Sweden-based poultry processor Scandi Standard is to acquire six poultry farms in Lithuania.
It has paid €18m ($18.8m) for the assets, each of which will be acquired separately throughout 2025.
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The company said the move will allow it to be self-sufficient in poultry supply.
In Q4 of 2024, Scandi Standard acquired a processor in Lithuania. As part of that transaction, it acquired poultry farms with the capacity to produce up to 6,000 tonnes of grill weight. When capacity from the six new farms is added, Scandi Standard will have the ability to produce up to 25.000 tonnes of meat in one shift.
Scandi Standard, which has also previously bought land suitable for building poultry farms in Lithuania, said its latest poultry farms acquisition accelerates its supply chain integration and leaves land plots available for “gradually doubling [its] capacity in Lithuania” in line with its aim to increase its capability to utilise its breaded food making capacity in the Netherlands.
Company CEO Jonas Tunestål said the Lithuanian business will allow the poultry processor to better service the most price-sensitive segments..
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By GlobalData“This deal accelerates our ability to combine low-cost capability with the necessary control to meet the highest standards within animal welfare, food safety and product quality in Lithuania. In combination with our recent acquisition of two of Europe’s most efficient breaded product lines in the Netherlands, we will have a unique end-to-end quality offering to some of Europe’s most demanding customers,” he said.
“All in all, I am very pleased by the successful startup of our operations in Lithuania.”
Tunestål said he expects the transaction to to contribute to higher EBIT margin for the group.
Stockholm-based Scandi Standard’s portfolio includes ready-to-eat, chilled and frozen products under the brand names Kronfågel, Danpo, Den Stolte Hane, Manor Farm and Naapurin Maalaiskana.
It employs more than 3,200 people and has annual sales of more than SEK13bn ($1.22bn)
