Europe’s agricultural sector faces a range of complex challenges—but also significant opportunities for growth and strategic reinforcement. In this context, the signing of a new action plan for cooperation between **Estonia and Ukraine** marked an important step forward for the region’s agricultural future.

The action plan, covering the period from **2025 to 2029**, was signed in Tallinn on February 7, 2025, by Estonia’s Minister for Regional Affairs and Agriculture, Piret Hartman, and Ukraine’s Minister of Agrarian Policy and Food, Vitalii Koval. The agreement establishes a structured framework for enhanced cooperation aimed at facilitating Ukraine’s integration into the European agricultural space while contributing to the EU’s overall food security.

The action plan is a strong signal of trust, affirming that Ukraine does not merely see itself as a competitor in European markets, but rather as an active partner capable of contributing significantly to shared European stability.

The Core of the Partnership
The strategic partnership focuses on several key pillars to ensure effective and mutually beneficial development of the agricultural sector in both countries:

• European Integration: Strengthening cooperation on Ukraine’s alignment of national legislation with EU standards, including quality, food safety, and the establishment of a robust organic control system.
• Professional Knowledge Exchange: Facilitating the exchange of expertise in crop cultivation, processing, and the development of local communities and agricultural cooperatives.
• Promotion of Organic Farming and Market Access: Supporting **organic production** and creating new market opportunities for Ukrainian farmers through collaboration with European agricultural organizations.
• Research and Education: Developing joint research projects, organizing seminars, and launching exchange programs for students and researchers.

This initiative underscores a shared understanding of the need to implement European standards and attract investment to develop and strengthen production in the region.

The Investment Outlook in the Baltic Sea Region
While the cooperation between Estonia and Ukraine is strategically important for the future of agriculture across Europe, it also highlights the broader positive momentum and significant investment opportunities in the Baltic states and Central Europe. The stability and legal frameworks provided by EU membership, combined with ongoing development in agricultural operations, make the region highly attractive to long-term investors.

Jesper Kjær ApS specializes in the brokerage of agricultural enterprises in the Czech Republic, Poland, Lithuania, Latvia, and Estonia. With solid experience in facilitating investment projects since 2001, Jesper Kjær ApS offers professional advice and access to attractive properties in these growth markets.

A selection of current agricultural properties and investment opportunities can be found at: [https://jkaps.dk/uk_estate_4.html](https://jkaps.dk/uk_estate_4.html)

This new Estonian-Ukrainian partnership confirms the strategic value of the agricultural sector in Eastern Europe and provides a strong foundation for continued economic growth and regional stability.

The European agricultural sector is currently facing a series of major challenges, not least due to increasingly extreme weather events. When unforeseen crises strike, it is crucial that the EU’s Common Agricultural Policy (CAP) can provide swift and effective assistance. This has been confirmed by recent actions, where the European Commission has mobilised funds from the agricultural reserve to support farmers in several member states, including the Baltic countries Latvia and Lithuania.

This emergency support highlights a significant focus on agricultural policy in the Baltics during October, when the need for financial aid was particularly urgent.

Details of the Support Package
On 13 October 2025, the European Commission approved a support package of nearly €50 million from the agricultural reserve. This financial injection targets fruit, vegetable, and nut farms in six member states that have suffered substantial damage due to exceptionally severe weather.

For the Baltic countries, the support is allocated as follows:

• Latvia: Approximately €4.2 million.
• Lithuania: Approximately €1.1 million.

The purpose of the funds is clear: to compensate farmers whose economic foundation has been seriously challenged by crop damage caused by extreme weather phenomena. This targeted effort underscores the Commission’s commitment to supporting the agricultural sector’s economic resilience in times of crisis. It is worth noting that individual countries may supplement this EU support with up to 200% in national funds, potentially enabling an even stronger recovery.

The Importance of the Agricultural Reserve
Through this action, the European Commission has demonstrated the vital role of the agricultural reserve as a crisis instrument. The reserve, part of the current CAP (2023–2027), is designed to provide farmers with a financial safety net in the event of market disruptions or unusual events affecting production or distribution.

The rapid mobilisation of funds to regions experiencing direct losses sends a credible signal of EU cooperation and solidarity. For farm owners in Latvia and Lithuania, this decision represents a helping hand that could make the difference between surviving the crisis and maintaining operations. A stable and viable agricultural production is essential for both the regional economy and Europe’s overall food security.

Farm Brokerage in the Baltics
For stakeholders considering investment in the agricultural sector in this region, such policy interventions are a key factor. The stability demonstrated through emergency support helps secure long-term investments.

Jesper Kjær ApS is a specialised partner focused on brokering agricultural enterprises in Central and Eastern Europe, including the Baltic countries. With expertise in the Czech Republic, Poland, Lithuania, Latvia, and Estonia, the company is a trusted advisor for serious investors.

If you are seeking opportunities to acquire agricultural properties in this dynamic region, current listings can be found directly at jkaps.dk/uk_estate_4.html. The ongoing development and policy initiatives in the Baltic agricultural sector reflect a market with both challenges and significant potential for the right investors.

In a time of major changes in European agriculture – from climate and markets to geopolitical dynamics – it is encouraging to see the three Baltic agriculture ministers take a united step forward. The Ministers of Agriculture from Latvia, Lithuania, and Estonia have signed a joint declaration, marking a clear and coordinated stance on the upcoming Common Agricultural Policy (CAP) from 2028.

A united voice across borders
The Baltic ministers emphasized that agriculture and food production are not merely economic activities – they are strategic tools for self-sufficiency, resilience, and rural development. They stress the need for CAP to continue supporting active farms, stable incomes, efficient operations, and generational renewal. At the same time, they call for greater flexibility and fewer administrative burdens, allowing farmers to focus on production rather than paperwork.

Key demands at a glance

• A commitment that direct support to farmers from 2028 should converge, reducing disparities between member states and improving competition conditions for all.
• A significant simplification of the policy – fewer bureaucratic requirements, easier access to funding, and greater flexibility for the agricultural sector.
• Special support for member states and regions facing unique challenges – including geographical and geopolitical conditions in Eastern Europe.
• Increased focus on food security and preparedness – including cooperation among Baltic countries on food production in times of crisis.
• A continued commitment to ensure that rural areas are not only preserved but developed – with modern operations, innovation, and an attractive industry for new generations.

What does this mean for agriculture and investment in the Baltics?
If you're considering investing or operating in the Baltics – including in agriculture – such political signals are significant. They show that the Baltic countries prioritize agriculture as a cornerstone of both economy and society. A unified voice like this increases predictability and suggests that the agricultural sector will not be overlooked in broader European contexts. It provides a solid foundation for action.

Furthermore – when countries like Estonia, Latvia, and Lithuania stand together on CAP demands, investors in the region gain a stronger negotiating position regarding support, operations, and business conditions.

Why this matters now more than ever
The world around agriculture is changing rapidly: Climate change, commodity price fluctuations, energy costs, and geopolitical risks make it more essential than ever to have resilient, flexible, and modern agricultural enterprises. The Baltic declaration reflects this – highlighting food security, flexibility, and support for farmers. For those entering the market now, it’s a positive signal.

About Jesper Kjær ApS and your opportunity to act
At Jesper Kjær ApS, we specialize in brokering agricultural enterprises in the Czech Republic, Poland, Lithuania, Latvia, and Estonia. You can view current farms for sale at https://jkaps.dk/uk_estate_4.html
If you have questions about investing in agriculture in the Baltics – feel free to contact me directly via email: jk@jkaps.dk
We’re ready to help you find the right property, guide you safely through the process, and ensure you act with the necessary advice and transparency.

Ingka Group, IKEA’s largest retailer, is taking a significant step in its long-term strategy by expanding its forest ownership in Estonia and Latvia. Through its investment arm, **Ingka Investments**, the group has signed an agreement to acquire approximately **153,000 hectares** of land—mostly forest—from Sweden’s largest forest owner association, Södra. This major transaction, valued at **720 million euros**, marks Ingka Investments’ largest forest acquisition to date.

A Strategy Driven by Long-Term Responsibility
This transaction is more than a large property purchase; it reflects Ingka Group’s exceptional century-long investment perspective. As a company owned by a foundation with a charitable purpose, profits are reinvested rather than distributed to private investors. This enables Ingka to prioritize long-term, equity-financed investments and sustainable management over short-term quarterly results.

Focus on Local Value Creation and Sustainability
Ingka Investments’ strategy stands out by focusing on strengthening the Baltic forestry value chain. The goal is to collaborate with local sawmills and wood processing companies to increase the share of timber processed regionally. This approach is expected to create **skilled jobs** and enrich local expertise.

Long-Term Stewardship:
The company is committed to preserving and enhancing forest health across generations to ensure a continuous supply of raw materials.

Nature Conservation:
Ingka Investments manages a significant portion of its forests with a focus on environmental protection and biodiversity. Around 22% of its forests are managed with conservation in mind, and large areas are completely excluded from commercial activities.

Innovation:
The company supports research collaborations, including projects with the European Forest Institute, to test close-to-nature forestry and continuous cover forestry, aiming to broadly implement these resilient methods.

For stakeholders in the forestry sector, this development is a testament to the growing importance of responsible forest management in the Baltics.

At Jesper Kjær ApS, we specialize in forest brokerage in Lithuania, Latvia, and Estonia, and closely monitor how large, long-term investments like this impact the region’s market and standards. Ingka’s commitment highlights the Baltics’ potential as a hub for sustainable forest investments.

At a time when agricultural land is becoming an increasingly sought-after investment, an extraordinary opportunity has emerged in the fertile northern regions of Lithuania. A well-established arable farming enterprise of 1,500 hectares is for sale and offers a rare combination of quality soil, strategic location and significant growth potential.

A growing investment trend in Baltic agriculture
Agricultural investments in the Baltics have seen notable development over recent decades. Lithuania has undergone a remarkable transformation since joining the EU in 2004, and the agricultural sector today is an important part of the national economy with around 150,300 farms spread across the country.

Lithuanian agriculture has experienced significant structural changes, with larger and more professional farms gradually taking over the market. Between 2010 and 2018 the investment volume in the agricultural sector nearly doubled, underlining the positive development and the increasing international focus on the region.

About the property
The current property is located in Šiauliai district, in northern Lithuania, an area traditionally known for its top-quality arable land.
The enterprise includes:

• Approximately 625 hectares of owned land
• Approximately 850 hectares of leased land
• Conventional arable farming with a focus on cereals and other crops
• Well-maintained and well-organized machinery fleet
• Operational buildings from the Soviet era (not residential houses)

The soil quality is assessed at around 50-60 points according to the Lithuanian soil quality system, which mainly corresponds to humus and clay soils. This places the property among the best in the country's most productive areas.

Why invest in Lithuanian agriculture?

Lithuania offers several advantages as an investment destination for agriculture:

Favourable climatic conditions
Lithuania's climate is cool with warm summers and cold winters. The average temperature in July is around 17 degrees Celsius, creating ideal conditions for cereal production. The country has experienced continuously increasing yields in recent years, thanks to improved technology and modern management methods.

Strong cereal production
More than 32,000 farms of various sizes cultivate cereals, oilseeds and legumes in Lithuania. In 2016 cereal crops accounted for 65 percent of the crop structure, and total cereal production represented 34.3 percent of all agricultural production in the country. This underlines the country's strong position in this particular production area.

EU membership and stable legislation
As an EU member since 2004, Lithuania operates within European frameworks and standards, providing investors with security and predictability. The country has implemented high standards for food safety and quality, and there is access to EU support schemes for agricultural development.

Market access
Lithuania's strategic location provides good access to both Baltic and Northern European markets. Agricultural and food exports accounted for 19.4 percent of Lithuania's total exports in 2016, illustrating the sector's importance to the national economy.

Investment potential
This property represents a unique opportunity for several reasons:

Consolidated landholding
With 1,500 hectares divided between owned and leased land, the enterprise is sized so that professional operations can be optimized. The property has been developed over two decades through strategic purchases and leasing, resulting in a well-arranged and economically sustainable complex.

