DN AGRAR Group, the largest integrated livestock farm in Romania, with cow milk production and vegetable production, announces the plans for the extension of the production capacities by obtaining the financing for Straja farm. The company will access a credit facility of 9.2 million euros from Exim Banca Românească to develop the farm, for equipment and the purchase of animals.
Additionally, for this project, DN AGRAR will provide 20.78 percent by own sources. The financing of the project and related conditions are subject to the approval of the shareholders at the Extraordinary General Shareholders’ Meeting scheduled for March 12, 2024.
Jan Gijsbertus de Boer, Chairman of the Board, CEO, DN AGRAR Group: “Our strategy is to support an integrated agriculture, as part of a circular economy. We have strengthened the group in recent years through new acquisitions, and in 2023 we launched the Straja farm project, aiming to expand production capacity by 5,000 cattle, allowing for a doubling of turnover by the end of 2027. Currently, for this new farm, we are already raising young cattle at the DN AGRAR Prodlact farm. We aim to operationalize the farm starting from the third quarter, with 600 milking cows. A period of gradual production capacity growth follows, with the maximum to be reached at the end of 2027. We continue to streamline the Group’s activities through digitization and modernization, aiming to maintain attractive growth rates for the company and to strengthen the partnerships with new investors attracted in recent years through the Bucharest Stock Exchange.”
Traian Halalai, Executive President EximBank: “The agriculture represents a strategic field for Exim Banca Românească, and we are delighted that through this partnership with DN AGRAR Group, we can support the Romanian agribusiness. Partnerships established with leading companies in the economy are a clear indicator of our ability to identify and structure financial solutions for any sustainable business, a capability that also grants us the status of a preferred financier for companies.”
The farm will cover an area of 10 hectares, will have 2 milking parlors, and will reach full capacity in 3 years, with an estimated milk production of approximately 100.000 liters per day by the end of 2027.
DN AGRAR Group, consisting of 13 companies, including 4 farms specialized in dairy cattle breeding and cow milk production, has integrated activities, including logistics and transportation services for cow milk, nationally and in Europe. In the field of cereals, the group cultivates over 7,000 hectares of cereals and fodder, primarily to provide food for the approximately 14,000 animals within DN AGRAR Group’s farms. In 2023, the quantity of milk delivered by DN AGRAR dairy farms was approximately 55 million liters, a growth of almost 14 percent compared to 2022.