Luminor Bank has granted EUR 0.351 million funding to organic farming company SIA IRGK Serviss. The funding is intended for agricultural expansion and construction of a cowshed.

SIA IRGK Serviss is engaged in organic farming – stock farming and crop production. Dairy farming accounts for 60% of the company’s turnover, and in order to increase the company’s capacity in this area, with the support of Luminor Bank and the Rural Support Service, it is planned to rebuild and equip the dairy cowshed with new technologies, as well as build more environmentally friendly manure storage. During the implementation of the project, the farm will be equipped with modern equipment that will help ensure cleanliness and reduce manual labour. By equipping the cowshed with a milking robot, it is planned to modernise the milking of cows, which will reduce labour costs, as well as ensure accurate and professional herd management. After the implementation of the project, the company will have the opportunity to increase its production volume, thus ensuring that fresh and healthy organic milk will be sold in a local milk processing company. 

“Despite the pandemic, most farmers are still actively working. We continue to actively fund local businesses to help them grow and develop. We have also provided the necessary funding to IRGK Serviss so that it can expand – after the implementation of this project, the company will be able to double the number of cattle. Thanks to new technologies, daily work will be made more efficient and productive. Robotics in agriculture not only makes easier the hard jobs that people would otherwise have to do, but also helps to address labour shortages,” says Ilze Zoltnere, Head of Luminor Corporate Department in Latvia. 

“The industry feels the impact of the pandemic, but despite the remote communication, the company’s development project is being successfully implemented. We appreciate the cooperation with Luminor Bank, which is able to find non‑standard solutions for customers, as well as understands the agricultural sector. Our cooperation has been going on for several years, and during this time several projects have been implemented both with and without the support of the RSS. Investments in the company are mainly made in the acquisition of new technologies to reduce costs, make the production process more efficient and reduce the impact on the environment,” Renārs Raguckis, Board Member of IRGK Serviss, comments.

About SIA IRGK Serviss
SIA IRGK Serviss was founded in 2005, and since 2016 the company’s only field of activity is mixed farming – crop production and stock farming. The main activities of the farm are organic dairy farming and cultivation of grain. 60% of the turnover is made up of dairy farming, 30% – cultivation of grain and about 10% – stock farming. The company operates in the industry under the Z/S Kivlenieki brand. The company’s main cooperation partners are AS Preiļu siers, AS Dobeles dzirnavnieks, SIA Linas Agro and SIA Scandagra.
About Luminor
Luminor is the third‑largest provider of financial services in the Baltics, with some 900 000 clients, 2355 employees, and a market share of 16.3% in deposits and 17.4% in lending as at the end of September 2020. Luminor has total shareholders’ equity of 1.6 billion EUR and it is capitalized with a CET1 ratio of 22.0%.