DN Agrar Group (stock symbol DN ), one of the main integrated agro-food companies in Romania and the largest producer of cow’s milk in Europe, has announced the investment plan for the development of the CUT 2 farm, the sixth farm within the group, as well as for the construction of two new composting units, projects that support the long-term growth and sustainability strategy, the company’s representatives say in a press release. The investment in the new CUT 2 farm amounts to approximately 12 million euros and will be financed by a bank loan granted by ING Bank, supplemented by a 20% contribution from own sources. The financing benefits from an interest rate of 1.5% plus EURIBOR per month. In addition, DN Agrar intends to invest approximately 3.5 million euros in the development of two new composting units, thus strengthening its circular agriculture model and sustainability initiatives. The financing of the projects and the related conditions are subject to shareholder approval at the Extraordinary General Meeting of Shareholders, scheduled for July 10, 2026. «DN Agrar continues to invest in the future of agriculture, and 2026 is an essential year for the implementation of our investment plans. The development of the CUT 2 farm and the construction of two new composting units reflect our confidence in the sector’s long-term prospects and are part of The Development Strategy for the period 2025-2030, which aims to double EBITDA by 2030, compared to the level of 2025», says Peter de Boer, general director, DN Agrar. You may also be interested: The projects are supported by the favorable market context, given that a decrease in milk production is expected at the European level, and Romania remains a net importer of dairy products, he explains. «We aim to capitalize on this imbalance by expanding production capacity and consolidating a modern, integrated and sustainable agricultural model. At the same time, our composting activity continues to develop and represents a complementary source of income with promising prospects,» adds Peter de Boer. What else emerges from the press release:
«The CUT 2 farm, with an estimated production capacity of over 50 million liters of milk per year, will contribute to the achievement of the company’s goal of reaching an annual production of 150 – 200 million liters of milk by 2030, by operating six highly efficient farms, which represents the doubling of production compared to 2025. Located in Câlnic, Alba County, near the existing farm CUT 1, the CUT 2 farm involves an investment of approximately 12 million euros, of which 10 million euros will be provided through bank financing.Designed to accommodate approximately 5,000 dairy cows, the farm will integrate state-of-the-art milking systems (rotors) and robotic solutions for automatic udder cleaning and sanitation, ensuring high standards of animal welfare CUT 2 was acquired in 2025, and the project is currently in the design and approval phase. Construction work is estimated to begin in the fourth quarter of 2026, with operations scheduled to begin in 2028, with the gradual population of the herd. The farm is expected to reach maximum production capacity in 2030, contributing to the expansion of the total herd. of the Group at approximately 30,000 heads. Sustainability is a central element of this project. DN AGRAR intends to cover up to 30% of the farm’s fodder needs, located within the farm, while the manure generated will be utilized in the company’s facilities. Also, DN AGRAR intends to purchase additional land to ensure an optimal exploitable surface allow the development of complementary projects. These include the wheat grass production unit with a capacity of 40 tons per day and a second milk processing plant. In parallel, DN AGRAR’s investment in two new composting units will support the expansion of the circular agriculture model. This investment will double the production capacity, from 14,000 tons to 28,000 tons. at the same time, the development of an own brand of compost and the expansion of the commercialization channels will support the diversification of the sources of income and the creation of long-term value. The Development Strategy of DN AGRAR for the period 2025-2030 is built around five strategic pillars: the expansion of the existing business lines, the diversification of the sources of income, as well as the creation of value for the shareholders doubling milk production by operating six high efficiency farms. Our objective is to become a regional leader in high quality milk and food production by developing industrial clusters that integrate dairy cow farms, vegetable production, biogas and compost, vertical wheat grass farms and greenhouse horticulture.»
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