Smiltene Milk has officially acquired the majority shares of Cesvaine Milk as part of a strategic move aimed at bolstering their competitiveness within the rapidly evolving Baltic and European dairy markets. The acquisition agreement was finalized on January 30, 2026, as highlighted by the representatives of Cesvaine Milk's shareholders, who emphasized that this decision followed a thorough strategic evaluation and discussions with potential partners.

In recent years, both local and export markets in Latvia have witnessed a significant increase in competition. This growing competitive environment has led to a call for consolidation among dairy processing companies in Latvia, which is viewed as a critical prerequisite for the successful development of the industry. The representatives from Cesvaine Milk further clarified that finding a partner capable of ensuring long-term stability, continued development, and investment in production was essential, while also preserving the company's identity and the legacy of milk processing traditions.

Armands Kovaldins, the chairperson of the Smiltene Milk council, underscored the strategic importance of this acquisition not only for operational synergy but also for securing future growth in the challenging dairy sector. The deal signifies a significant consolidation trend within the Latvian dairy industry, as companies strive to adapt to market pressures and consumer demands, particularly in terms of innovation and sustainability.