The dairy processing company SIA “Baltic Dairy Board” (BDB), which until now has produced cream, protein concentrate, and permeate, is planning to transition to cheese as its main end product.

BDB plans to acquire a complex of equipment for processing raw milk and preparing milk mixtures for cheese production. This equipment is part of the cheese factory currently being built in Bauska by the “VILVI Group”. The total investment in the factory will exceed EUR 40 million, part of which will be financed by “Citadele Bank”, part by “Altum”, a portion will be contributed by the company itself, and another portion is expected to be co-financed by the Rural Support Service Republic of Latvia (LAD).

As part of the project, two new and innovative cheese product types will be introduced: unripened and ripened cheese with 48% fat in dry matter. It is also planned to begin the production of innovative semi-hard “Gouda” cheese and fresh “Cagliata” cheese made with vegetable fats. Until now, this type of cheese production—where dairy fats are replaced with vegetable fats—has not been practiced in Latvia.

Through this project, BDB will begin producing products in Latvia that have not been manufactured there before, but which were developed in Lithuania by the parent company “Vilkyškių Pieninė” through research and development. These products have already gained strong demand in global markets.

The launch of cheese production will bring significant changes to the activities of BDB and “VILVI Group”, as well as to dairy processing operations in Latvia and across the Baltic region.

First, the cheese production line will increase the volume of cheese produced and exported by “VILVI Group” companies. Second, a large quantity of milk—more than 250 tons per day—which “VILVI Group” has been sourcing from Latvia and Estonia and transporting for processing in Lithuanian facilities, will now be processed locally in Bauska, Latvia, adding value to the local economy. Nearly 100% of the cheese produced will be exported through the export channels established by “VILVI Group” over the decades.

Once the cheese production line is implemented, BDB will significantly increase its milk processing volume and turnover. The amount of processed milk will grow from approximately 9,000 tons to 180,000 tons per year. The company’s turnover will also grow several times over. As a result of the project, exports will increase significantly and BDB’s competitiveness will improve. At least 57 new jobs will be created, contributing to the economic development of the Bauska region.

Until now, BDB has not produced cheese due to the lack of appropriate infrastructure and equipment. Currently, the company employs 52 people. To support cheese production, BDB will purchase milk from local Latvian farmers and farms in Estonia.

The company’s main clients are based in Lithuania, the Netherlands, and Germany. Currently, 96% of production is exported. Due to its high production capacity, the company is one of the largest industrial cream producers in Latvia and the leading producer of whey and milk proteins in Northern Europe.

Supported by the Latvian Ministry of Agriculture and Rural Support Service Republic of Latvia (LAD).