Luminor grants 1 million euros to SIA Zemkopība for the purchase of agricultural machinery
Luminor Bank has provided funding of 1 million euros to SIA Zemkopība for the purchase of new agricultural machinery as the company's arable land grows. The company is active in grain production in the Ventspils, Gudenieki, and Skrunda districts.
"The grain farming sector in Latvia is expected to develop well in the long term, and there is already an increase in the volume of grain produced, despite the fact that this sector is exposed to weather conditions. The value of grain in Latvia is determined by the price on international markets, as most of what is produced is exported. With the price of cereals currently at record highs due to geopolitical conditions, this is a good time for the company to develop further. We appreciate that SIA Zemkopība takes into account the latest research in the sector and uses technology to increase productivity and reduce costs, thus accelerating business growth," says Ilze Zoltnere, Head of Corporate Banking at Luminor in Latvia.
SIA Zemkopība is one of the companies in the group, which also includes SIA Baltic RM and SIA AMagro, among other serious players in the agricultural sector. The three companies in the group produce wheat, rapeseed, oats, maize, and barley. Latvia is the main market for the companies, but the most important buyers of their products are well-known Baltic companies.
The group manages several thousand hectares of arable land in Latvia and plans to increase the area significantly in the near future. It also has a variety of agricultural equipment and infrastructure for land cultivation.
"Our group has great potential for growth, as we have started to increase our land area significantly in recent years. We are ready to continue on this path and become an important player in our sector. We are also focusing on saving resources, for example we have realised that some grain crops need special treatment before sowing and by doing this ourselves we can save some costs. And we fertilise different areas based on soil analysis and with GPS precision, which is a major cost-saver at a time of rising fertiliser prices. We also try to adopt best practices and experiences from German farmers and keep up to date with the latest research in the sector. The funding from Luminor will enable us to buy the new equipment needed to cultivate arable land and move towards our goals," says Holger Marsch, Chairman of the Board of SIA Zemkopība.
About SIA Zemkopība
The group of companies that comprises SIA Zemkopība was founded in 2014 and is owned by members of the same family with roots in Latvia and Germany. The group is mainly involved in grain production and also owns a grain dryer and agricultural machinery, and is able to store large quantities of grain in its own warehouses.
Luminor is the leading independent bank in the Baltics and the third-largest provider of financial services in our region. We serve the financial needs of individuals, families, and companies. Like our home markets of Estonia, Latvia, and Lithuania we are young, dynamic, and forward looking.