Quality soil in a prime area
The northern part of Lithuania is known to contain some of the country's best agricultural soils. The area has historically delivered high yields, and the land has been under continual care over the years, ensuring a solid production base going forward.

Potential for modernization
Although the machinery fleet is well maintained and well organized, the older buildings provide the new owner with the opportunity to invest in modern facilities according to their own vision and needs. This offers flexibility to adapt the enterprise to future requirements and possible new production forms.

Potential for further growth
With the current structure and location there are good opportunities to further expand operations by acquiring nearby land or optimizing existing production through new technology and improved processes.

Agricultural investment as a long-term strategy
Investing in agricultural land is increasingly regarded as a solid long-term hedge against inflation. Food production will always be a fundamental necessity, and with a growing world population the demand for agricultural land is expected only to increase.

Agricultural land represents a limited resource that cannot be easily expanded, unlike many other asset classes. This fundamental limitation combined with constant demand makes agricultural investments an attractive portfolio diversification for both institutional and private investors.

Legal framework for foreign investors
Since 2014 foreign nationals have had the right to buy agricultural and forest land in Lithuania. However, there are certain restrictions: Individuals and related entities cannot collectively own more than 500 hectares of agricultural land. In addition, it is in principle required that the buyer has at least three years of experience in agricultural production within the last ten years, or can demonstrate a degree in agricultural land management.

This property is sold through established corporate structures, which can ease the process for serious investors. The price includes the current property, existing lease contracts and machinery, but does not include movable assets, inventories or cash, which must be settled at transfer.

Why work with Jesper Kjær ApS?
Investing in agriculture abroad requires local insight, experience and a strong network. Jesper Kjær ApS specializes in brokering agricultural enterprises in the Czech Republic, Poland, Lithuania, Latvia and Estonia and has since 2001 helped investors navigate complex transactions.

With more than two decades of experience the company has built an extensive network and deep understanding of the local markets. This ensures that both buyers and sellers receive the best possible basis for decision-making and support throughout the process.

See more opportunities:
Are you interested in exploring more agricultural investments in the Baltics? You can find a selection of farms for sale here.

Contact:
If you have questions about investing in agriculture in the Baltics, you are welcome to contact Jesper Kjær directly by e-mail: jk@jkaps.dk
Alternatively use the contact form.

Acquiring an established, large, well-developed and ongoing dairy operation in Latvia offers farmers and investors a rare combination of operational resilience and expansion potential. The property with our reference number L00625LV is an example of an estate where daily operating routines have already been refined, and where the basic conditions for increased value creation are present.

The property structure — approx. 1,200 hectares with approx. 1,100 hectares arable land, approx. 100 hectares forest and approx. 18 hectares meadow — supports a self-sustaining agricultural model. Grain and roughage production cover a significant portion of the herd's feed needs, which reduces dependence on externally purchased feed and stabilizes the cost picture. Approximately 15,000 liters of milk per day in dairy production combined with structured housing for both dairy cows and heifers means the operation is designed for continuity and reproductive management.

Operational capacity is concrete: properly sized barns, a machinery shed and storage buildings in good condition without the need for major immediate investments. A machinery fleet consisting of tractors, a combine and other equipment ensures that both field work and the feeding system can be maintained. For a buyer seeking quick operational start-up, this is a clear advantage.

From a financial viewpoint the disclosed key figures show a solid baseline: a turnover and a profit that indicate profitable operations. For professional buyers the next step is to validate the figures through due diligence: historical milk prices, contracts with off-takers, cost structure of operations, as well as depreciation and maintenance items. A clear plan for liquidity management during the takeover period is crucial.

Development opportunities are concrete and operational. A targeted effort to increase milk yield per cow or expand barn capacity can significantly increase revenue. An alternative or supplementary investment in biogas can convert operational waste into energy and create both cost savings and new revenue streams — particularly interesting for those who want to combine agricultural operations with energy assets.

Conclusion for the professional farmer: the property with our reference number L00625LV represents a ready-to-operate agricultural estate with a strong foundation for both stable operations and planned growth. For the professional farmer or investor seeking an operational platform in the Baltics, the property offers a realistic starting point to expand dairy production or implement energy production via biogas. The decision process should be based on focused due diligence, a concrete investment plan for any capacity increases and a realistic assessment of local market conditions.

If the goal is to acquire an operation that can deliver both immediate earnings and clear opportunities for value creation, this is a property that deserves a closer technical and financial review.

Contact us for further information: Jesper Kjær, phone: +45 5136 1495, e-mail: jk@jkaps.dk
Alternatively use the contact form.

Prices of Baltic forest are generally considered low, especially compared to West European countries. The lower price is primarily due to the fact that valuation is based on the forest's commercial potential for timber production, where recreational purposes have less influence on pricing, and because the Baltic timber industry is regarded as one of the most modern in the world, ensuring reliable outlets for raw wood.

The battery storage market in the Baltics is entering a clear growth window due to increased electricity price volatility, the need for system stability, and the region’s disconnection from the Russian transmission network. A pre-developed project in Riga offers a tangible opportunity: a total BESS portfolio of 200 MWh across multiple locations with associated grid capacity and documented financial assumptions.

Project Key Data

• Capacity: 200 MWh total; 4 locations within 15 km; individual module sizes ranging from 40–120 MWh.
• Grid Connection: Up to 75 MW total connection capacity.
• Timeline: Production start planned for 01.06.2026 for the first units.
• CAPEX: Total turnkey CAPEX listed at €38.4 million; unit CAPEX approx. €148,000/MWh plus installation and grid connection costs.
• Equity Requirement: Approx. €19.2 million (≈50% equity).
• Operational Assumptions: ~1.2 cycles/day; O&M and fixed operational costs included; inflation assumptions conservative.
• Market Approach: Commercial revenue from spot, intraday, and multiple ancillary markets (FCR, aFRR, mFRR) as well as virtual intraday strategies.

Market Context and Revenue Potential

The Baltics are experiencing increasing demand for BESS to manage price fluctuations, ensure frequency stability, and replace previous reliance on external transmission integration. The combination of day-ahead price volatility and paying frequency reserve markets creates a diversified revenue stack, allowing projects to combine arbitrage segments (charge low, discharge high), frequency services, and intraday optimization to maximize utilization and income. Early market projects in the region show that both private and public actors are increasing investments in BESS capacity, strengthening market maturity.

Financial Highlights and Risk Factors

• Expected IRR: Project materials indicate a range of 22–40% depending on financing, market development, and exit scenarios.
• Liquidity and Capital Structure: High equity share (≈50%) reduces gearing risk but requires capital input. The model includes both bank loans and shareholder loan elements.
• Operational Risks: Market price development, changes in ancillary market design, cyclic battery degradation, and grid connection conditions may affect cash flow.
• Mitigating Factors: Diversified revenue mix, multiple locations within one city, and operational planning with conservative O&M assumptions reduce single exposure.

Why This Opportunity May Be Attractive to Investors

• Project proximity to the capital area offers operational advantages and grid relevance.
• The combination of strong regional demand dynamics and concrete permits/grid access reduces development and permitting risk compared to greenfield approaches.
• Financial model with clear CAPEX figures, production start timing, and realistic operational assumptions enables comparable due diligence checks for institutional investors and family offices.

Conclusion

The project presents a mature, localized BESS opportunity with key project milestones already in place, a well-considered revenue stack, and a conservative capital structure. For investors seeking exposure to energy storage in a market characterized by high volatility and flexibility needs, this is an attractive candidate scenario — provided thorough technical, contractual, and market due diligence is conducted.

I. Executive Summary: The Baltic Forestry Sector as a Core Asset

The Baltic forestry sector, encompassing Estonia, Latvia, and Lithuania, strategically positions itself as an attractive asset class for institutional investors, driven by the convergence of documented market growth, resilience to inflation, and a strong ESG foundation. The region offers a mature market, characterized by well-developed infrastructure and experienced labor, which has seen a marked increase in asset valuations.

1.1. Core Thesis: Convergence of Stability and Growth Potential

The analysis indicates that the Baltics currently offer a rare mix of a mature market with robust, inflation-proof returns and significant structural upside potential. This financial rationale is built upon several pillars, combining the stability of biological growth with aggressive industrial restructuring. Standing timber prices in Estonia, Latvia, and Lithuania have experienced a dramatic increase in recent years. While local return data may vary, the Nordic benchmark serves as a solid indicator; for instance, Finland reported average returns on wood production of 9.4% over the period 2021-2023. This performance signals not only stability but also a market that is pricing future demand into the assets.

Strategic timing for capital allocation is critical. The sector is undergoing an unprecedented wave of mergers and acquisitions (M&A) in 2024-2025, signaling that industry-leading companies are desperately seeking to secure scale and raw material supply. This consolidation pressure underscores the Baltics' role as a Central European supply hub.

1.2. Four Pillars of the Investment Thesis

The investment strategy in Baltic forestry can be summarized under four central premises:

• Stability & Return: Forestry is recognized as an asset class whose returns are uncorrelated with traditional markets and serves as an effective hedge against inflation. The return from biological growth (+1.0 percentage point in the Nordic context) constitutes a stable, fundamental return.
• Untapped Capacity (Volume): The region’s forest resources are historically underutilized. There is a documented potential for a sustainable increase in the annual harvest of approximately 10 million cubic meters. Realizing this potential requires substantial institutional capital and improved forest management.
• Industrial Efficiency (Scale): The ongoing, aggressive consolidation, exemplified by Austrian HS Timber Group’s acquisitions in Latvia and Estonia’s Combiwood’s strategic mergers, creates a more efficient and financially robust downstream sector.
• ESG Leadership (Carbon Solution): The forest-based bioeconomy in the Baltic countries exhibits negative net CO2 emissions. This is primarily due to the robust carbon sequestration in forest areas and in Harvested Wood Products. This characteristic positions the asset class as a critical allocation for funds with strict ESG and Net Zero mandates.

II. Macroeconomic Context and Global Drivers

Understanding the potential of Baltic forestry requires placing it in the context of the global timber balance and forestry's role as a stabilizing factor in portfolios.

2.1. The Growing Global Timber Imbalance

Global demand for timber is expected to quadruple by 2050. This massive demand pressure contrasts with a severely limited supply side. Supply is constrained by both difficulties in harvesting old-growth forests and the necessary decades-long growth period for newly planted trees. Analyses suggest that the global supply of industrial wood is unlikely to keep pace with even moderate increases in demand, which is expected to cause regional timber shortages and supply limitations over the next 30 years.

This supply-demand disparity has direct implications for the Baltics, a region whose economy is strongly driven by the forest sector. The region's well-developed, sustainably managed markets are becoming an increasingly important source to meet global demand.

The anticipated scarcity in the years leading up to 2030 increases the strategic value of owning the raw material base. Institutional investors securing ownership of productive forest areas now will gain improved bargaining power. This provides a strategic advantage in setting long-term, economically favorable off-take agreements with the consolidated processing companies. The ongoing industrial consolidation is a direct response to the recognized raw material scarcity.

2.2. Forestry as a Stabilizing Asset Class

Investment returns in forestry stem from biological growth, cash flow from harvesting, appreciation of land value, and alternative land uses. The biological growth of trees is a unique value creator whose return is generally uncorrelated with other asset classes.

Forestry assets have historically proven to be more stable during recessions and act as an effective hedge against inflation, appealing to conservative, long-term institutional investors. Furthermore, the forests in the Baltic and Nordic regions are semi-natural rather than monoculture plantations. This structure makes them inherently more robust against ecological risks such as pests (e.g., bark beetles), storms, and drought. This biological resilience reduces physical risk, strengthening the overall conservative risk profile of the portfolio.

III. Financial Performance and Valuation Dynamics

Financial performance in the Baltics is driven by both market demand (price) and internal biological value creation (volume).

3.1. Price Development and Return Mechanisms

Standing timber prices in the Baltic states have experienced a dramatic increase over recent years. This price appreciation signals strong confidence in future demand and an increased valuation of the existing asset base. Price transparency is maintained through regular records of standing timber prices by assortment in Estonia, Latvia, and Lithuania.

