DN AGRAR invests EUR 13.5 million in new farm and composting facilities
The CUT 2 farm in Alba County is expected to produce over 50 million liters of milk per year from 2028
DN AGRAR Group (BVB: DN), one of the leading integrated agrifood company in Romania and the largest dairy milk producer in Europe, announces its investment plan for the development of the CUT 2 farm, the 6th farm of the Group, and the construction of two additional composting facilities, supporting the long-term growth and sustainability strategy.
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The investment in the new CUT 2 farm amounts to approximately EUR 12 million and will be financed through a bank loan provided by ING Bank, complemented by a 20% equity contribution from the Company. The financing benefits from a interest rate of 1.5% plus the 1-month EURIBOR. In addition, DN AGRAR plans to invest approximately EUR 3.5 million in the development of two new composting units, further strengthening its circular agriculture model and sustainability initiatives. The financing of the projects and related conditions are subject to the approval of the shareholders at the Extraordinary General Shareholders' Meeting scheduled for July 10, 2026.
Peter de Boer, CEO DN AGRAR Group:
„DN AGRAR continues to invest in the future of agriculture and 2026 represents a pivotal investment year for our company. The development of the CUT 2 farm and two new composting facilities reflects our confidence in the long-term prospects of the sector and forms part of our 2025–2030 Development Strategy, which aims to double EBITDA by 2030 compared to 2025. These projects are supported by favorable market dynamics, as European milk production is expected to decline while Romania remains a net importer of dairy products. We aim to leverage this imbalance by expanding production capacity and strengthening a modern, integrated, and sustainable agricultural model. Our composting business continues to gain traction and represents a promising complementary revenue stream.”
The CUT 2 farm, with an estimated capacity of over 50 million liters of milk per year, will support the company’s target of reaching between 150- 200 million liters of annual milk production by 2030, across six high-efficiency farms by 2030, doubling the estimated milk production for 2025. The CUT 2 farm, located in Câlnic, Alba County, near the existing CUT 1 farm, involves an investment of approximately EUR 12 million, of which EUR 10 million will be secured through bank financing. Designed to accommodate around 5,000 dairy cows, the farm will integrate state-of-the-art technologies, including two modern rotary milking systems and robotic solutions for automated udder cleaning and hygiene, ensuring high standards of animal welfare. The land designated for the CUT 2 farm was acquired in 2025, and the project is currently in the planning and permitting phase. Construction is expected to commence in the fourth quarter of 2026, with operations scheduled to begin in 2028 alongside the gradual stocking of the herd. The farm is expected to reach full production capacity in 2030, increasing the Group’s total herd to approximately 30,000.
Sustainability is a core element of the project. DN AGRAR plans to cover up to 30% of the farm’s feed requirements through an on-site wheatgrass production unit, while manure generated by the farm will also be valued in the company’s facilities. In addition, DN AGRAR plans to further aquire land to ensure an optimal exploitable area, which will allow the development of complementary projects, including the wheatgrass production unit with a production capacity of 40 tons/day and a second milk processing plant.
In parallel, DN AGRAR’s investment in two new composting facilities will support the expansion of its composting business and strengthen its circular agriculture model. The project is expected to double production capacity, from 14,000 tonnes to 28,000 tonnes, and increase voluntary carbon credit generation, while the planned launch of a dedicated compost brand and broader market access will further support revenue diversification and long-term value creation.
DN AGRAR’s 2025 - 2030 Development Strategy is built around five strategic pillars: expanding existing business lines, diversifying revenue sources, sustainable growth, digitalization and cost optimization, and creating value for shareholders. At the core of this strategy is the doubling of milk production across six highly efficient farms. DN AGRAR’s objective is to become a regional leader in the production of high-quality milk and food, by developing industrial clusters that integrate dairy farms, vegetable production, biomethane and composting facilities, vertical wheatgrass farms, and greenhouse horticulture.
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