Česká verze stránek
Estonia,
Latvia
Estonian-Latvian Deal Creates New Baltic Dairy Powerhouse
Estonian investment company Falber Investments OÜ, the parent company of Agrone, Estonia’s largest agricultural group and the Baltic region’s largest independent raw milk producer, has signed an agreement to acquire AS Rīgas piena kombināts (RPK), Latvia’s largest dairy processing company. The transaction also includes RPK’s subsidiary AS Valmieras piens.
The deal will bring together businesses covering different parts of the dairy value chain — from primary milk production and agricultural inputs to processing, product development, brands and distribution — creating one of the largest vertically integrated dairy groups in the Baltics. The financial terms of the transaction have not been disclosed. Completion remains subject to approval by the competition authorities in Estonia and Latvia.
A combination of milk production and processing
Agrone operates approximately 14,500 hectares of agricultural land in Estonia and produces around 70,000 tonnes of raw milk annually. The group also produces approximately 35,000 tonnes of grain and oilseeds and 40 million eggs per year, with around 300 employees.
RPK and Valmieras piens bring substantial downstream processing capacity and established consumer brands. Their two Latvian production facilities have combined fresh milk processing capacity of approximately 1,000 tonnes per day. The group produces around 300 dairy products, employs more than 750 people, and exports approximately one-third of its production to more than 35 countries.
RPK reported consolidated revenue of more than €155 million in 2025. The company operates a portfolio of established Latvian and Baltic brands, including Kārums, Lakto, RASA, Dzintars, Limbažu piens, Valmiera, Rasēns and Mājas.
Vertical integration as the core rationale
The strategic logic of the transaction is the integration of Agrone’s upstream raw milk production with RPK’s processing, product development, branding and sales capabilities.
According to Agrone, the combination is expected to strengthen the companies’ competitiveness in both Baltic and export markets. For RPK, the acquisition would provide access to a broader dairy value chain and create opportunities to accelerate product development and expand internationally.
Particular growth areas identified by RPK include snack cheeses and curd snacks, dairy drinks, yogurts and ready meals.
The transaction would also give Agrone a significantly stronger position in dairy processing and consumer products, while RPK would gain closer integration with a major regional raw milk producer.
Transaction still subject to regulatory approval
Until the transaction is completed and the required competition approvals are obtained, Agrone and RPK will continue to operate as separate and independent companies. There will be no immediate changes to production, employees, customers, milk suppliers or other business partners.
If completed, the acquisition will create a vertically integrated Baltic dairy group with a substantial presence across the full value chain — from agricultural production and raw milk supply to processing, branded products and international distribution.
Prepared by the team of CzechBusiness Baltics
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