The products and services for farming provided by the company AB Linas Agro has seen its fertiliser sales rise 23% in March, while sales of micronutrients and plant care products were significantly larger than the same period last year. “We have noted significant changes in sales, however, it is hard to say whether they are more related to the lockdown or with an unusually warm winter and early spring. This season, sales of micronutrients and plant care products began unusually early and hit its peak right at the start of the lockdown. We have noticed that in April, sales are returning to their usual levels,” says Sigitas Rymko, Head of sales of AB Linas Agro.
“During the first week of lockdown, the sales of agricultural inputs had risen by several times over – we had to make particular efforts to ensure goods delivery and to manage flows. A significant number of farmers were concerned that due to border closures caused by the lockdown, logistics would be disrupted and thus demanded next day goods delivery,” S. Rymko recounts, “Just like most other Lithuanian citizens, who were buying long-lasting food products in larger quantities than usual, the more careful farmers strove to stock up on necessity goods and ensure reserves.”
AB Linas Agro was able to resolve the logistics challenges presented by the lockdown successfully. “With the increased demand for goods, we did not have any logistics problems despite importing most agricultural goods – fertilisers and plant care products. We planned goods purchases already prior to the declaration of lockdown; thus border closures did not have a huge impact on our operations,” S. Rymko says.
In recent months, according to the AB Linas Agro sales head, there has been a 2.5 fold increase in the company’s electronic sales. “Growth in this segment is directly linked to the lockdown. As physical stores selling garden and orchard goods were forced to halt operations over the past month, our electronic store saw more than a doubling in sales of lawn seeds and garden fertiliser sales,” S. Rymko notes.
Harvest forecast to depend on rainfall over the coming weeks
The past three years in a row have been especially poor for agriculture due to climate factors. This year, winter crops are especially good and farmers expect a good harvest, thus according to S. Rymko, they are investing more into fertiliser and plant care products. The peak in sales of fertiliser, plant care products and micronutrients has not been reached yet – it is usually recorded in May, however as of late, sales tendencies have been shifting every week.
“Up to mid-April, farmers lived under good moods and invested in fertiliser and plant care products, however, the weather of recent weeks could change the situation. Now farmers look to the skies with concern because rainfall over the coming two weeks will be of critical importance for this year’s harvest. So far, there’s no drought and if over the coming few weeks we receive ample rainfall in all regions of Lithuania, we can expect that this year, agriculture will be an area that will grow. Up to now, the situation in Lithuanian fields offered hope that the harvest of grain crops could be an entire 47% higher than last year and reach 6.6 million tons. However, whether these forecasts come true will be decided by the weather,” Sigitas Rymko says.
About AB Linas Agro
AB Linas Agro – a subsidiary of the agricultural and food industry investment company AB Linas Agro Group, is one of the leading certified seed, fertiliser and plant care products suppliers in Lithuania. For almost thirty years, the company has also been one of the largest Lithuanian grain exporters, it owns thirteen grain storage facilities across Lithuania and Latvia. The company’s annual revenue reach 573 million euro and it employs 125 staff.
