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Modernization of the Linnamae farm in line with Atria's primary production strategy would require a significant investment in production facilities and equipment. Furthermore, the farm is located in northern Estonia, which causes big logistical cost of transporting pigs to Atria's production plant in southern Estonia. In the current market situation the reduction of costs is necessary, Atria told the stock exchange.

The farm will be transferred to the new owner on Friday. The sale causes Atria a loss of approximately one million euros.

The Linnamae farm with 8,000 pigs and 500 hectares of land was sold to ABC Projektijuhtimine, a family business based in Laane County. The farm will continue work as usual and Atria Eesti will continue to buy its production as before. The parties have agreed to not disclose the price of the transaction, Atria Eesti said.

"The Linnamae pig farm is a well-functioning farm. We have in Atria a strong partner with whom to develop the production and consumption of Estonian meat. I believe Estonian food is very important to Estonians and domestic raw material is a selling argument that will enable Estonian pork production to survive and achieve success," head of ABC Projektjuhtimine Siim Saarevali said.

Atria retains pig farms at Savikoti in Viljandi County, at Teedla in Tartu County, at Palamuse in Jogeva County and at Saverna in Polva County.