Good afternoon, dear listeners. Welcome to AUGA Group Investor Relations conference. I'm Paulius from Nasdaq Vilnius, and I'll be moderating today's event. We will start with the presentation from the management, which will be followed by the Q&A session. Please be informed that this webinar is being recorded and will be available for a rewatch on Nasdaq Baltic YouTube channel. As always, I encourage every one of you to share your questions in the Q&A section at the bottom of your screen, and you can submit them either anonymously or with your name. With that said, I'm pleased to introduce today's presenter, the Chief Executive Officer of AUGA Group, Kęstutis Juščius. Kęstutis, please, the floor is yours, and good luck.
Good afternoon, ladies and gentlemen. I'm Kęstutis Juščius. I'm CEO of AUGA Group, and today I will make a presentation and make most important events in the AUGA company at the moment available for investors. Historically, we reported AUGA Group's results by four main important business segments. This is dairy, crops, mushroom growing, and FMCG. In 2023, in May 2023, we announced that a new AUGA Community business model on top of current activities under company AUGA Community umbrella. It consists of three most important branches. First of all, development and production of agricultural technologies, sustainable technologies under company AUGA Technologies.
Technology sharing and sustainable farming standard via franchise model under company AUGA SOFA, and the new category of end-consumer products from farms, which follow sustainable farming standards under company of AUGA Trade. So far, only new FMCG line has started to generate revenue, so we will continue to present results in the historical way and update on the new business model implementation status. Results for six months of 2023. Our revenue grow in six months is by 20%, but it's mainly because of higher harvest of 2022 which we sold in first half of 2023. Also, the increased revenues are related mainly to also higher sales in mushrooms and FMCG consumer products.
Profitability decreased due to significant drop in market prices of major organic commodities, wheat and milk, and unaffordable cost of sales, partially coming from selling of crops from harvest of 2022. Let's go through the segments. One of the main important segments is crop growing. What we see here in this segment? So the prices for our main commodities in the second quarter dropped significantly and hit the bottom, but at the moment, stabilized. We see here quite substantial still gap between organic and conventional prices, but this gap is decreased. And if you look on this gap, so it looks like sometimes we have EUR 100 and EUR 100+ per ton of grain for the organic and conventional different standards.
But these prices are mentioned in Germany. This is, let's say, in the central, the largest consumer in Europe, and we like Lithuanian company, we need to deliver to the organic consumers, to the German, to Scandinavia, to Great Britain. It costs also a lot of transport, and the transport prices sometimes are EUR 30-EUR 70 per ton. And related with excluding the transport prices, the EUR 100 of price difference, ex-works difference is actually EUR 30-EUR 50 per ton, and it's not a substantial margin for today's market situation.
Lower level of market activity we see in end of 2023, due to decreased consumption for final products in Europe, related with peak of inflation last year, and consumers behaviors to step back from expensive shops, from organic shops to the to discounting retailers, where much less organic products available. And this has reduced the demand for organic commodities also. And and the prices from harvest of 2022 harvest till now we have step by step decreased every month. And this actually provide to a situation that the traders which fixed prices after directly after harvest in 2023 too, we had big losses because of market volatility. And for today, we are, we are...
We not want to do any contract, long contracts, so delivering, like, in six or 12 months. We're willing to stay on spot market, and that's why. And then at the moment, comparative one year before, we have contracts for only EUR 6.5 million, versus last year, the same period, we have EUR 15.6 million. But what we see that at the moment this is already situation stabilized. The prices, like I said before, they reached bottom, and the market after harvest we see already the market the demand is grows up a bit, and that it is coming back to not previous levels, but to better and more expected levels. Second quarter we see a decreased value of biological assets.
It's mainly because of significant price falling down in the second quarter. And if we see on what we see forecast for third and fourth quarter, we don't see a significant price or yield adjustments in third quarter, like as we've seen previously years. Because we already, like I said before, we reached already the bottom of the prices, and prices are stabilized. And this year, the harvest was average, and we don't see big falling down regarding the volumes of sales in third quarter. What we see positive for fourth quarter, that due to our change of our business model, which we'll explain a little bit later, we increased our winter crops in rotation.