The return on investment in wood production is calculated from harvesting, standing sales prices, subsidies, and costs, related to the stump value of the timber stock (stumpage value). In the Nordic context, a relevant benchmark, revenues from wood sales accounted for +3.4 percentage points of the return, while the value of the biological net increment contributed +1.0 percentage point. This underscores that a significant portion of the stable return is biologically founded.

For the Internal Rate of Return (IRR) in global forestry investments, it has been established that biological growth and timber prices are the most influential variables when the land price is excluded from the equation. This confirms that active and professionally competent management of forest areas is the primary driver of long-term returns, rather than merely the initial acquisition price.

3.2. Realization of Underutilized Growth (Volume Arbitrage)

The quantitative potential in the Baltics is exceptional. Analyses show that the region's forest resources are underutilized, with a potential for a sustainable increase in the harvest of approximately 10 million cubic meters. This untapped volume constitutes a structural growth opportunity for investors.

Investors face a dual growth opportunity: Firstly, capital appreciation through the ongoing price increase; secondly, the realization of the untapped volume (Q) through capital-efficient and professional management. This strategic focus on volume realization minimizes the risk of the investment being solely sensitive to market price fluctuations. By investing in an area where volume can be sustainably increased, a structural growth driver is unlocked that is partially independent of business cycles. This volume potential also justifies the "substantial capital" required to upgrade management and industrial infrastructure.

IV. Industrial Trends: Consolidation and Capital Needs

Recent industrial movements in the Baltic processing sector signal a fundamental restructuring towards greater scale and vertical integration, directly benefiting upstream assets (forest areas).

4.1. The Aggressive M&A Cycle (2024-2025)

The European sawmill industry is experiencing an unprecedented wave of M&A activity, concentrated in an 18-month period from 2024 to early 2025. This consolidation is driven by a pressing need to secure supply chains, counter margin pressure, and achieve operational scale.

The Baltics have been a central focus of this activity. Austrian HS Timber Group has completed aggressive acquisitions in Latvia, securing 550,000 cubic meters of capacity. Simultaneously, regional players like Estonia’s Combiwood have made strategic moves by acquiring AS Toftan, creating a combined entity with a turnover of 276 million Euros.

These deals are a mixture of strategic moves to secure supply chains and opportunistic transactions taking advantage of the downturn in the broader European sawmill sector. Regardless of the motivation, the consolidation wave signals a strong industrial conviction in the long-term value of the raw material base in the region.

4.2. Capital Needs as an Investment Incentive

A direct causal relationship exists between the untapped harvest potential of 10 million cubic meters and the need to upgrade industrial capacity. The ongoing M&A wave demonstrates that the industry is allocating capital to processing to match the possible increase in raw material supply.

For forest owners, consolidation reduces market fragmentation risk. The result is fewer, but larger and more financially robust timber buyers. This ensures more stable sales opportunities and contractual guarantees, which is a significant de-risking factor for institutional capital seeking predictable cash flows. The increasing industrial efficiency and consolidated buyer strength provide long-term reliability in the market, strengthening the conservative investment profile.

V. ESG and Regulatory Tailwinds: Positioning in the Bioeconomy

For institutional capital, the ESG profile and regulatory alignment are crucial. The Baltic forestry sector delivers a strong and verifiable ESG thesis closely linked to the EU’s climate and biodiversity strategy.

5.1. The Forest-Based Bioeconomy as Climate Security

The forest-based bioeconomy in the Baltics, which includes forestry, processing, and the direct/indirect supply chains, has a significant economic footprint. Its contribution to GDP ranges from 3.59% in Lithuania to 7.22% in Estonia. This is significantly higher than forestry’s isolated contribution (e.g., 0.40% in Lithuania), indicating deep integration into the national economies.

The sector's most compelling ESG argument is its climate capacity. The analysis reveals that the forest-based bioeconomy exhibits negative net CO2 emissions. This phenomenon is primarily due to the effective carbon sequestration occurring in forest areas and in Harvested Wood Products. For investors with binding Net Zero commitments, Baltic forestry offers a documented negative emission profile. This characteristic is a valuable portfolio-balancing factor against emissions from other asset classes.

5.2. EU Green Deal and Nature Restoration Law (NRL)

The sector’s future growth is inextricably linked to the EU’s strategic direction. The EU's Biodiversity Strategy for 2030, a core part of the European Green Deal, seeks to protect and restore ecosystems. As a concrete step, the EU’s Nature Restoration Law (NRL) was formally adopted in June 2024. The law sets binding and specific targets for restoring at least 20% of the EU’s land and sea areas by 2030, including forest ecosystems.

Although the NRL and related laws, such as the EU Regulation on Deforestation-free Products (EUDR), increase regulatory requirements, they act as strong tailwinds for institutional investment:

• Resilience Improvement: The new laws drive necessary investments in management practices that enhance ecosystem quality and resilience. This reduces long-term physical risks such as drought and fire.
• New Value Chains: It creates new business opportunities within the circular bioeconomy, particularly in sustainable replanting and restoration of degraded forests, which is a solution aligned with Green Deal objectives.
• Certification and Access: The region's ability to meet the highest standards is demonstrated through examples like the FSC certification of the Riga City Forest (over 60,000 hectares). FSC certification ensures that forests are managed for multiple benefits (recreation, ecology, and economy), providing access to Premium markets and meeting strict institutional investment mandates.

VI. Due Diligence and Risk Profile in the Baltics

Thorough due diligence requires a sober assessment of risks, even though the overall investment profile is strong.

6.1. Physical and Operational Risks

The physical risks associated with forestry (fire, storms, insects) are a standard consideration. It must be emphasized that these risks are relatively low for institutionally owned portfolios, especially in the Baltic countries where forests are semi-natural and thus more resistant to pests.

From an operational perspective, the land price is not the sole determinant of investment success. As in other countries, country-specific factors, especially management costs, are identified as crucial for the Internal Rate of Return (IRR). This underscores the importance of securing an efficient operational setup with a competent, local management partner to optimize IRR.

6.2. Policy and Administrative Divergence

Although Estonia, Latvia, and Lithuania historically share similar administrative frameworks for forestry, 13 years of independent decisions have led to a divergence in forest policies and networks. While the participating stakeholder groups in forest policy remain similar across the three countries, the representation and specific areas of concern differ.

This political divergence means that investors cannot treat the Baltics as a homogeneous market. Thorough due diligence must therefore include a detailed, nationally specific analysis of the administrative and regulatory framework in each country to mitigate local political risk and ensure optimal compliance.

6.3. Geopolitical Context

The region's geographical location necessitates an acknowledgment of the geopolitical context. Although direct financial data does not quantify this risk, it must be addressed in the conservative investment assessment.

However, the risk profile is significantly mitigated by the strong institutional and legal framework provided by EU membership and NATO guarantees. The strategic value of the Baltics, as illustrated by the aggressive capital allocation from Western European industrial groups through M&A, demonstrates a deep institutional commitment that outweighs the geographical risk. The market’s positioning in the Nordic-Baltic region, as a well-developed and reliable timber supplier, ensures its continued relevance and integrated status in the European supply chain.

VII. Conclusion and Strategic Recommendations

Baltic forestry stands at a strategic inflection point where structural demand meets untapped supply capacity in a favorable regulatory context. This creates a unique corridor for institutional capital allocation.

The structural shortage of supply globally, combined with internal industrial consolidation and a clear European mandate for climate responsibility (EU Green Deal and NRL), establishes a strong rationale.

The strategic recommendation for professional investors is to:

• Prioritize Active Management: Focus should be placed on optimizing the Biological Growth Rate and actively realizing the untapped harvest potential of approximately 10 million cubic meters. This creates a stable return driven by volume, which reduces price volatility risk.
• Integrate ESG as a Value Driver: The investment must maximize the documented negative net CO2 emissions and ensure robust FSC certification. This is not merely compliance but a genuine value driver that secures future revenue streams and the portfolio's climate resilience.
• Leverage Industrial Consolidation: Investments must be accompanied by capital to support industrial expansion. By positioning as a reliable supplier to the newly consolidated, financially strong processing companies, stable and predictable cash flows are secured.

Baltic forestry is not a passive land-banking game; it is an active, capital-intensive strategy that rewards investors who can navigate local administrative differences and deliver an uncompromising level of ESG compliance and management quality.

In 2025, the agricultural sector in the EU countries of the Baltic region faces significant structural and strategic transformations that both professional farmers and investors should closely monitor. Developments in agricultural land, farm types, and labor intensity point to an accelerating shift toward large-scale farming and mechanization, while the need for local resilience and food security has become a central political and economic agenda.

• The rise of large-scale farming and the decline of small farms Between 2005 and 2016, over 1.4 million farms disappeared in the region—primarily small and medium-sized operations. At the same time, the share of agricultural land managed by large farms (>100 ha) increased significantly in nearly all countries. This trend reflects a clear move toward industrialized and capital-intensive agriculture, where mechanization and efficiency reduce the need for labor.
• Declining labor intensity and changing employment Total labor input in agriculture fell by more than 26% during the period, and none of the ten analyzed countries saw an increase in labor per hectare. This means agriculture is increasingly operated with fewer hands, impacting both local employment and social sustainability in rural areas.
• Poland and Lithuania as exceptions with diversity While most countries are moving toward homogeneous large-scale farming, Poland and Lithuania maintain a degree of diversity in farm types. Here, small and medium-sized farms still represent a significant share of the total area, offering strategic advantages in local food production and crisis resilience.
• Focus on resilience and local food security Climate change, pandemics, and geopolitical tensions have heightened the need for robust food systems. There is growing political interest in shorter supply chains, local production, and farm diversification. This opens new opportunities for investments in multifunctional agriculture, agroecological solutions, and regional food initiatives.
• Strategic opportunities for investors and farmers For investors, the trend means that large farms with high efficiency and low labor intensity are attractive, but new markets for local production and niche-based food systems are also emerging. For farmers, strategic positioning is crucial—either by scaling up and improving efficiency or by strengthening local anchoring and diversification.

Agriculture in the Baltic region is evolving. The coming years will demand both strategic adaptation and innovation—with a focus on resilience, sustainability, and long-term food security.

The third quarter of 2025 has confirmed a number of significant trends in the agriculture and forestry sector in the Czech Republic, Poland, Lithuania, Latvia and Estonia. Of particular note is the region’s continued focus on technological integration and the ability to adapt to global market fluctuations.

Agriculture: Increasing focus on precision and sustainability
(Czech Republic, Poland, Lithuania, Latvia, Estonia)
The agricultural sector in Central and Eastern Europe is showing continued resilience, supported by the EU’s Common Agricultural Policy (CAP) and an increased appetite for investment in modern farming methods.

• Digitalization and Precision Agriculture: Poland, Lithuania and Estonia in particular are leading the way in implementing digital farming strategies. Professional farmers and investors should take note of the accelerating adoption of precision farming technologies – including IoT sensors, satellite imagery and AI-powered data analytics. These technologies improve efficiency, optimise fertiliser and pesticide use and address the requirements of the European Green Deal.
• Crop Outlook and Market Dynamics: The region is a major player in the cereal and oilseed markets. Despite some volatility in global commodity prices in Q3, the market is supported by strong expected harvest yields for wheat and rapeseed, among others. The expected stability in input costs such as energy and fertilisers helps to maintain operating margins. There is also a constant, albeit moderate, growth in demand for organic products.
• Investment Environment: The Baltic countries and Poland maintain their position as attractive investment destinations. Investments are increasingly channelled towards scale and specialisation, with a particular focus on farms that can demonstrate high technical efficiency and sustainable practices.

Forestry: Strong investment and increased digitalization
(Lithuania, Latvia, Estonia)
The forestry sector in the Baltics is characterized by solid growth and a constant attraction of foreign investment.

• Significant Investments: Q3 2025 has confirmed strong confidence in the region's forest assets. Significant investments in silviculture and new plantings have been reported in Estonia, Latvia and Lithuania, underlining the long-term value and stability of investments in forest properties.
• Digitalization and Efficiency: As in agriculture, digitalization is a key trend in the forest sector. Partnerships and new digital solutions focus on improving measurement solutions for timber and wood, leading to increased efficiency in the value chain from forest to industry.
• Sustainability and Biomass Debate: While the sector is known for sustainable management, the sustainability of biomass remains a key issue, especially in relation to exports. The sector is aware of increasing regulatory and consumer focus on ensuring that forestry operations minimize damage to the climate and biodiversity. This could create opportunities for investment in certified and highly sustainable forestry methods.

