Amid consolidation of production, Agrowill Group gets new managers

Investment company ŽIA VALDA has decided to recall its representative Gediminas Žiemelis from the post of Chairman of the Board of Agrowill Group.

ŽIA VALDA has taken such a decision after the investment company failed to increase its portfolio to 40%. It currently holds a 31% stake in Agrowill Group. 

Žiemelis has presented the Supervisory Board of Agrowill Group with his resignation.

“Our stake does not enable us to influence Agrowill Group’s decisions. At an upcoming shareholder meeting, we, the shareholders, will approve an increase of the authorised capital by issuing new shares. If this right is implemented, our stake will halve. So far, we have planned to increase our stake as we have sought to expand Agrowill Group by acquiring other agricultural companies and planning to sell our land portfolio. After financing was reduced, it became more difficult to acquire new companies. Therefore, we have postponed our plans indefinitely,” Žiemelis said.

In his words, the main objectives of Agrowill Group AB today include more efficient use of its production facilities, whose operating efficiency is 40–45%, and increase of earnings and profit at minimal cost. This can only be done by focusing on production. Therefore, the company’s management is concentrated on production.

“Investors hope and expect each stage of the company’s activity to employ professionals. The company today needs manufacturers the most. Agrowill Group controls some LTL 400 million worth of assets, and these assets must earn a sufficient financial return. This can only be achieved by boosting the efficiency of production and deriving benefit from economies of scale owing to the company’s size,” J. Butautis, Deputy Director of ŽIA VALDA, believes.

In order to increase the earning capacity and profitability of its agricultural companies, at the end of 2008, Agrowill Group initiated implementation of comprehensive dairy and crop sector efficiency improvement programmes. The programmes are managed by experienced foreign experts, namely Teun Sleurink from the Netherlands and Linne Fromm-Christensen from Denmark. 

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