In response to dairy sector deficit in the neighboring countries Agrowill Group increases amount of cow flocks

Recently the growth dairy demand for Europe has become obvious and dairy sector deficit has been noticed in countries of Northern Europe. In response to that Agrowill Group has been increasing amounts of milk production and has expanded its cow flocks by 10% this year.
„As demand of butter has jumped in Scandinavia and Russia significantly, now butter deficit is noticed obviously. Milk manufacturers feel milk shortages because of sudden changes in consumers‘habits: the Europeans prefer to drink natural milk and to choose organic food, i.e. butter is in advance of margarine. As a matter of fact, price for the mentioned products grows; manufacturers fail to cover the demand in time“, -Vladas Bagavicius, Agrowill Group chairman of the board states.
As he puts it, deficit for dairy is obvious in Russia, too: 1.2% decrease in milk procurement has been noticed in nine months there. That is why Russian investments to the Baltic dairy market should not be a surprise.
Two businessmen from Russia have purchased Latvian milk processing companies and have established one of the largest milk processing companies in the Baltic region recently. There is no doubt, the newly established company will supply dairy to a vast Russian market.
“Significant changes in dairy market are obvious right now – demand for raw milk is expected to grow inevitably. These are the reasons that made us increase cow flocks and amounts of milked milk: the latter for year 2010 grew for about a ton per every milked cow”, - Vladas Bagavicius states.
Agrowill Group increases amount of milked cow flocks in both ways: in terms of natural increase and purchasing heifers from the Netherlands.

For more information, please contact:
Vladas Bagavičius, Chairman of the Board of Agrowill Group AB, tel. +3710 610 31807

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