have been managing agricultural companies since 2003.
All activities of our Group revolve around agriculture: we supply goods to farmers and market their crops, grow cereals, produce milk, operate a full-cycle poultry business in Latvia. The production of agricultural produce is one of our most important activities, where we directly face the same problems like the other farmers, therefore have the opportunity to test how in fact useful the products and equipment we offer are, what is helpful and what isn't. Besides that, these activities allow us to make useful experiments and test various new technologies before offering them to our customers.
Our agricultural companies are not just a testing ground for new technologies - they are strong and efficient businesses. Their employees exchange experiences and learn from each other. This is also reflected in the results of our performance: the average yield of wheat we grow is 38% higher than the average in Lithuania, and the yield of rapeseed is 48% higher. In the poor year 2018, the gap was even larger - 56% and 52% respectively. Taken together, our companies are also a fairly large milk producer in Lithuania, with average milk yields also 74% higher than the Lithuanian average. In the financial year 2018/2019, the milk production at the agricultural company Panevežys District Žibartoniu ŽUB increased by 12.2%. Coming to Nemunas we will strive for similar operational efficiency," comments Andrius Pranckevicius, Deputy Managing Director of AB Linas Agro Group.
AB Linas Agro Group owns six agricultural companies located in fertile areas of Lithuania - Panevežys District Aukštadvario ŽUB, Šakiai District Lukšiu ŽUB, Biržai District Medeikiu ŽUB, Sidabravo ŽUB and Kedainiai District Labunavos ŽUB. They are engaged in production of milk, cereals, rapeseed and sugar beet. In 2018 Šakiai District Lukšiu ŽUB was the second most efficient milk producer in Lithuania in the category of companies, with an average milk yield of 11,262 kg per cow. The third most efficient among the enterprises was the company Sidabravo ŽUB, where on average 10,471 kg of milk was milked from a cow.
About AB Linas Agro Group
AB Linas Agro Group together with its directly and indirectly controlled companies (hereinafter - subsidiaries) makes the Group, which was founded in 1991 and operates in four countries - Lithuania, Latvia, Estonia and the Ukraine. The Group has 39 companies and 2,064 employees. The financial year of the Group begins on 1 July. The revenue of the Group was EUR 743 million in FY 2018/2019, EBITDA - EUR 5.6 million.
The companies of the Group produce, handle and merchandise agricultural and food products, also provide products and services for farming. The Group is the leading exporter of grains and has own network of thirteen grain elevators. Also is one of the leaders in supplies of agricultural inputs (such as certified seeds, fertilizers and agricultural machinery) in Lithuania, has seed preparation plant. The Group is a major milk producer in Lithuania and the biggest poultry producer in Latvia.
Additional information:
Andrius Pranckevicius
Deputy Managing Director of AB Linas Agro Group
Mob. + 370 687 71 419
E-mail a.pranckevicius@linasagro.lt (mailto:a.pranckevicius@linasagro.lt)