Conclusion
The third quarter of 2025 highlights that successful operations and investments in the region’s agricultural and forestry sectors increasingly depend on technological adoption and a clear strategy for sustainability. For both professional farmers and investors, the key to future success is to integrate digital innovation into operations to achieve increased efficiency and meet market demands for responsible production.

The second quarter of 2025 has seen important dynamics in the agriculture and forestry sector in the Czech Republic, Poland, Lithuania, Latvia and Estonia. The sector confirms its position as an engine of economic growth, with increased value and increased focus on sustainability. Let’s dive into the most important trends and news.

Agriculture sector: Growth in input prices and focus on meat
One of the most striking trends in Q2 2025 across the EU – and in particular in Latvia, which experienced one of the highest increases – is the general increase in agricultural output prices. This confirms a positive turn after a period of price declines.
Value increase for key products: Prices for products such as eggs, fruit and milk increased significantly at EU level. This development is key to ensuring a healthy economy for agricultural farms in the CEE region.
Meat production in the Czech Republic: The Czech Republic saw an overall increase in meat production in Q2 2025, especially in poultry and pork. This indicates strong demand and potential for growth in processing.
Sustainable nutrient management: In particular, the Baltics and Poland see a strong focus on sustainable nutrient management.
Initiatives around the use of bio-based fertilizers and biogas production, which reduce dependence on imported fertilizers, are gaining ground and creating new investment opportunities within the circular economy.

Baltic Forestry Sector: Strong Growth and Strategic Investments
The forestry sector in Lithuania, Latvia and Estonia continues to show resilience and attract significant investments in Q2 2025.
Latvian Forestry Investments: Latvia stands out with strong growth in forest land acquisitions. For example, one investment fund reported a significant increase in both forest land acquisitions and the value of standing timber in the quarter. This underlines the attractiveness of the Baltics as an attractive investment market for forestry, driven by lower land prices compared to Scandinavia and a strong export orientation.
Growth is export-driven: Forestry and wood processing are strategically important industries in Latvia and contribute significantly to GDP. The continuously growing demand for quality wood products in Europe, especially for construction, supports stable prices and long-term sustainable operations.
Focus on the forests of the future: Across the Nordic and Baltic regions, there is increased attention and research on ensuring the sustainability of forests in the face of climate change. This potentially means new opportunities in forest management and technologies that address pest risks and biodiversity.

Investment perspective and next steps
For both professional farmers and investors, the potential in Q2 2025 lies in the increased value added to output and the strategic shift towards greener, more resilient supply chains.

Consider in particular:

1. Investment in the value chain: Look at companies in the processing sector (meat, milk, fruit) that benefit from rising output prices.
2. Forestry as a long-term asset: The Baltic forest sector continues to offer a stable investment opportunity with improved margins and export potential.
3. Green technology: The growth in biogas and bio-based fertilizers is a clear signal of future investment needs in CEE and the Baltics.

Welcome to an analysis of the most important developments in the agricultural sector across the Czech Republic, Poland, Lithuania, Latvia and Estonia. For farmers and investors, Q1 2025 is a critical time – not only because new policies are coming into force, but also because fundamental changes to the EU’s agricultural policy are being shaped right now.

Poland Takes the Lead: EU Presidency Opens New Doors
As the year begins, Poland assumes the EU Council Presidency – a position that means a lot to the agricultural sector. The Polish Ministry of Agriculture and Rural Development prioritizes food security, improving the competitiveness of the agri-food sector, increasing resilience to crises, stabilising farmers’ incomes and strengthening farmers’ position in the food chain.
Here's what it means for you as a farmer or investor: The Polish presidency coincides with negotiations on the new Common Agricultural Policy after 2027, providing an opportunity to influence the future of the EU's main subsidy scheme. The ministry aims to protect the CAP budget from growing pressure from defence spending and financial constraints in several member states.
In practical terms: If you are an investor in Polish agriculture, you should keep an eye on the CAP negotiations. Stabilising budgets could mean more predictability for your long-term plans.

Simplifying the CAP: Less Administrative Burden, More Flexibility
One of the main news items from Q1 2025 is about making it easier to be a farmer in the EU. Member states have expressed broad support for simplifying the CAP, especially regarding annual performance testing procedures and mandatory environmental and climate measures.
The Commissioner promised to propose the removal of the annual performance test requirement as part of further simplification later this year. This means less paperwork and more time for what matters most: farming.
For you: Less regulation means potentially higher profits and less time spent on bureaucracy. This is good news for everyone – both traditional farms and commercial operations.

Modernisation Accels the Pace: Baltics and Czech Republic Rise
The figures from recent years show a remarkable trend. The highest rates of increase in agricultural output value were recorded in Estonia (+44%), Poland (+43%) and Lithuania (+42%), driven by sharp price increases.
An analysis of agricultural holdings shows that Lithuania, Latvia and Hungary have made significant progress, particularly in terms of improving farm size, capital investment and labour productivity, reflecting a clear shift towards modernisation. The Czech Republic, Estonia and Slovakia have moved towards large-scale commercial agriculture.
Investment signal: The region is in a transformation phase. Modern, scalable operations see the best returns – and this is where technology and capital add the most value.

Forestry: A green gold mine in the Baltics
If you are considering diversification, the forestry sector should be on your radar. Lithuania, Latvia and Estonia are sitting on a huge asset.
Latvia is the fifth most forested country in the EU, with 53% of the country covered by trees. Forests generate significant added value, and as an industry, silviculture and logging contribute to over 1% of GDP in both Latvia and Finland.
Exports of forest products were Latvia’s most significant export sector in 2023, accounting for 17.3% of total export value. The foreign trade balance of the Latvian wood processing industry reached EUR 2.3 billion in 2023.
But there is more: While silviculture itself is a small industry, the forest-based bioeconomy contributes significantly to GDP – with shares ranging from 3.59% in Lithuania to 7.22% in Estonia. This includes wood processing, energy and bioeconomy products.
Investor opportunities: The forest sector is proving to be a stable, long-term asset. Well-regarded forest funds worldwide have shown high financial returns, act as a hedge against economic fluctuations and provide diversification benefits. An important factor for foreign investors is the high share of FSC and PEFC certified forests in Latvia, which confirms that forests are managed to the highest sustainability and quality standards.

What does this mean for you?
For farmers: Q1 2025 signals less bureaucracy but also an increased focus on competitiveness. Modernizing your operations – through technology, scaling or diversification – will be more important than ever.
For investors: The region is experiencing solid growth rates and political stability around agricultural policy. Poland and the Baltics offer particularly attractive opportunities – from traditional agriculture to forest-based investments.
The bigger story: EU agricultural policy is evolving from being directive to being indicative. This opens up opportunities for those who are innovative and ready to scale.

Welcome to an overview of some of the most important trends and developments affecting the agricultural sector in the Czech Republic, Poland, Lithuania, Latvia and Estonia, as well as the forestry sector in the Baltics in the fourth quarter of 2024. We look at what is happening, what it means for you, and what opportunities are on the horizon.

A turning point for prices and profitability
After a long period of price pressure, there are bright signs of improvement. In the fourth quarter of 2024, agricultural product prices increased for the first time since the second quarter of 2023 – an important milestone for all of you working in the free market. Agricultural product prices increased by 2.2 percent compared to the same period in 2023.

What does this mean in practice? This means that after a long period of increasing uncertainty and lower earnings, you can once again see some positive signs of profitability in your production. And for you investors, this means that the sector is becoming more attractive again.

Input costs are falling significantly
Even better news: fertilizer, animal feed and energy prices have fallen sharply. On average, fertilizer and soil improvement costs have fallen by 6.9 percent, while animal feed prices have fallen by 5.0 percent. This is especially important for you, as these costs are often among the largest costs on a farm.
Latvia has seen some of the biggest drops – fertilizer prices fell by around 10 percent, and animal feed prices fell by 12.9 percent. This actually makes a lot of sense for business people who have to manage their budgets.

Labor productivity on the rise – especially in Latvia
Here comes some impressive data: labor productivity in agriculture increased significantly in 2024. In Latvia – and this is where it really shines – productivity increased by a whopping 46.9 percent! Although some countries like Poland experienced a decline (-12.5 percent), the figures for Latvia show that there is potential for significant growth when everything works together.

Lithuania’s market is booming
Lithuania stands out among the countries. Agricultural product prices rose by 33.2 percent in the fourth quarter compared to the same period last year. That’s among the highest rates of increase in the entire EU. For farmers and investors, this means that the Lithuanian market is becoming more lucrative – and that’s exactly the kind of signal you look for when considering where to invest.

Forestry sector: A stable and value-creating industry
While much is happening in agriculture, there is also solid development in the forestry sector, especially in the Baltics. Lithuania, Latvia and Estonia all have large forest resources, and the sector contributes significantly to both employment and exports.
In Latvia, forestry production still accounts for 17.3 percent of total exports – a huge share! Latvia also has some of the world's healthiest and fastest-growing forests. Over the past 80 years, the forest area has doubled, and the tree trunk has increased 3.8 times. This means stable supply for the coming years.
Lithuania and Estonia both see forests as important for achieving their energy independence goals. For Lithuania, forest biomass is a cornerstone of the energy independence strategy, and there is stable demand from both the energy and furniture industries. The Estonian sector also sees opportunities in bio-based products.

Long-term stability and opportunities
What the whole story tells us is that we are facing a period of more stable development. After years of extreme price fluctuations and global uncertainties, we are now seeing signs of normalization. Input costs are falling, some markets are booming, and productivity is increasing – especially where technology and efficiency are prioritized.

What does this mean for you?
For professional farmers: Now is the time to focus on efficiency and modernization. Input costs are lower and markets are becoming more stable. Invest in productivity and technology.
For investors: The sector is becoming attractive again. The Baltic countries show particular potential, and the forest sector seems to be particularly solid. There is reason for optimism.

A friendly invitation to follow
We are here to help you navigate these trends. Markets are changing, and it’s important to be well-informed. We look forward to seeing you thrive in 2025 – a year that I’m sure will be a great one for both the sector and you as professionals.
Continue to focus on what you know you’re good at. And remember: as markets stabilize and costs come down, it’s often about making the right choices – and to do them in a timely manner.

Welcome to our overview of the development of the agriculture and forestry industry in the third quarter of 2024. For professional farmers and investors, it is crucial to follow developments across the region – and a lot of interesting things are happening right now.

Eastern Europe: Modernization as a Competitive Factor
Poland continues its strong position as one of Europe’s most important agricultural countries. With fifth place among EU members in terms of performance and over half of the country’s area dedicated to agriculture, Poland is an agricultural powerhouse. In the third quarter of 2024, the focus has been on modernization and productivity growth – the government aims to double organic farming by 2030 and increase the profitability of smaller farms. For investors, this means new opportunities in technology solutions and sustainable production.
The Czech Republic is in full transition. After economic stagnation in 2023, green growth is now visible, although agriculture faced challenges with average or below-average harvest results in Q3. Cereal production fell by around 13 percent compared to the previous year, mainly due to adverse weather conditions. But we must look ahead: the Czech agricultural sector is modernizing, and the greater focus on high-value production is opening up new market opportunities.
The Baltic States: Resilience and Growth after Turbulence
The Baltic states – Lithuania, Latvia and Estonia – faced significant challenges in 2023 with negative or negative growth. However, the third quarter of 2024 signaled signs of improvement. A crucial trend is the expected acceleration in growth: while the Baltic countries were struggling with Russian sanctions and poorer export conditions, EU funds started flowing in again, giving new hope to agricultural investors.
Interestingly, Latvia and Lithuania are the closest to achieving gender equality in agriculture – between 45-50 percent of their farmers are women – a trend that reflects the sector’s innovativeness and inclusiveness.

