Al Dahra Group, an Abu Dhabi-based agribusiness and one of the largest forage providers worldwide, has signed an exclusive supply agreement with Golden Fields, an Estonian agriculture company specializing in the production of premium quality animal feed grown in the Baltic region.
The agreement, provides Al Dahra Group with an exclusive offtake agreement for forage commodities, supplied by Golden Fields through contract farming agreements in Estonia, Lithuania, Latvia and Finland.
Al Dahra Group said it was committed to supporting the construction of forage processing facilities, while also providing technical expertise on sourcing, production and sales.
The agreement will enable the construction of a processing facility for the dry milling of peas and beans which will supply Al Dahra Group with livestock pellets, high protein feed pellets, plant-based protein products and fiber products, it stated.
At an event in Riga attended by government officials, farmers, and businesses from Lithuania, Latvia and Estonia, Al Dahra Group and Golden Fields today announced the details of a long-term strategic partnership and supply agreement, and the opportunities it will provide for farmers in the Baltic region.
The deal allows the company to purchase forage commodities such as corn silage, grasses, alfalfa, perennial grass combinations, and grass silage from farms across the Baltic region, process them locally, and then export them to meet the demand of customers across Northern Europe, Asia, North Africa and the Middle East.
"By partnering with Golden Fields, we are turning a promising new page for agriculture in the Baltic region. Golden Fields, through its network of respected farming cooperatives, ensures an undisrupted and long-term supply of forages for our customers around the world. Through these exports, the Baltic region's farmers will have a very broad geographical reach," stated Van den Berg.
Al Dahra Group’s partner Golden Fields has previously invested 10 million euros in a roughage facility in Joniškis, Lithuania, and 7 million euros in a comparable plant in Lääne County, Estonia.
The business collaborates with the Lithuanian cooperative "Joniškio aruodas" and the Estonian cooperative “Kevili.” Up to 150,000 metric tons of feed can be produced and processed at these facilities each year for commercial use.
Mahmoud Ahmed, CEO of Golden Fields, said: "We collaborate with experienced farmers to produce high-quality feed from Estonian and Lithuanian fields. We also intend to construct comparable production lines in Finland, Western Estonia and Latvia with an additional capacity of 250,000 metric tons."
The company will be able to speed up the expansion of its operations thanks to its partnership with Al Dahra Group, to achieve a production capacity of more than 400,000 metric tonnes in the next five years, he added.-TradeArabia News Service