The cooperative agricultural company „Mažeikių ūkiai“, which started its operations last year, is going to halt its operations and lay off more than half of its staff, managed by the group „Auga Group“controlled by the entrepreneur Kęstutis Jučius. 

„Auga Group" chairman of the board K. Juščius says that „Mažeikių ūkiai“ was operating on loss-making land, and that by giving up this activity, the group's overall financial results will improve and it will be able to invest in the efficiency of other farms.

„Having evaluated the long-term results of the farms and the efficiency indicators of the cultivated land plots, we have decided to discontinue part of the farming activities (3,300 hectares) in the region of Mažeikiai“,“ said K. Juščius in a commentary to the BNS.

According to him, scattered and unconsolidated land areas disproportionately increase production costs, require more human resources, and the land in the Mažeikiai region is not sufficiently fertile.

K. According to Juščiaus, some of the redundant workers will be transferred to the „Auga Group“ cooperative „Severe Farms“ as of the end of September.

„The reason for the dismissal – Article 57 of the Labour Code (termination of the contract at the initiative of the employer – BNS).The company will cease its activities on 30 September 2024“, – the Employment Service told BNS on Tuesday.

„Mažeikiai ūkiai“ has notified the service of 19 redundancies. The company currently employs 31 people. According to the service, the largest number of redundancies will be in the field of agricultural and forestry machinery operators - 14.

According to the group, its business model was changed in 2023 and it established 11 new cooperative companies. According to the Centre of Registers, at the end of 2023, 20 per cent of the shares of „Mažeikiai ūkių“ were held by „Auga Group“ the companies „Dimstipatis“, Giraičis piena ūkis, Austeja piena ūkis, „Auga Mažeikiai“ and „Auga Ramučiai“.

The company made a net loss of EUR 346.9 thousand last year and generated revenues of EUR 869.6 thousand.