Forestry: A Goldmine of Opportunity
For investors, the forestry sector should not be overlooked. Latvia stands out as particularly attractive: with over 50 percent of the country covered by forests and forest processing as one of the most important export industries, timber remains a golden egg. In 2023, Latvian forest products were valued at 3.3 billion euros, making the industry a solid source of revenue.
Lithuania – with around 34 percent of the country covered by sustainably managed forests – and Estonia – which, despite some challenges, still stands out as an important player – are both important players. The timber price market was stable in the third quarter, with weak price developments for some products, but basic stability.
An important note: the global market for forest products is expanding again. Lithuania and other Baltic exporters are experiencing growing demand, especially from the UK and EU countries, which is opening up new export opportunities.

What to watch out for?
For farmers: Focus on modernisation and digitalisation. EU funds are once again flowing into the development of sustainable solutions, and there is increased interest in organic production and precision farming.
For investors: Interesting opportunities are opening up in:

• Technology and machinery for agricultural modernization
• Forest stocks and sustainable timber production
• Green energy and bioeconomy
• Food quality products with high added value

Final thoughts
The third quarter of 2024 showed a changing agriculture. While weather conditions and global market forces still affect short-term results, the long-term direction is clear: modernization, sustainability and increased profitability are in focus. For both traditional operators and new investors, the region offers opportunities worth exploring.
We encourage you to delve into the sector and keep an eye on developments. The regional agriculture and forestry industry is on track for a more dynamic and profitable future.

For over two decades, Jesper Kjær ApS has worked as an independent developer and brokerage company with a focus on facilitating investment projects in Eastern Europe. Since our establishment in 2001, we have built a solid foundation for sustainable growth in some of the region's most exciting markets.

From Poland to the Baltics - an established presence
Our experience is particularly deep in Poland, Lithuania, Latvia and Estonia, where we have established depth of market knowledge and local networks over the years. From 2003, we identified a particular potential within the agricultural sector and forestry - industries with long value chains, stable demand and significant development potential. This specialization has allowed us to guide investors through complex projects with technical insight and practical experience.
As an independent company, we can maintain the flexibility and objectivity that characterize the best advisors. We are not tied to institutional interests – we focus on what creates value for our partners.

New horizons: Czech Republic from 2024
From 2024, we will take the next step in our expansion. The Czech Republic opens up new opportunities for our work, and the region shares many of the characteristics that make the Baltics and Poland attractive investment destinations – stable political climate, modern infrastructure and significant natural resources.
The expansion into the Czech Republic is not a blind leap. It is the result of systematic market analysis and a natural extension of our expertise in agricultural holdings and forestry. We bring the same dedication and independent approach to new projects.

What does this mean for you?
For investors, it means a partner with increased geographical reach and even deeper opportunities to create synergies across projects in Eastern Europe. We remain focused on what matters most: facilitating investments that create sustainable value.
Do you want to explore the opportunities in Poland, the Baltics or now also the Czech Republic? We are here to guide you – independently, professionally and forward-thinkingly.

A Key Period for Europe’s Farmers.
If you are a professional farmer or agri-investor, the first half of 2024 should have sparked some important thinking machines. The regions around the Baltics and Poland are experiencing a transformative period that is affecting the entire European agricultural and forestry landscape.
We looked at the most important trends and news, and here is what deserves your attention.

Climate Challenges That Define the Season
First of all, let’s talk about the weather – because the weather tells the whole story.
The first half of 2024 started with extreme weather conditions in the Baltics. Intense cold in December and January – down to minus 25°C in places – hit winter crops hard, especially because the fields had no snow cover to protect them. For Polish farmers, the situation worsened in April, when unexpected frosts down to minus 9°C damaged flowering crops at crucial times.
Heavy rain became the problem for most of the winter. Low-lying fields became waterlogged, causing mechanical damage to winter cereals and making spring ploughing slower than usual. This is important context: the early season was thus challenging across the region, but also important for understanding subsequent turn-of-the-year expectations.

Poland’s Grain Market – Volume vs. Quality
In Poland – Europe’s fifth largest agricultural producer – the year started with mixed signals.
Poland exported record quantities of grain products in 2023: over 13.7 million tonnes. This set a high bar for 2024. The Polish government forecast showed that the wheat harvest would fall by around 6 percent compared to 2023, while the rapeseed market will also see a decline of around 9 percent.
But here’s the important thing: even though the volume is falling, this opens up opportunities for higher prices for quality products. Polish farmers who invest in better varieties and technology can potentially achieve better profitability, even though the harvests are getting smaller.

The Baltics – A Market with Steady Incomes
One of the most important positive news of the year comes from the Baltics.
In 2024, the income of agricultural workers increased significantly – Lithuania +20%, Latvia +34%, and even smaller growth in Estonia. This was a victory after difficult years of cost pressures. The reason? Better product prices, lower input costs compared to 2023, and a remaining structured market.
For investors, this means that the Baltic region is becoming more attractive for agricultural investments. These countries are showing growth in both cereal and cattle production, and the Lithuanian government has actively added labor back to agriculture – a rare positive trend in the region.

Forestry – A Quiet Source of Power
Let’s not forget the forests. The quiet, green wealth.
In Latvia and Estonia, forestry still accounts for around 1-1.5% of the countries’ GDP, which is significant for small economies. Over 50% of Latvia’s territory is forested, and exports of forest products, however, fell significantly in 2023 – around 22% – due to weaker global demand. But here is also a perspective: when global demand turns around, these countries are well positioned.
Lithuania is building an important bioenergy sector around forest biomass. Energy independence is becoming strategic, and forest products are finding new industrial uses – from packaging to bioenergy.

Digitalization and Precision Agriculture – A Quiet Revolution
Among the most exciting trends in the first half of 2024 was the acceleration of precision and digital agriculture in Poland, Lithuania, Latvia and Estonia.
Although Germany still leads in technology adoption, GPS guidance, automatic section control and satellite image analysis are now being offered to medium-sized farms across Eastern Europe. Smaller startups – several from Lithuania and Poland – are developing specialized solutions.
For investors, this means: the next 5-10 years will see a significant productivity surge in these regions. Farmers who adopt precision agriculture early will have significant competitive advantages. The EU’s CAP strategies support this transition, so there will also be financial support.

And Then: Sustainability and the Green Agenda
Last – but not least – the EU Green Deal and new CAP strategies are having a major impact on all farmers in the region.
Poland has ambitions to double organic farming area by 2030. The Baltic countries prioritize livestock production with higher welfare standards and reduced environmental impact. For European farmers and investors, this means: the regions are developing towards higher quality, and not necessarily higher volume production.
This opens the door to premium market segments – organic, certified livestock products, forest products with certification. Danish, French and German buyers will find here trustworthy partners with modern practices.

What Does This Mean for You?
If you dream of expanding European or diversifying your agricultural investments, the first half of 2024 is important:
Lithuania, Latvia and Estonia are showing economic resilience in the agricultural sector – not exactly found in the entire EU.
Poland remains a giant, but with a changing focus: less volume, more value.
Forestry in the Baltics is on the verge of a renaissance – both for traditional timber and new bioeconomic applications.
Technology is now diffusing faster than ever – and costs are falling.

The region has traditionally been a supplier of raw materials. But in 2024 we see signs of that changing: more innovation, more specialization, more value added locally.
It’s worth learning more – or getting a local partner to guide you through the opportunities and risks. The regions should not be underestimated.

The second half of 2023 brought exciting developments to the agricultural and forestry sectors in Poland, Lithuania, Latvia and Estonia. For European farmers and investors from Denmark, Norway, Sweden, Germany, Austria, Belgium, Spain, France, the Netherlands and the UK, significant opportunities are opening up in the region. Here we review the most important trends and news that certainly deserve your attention.

Poland: Green transition and EU funding on the way
A turning point for the agricultural sector.
In October 2023, something decisive happened in Poland: the country's political landscape changed with a new government under Donald Tusk. This has led to a significant shift in climate policy towards greener solutions – a development that brings new opportunities for Danish and other Western European companies specializing in sustainable agricultural equipment.
Poland is receiving 137 billion kroner from the EU for digitalization and green transition, which means massive investment in modern agricultural technology and sustainable production methods. For farmers, this means cheaper access to modern machinery, digital solutions and precision farming technology.

The organic farming industry is growing
Organic farming in Poland is growing. The number of organic farms is continuously increasing – at the end of 2022, there were 21,187 organic farms, which represents an increase of 6 percent compared to the previous year. This sector offers high-value products with stable demand both on the domestic market and internationally.

Challenges and opportunities
Fertilizer production fell significantly – nitrogen fertilizer fell by 32.2 percent and phosphorus input by 51.5 percent in the first seven months of 2023, primarily due to high energy prices. This means that there is increased interest in alternative fertilizer solutions and more efficient production methods – precisely areas where Western European companies with experience can offer solutions.

Baltics: The colossal potential of the forest industry
Latvia: European trends in wood exports.
Latvia and the Baltic countries constitute an absolute key region for forestry in Europe. In 2023, wood and wood products accounted for 17.3 percent of Latvia's total export value, and the value of forest product exports reached 3.3 billion euros. It is among the most important export sectors in the country – and there is still growth to be found.
In 2023, a total of 43,272 hectares of forest were regenerated in Latvia, of which 59 percent were privately owned forests. This opens up opportunities for European investors looking to invest in sustainable forest management and wood products.

Certification and sustainability in focus
An important factor for international investors: Over 50 percent of Latvia's forests are certified according to the PEFC system, and over 328 forest contractors and forest owners have certified their timber chains according to FSC requirements. This means that investments in Baltic forestry meet the highest international environmental standards – something that the international market highly values.

A regional competence center
The Baltic countries, led by Latvia, have become a European center for wood production. The Baltic States actively import raw wood from each other and neighboring countries, add value through processing and re-export products – all based on a well-educated and skilled workforce at competitive prices. For European companies, this means access to both raw materials and specialized labor.

Lithuania: Agricultural successes that inspire
Growing grain yields.
Lithuanian farmers have reached Western European levels of production efficiency, and grain yields are continuously increasing. Today, more than 32,000 farms of various sizes are engaged in grain, oilseed and leguminous production. This shows that modern agricultural techniques and investments pay off – from small to large-scale agriculture.
A growing export market.
Lithuania has become an important player in the export of agricultural products. With access to the EU market and increasing international demand, a robust market for high-quality agricultural products has been created.

Topics that interest European investors and farmers
1. Digitalization and precision agriculture
With EU funds flowing into Eastern and Central Europe, there is enormous potential to introduce digital solutions – from drones to soil monitoring to advanced fertilizer management. Danish, Nordic and Western European companies within agro-tech and IoT have fantastic opportunities here.
2. Sustainability as a competitive parameter
Both agriculture and forestry in the region are increasingly focusing on the EU’s green agenda. Companies that can help reduce resource consumption, increase certification and document environmental scope are finding a warm reception.
3. Organic and high-value production
The organic market is growing, and consumers are willing to pay more for documented high quality and sustainability. For European importers and retailers, the region is a classic supplier of organic and high-value agricultural products.
4. Forestry as a long-term investment
Forestry offers long-term value creation combined with environmental benefits. Baltic forests are certified, well-managed and offer attractive financial prospects for European private equity funds and institutional investors.

Our best advice for you
Are you a European farmer or investor? The region offers competitive prices, a well-trained workforce, modern infrastructure and, not least, access to the EU market. At the same time, there is a real need for Western European expertise in new technologies and sustainable business models.
The time is ripe – and the opportunities are greater than many Westerners dream of.

Since the invasion of Ukraine, markets gradually stabilized throughout the first half of 2023, opening up new perspectives for European farmers and investors. For professionals from Denmark, Norway, Sweden, Germany, Austria, Belgium, Spain, France, the Netherlands and the UK, the period is shaping up to be a critical turning point – filled with both challenges and concrete opportunities.

