Lithuanians have started producing cheese in Latvia for Italians and beyond

Business
LSM.LV
Publiation data: 28.01.2026 18:36
Lithuanians have started producing cheese in Latvia for Italians and beyond

The construction of a cheese factory and the installation of equipment has been completed at the Baltic Dairy Board enterprise in Bauska, owned by the Lithuanian dairy processing group Vilvi Group. More than 60 million euros have been invested in the project, and the enterprise has already begun commercial cheese production, the company reported.

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

Once fully operational, the new factory will create more than 100 jobs, and the annual cheese production volume will reach 18,000 tons. The products are planned to be exported to more than 40 countries worldwide.

The company notes that the factory, built on the territory of the Baltic Dairy Board, a dairy processing enterprise owned by Vilvi Group, is the largest investment project in the group's history. The production is fully automated and robotized, and equipped with modern technologies.

The total cost of the project exceeds 60 million euros, with part of the investment financed by the Latvian government.

The CEO of Vilvi Group, Gintaras Bertešius, explained that the decision to build the factory in Latvia was driven not only by favorable geographical location in terms of logistics and cooperation with local milk suppliers but also by support from the Latvian state — government funding covers about one-fifth of the project's cost.

Bertešius noted that the decision to build the factory in Latvia was influenced by several factors.

"In Bauska, we already had our own territory and infrastructure suitable for processing milk and whey. This allowed us to optimize investment costs compared to alternative options for new construction in Lithuania. Moreover, logistics will become more efficient, as a significant portion of the raw milk is sourced from Latvia and Estonia," said Bertešius.

He emphasized that despite the expansion of production in Latvia, Vilvi Group maintains strong positions and production capacities in Lithuania, where six out of seven group enterprises operate.

Vilvi Group includes the enterprises Vilkyškių pieninė, Modest, Kelmės pieninė, Kelmės pienas, Pieno logistika, as well as the Latvian enterprise Baltic Dairy Board, acquired in 2021.

According to Lursoft data, in 2024, Baltic Dairy Board operated with a turnover of 12.1 million euros, which is 8% more than the previous year. The company's profit amounted to 418,550 euros, whereas the previous year the enterprise operated at a loss. The sole owner of Baltic Dairy Board is the Lithuania-registered company Vilkyškių pieninė.

Vilvi Group continues to expand: on January 16, the acquired enterprise Marijampolės pieno konservai officially joined the group.

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