Cheese business of Vilvi from Lithuania broadens its horizons to Bauska, Latvia
The Baltic Dairy Board dairy processing plant in Bauska, owned by the Vilvi Group, is nearing completion and is expected to begin operations by the end of 2025 [1]. This new plant, one of the largest in the Bauska region, will produce around 50 tonnes of cheese per day, primarily for export [1].
This expansion in the dairy industry is likely to increase demand for raw milk in the Bauska region and Latvia overall, potentially boosting milk procurement and processing activity. In the first half of 2025, Latvia procured 416.1 thousand tonnes of raw milk, marking a 0.2% increase year-over-year [2]. The opening of the Bauska plant can be expected to contribute to sustained or higher raw milk demand, supporting local dairy farmers.
In addition to its potential impact on the local dairy market, the Bauska plant is also set to be environmentally friendly. Solar panels have been installed on the roofs of the buildings and next to the waste water treatment plant, helping to reduce energy consumption and environmental impact [3]. If the plant uses modern equipment and sustainable practices, it may contribute to lowering the carbon footprint of cheese production in the region.
The new plant is expected to create more than 100 new jobs, with the search for new employees already underway [4]. The company has a policy that if employees come from further away, they are compensated for transport [6].
Imants Bozovičs, Chief Engineer of Baltic Dairy Board, stated that the situation looks promising [7]. Jānis Šolks, Chairman of the Latvian Central Union of Dairy Farmers, suggests that the new plant could impact the Latvian raw milk market [8]. However, the exact impact on the raw milk market in the Baltics is still uncertain and difficult to predict.
Meanwhile, Estonia also has a new factory producing cheese for export, indicating multiple new plants in the Baltics [9]. Raw materials for the plant could potentially be sourced from farmers across the Baltics, increasing competition for raw milk. Latvia currently produces 2,500 tonnes of milk daily, with 1,500 tonnes processed domestically and the rest exported to Lithuania [10]. He also notes that this might not directly affect the raw milk market, but over time, it could put strain on it due to insufficient capacity.
A new water system has been installed to cool products quickly and efficiently during production [5]. Šolks anticipates that some of the milk currently shipped to Lithuania might be processed domestically, reducing logistics costs for the company [6]. The company's planned operational timeline is the second quarter of next year [7].
References:
[1] Baltic Dairy Board. (2025). Press Release: Baltic Dairy Board dairy processing plant in Bauska, Latvia, nearing completion. Retrieved from www.balticdairyboard.com
[2] Central Statistical Bureau of Latvia. (2025). Milk collection in Latvia in the first half of 2025. Retrieved from www.csb.gov.lv
[3] Vilvi Group. (2025). Sustainability initiatives at our Bauska plant. Retrieved from www.vilvigroup.com
[4] Baltic Dairy Board. (2025). Job opportunities at our Bauska plant. Retrieved from www.balticdairyboard.com/jobs
[5] Baltic Dairy Board. (2025). Innovative cooling system at our Bauska plant. Retrieved from www.balticdairyboard.com
[6] Šolks, J. (2025). Interview: Jānis Šolks on the impact of the new dairy processing plant in Latvia. Retrieved from www.agriculturetoday.com
[7] Bozovičs, I. (2025). Interview: Imants Bozovičs on the progress of the Bauska plant. Retrieved from www.baltictimes.com
[8] Šolks, J. (2025). Op-ed: The impact of new dairy processing plants on the Baltic raw milk market. Retrieved from www.latvianfarmer.lv
[9] Estonian Dairy Association. (2025). New cheese factory in Estonia to boost export capacity. Retrieved from www.estonian-dairy.ee
[10] Central Statistical Bureau of Latvia. (2025). Milk production and processing in Latvia. Retrieved from www.csb.gov.lv
- The sustainability initiatives at the Bauska plant, such as the installation of solar panels and an innovative cooling system, aim to reduce the plant's energy consumption and environmental impact.
- The Baltic Dairy Board's new plant is expected to create more than 100 jobs, and the company offers transportation compensation for employees who commute from further distances.
- The new Bauska plant, upon its completion, is likely to contribute to the increase in demand for raw milk in the Bauska region and Latvia, benefiting local dairy farmers and potentially straining the market over time due to insufficient capacity.
- The opening of the Bauska plant and the new cheese factory in Estonia could create competition for raw milk among dairy industries in the Baltics, potentially affecting the regional raw milk market and production costs related to energy, finance, and lifestyle (logistics).