Poland: From Crisis to Solidity
Poland's role as Europe's granary became even clearer. The country significantly increased its exports in the first half of 2023 after a record harvest in 2022. For Western European producers, this means an important market indicator: Poland's grain market remains robust, even though prices adjusted to the extreme level from the previous year.
Pig production in Poland flourished, with demand for soybean meal on the rise. If you work with livestock feed or concentrates – especially for poultry – Poland was still a net importer and thus both a competitor and a potential partner.
Note the CAP Strategic Plan 2023-27: Poland now focuses on small and medium-sized farms, organic production and animal welfare. For European machinery manufacturers and technology suppliers, this represents new opportunities.

Baltics: Stability Under Pressure
Lithuania, Latvia and Estonia experienced economic adjustment in the first half of 2023. Although briefly affected by inflationary pressures and energy uncertainty, markets calmed down. For the agricultural sector, this meant precise timing – and opportunities for those who believed in the region.
Self-sufficiency rates remained lower than in Western competitors. Lithuania still imported half of its pork; Latvia and Estonia did the same. For Danish pork producers and Belgian potato research, this means that these markets remain open – especially if you can offer quality or specialized varieties.
The Baltic CAP Strategic Plan 2023-27 marked a turning point. With a focus on sustainability, small farms and organic production – as well as support for economically disadvantaged sectors such as starch potatoes and sugar beet – it now signals concrete investment opportunities for those who understand the EU subsidy system.

Forestry: From Volatility to Upward Trend
Here come the gold mines for Nordic and continental investors.
In March 2023, prices in the Baltics showed an interesting development: the majority of assortments fell in price, but coniferous forest logs started to rise. This signaled that sawmills are preparing for spring – a classic bull market signal.
In the second half of 2023, much more promising news followed. Compared to the second half of 2022, wood prices increased, and especially for spelled conifers (large-knob spruce and pine) the most encouraging eye numbers were recorded – 27% increase for small spruce trunks (under 14 cm diameter) and 26% for small pine trunks.
For Danish furniture manufacturers, Norwegian wooden house builders, Swedish paper mills and German furniture fragmenters: this is the signal that ballooning is blooming again. Sustainability and green construction are driving demand – and the Baltics deliver.
The forest areas in the region remain massive: Latvia has approximately 3 million hectares of forest, corresponding to around 53% of the country, and an annual harvest volume of between 11-12 million m³. In addition, there are new investments from Danish and Scandinavian forest funds, which see long-term potential.

Themes for Decision
For agricultural investors: H1 2023 showed that the Baltic states are stable. Self-sufficiency was set to remain below Western levels – an opening for imports. At the same time, the CAP 2023-27 promises more money for small farms and organic production. For those who can see past acute price volatility: there is value here.
For forest owners and forest funds: Timber prices rebounded through the second half of the year. A clear picture is now emerging: the Baltics remain attractive for sustainable timber harvesting and long-term wealth-doubling real estate investments.
For technology and machinery suppliers: The agricultural sector is modernizing. Eastern European agritech adoption is still lagging behind the West – meaning markets are open to those who can present valuable, credible technology.

Perspective and Action Proposals
The first half of 2023 was not headline-making, but that is exactly what made it important. While the media sought dramaturgy, serious investors looked away from the crisis and towards the structures – and there they were, stable as ever.
For those who are reading this and wondering what to do next: contact us, visit Eastern Europe with us, and expect to be surprised by professionalism and ambition. The regions are growing quietly – and if you are the least bit careful, you can grow with them.

The first half of 2023 opened the doors to the East. If you are looking for long-term value, not short-term profit – then it is time to enter.

Summer and autumn 2022 brought transformative shifts to Europe's agricultural macroeconomy. For investors and professional farmers from Norway, Sweden, Germany, and the rest of Western Europe, these changes open new perspectives in Poland, the Baltics, and the forest regions around the Baltic Sea.

Ukraine Crisis: A Volatile Market
The invasion of Ukraine in February 2022 dramatically changed the agricultural landscape. Poland's role became pivotal – for better or worse? The countryside became a critical transit hub as eastern grain products sought new routes. Both challenges and opportunities emerged. Poland implemented restrictions on the import of wheat, maize, rapeseed kernels, and sunflower husks to protect its own farmers from price drops caused by incoming Ukrainian grain volumes. This signalled political intent – and the real market conditions along the border. For Western observers, it would be easy to judge. But for those seeking investment opportunities, volatility also presents a chance. As one observer noted: markets want clarity, not protectionism. A conference in September 2022 between payment agencies from Poland, Lithuania, Latvia, and Estonia also highlighted the growing focus on regulatory coordination among the regions.

Agricultural Potential in the Baltics
The Baltic states showed resilience. In 2022, Lithuania, Latvia, and Estonia recorded small increases in energy consumption within the agricultural sector, but overall the trend declined at the EU level. This suggests a sector in precise calibration – not under control, just focused.
The meat sector deserves special attention. Lithuania's self-sufficiency in pork was only 50% in 2022 – significantly below levels in Denmark, Germany, and Spain. In Latvia, Lithuania, Estonia, and Poland, self-sufficiency still hasn't reached 100%. For Western European producers, this signals ongoing import interest and market opportunities.
Meanwhile, grain and potato producers in the Baltic region saw price increases in the second half of 2022, with variations among countries, reflecting both inflation and transport challenges.

Forestry Sector: A Quiet Revolution
The Baltics are the heart of the forest. Latvia, with over 50% forest cover and a doubling of forest area over eight decades with a 3.8-fold increase in timber volume, has steadily grown its green wealth.
In 2022, the forestry sector experienced a renaissance. Timber prices in the Baltics remained favourable, and pulpwood prices began to rise. Not only was this good economic news – it also signalled sustainable harvesting without hoarding.
HD Forest documented rising timber prices per assortment in the Baltics in 2022, after a dip in 2021, underscoring increased market confidence. Investors from Scandinavia and Germany turned their attention to Baltic forest capital.
However, challenges also emerged: In Estonia, boat sawmills faced uncertainty towards the end of the year, with warnings of cutbacks. An eastern product of particle memory foam closed its factory at the end of 2022. A reminder that the sector is not immune to global economic shifts.

Trade and Investment Opportunities
For Danish, Norwegian, Swedish, German, Austrian, Belgian, Spanish, French, Dutch, and British professionals, the picture is this:
The agricultural sector was transformed by geopolitical shock, but structures remained. The Baltics and Poland have momentum. Self-sufficiency levels open niches for imported quality meat, fertilisers, and harvesting machinery. Energy efficiency is on the agenda – innovation opportunities lie here.
The forestry sector is flourishing with sustainability as a sales pitch. Timber prices were solid, and timber volumes are rising year by year. For German furniture makers, Danish biomass suppliers, and Swedish paper mills: the East is right next door, and it produces value.

A Friendly Call to Action
2022 was the year when East met West at the borders – literally. For those who can navigate political uncertainty and find stability in volatility, opportunities arise. The Baltics' stable forest areas, Poland's grain-rich farmers, and the new trade corridor routes speak for themselves.
Investors seeking diversification and long-term activities: look East. This is not about risky ventures, but about becoming part of a transformation that has only just begun.

The Russian invasion of Ukraine on February 24, 2022 has created deep geopolitical and economic upheavals in Europe. In addition to the human and political consequences, the conflict has also affected food supplies, commodity prices and investment patterns – especially in the countries around the Baltic Sea.

Agriculture: Strategic upgrading in Poland and the Baltics
Ukraine has traditionally been one of the world's largest exporters of grain, sunflower oil and other agricultural products. With the war, large parts of production have been put out of action, which has created pressure on alternative production countries. Poland, Lithuania, Latvia and Estonia now have a historic opportunity to strengthen their role as stable and modern agricultural nations.
For investors, this means access to EU-supported structures, growing local and international demand, and political will to promote food security and self-sufficiency. Investments in land, production and logistics in the region can prove both profitable and socially beneficial.

Forestry: Green stability in the Baltics
The forest sector in Lithuania, Latvia and Estonia has long been characterised by sustainable management, digitalisation and export orientation. With rising energy prices and a focus on biomass and CO₂ sequestration, forestry is becoming an even more important sector. Investments in forest land, wood production and green technologies are supported by the EU’s climate goals and local strategies.

What should investors consider?
Geopolitical stability and EU membership in the region
Increased demand for local food and sustainable raw materials
Opportunity for long-term returns and green branding
Access to modern infrastructure and digital governance
The conflict in Ukraine has changed Europe's economic landscape. For investors with an eye for responsibility and long-term growth, new opportunities are opening up in the Baltic Sea region's agricultural and forestry sectors.

In the Baltic countries, the forest sector is a significant part of the economy and has interesting investment prospects.

Latvia

In Latvia, the forest area covers approximately 53% of the country and in 2021 the forest and wood processing industry accounted for around 6.5% of GDP with exports of approximately EUR 3.6 billion – corresponding to 22% of the country's total exports.
This marks the sector as a cornerstone of the economy and provides investment opportunities in forest ownership, wood processing, biomass and export-oriented projects.

Lithuania & Estonia

Lithuania and Estonia are also attractive: Forest areas are large, and wood product exports have great growth potential. For example, Estonia's forest area is close to 50% of the country, and the sector has both export and sustainability potential.

Investment perspective

For investors focusing on forests and forestry projects, the following points are relevant:
Long-term value addition: Forestry has lower volatility than many agricultural sectors, and wood products (both raw and processed) are used as both a yield and hedging asset.
Sustainability & certification: Global demand for sustainable wood and biomass is increasing - investments in certified forestry can generate added value.
Export opportunities: Wood products from the Baltics have access to the EU and global markets via port facilities, which strengthens export potential.
Risks: Long investment horizon, capacity costs, environmental and regulatory requirements, and market sensitivity to raw material prices and logistics.
Overall, the forestry sector in the Baltic countries is emerging as an attractive complement to agricultural investments – especially for professional investors with a focus on emerging markets and diversification.

Poland
In Poland, the modernization of agriculture continues: mechanization, precision agriculture and the shift from small farm sizes to larger units are in focus. For example, the Polish tractor market is expected to grow significantly as a result of increased production and intensification.
At the same time, agriculture's share of gross value added has decreased – the sector still contributes, but with decreasing relative importance.

For investors, this means that Poland is interesting as a “ripe” growth area for modernization: Technological upgrading, efficiency improvements and economies of scale offer opportunities. However, one should be aware of environmental and regulatory challenges: Erosion, nitrates and intensive cultivation are recognized problem areas.

Lithuania
Lithuania showed good progress in agricultural production in 2022: According to data, gross production grew by around 4.8% compared to 2021, with plant production in particular increasing by 6.4%.
At the same time, national conferences highlighted the need for increased digitalization, technological upgrading and a focus on food safety – in light of Russia’s invasion of Ukraine and price shocks on energy and fertilizers.
For investors, Lithuania is interesting as a dynamic region with increasing efficiency and opportunities for cooperation between agriculture and the food industry. The challenge, however, is that average farm sizes are still relatively small, and competitiveness needs to be strengthened – attractive to players with capital and know-how.

Latvia & Estonia
In Latvia, interest in adapting agriculture to modern requirements is growing – the sector is focused on cereals, potatoes, forage and dairy.
Estonia has among the EU’s highest shares of organically cultivated land, indicating a niche-focused and flexible structure.
For investors, this means that Latvia and Estonia can be interesting “upside-down” markets: Smaller volume than Poland, but with the possibility of specialization, premium products or an organic profile. The challenge is scale and access to markets.

Common trends
A number of common patterns emerge in the first half of 2022:
Input prices (energy, fertilizers, pesticides) increased sharply in EU agriculture due to geopolitical shocks and supply chain challenges.
There is an increasing focus on sustainability and digitalization – technological solutions (e.g. precision agriculture, sensors) are seen as important to address both cost-efficiency and regulatory requirements. (See Lithuanian case)
Production growth is expected to slow down or stagnate in some sectors, according to the EU outlook.

Agriculture and rural development
For an investing farmer or investor, this means: Consider markets with potential for modernization and niche production, be aware of rising costs and regulatory risks, and assess where you can contribute technological know-how and capital.

Key Trends for Danish, Nordic, and Western European Farmers and Investors

Poland – A Vital Actor in European Agriculture
Poland continues to play a central role as one of Europe's most important agricultural nations. With 60 percent of the country's land designated as arable and as the EU's sixth-largest food producer, Poland's significance in the European market remains strong. The grain sector is particularly thriving, with winter crops dominating due to favorable climatic conditions and soil quality. For European investors and farmers, this represents stability and long-term collaboration opportunities.

