We will implement the Straja project in 2 stages, with each stage involving the population of the Straja farm with 1800 milking cows and 700 young cattle. This way, we will be able to start milk production after completing the first stage.
Additionally, to limit the need for additional purchases of milking cows for this project, we will ensure the majority of the cows internally through our young cattle breeding program, which we carry out in our other farms.
To enhance work efficiency in our farms, we plan to install and utilize industrial robots in our two farms: LACTO AGRAR and CUT. Based on our internal analysis, employing these robots in the milking parlors will result in a 50% increase in reduction of manual labor, after this project is implemented and finalized.
These robots are specifically designed for use in milking parlors with milking parlors, which we have in both Lacto Agrar and Cut farms.
This is a fully automated teat dip sprayer specifically designed for rotary parlors. The works with most standard teat dips automatically spraying teats post milking clusters are removed.
The system automatically sprays teats with the post-dip solution. As a result, it fully coats and protects teats from mastitis-causing bacteria between milkings.
– Eliminate salary and expenses for one labor position per shift
– Save money without sacrificing udder health
– Prevent mastitis and its associated costs
– See a full return on investment in 1 year
We have already started this project at our two farms, installing this type of robot starting from May 2023.
With this phase finalized, we will reduce the manual labor with 25%.
It is well known that to minimize clinical mastitis and its associated costs, teats and udders must be as clean as possible. In robot systems, cleaning teats before milking is an automatic process.
This dairy robot completely automates the whipping position by performing teat cleaning, teat sanitizing, teat stimulation and teat wiping.
The brushes on this rotary robot remove debris from the teats and udder, reducing the possibility for infection and lowering the likelihood of both mastitis and bimodality.
As the brushes grab onto the teats, they also perform automatic pre-stimulation which can lead to faster milk let down.
Once installed, this robot requires no interaction from parlor staff.
– Eliminate salary and labor expenses for whipping and cleaning the udder
– Save money without sacrificing udder health
– Prevent mastitis and its associated costs
– See a full return on investment in 1 year
We anticipate installing this type of robot, starting from July 2023, and with this, we willreduce the manual labor with 25%.
After these robots are installed and performing in our Lacto Agrar and Cut farm, we will have a 50% reduction in manual labor regarding the milking process, for both farms.
To reduce the costs of water transportation to waste lagoons and fields for vegetable residues, in 2023, we will build a composting factory near Apold Farm. This initiative will also establish an alternative line of business.
We aim to develop a composting unit for our farm waste, aligning perfectly with DN AGRAR’s strategy and focusing on achieving circular agriculture.
Composting our waste will save transportation costs, allow us to increase the number of dairy cows, and generate additional revenue through the sale of compost.
Furthermore, this investment will help us proactively address future legislative changes regarding circular agriculture, which we fully support.
We will outline the phases of this project in the following paragraphs.
Phase I
Phase I includes preparing the land for the installation of the farm waste composting unit. We anticipate that this phase will be completed by the end of May 2023.
Phase II
During phase II, we will commence the construction of the foundation, which we expect to finish by the end of June 2023.
Phase III
Phase III will take place from July to September 2023 and will involve the actual construction of the composting unit.
Phase IV
In phase IV, the equipment, composting machine, packaging line, and necessary auxiliary equipment will be installed. We anticipate completing this phase in October 2023.
Phase V
We will finalize phase V in October – November 2023, marking the actual start of the compost production process.
Phase VI
In 2024, we plan to complete this project by installing solar panels on the composting factory’s roof.
At the company level, since 2021, we have aimed to reduce the purchase of chemical fertilizers and use the farm manure we have in a much more efficient manner, as it presents superior qualities for both the soil and the plants.
DN AGRAR implements modern soil conservation technology in its farms through the use of minimum tillage, which is environmentally friendly.
To achieve this goal, starting from 2022, we have made significant investments in this direction by acquiring specialized equipment with high capacity. With the help of this equipment, we apply a large portion of our semi-liquid organic fertilizers by incorporating the farm manure directly into the soil, thereby greatly reducing the risk of losing valuable nutrients through leaching or evaporation.
Through efficient and environmentally friendly management practices, we have achieved significant reductions in costs related to chemical fertilizers. We have also been able to reduce nitrogen losses by directly incorporating semi-liquid manure into the soil, thus achieving precise natural fertilization for our agricultural land.
Another benefit of directly incorporating semi-liquid fertilizers into the soil is a significant reduction in olfactory discomfort.
Starting from 2022, we initiated the project of implementing the SAP – ERP – Enterprise Resource Planning digital solution, which is defined as a unique IT platform useful for monitoring, controlling, and managing all activities, processes, and operations within a company.
The first company within DN AGRAR in which this integrated business solution was implemented was Lacto Agrar Farm in June 2022. By the end of 2022, we implemented the SAP-ERP system in all four farms within DN AGRAR, namely Lacto Agrar, Apold, Cut, and Prodlact.
In April 2023, we started the implementation of this digital system within DN AGRAR Service, and by the end of this year, we plan to implement the SAP solution in the other companies as well.
Through the implementation of the SAP-ERP integrated solution within DN AGRAR companies, we will have consolidated business processes, automated daily operations, and advanced management and reporting functionalities.
Business processes will be streamlined, adding value to the company through the use of ERP – SAP Business One. All business information will be integrated into a single, comprehensive, and scalable system. We will be able to quickly respond to the most challenging scenarios with advanced Business Intelligence tools. Our employees will have the opportunity to be dynamic and mobile through intuitive mobility solutions. We will benefit from visibility, control, traceability, and transparency for all business flows within the company, ranging from procurement and sales to production, logistics, and financial processes.
At the company level, we are preparing to upgrade to the Main Market of the Bucharest Stock Exchange.
This year, specifically on February 2, 2023, we celebrated our first year on the AeRO market of the BVB. Being the only listed company in 2022 that showed an increase in shares, nearly 20%, we are confident that we will be able to transfer to the Main Market in the coming years.
We are convinced that we will be ready, with the main factor being market conditions followed by the performance of our shares.
In preparation for the transfer, we have signed a contract to implement IFRS standards with a company that will assist us in preparing the reports for the years 2022/2023, in order to be ready for access to the main stock market.
This project will be carried out in stages, and currently, we are in the first stage where our collaborating partner is reprocessing the financial statements for 2021 and 2022 based on the IFRS standard.
We anticipate completing these operations by May 2024.
One of the established directions for this year is the simplification of the group structure of companies within DN AGRAR.
We are in an advanced phase of analyzing the structure of the entire Group to find the most efficient solutions in this regard.
We anticipate completing this stage by the end of this year, and it will start to take effect from January 1, 2024.
