CEO of Kauno grūdai: Lithuania Can Export More Than Raw Materials – the Time Has Come for Food Industry Unicorns

2026-05-12

Lithuania today is a country that can meet almost all of its own food needs. There are only a few exceptions. For example, we do not produce enough pork to cover domestic demand, so part of it is imported from neighbouring countries. However, when it comes to cereals, the dairy industry or poultry farming, Lithuania is not only self-sufficient but also a very strong exporter.

The grain sector is one of the clearest examples. Lithuania grows around 6–7 million tonnes of grain every year, while the domestic market consumes just over 2 million tonnes. The remainder — around 4–5 million tonnes — is exported. In terms of grain exports per capita, we are among the strongest countries in the world.

This demonstrates not only the capacity of our agriculture, but also the broader structure of the national economy. Agribusiness and the food industry are among the largest sectors of the Lithuanian economy and, in terms of importance, could be compared with logistics or construction.

Raw material exports are not the problem — but they will not be enough on their own

I sometimes hear the view that exporting raw materials is somehow an inferior path, and that value is created only when we export a finished product. Yet raw material exports have been, and remain, extremely important for Lithuania. Without them, Lithuanian agriculture would not have recovered, strengthened and modernised so quickly.

There are many successful countries that base a significant part of their strategy on the export of raw food commodities. Canada and Australia, for example, export grain, rapeseed and dairy products, creating substantial economic value in the process. Raw material exports should therefore not be undervalued. They have enabled farms and companies to invest, build, expand and grow.

At the same time, however, we must understand that the next stage is the development of higher value-added products. Lithuania has all the prerequisites to create them: local raw materials, a strong production culture, modern factories, clean water, food safety standards, technologies and people who know how to manufacture food products.

What we lack is not production capacity, but ideas

Today, the biggest question is not whether Lithuania can produce a high-quality food product. We already manufacture sophisticated products for major European food companies, work with the largest retail chains and comply with strict quality requirements.

The question is different: why do we still not have one standout food product that the world would recognise as Lithuanian? A true “wow” product, like Chupa Chups for Spain, panettone for Italy, or other gastronomic symbols associated with those countries. Many countries have products that are known, purchased and sought after across Europe or around the world. The Baltic States do not yet have such a product.

We talk a lot about cold beetroot soup, but we all understand that it is more of a local consumption phenomenon. We have not yet created a national export champion. And this is one of the biggest puzzles facing our food industry.

One reason this has happened is that, over the past two decades, Lithuania’s food industry has been able to grow without significant pressure to innovate in product development. After Lithuania joined the European Union, markets opened up, exports grew rapidly, traditional products found their buyers, and companies actively modernised. But now a new stage is beginning. If we already have the technologies, the production base and the raw materials, then the greatest gap lies at the level of ideas. We need products that are not only high-quality, but also interesting, recognisable, and built around a clear story and value for the consumer.

We ourselves are looking for such directions. We cooperate with universities and are exploring functional food products with more fibre, protein and vitamins. We participate in initiatives where new food ideas are being developed. Sometimes a highly promising direction can emerge not from a laboratory, but from a simple yet powerful creative idea.

I believe that the next stage of Lithuania’s food industry will not be quantitative growth, but creative growth. The winners will be those who are able to combine innovation, science and consumer insight into products that generate emotion and trust. This is where I see our greatest competitive potential in international markets. The food industry still has the potential to produce more than one Lithuanian unicorn.