Baltic States – Growing Potential
Lithuania, Latvia, and Estonia are experiencing positive developments in agriculture and the food industry. The EU has increased funding for these countries through new Common Agricultural Policy schemes, particularly targeted at nations bordering Russia and Belarus. This translates into expanded investment opportunities for Western European partners seeking stable and sustainable agriculture.
Organic farming is expanding rapidly in the region, especially in Lithuania, where specialized small-scale farms are emerging. This opens new possibilities for high-value specialty products that the Danish and Western European industry can capitalize on.

Forestry – A Green Investment Opportunity
The three Baltic countries – Lithuania, Latvia, and Estonia – possess some of Europe's most valuable forests. Over 50 percent of Latvia's territory is forest-covered, and the economy benefits significantly from timber exports and wood processing. Forests in the region are among Europe's most valuable for sustainable timber production, with increasing emphasis on certified wood and environmentally responsible forestry practices.
For investors interested in the green economy and long-term value appreciation, Baltic forest properties represent an attractive opportunity, especially since forest land prices are significantly lower than in Scandinavia – typically around €3,000–€4,500 per hectare.

An exciting month for farmers and investors in Poland, Lithuania, Latvia, and Estonia.

April 2021 marks an exciting period for Central and Eastern European agriculture and forestry. With gradual normalization following the COVID-19 pandemic and new investment opportunities on the horizon, this is an excellent time for European farmers and agribusiness investors to focus on the region.

New Growth in Regional Agriculture
In April 2021, it was evident that the fields were flourishing across Poland, Lithuania, Latvia, and Estonia. The Baltic agricultural sector was experiencing renewed optimism driven by improved export markets, rising commodity prices, and revived investor interest. Poland remained a global leader in agricultural exports, with steady growth in meat, dairy products, grains, and specialty products such as cheese and chocolate.
By April 2021, it was clear that the Baltic agricultural sector had maintained its resilience despite the pandemic. Both small and large farms demonstrated commitment to modernization and climate-adapted farming practices. The Baltic states – Lithuania, Latvia, and Estonia – showed increasing competence in organic agriculture, opening new opportunities in the European market.

Forestry Sector Flourishes with Investment Opportunities
One of the most positive developments in April 2021 was the growing focus on forestry investments in the Baltic region. Lithuania, Latvia, and Estonia had long been significant players in forestry, but now their forest areas were becoming increasingly attractive to international investors.
The Baltics, particularly Latvia with its over 50% forest coverage – nearly double the global average – demonstrated remarkable potential. The forestry sector was seen as a stable, sustainable investment opportunity with long-term value creation. Estonia was likewise renowned for its modern forestry practices and high forest coverage. Lithuania had strong traditions in both forestry and forest biomass for energy production.
These Baltic states were becoming increasingly attractive to European investors seeking stable, climate-neutral, and sustainable forest properties – without sacrificing profitability.

EU Programmes to Accelerate Development
By April 2021, the EU had just launched its new regional development programmes for the 2021-2027 period. The Interreg Baltic Sea Region programme was an important catalyst. With over 50 new EU-funded projects planned for each of the Baltic states and Poland, there had never been more opportunities for farmers and forestry entrepreneurs to access funding for innovation, sustainability, and green growth.
The new programmes focused on making the Baltic Sea region "greener" – with special emphasis on sustainable agricultural practices, modern forestry technology, environmental protection, and climate adaptation.

Welcome to our September overview of the latest positive developments from the agricultural sector in Central and Eastern Europe.

Despite the ongoing challenges posed by the COVID-19 pandemic, Central and Eastern European agriculture is demonstrating remarkable resilience and growth. As a European farmer or agribusiness professional, it's worth following the positive trends emerging in Poland, Lithuania, Latvia, and Estonia.

Poland's Agro-Export Success
During the first nine months of 2020, Poland achieved significant milestones in agricultural and food product exports. Polish agri-food exports showed impressive growth of 6.7% compared to the same period in 2019, reaching a total value of EUR 25.07 billion. This was particularly noteworthy given the global economic and logistical constraints caused by the pandemic.
Even more inspiring is the expansion beyond EU markets. Poland increased its agri-food exports to non-EU countries by 17% – a clear indication that Polish agricultural quality and competitiveness resonate in global markets. Particularly impressive were exports to Africa, where export volumes to countries like South Africa, Morocco, and Algeria doubled or more. Similar positive developments occurred in the Middle East, where export volumes to Saudi Arabia more than doubled.

Baltic Agriculture Flourishing
In Estonia, statistics reported particularly positive trade results in September 2020. Estonia's exports of agricultural products and food preparations increased by 31 million euros compared to the same month the previous year. The Baltic countries also conducted their ten-year agricultural census in 2020, revealing important insights about the sector's development. This structural work lays the foundation for more intelligent and targeted agricultural policy.
Additionally, Lithuania, Latvia, and Estonia have intensified their coordinated efforts to ensure fairer direct payments from the EU's Common Agricultural Policy. By speaking with a united voice, these countries are working towards the goal of bringing their direct payments to farmers to 100% of the EU average within seven years – a development significant for all progressive farmers in the region.

Sustainability and Innovation
Across these four countries, there is growing focus on sustainable agricultural practices, organic farming, and innovation. The Baltics, particularly Lithuania, have long traditions in organic agriculture, and the sector shows remarkable growth potential. Poland is simultaneously intensifying its focus on modern agricultural techniques and environmentally friendly investments.

An Investment Opportunity You Shouldn't Miss
If you are an experienced European farmer or agribusiness professional seeking to expand your operations in Central and Eastern Europe, or if you're looking for stable, profitable investment objects in agriculture and forestry, we have good news for you.

Average arable land price in Lithuania grew every year in period 2011 – 2018 (see the graph below). In 2018, comparing with 2011, arable land price was 3,2 times more expensive. The biggest increase occurred in period from 2011 to 2016, when the price went up rapidly. The growth in 2017 and 2018, comparing with the previous year, was much slower because of unfavorable weather conditions for agriculture, that resulted in lower income for the farmers.

In 2018 arable land was most expensive in Marijampolė and Šiauliai regions (5090 and 5026 EUR/ha respectively), where the soil quality is very good (see graph below).

In 2018, comparing with 2011, arable land rent price increased 2,2, times, from 60 to 131 EUR per ha. Differently from sales price, rent price was quite stable in period 2011 – 2016. The biggest increase in rent price, comparing with previous year, occurred in 2017, when the price went up from 82 to 124 EUR per ha (see the graph below).

Despite a steady increase in agricultural land price, Lithuania is still among the cheapest countries in the EU (see price comparison by country in the graph below).

We have come across the worst symptoms of COVID-19 and resume business as far as possible.

We still hope for your understanding.

Unfortunately, we have been infected with COVID-19 viruses and have to limit activities and business for some time.

We hope for your understanding.

Coronavirus has made its real impact on the world and will have major consequences for all societies.

The current situation has turned the everyday lives of millions of people and, for many companies, the future has become uncertain.

As a company, it can be difficult to get an overview of how COVID-19 will have a very low practical impact not only on day-to-day operations but also on the larger strategic decisions that for many now need to be made in record time.

A large part of our business takes place during travel with potential investors. It has already become harder to travel and we predict that many countries will close borders and air traffic. Another part of the business is done through various online media, which we will utilize to continue the dialogue with business partners.

We hope for an early end to the new virus that threatens many on their livelihoods.

Decision about the purchase or sale of a company is one of the biggest decisions in both the owner's and the company's life and can be equated with the decision on the establishment.

The purchase or sale of a business is a serious matter and is a process that always will be associated with a certain uncertainty. It is also a situation where the parties very rarely has sufficient knowledge and experience.

Once in a lifetime, selling a business.

Regardless of whether it is an existing company or a new business, the business case must be in place. The investor must base on an intention to develop the company in a certain direction, with the confidence that competitiveness can be achieved and/or other gain can be achieved.

With the large range of enterprises, it should in principle not be difficult to identify the right company.

In practice, however, that the problem is connected with difficulties. These difficulties may e.g. be:

• Purchase during periods of difficult financing conditions.
• The undertakings offered are located in a geographic area which is not optimal for the buyer.
• Businesses are put up for an unrealistic price.
• Business is wrong.
• The sizes and potentials are not satisfactory, etc.

The most important factor is the line of business and then follows the geographical location of the company.

The size of the company is not a decisive criterion for the purchase of the company. Both the company's organization and economics is important for the buyer, the final choice of business. To the question, to identify the right business – the ideal business – belongs, however, that many small businesses are not viable after implementation of a generational change. That fact must be considered carefully.

There are relatively few companies that are presented as being up for sale. It is estimated that only 15-20% of businesses actually for sale, which appear in the databases. The majorities are placed via business brokers to selected strategic buyers, financial buyers or buyers in the brokers own database.

An effective network is crucial.

Jesper Kjær ApS supports professional investors and industry and service from the purchase or sale consideration to complete the transaction and integration. We work very closely with your company and with other consultants in areas such as law, accounting, finance and environment. We have the strategic understanding and operational insight to challenge the impending acquisitions and to review acquisition candidates in order to find both strengths and weaknesses.

The market for mergers and acquisitions in Europe is dramatically changing. The type of transactions, the way they are financed and executed, has changed radically.

Your company might try to dispose of or acquire assets in order to start new business or increase market share. Whether you want to buy or sell, you have to find and analyze value and risk, in order to find out if your business case is solid. This is especially current, when shopping abroad.

We can help you with this.

Jesper Kjær ApS is a diversified consulting company for project development and innovative approach to improving business. We specialize in finding opportunities or ideas for introducing new technology-based and commercially promising products in developing markets.

Our position is based on a deep understanding of local opportunities - and the ability to be at the forefront of tomorrow. We take pride in being a committed partner and we have made it our trademark to make the impossible possible. Development and dissemination of business is a complex process, but we never lose sight of what creates value for our customers.

Through years of development of investment projects in Europe and North Africa, we have grown our skills with small steps. We have developed a large and effective network suitable for this type of international development. We develop, co-develop or mediate a wide range of projects and is active in the mediation of companies and real estate to international investors.

Because of the diversified business we do, and the constant dialogue with many different investors with even more ideas and goals, we have managed to cross match businesses for the benefit of all parties involved.

Together with an extensive network of partners, we have contact with many unique investors and acquisition candidates. We can help you determine whether the strategy and processes the transaction is tailored to your business goals and working effectively. Whether you plan to dispose of or acquire assets, we can help you to navigate through the complicated changing landscape of mergers and acquisition, to make well considered decisions and to do the right transaction.

Regardless whether you intend to buy or sell an arable farm, cattle farm, pig farm, poultry production or mink farm in Poland, Lithuania, Latvia or Estonia (the Baltics) then we can help you.

We have done business in Eastern Europe since 1998 and mediated agricultural farms in Poland and the Baltics since 2003. We have a large network and have local partners who also have a specialized knowledge about trade with production farms. Our geographical coverage and close local cooperation make us able to find buyers and sellers of production farms throughout the Baltic Sea region.

We handle transactions professionally, get to know each case thoroughly and work dedicatedly. We have knowledge about current legislation, local practice, financing options and everything else that will ensure you a good transaction.

We always have contact with a large selection of production farms for sale in Poland, Lithuania, Latvia and Estonia. Being large arable farms, cattle farms, pig farms, poultry productions and mink farms etc. In addition, there are forest properties, horse estates and nature- & leisure estates.

Getting a transaction to succeed .....

A trade may only require a Seller and a Buyer to agree ....
But getting a transaction to succeed is not always so straightforward - and not at all abroad.

We have brokered many investments, helped organise many transactions, seen many ways to act and participated in many considerations. Of course, it is absolutely important, first and foremost, to control visions, the profession and the economy, but there are also other values to care for. It's no fun to have the perfect project when the pleasure and happiness don't come with it.

Are you looking for investment in Central & Eastern Europe, then we can help you find the one that matches your needs, find the best solutions, and solve problems and conflicts.

