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Luminor Bank has granted EUR 1 million financing to the organic pedigree beef cattle farm SIA Rukši for construction of cattle feed storage and reconstruction of a production facility. It is planned that the new meat processing facility will be able to handle the farm’s entire output of veal calves.
SIA Rukši which specializes in pedigree beef cattle farming will use the financing received from Luminor to transform its processing plant by building a slaughterhouse and a meat processing facility. With the help of the bank loan, the farm will also be able to complete construction of a cattle feed storage with the area of 200 sq. m. The remaining amount will be spent to ensure uninterrupted operation of the farm.
According to the data of the Central Statistical Bureau, 2020 has been a good year for cattle farmers as the average number of cattle per farm increased 2.3 times. Support to pedigree cattle farmers and their activities to improve herd welfare has also increased. We are glad to support further growth of SIA Rukši through upgrading of the existing facilities and improving the conditions for the cattle. The company will also set an example for other farms with growing numbers of animals to use our offer to upgrade their equipment or production facilities, says Ilze Zoltnere, Head of Corporate Banking at Luminor in Latvia.
SIA Rukši has 750 heads of cattle, of which 250 are nursing cows and seven are breeding bulls, but the rest are young animals of different age and sex intended either for beef production or breeding. The company has obtained the status of a pedigree farm and produces high-quality purebred Hereford cattle. In addition to cattle breeding and beef sales, the farming business of SIA Rukši includes 700 hectares of agricultural land, and in 2016 the company became a certified organic farm.
“At present we are the fifth largest beef cattle farm in Latvia, and the financing provided by Luminor will enable us to optimise our resources and facilities by transforming the existing dairy plant into a production facility with a short product movement path. It is planned that the transformed facility will help the company to expand its business and, in addition to processing own organic beef, to offer slaughtering and meat processing services to other organic farms. The required working capital would be a valuable contribution to further growth of our company, as it will be invested in product development and business expansion,” says Per Winge Petersen, Board Member of SIA Rukši.