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Romanian DN AGRAR announces financing plans for new Straja farm
DN AGRAR Group (BVB: DN), the largest integrated zootechnical farm in Romania, said that it plans to obtain financing for the Straja farm so as to double the business by the end of 2027.
The company will access a credit facility of EUR 9.2 million from Exim Banca Românească SA to develop the farm, for equipment, and for the purchase of animals. Additionally, DN AGRAR will provide 20.78% from its own sources for this project.
The project financing and related conditions are subject to the shareholders' approval at the Extraordinary General Meeting scheduled for March 12, 2024.
"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," said Jan Gijsbertus de Boer, Chairman of the Board, CEO, DN AGRAR Group.
"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," he added.
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 specializing 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% compared to 2022.
The company was founded in 2008 by Jan Gijsbertus de Boer and has been listed on the Bucharest Stock Exchange, on the AeRO market, since February 2022. As of September 19, 2022, DN AGRAR shares are included in BETAeRO index of the most traded companies in the SMT Multilateral Trading System.
The group operates in the center of Transylvania, in Alba, Sibiu, and Hunedoara counties.
(Photo source: the company)