We place great emphasis on personal, individual service and advice.
It creates peace and trust in cooperation but is also a significant source of the successful outcome.

When Lithuania joined the European Union in 2004, the EU allowed Lithuania to put restrictions on foreigners buying forest land and farmland for a 10-year transition period.

On the April 29th, 2014, the President of Lithuania approved a new law on ownership of farmland, which became valid on the 1st May 2014.

Main topics about farmland ownership (short summary):

1. Individuals and 'entities' (or related persons in both cases) cannot own more than 500 ha of farmland together.
2. Related entities are those, when they directly or indirectly have 25% or more of voting power of the other company; or where the same owners have more than 25% in the companies.
3. The individual, who wants to buy farmland in Lithuania, must in principle:
1. at least 3 years’ experience in the last 10 years in agricultural production and a record of farmland registration as a farmer or a diploma in farmland management.
2. special rules for farmers, younger than 40.
3. individuals must get a permission to buy farmland.
4. An 'entity' which wishes to buy farmland, must have not less than 3 years’ experience in the last 10 years in farmland management, must be registered and declared fields, income from farmland must be at least 50% of total income and is economically viable.
5. Both individuals and entities, must assure that during the following 5 years farmland will be used according to the purpose, and the minimal approved income level per ha is maintained.
6. Priority right to buy:
1. Co-owners
2. Tenants
3. Direct neighbors
4. In some cases – the state

Here you will find an overview of agricultural farms for sale  

Should you have any questions
please do not hesitate to contact us on telephone +45 5136 1495 or e-mail: jk@jkaps.dk.

Agriculture is one of the oldest businesses in Lithuania and occupies the bulk of the territory in rural areas.

Lithuania is historically an agricultural country. The agricultural sector carries out very important economic, social, environmental and ethno-cultural functions and is considered a priority sector of the national economy. It is the second largest sector in the Lithuanian economy and played a significant economic and social role in all the periods of the country’s history.

Agriculture, forestry and fishing made up 3.3 per cent of the gross value added in 2016, and exports of agricultural and food products accounted for 19.4 percent of Lithuania’s total export.

Even though Lithuania only covers an area of 65,300 km², the agro-climatic conditions vary in different parts of the country. Lithuania has a cool climate with warm summers and cold winters. The average temperature in July is about 17°C, while in winter it is about −5°C.

An interesting feature of the Lithuanian climate is that the winters are mild and there is little snow. Autumn is warm and rainy, spring is relatively cold, and summer is warm. The weather is quite humid with relatively high precipitation over the year. There is high cloud cover year-round, which significantly reduces the amount of heat the sun transmits to the Earth. Even in summer, the actual duration of sunshine in Lithuania does not exceed 60 per cent of the potential sunlight for this latitude.

Crop capacity is the main factor limiting the cultivation of heat-loving plants in Lithuania on a large scale – it is very unstable both year by year and over the year. During the hottest summers when tropical air masses come to Lithuania, the air temperature can get as high as 33–35°C, but in other years the temperature in July can drop to 6–7°C at night.

The average annual precipitation in Lithuania is 670 mm, but its distribution throughout the country is uneven, ranging from 500 to 900 mm. Such large fluctuations are caused by changes in large relief forms, plains and altitudes. Some 60–65 per cent of the annual precipitation occurs during the warm season (April–October). In summer, there is very heavy rainfall every year where 30 mm or more can come down during a single day. Fog is common.

Overall, it can be said that Lithuania has a better balance of biological resources than most of the other EU countries. Therefore, production volumes must also be increased and intensive technologies implemented measures that encourage businesses to protect natural balance and use biological resources in a sustainable and responsible manner. After all, farmers are the first link in the food production chain and they are not limited to growing foods. Farmers often also produce and process products and even sell them directly to consumers.

Crop farming

The favorable natural conditions in Lithuania and the good number of quality agricultural land for cultivating crops together with the long-standing experience in their cultivation have resulted in an increase in cereal crop yield over a few years. This was influenced by an increase in crop areas and the introduction of more advanced technology in crop production. Lithuanian farmers have reached the level of Western Europe. Continuously growing grain yield is becoming the dominant trend.

In Lithuania, more than 32,000 farms of various sizes grow cereal, oil and leguminous crops. Grain plants form a significant part of the crop structure. In 2016, the total crop area was 2.1 million hectares. The relative share of cereals and legumes in the crop structure particularly increased: cereal crops accounted for 65 per cent, and leguminous crops accounted for 11 per cent. The total production of cereals grown in Lithuania accounts for 34.3 per cent of all agricultural production.

The favorable climatic conditions in Lithuania make it possible to cultivate rye, wheat, triticale, barley, buckwheat and other grain crops. They use grains to produce malt, flour, various groats, flakes, pasta, breakfast cereals and cracker, starch, gluten and syrups, and feed makes up the largest part of the production.

Vegetable farming

Lithuania has suitable climatic conditions and sufficient agricultural productivity for the development of vegetable farming. Preconditions for the development of outdoor vegetable farming are also created by traditions. In 2016, 10,7 thousand hectares were used for outdoor vegetable crops. Greenhouses for growing vegetables occupied 0,5 thousand hectares. In 2016, vegetable crops accounted for 3.4 per cent of total agricultural production. The average yield of outdoor vegetables was 18.6 t/ha. The crop yield for outdoor vegetables was 196,2 thou. tons, and 18,4 thou. tons for greenhouse vegetables. Farmers grew 97.2 per cent of outdoor vegetables and 80 per cent of greenhouse vegetables, while agricultural companies produced 2.8 per cent and 20 per cent respectively.

The biggest outdoor vegetable crop in 2016 was cabbage (21.5 per cent), followed by carrots (18.7 per cent), beetroot (16.8 per cent) and onions (15.9 per cent). The crop yield for cabbage was 65,300 tons, for carrots – 44,400 tons, beetroot – 40,300 tons, and onions – 26,500 tons.

The cultivation of potatoes is a traditional branch of agriculture in Lithuania, with about 70 per cent of farms growing them. In 2016, the total potato crop area was 21,3 thousand hectares, and their crop yield was 340,200 tons.

Fruit cultivation

In 2016, there were 29,500 hectares of orchards and berry fields in Lithuania. The most common cultivar in Lithuanian fruit and berry farms is the apple tree. In 2016, 13,700 hectares of land were used for apple trees. Pears (1,7000 ha), plums (1,100 ha), and sour and sweet cherries (1,300 ha) accounted for approx. four per cent of the total land used for orchards and berry fields in 2016. Berry crops have increased in recent years and accounted for 11,400 hectares in 2016. The bulk was used for black currants 4,500 hectares.

Various products are produced from fruit and berries. Juice was the main product, with 9.7 million liters produced. The largest part (60 per cent) was made from apples. Other key products include frozen fruit and berries, as well as various jams, marmalades, jellies, puree and pastes. Various wines and cider are also produced.

Dairy farming

The importance of dairy farming in Lithuanian agriculture remains significant. Milk production is in second place after grain production.

In 2016, 47,100 farms had dairy cattle. The most cows (21 per cent) were kept in farms with three to nine cows. In 2016, the milk yield was 1,756,000 tons, of which 80 per cent was bought for processing. In Lithuania, about 79 per cent of the milk is produced by farmers and family farms. The average cattle productivity in Lithuania in 2016 was 5,536 kg per cow.

Lithuania’s main specialization in the dairy processing industry is cheese. These products also predominate in the export structure.

Meat production

The livestock farming sector in Lithuania is an important and priority agricultural field, supplying the country’s consumers with various livestock products and the agriculture industry itself with organic fertilizers. For the development of this sector, the country has favorable natural conditions, livestock breeding traditions, and a wealth of experience.

At the end of 2016, 57,500 farms were raising cattle. The average farm size is not large. One farm had an average of 12 cattle. In terms of pure-bred beef cattle, Limousin, Angus, Aubrac and Charolais are the most popular in Lithuania. However, crossbreeds are the most widespread.

At the end of 2016, there were 663,900 pigs in Lithuania, of which 48,800 were pure-bred sows’ There were 163,600 sheep at 10,400 farms, for an average of 16 sheep per farm. At the end of 2016, there were 10,098,900 domesticated birds being bred in Lithuania, of which 98 per cent where chickens. Laying hens accounted for one third of the chickens. Geese, ducks, turkeys and other fowl were also bred.

Here you will find an overview of agricultural farms for sale  

• covers an area of 65 000 km²
• farmland comprises 60% and forest 32%.
• total population of nearly 3 million
• 42% lives in rural areas
• has a polarised farm structure (of the approx. 200,000 farms, more than 40% are less than 5 ha), but with a significant ongoing structural change
• 25% increase in the average farm size since Lithuania joined the EU in 2004.

Poland is the ninth largest country in Europe. It borders with seven other states and the Baltic Sea. Most of the country is lowland.

In 1996, 59% or approx. 18.5 million ha of Poland's total area of 31.1 million hectares was arable land. Of this area, arable land is by far the largest part with 14.1 million ha, followed by meadows of 2.8 million ha, permanent pasture of 1.4 million ha. 76% of Poland's utilized agricultural area is arable land, where the corresponding figure for the old EU countries is only 56%.

The primary crop is grain, especially wheat and rye and to a lesser extent, potatoes, fodder crops, sugar beets, oilseeds and legume plants. For most crops, production has in recent years been lower than before the change of the political system. In general, the percentage of self-sufficiency for most crops is between 90 and 100%.

Poland is a major producer of agricultural, horticultural and animal products. Poland is the second largest in all of Europe as to production of fruit - mainly raspberries and redcurrants and apples. Poland is the world's 2nd largest producer of rye and the world's 6th largest producer of potatoes. Finally, Poland has a strong position in the pig and dairy production, as the 7th and 11th largest producer in the world, respectively.

The average farm size in Poland is 8 hectares (compared to an EU average of 18.7 ha). There is a tendency towards more small and large farms at the expense of medium-sized farms. On national basis, the farm size varies from an average of just about 3 hectares in the southern part of Poland, to more than 20 hectares in the north-western part of Poland. 95.5% of Polish farmland is being cultivated in the private sector, of which 87.7% are family owned farms.

A great number of farms are still cultivated using a low consumption of fertilizers and pesticides. The more commercially oriented farms which use modern methods are able to compete with farms in other EU countries both in terms of quality and productivity. The number of these farms has been steadily increasing. The proportion of commercially oriented farms now accounts for 64.4% of the total agricultural production.

Agriculture in the post-war period:

Polish agriculture differs somewhat from agriculture in other former communist countries in Central and Eastern Europe, since agriculture was never fully collectivized in Poland. Successive communist governments finally accepted the privately-owned farms as the key pillar of food production in Poland. The privately-owned farms have therefore been important throughout the whole post-war period. The state owned farms had about ¼ of the area, and the privately-owned farms had approx. ¾. The state owned farms were mainly situated in the areas of Poland which were taken over from Germany after the 2nd World War, and the average size was around 3,300 ha. The privately-owned farms were very small, usually less than 5 hectares. After the political change in 1989 a main part of the state-owned farms were privatized, parceled and sold, or leased to private farmers, and the agriculture went through a radical restructuring. Sources: The Danish Embassy and the EU Directorate.

Poland's climate:

Poland has a temperate climate, but weather conditions are very different depending on the different parts of Poland. If you e.g. take Masuria in the northeastern part of Poland, the climate is more similar to coastal climate because winds blow from the Baltic Sea through the area. This means that the summers are not too hot, and the winters are not too cold, and it is therefore a good climate for plant production.

On Allmetsat.com     you will get more details on rainfall, temperatures, sunshine hours, etc. in each part of Poland. soil classification:

Classification of soil quality:

Here you find an approximate comparison of the Polish soil classification    with other European standards.

Please find current agricultural farms for sale    in Poland and Latvia.

Jesper Kjær ApS is a diversified consulting company, which has developed projects for renewable energy in central and Eastern Europe since 2001. Through a combination of self-development, joint venture development and strategic cooperation, we have participated in the development of projects for more than 1,000 MW wind turbines.

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