Latvian egg producer Agrova Baltics has rolled out plans to fully phase out cage systems for laying hens, committing to 100% cage-free egg production at its Alūksne facility by the end of 2028.
The move positions the company to become the first producer in the Baltic states to complete a full transition away from enriched cage systems. The decision is driven primarily by growing demand from export markets and major retail chains, where cage-free eggs are increasingly becoming the industry standard.
Opinion polls conducted in the Baltic region over the past several years have highlighted the growing customers’ awareness over the poultry welfare. For example, a 2023 survey by Norstat discovered that as many as 81% of respondents were concerned about poultry welfare, with a significant share advocating for cage-free farming.
The move positions Agrova Baltics to become the first producer in the Baltic states to complete a full transition away from enriched cage systems. Photo: Michel Zoeter
Investments in modernisation
Currently, around 80% of Agrova Baltics’ output is already cage-free, making it the regional leader in this segment, the company said in a statement.
Production at the Alūksne poultry farm is spread across 5 houses, 4 of which already operate using aviary systems. The remaining house is scheduled for reconstruction as part of the transition programme.
To support the shift, the company is launching a €30 million investment programme aimed at expanding and modernising operations. Plans include the construction of 3 new poultry houses, upgrades to egg sorting and packing facilities, expansion of feed milling capacity, and the development of organic fertiliser production.
The new facilities are expected to be completed by the first half of 2027, increasing cage-free capacity to approximately 90% before the final transition step in 2028.
Transition challenges
Company management acknowledged that the transition may affect its position on the Latvian market, though the effect will likely be short-lived.
“We understand that this transition will present certain challenges in the Latvian domestic market, where purchasing power remains a significant factor,” Yuri Adamovich, chairman of Agrova was quoted as saying. “In the short term, this could impact our market share.”
These concerns are the key reason why the company opted for implementing a phased transition, maintaining affordable product solutions for the local market over the next 2 years.
“At the same time, the entire European industry is moving in this direction [cage-free eggs], and as a responsible manufacturer, we believe it is essential to promptly adapt to these structural changes and continue to strengthen our position in the European market,” Adamovich added.
Vladislav Vorotnikov
Source: PW (10/04/2026)
