"Dotnuva Baltic to strengthen market position and help farms work more efficiently in 2025

2024 was a challenging year for agriculture, but Dotnuva Baltic managed not only to maintain its position, but also to grow market share. It is interesting to see how the company, which operates in the three Baltic countries, assesses the situation in the agricultural market and forecasts 2025.

Increased costs and lower yields

Farmers in all three Baltic countries face higher costs and lower quality yields in 2024. In Lithuania, fertiliser prices have doubled between 2020 and 2024, from €200/t to €450/t. Crop protection prices have increased by 50%, while fuel and electricity prices have also risen. Land rents and workers' salaries have risen, while bank interest rates have added to the windfall. Produce prices fell, with grain and milk purchase prices falling by around 50%.

Unfavourable climatic conditions in Latvia and Estonia also made it difficult to grow crops. After a difficult 2023, when yields were - 20% lower in Latvia (3.6 million tonnes) and - 30% in Estonia (1.6 million tonnes), the 2024 harvest was more abundant, but it was to cover the previous year's debts. Meanwhile, Lithuania, as in the economy, looked the best – the harvest was +5% higher than the year before (7.2 million t).

After excellent periods, the machinery market faced corrections in 2024. Demand for machinery has shrunk due to lower farm incomes and profits. Delivery times have increased from 3 months to 12 months and machinery prices have increased by 10-15% per year. The Baltic tractor market contracted from 2000 units in 2022 to 1200 units in 2024 and the combine harvester market from 400 units to 160 units. Demand for other machinery has fallen by around 30%.

Challenges did not bypass those planning investments in grain and farm equipment. A number of farms have postponed their plans for easier times and investments planned for 2023 or 2024 have been postponed until 2025-2026.

Meanwhile, demand for rental equipment in Lithuania, Latvia and Estonia has been growing. In 2024, more farms have opted for renting agricultural machinery and services, as this strategy allows them to reduce their already high farm costs and to use modern machinery without making long-term investments. Farmers have increasingly opted for renting machinery or using operator-assisted services to help them adapt to seasonality and to reduce the farm's financial commitments.

„Dotnuva Baltic“ has maintained and even increased market share

Despite the difficult conditions, Dotnuva Baltic Lithuania has much to be proud of. The company managed to increase tractor sales to 15% (+5%) market share in Lithuania and 11.3% (+1%) in Latvia, and doubled its share of the combine harvester market to 16%, ranking first in the rotary harvester segment. The company retained its market leadership in feed mixer-dispensers, and with self-propelled sprayers, took 30% of the market in Lithuania. In Estonia, despite a difficult market, as many as 3 harvesters were sold in one month at the end of the year. In Latvia, where competition is particularly aggressive, „Dotnuva Baltic“ was able to deliver the most powerful tractors to the strongest farms.

In Lithuania, the company has maintained its position as a leader in the design and implementation of grain equipment and has established itself in the top three in the livestock products and milking robots segment. The position is also being strengthened in the Baltics, with the largest grain elevator opened in Estonia last year.

Dangis Valaitis, Managing Director of the company, says: "Despite the market difficulties, we have been able to not only maintain but also increase our market share. This shows that our strategy and the work of our team is right.

Customers need competitive solutions and quality services

„Despite a wide range of challenges, the agricultural sector is expected to recover overall in 2025. Agriculture is characterised by cyclical patterns, with more difficult years followed by successful upturns. Moreover, the sector is critical to both the Baltic domestic market and exports. It is important to promote smart, competitive, resilient and diversified agriculture, which strengthens the economy and contributes to the long-term security of countries," stresses Valaitis.

Dangis Valaitis. Photo courtesy of Dotnuva Baltic

Farms are expected to continue to be able to invest in efficient solutions that will reduce farm costs and increase productivity. After several years of market decline, demand for machinery and equipment is expected to increase and return to 2023 levels. This will be helped by EU support and subsidies to help farmers buy modern machinery. The rental market for agricultural machinery is forecast to continue to grow in 2025. Renewed investment in farm and grain equipment is also expected, with potential growth of more than +50%.

„Dotnuva Baltic“ has ambitious plans to grow and further strengthen its market position. Our goal is not only to maintain but also to grow our market share by introducing new technologies and offering quality services that help farmers to manage their farms more efficiently and improve the quality of their produce. The development of products and services is an important strategic priority for our company.

D. Valaitis is pleased that the company has made strong additions to its agricultural machinery portfolio in recent years. In 2024, a cooperation agreement was signed with SUMO (UK), a company that produces tillage implements and band drills that help reduce costs and increase farm profitability. Earlier this year, the representation of VREDO (The Netherlands), a manufacturer of self-propelled liquid organic matter handling machines and specialised drilling machines, was announced.

Technology rentals and services will continue to be developed under the name of the separate company „Dotnuva Rent“. Long-term rental of new machinery is offered, as well as sowing, liming, threshing and, from this season onwards, slurry spreading services with an operator.

„We meet the needs of any farm and are flexible with our solutions“, – says D. Valaitis.

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