Vilvi Group completes construction of US$71.4M cheese site

LATVIA – Baltic Dairy Board, a Latvian milk processing company owned by Lithuania’s Vilvi Group, has announced the completion of the construction and installation of equipment for a cheese production facility.

More than €60 million has been invested in the new production complex, and commercial cheese production has begun.

The first batch of cheese produced at the plant was shipped to customers in Italy in the second half of January.

Once fully operational, the new factory will create more than 100 jobs, and the planned cheese production volume will reach 18,000 tonnes per year.

According to the company, is the largest investment project in the group’s history. The total value of the project exceeds 60 million euros, and part of the investment is financed by the Latvian government.

Gintaras Bertašius, CEO of Vilvi Group, pointed out that the decision to build the plant in Latvia was determined not only by its favourable geographical location for logistics and partnership with local milk suppliers, but also by the support of the Latvian government – the state is financing approximately one-fifth of the project’s value.

“We already had our own territory and infrastructure in Bauska that was suitable for milk and whey processing. This allowed us to optimise investment costs compared to alternative new construction scenarios in Lithuania. In addition, logistics will become more efficient, as the group purchases a significant portion of its fresh milk directly in Latvia and Estonia,” said Bertašius.

Vilvi Group consists of the companies Vilkyškių pieninė, Modest, Kelmės pieninė, Kelmės pienas, Pieno logistika, and the Latvian company Baltic Dairy Board, which was acquired in 2021.

Vilvi Group begins construction of US$55.6M cheese production facility in Latvia

The company announced plans to build a new state-of-the-art cheese production facility in Bauska, Latvia, in 2024.

The project, valued at over US$55.6 million, marks the largest investment in the Group’s history. A symbolic capsule-laying ceremony took place to commemorate the beginning of this significant venture.

The new facility, which will cover more than 8,000 square meters, will be located within the premises of Baltic Dairy Board SIA, a dairy processing plant owned by Vilvi Group.

The construction is financed through a combination of the Group’s own funds, loans from Citadele Bank, and a contribution of over US$9.4 million from the Latvian State Development Finance Institution ALTUM.

Scheduled for completion in 2026, the cheese factory will feature cutting-edge automated and robotic technologies, reflecting Vilvi Group’s commitment to innovation and quality.

The facility is expected to process over 500 tons of milk daily, producing approximately 50 tons of cheese per day, or 18,000 tons annually. Most of this production will be exported to over 40 countries, contributing significantly to the region’s economy.

Subscribe to receive our email newsletters with the latest news and insights from Africa, Middle East and around the world. SUBSCRIBE HERE