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Wednesday 21.03.2018 | Name days: Una, Unigunde, Dzelme, Benedikts

Ukrainians plan to develop a multi-million potato business in Latvia

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUUkrainian businessmen plan to build a full cycle processing plant in one of Latvia’s regions in order to develop potato processing business in Latvia. Investments are estimated at EUR 75 million, as reported by Chairman of ABM Agro Dmitro Motuzko.

‘We plan to complete a full production cycle – potato cultivation, procurement, processing and waste utilisation. Potatoes will be sorted into fractions: the best ones will be processed to make fries and chips; others will be used to produce starch. Waste will be used to produce biogas. We cannot get away with ‘just one element’, we need a big and modern processing complex with at least 200 people employed,’ – said the businessman.

He added that it is planned to invest up to EUR 75 million. The project may be completed in four years after receiving permission. It is not yet decided in which Latvian region to build the plant.

’50,000 tons of potatoes per year would be required to sustain the plant. Latvia has a great climate and soil. Selecting the right potatoes to fit the annual requirement won’t be a problem. As soon as we decide which region could provide us with 700 ha, we will start developing our business plan. We will then turn to investment funds or banks for funding, because projects of this scale cannot be completed using personal money alone,’ – said Matuzko.

When asked about investors who would invest money in the projects’ initial capital, Matuzko admitted that it would be the parent company – British Legaland Investments Limited. This company already has subsidiaries in all of Eastern Europe.

‘The company has been investing money in agricultural production projects for decades. We have realized a similar potato project in Ukraine. There, the production plant’s output is 50,000 tons per year. A similar project has been realized in USA. The production plant there is able to process 300,000 tons per year. Of course, we need to take into account subsidies of the European Union as well. If the project complies with the necessary requirements, it would be silly to refuse using it,’ – said Motuzko.

He also admits that it is too soon to speak of procurement prices. He does say it will be a competitive price; farmers will be paid in full.

When asked about the target markets, Motuzko mentioned that the production plant will focus on exports.

‘The most important issue at the moment is not the market, it is the method that will help us create a modern company with low costs. Technologies develop so rapidly, the largest agricultural companies in Europe that were built decades ago are now completely out of date. With that, there is a unique opportunity in to build the most technologically advanced plant in Latvia,’ – said the Ukrainian businessman.


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  1. Gary Chapman says:

    I would like to learn more about your Baltic interest. I have been involved with potato production in the USA for nearly 40 years, presently consult and have toured the lovely Baltics with potatoes in mind.

    Thumb up 0 Thumb down 0

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