DN AGRAR Group (BVB: DN), the largest dairy milk producer in Europe, announced its plans for the coming years and an accompanying investment plan for the development of the CUT 2 farm, the sixth farm of the group, along with two additional composting facilities.
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.
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 an interest rate of 1.5% plus the 1-month EURIBOR.
In addition, DN AGRAR plans to invest approximately EUR 3.5 million in developing two new composting units. 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.
“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,” said Peter de Boer, CEO DN AGRAR.
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, doubling the estimated milk production for 2025.
Located in Câlnic, Alba County, near the existing CUT 1 farm, the new facility is designed to accommodate around 5,000 dairy cows.
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.
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 acquire land further to ensure an optimal exploitable area, which will allow the development of complementary projects.
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 tons to 28,000 tons, 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 Group is the largest dairy milk producer in Europe and one of the leading integrated agrifood companies in Romania, listed on the Bucharest Stock Exchange since 2022.
(Photo source: the company)
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