Luminor Bank has granted a loan of 2.75 million euros to the Zemgale-based production company LRS MŪSA to develop its operations and increase efficiency.
The company produces animal feed for the dairy and pig farming sectors, mainly using grain purchased from farmers and various cooperatives.
“The company's production plant is located near Bauska, but it transports feed throughout Latvia. LRS MŪSA is actively working to improve the efficiency of its operations. For example, the plant's processing line has been completely renovated and the energy efficiency of the plant has been increased. In 2019, 3 million euros were invested in additional grain storage capacity, allowing the plant to buy, process, and store grain. The loan from Luminor will help to further develop and diversify the company's operations in order to reduce the impact of various market fluctuations," says Vigo Vilcāns, Chairman of the Board of SIA LRS MŪSA.
The company owns an advanced grain pre-processing complex with a storage capacity of up to 20,000 tons. As dairy and pig production farms are getting bigger, demand for different raw materials and additives is increasing. As a result, many farms want to make their own compound feeds according to specific recipes, and LRS MŪSA ensures the supply of various feed components.
“The size of cattle and pig herds in Latvia has not changed significantly over the last 10 years, so there is a stable market for feed. Thanks to its long-standing experience, the animal feed production company LRS MŪSA has proven its ability to ensure high quality in all products supplied and to build up stocks even when the raw material market is subject to significant changes; long-term strategic thinking is essential for the development of the company. We hope that the bank's support will enable the company to achieve new business goals," says Ilze Zoltnere, Head of Corporate Department at Luminor in Latvia.
About SIA LRS MŪSA
SIA LRS MŪSA is one of the leading manufacturers of compound animal feed and has been a stable player in the Latvian market for 20 years. The company offers various types of compound animal feed, as well as raw materials, supplementary feeds (concentrates), and mineral feeds for the preparation of complete feed for pigs, cattle, sheep, and goats. The animal feed production company handles the pre-processing, storage, production, and marketing of grain. In addition to self-produced animal feed, the company also offers farmers imported products from AGRAVIS Raiffeisen AG, the largest German cooperative, as well as feed storage towers and manure storage facilities.
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.