Agrowill Group Enters Russia

Agrowill Group, the largest agricultural investment and development company in the Baltic states, continues its active expansion into Eastern Europe—the company acquired 75 percent of shares in ZAO Agroprom.

“This is our first step in starting active expansion into Russia. Due to legal regulations existing in Russia, further expansion will be carried out through the newly acquired company“, said Robertas Čepaitis, director of the development department at Agrowill Group.

According to Čepaitis, after acquiring a company in Russia, the initial objectives will be to form fields of agricultural land and acquire production facilities. Negotiations are already under way with several profitable companies working exclusively in the area of crop farming. The smallest of these companies cultivates 11,000 ha of land.

A centralised management model tested in Lithuania by Agrowill Group will be implemented in Russia. “Under conditions where there is more fertile soil and the possibility to form larger fields, this management model will enable the company to achieve better results in Russia than in Lithuania“, says Čepaitis.

Like other countries of the region which have black soil, Russia is an attractive destination for Agrowill Group due to its particularly fertile soils which reach an efficiency coefficient of up to 85 percent. Meanwhile in Lithuania, medium and small fertility soil dominates with an average efficiency coefficient of only 45 percent.

Positive company results will be determined by the fact that the land planned for acquisition is in a single location. As a result, fewer employees will be required. In addition, large fields will facilitate organisation of development, crop rotation, and planning processes.

It should be mentioned that this year Agrowill Group has already acquired one of the biggest and most modern Estonian dairy companies Polva Agro and established a company in Moldova which will develop agricultural activity in this country. Expansion to other countries that have black soil—Ukraine and Moldova—is also planned.

Agrowill Group is currently manages 15 agricultural and 23 land management companies. Acquisition of another two agricultural companies will be completed in the nearest future. In the Baltic region the company controls around 36,000 hectares of land and has a herd of over 7,500 milking cows.

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