This is at least 40% larger area of winter crops will be sown in 2023, and it will generate more revaluation of biological assets in fourth quarter of this year. Financial results of crop growing segment. The decreased price, like I said before, this is the main negative impact on the revaluation of biological assets on the sales. If we'll take first prices of first half, end of the first half of 2022, so our gain on revaluation of our first quarter would be EUR 8.5 million, versus EUR 1.5 million, what we have, what we see today. So this is actually a huge impact, and it's mainly correlated with... not with the yield or cost of production, but mainly correlated with prices on the market commodities. Subsidies.
Subsidies per hectare this year is little bit higher because there's a change of program of last year. But the group will get new subsidies also for green incentives. So it's this year started new program which in the subsidies program which pay for every incentive you provide for the soil, external extra subsidies. And these subsidies are not fixed value, but this value could change related to the applications amounts. And at the moment, it's not easy to judge how big will be this sum, because it's will be related with institutions, government institution decisions how we wanna to split between these programs.
But, that's why we took the forecast for subsidies last year, the previous subsidies amount, that a little bit increased, of the sum, which we already know, and, this is subsidies are based on historical forecast. Also important to mention that due to change in business model, could be a little bit less subsidies for organic farming area, which will be known also in fourth quarter of this year. Then, we will know exact amount of soil which we converted from from organic to conventional. Results by segments. Dairy. Yield for dairy or what we can milk from one cow is stabilized, and we have more or less a similar results.
But prices, which you see on the graph, it's fall down back because of commodity prices drops in first half of the year. The prices are seem like in commodities, we also drop down, and we stabilize at the moment, a little decreased even last two months. We see it's the prices, not only because of organic, but it's also because partially because of lower consumption of organic raw materials or raw milk. We sold partially milk to the conventional market, and this is also the way impact on the prices, not only because organic prices are decreased so much. Financial results.
Decreased prices of raw milk resulted in gross losses versus gross profit of six months last year, EUR 1.3 million. The stable milk yield per cow, it's still was very related with a little bit decline in volume because we had 3% less milking cows for the moment, comparing one year to year 2022. What we see in future, so we see the stable production. We see also stable prices, which are on the bottom side now at the moment, but we are not decreasing at the moment.
We see also in Baltics, especially in Baltics, the competition for the milk will raise, and the situation when we had the lowest prices, probably in Lithuania, in Europe, probably one of the lowest prices, probably could change because one big producer opened a processing facility in Estonia, and Lithuanian processors of milk, they imported a lot of milk from Latvia and Estonia. So 1,000 ton of production capacity is starting up in Estonia. So it will create a competition in the area, and we expect that the price for local suppliers will be higher. There's a mushroom growing segment. It's one of our important segments.
What we see, first of all, what is good to see is that our costs were contained at only 2% increase per ton, while the Lithuanian average whole year inflation hit 13.5%. And, of course, it's big impact on this is our energy prices and the gas and electricity price, which you see on the graph, we decreased and to the previous levels of 2021. And we see a forecast for next half of year, is we see also that the energy prices will be more or less on the low side, so we expect to keep the same production cost.
But on sales side, we see that mushrooms prices, excluding transport and packaging, it's important to mention because in this, we are calculating sometimes full sales price, including packaging and transport, but excluding packaging, we are 18% higher year-on-year. What does it mean? This means that the inflation impact is now already calculated in our sales prices, and we have now a new level of prices, which will keep us possibility to keep margins in future. And of course, in production, production is quite stable, is differing 5% month-by-month, but we always have possibilities to make it better and to improve it.
Of course, management have a lot of actions to make it perform better. But if you discuss about next half a year, so we see similar results. We can expect how it financial results what we see in first half of the year up to 2023. So if the market circumstances will stay in the on the situations we see we see at phase now. So the gross profit for the segment is increased from EUR 0.33 million losses in last year to EUR 1 million profit of half year of 2023. FMCG segment.
FMCG segments increased sales and revenues increased 50% year-over-year. So it is quite a good number, and it generated quite a good margin, gross profit of close to EUR 1 million. So in second quarter the main of FMCG sales consist of regular organic products: soups, preserved vegetables, and curries, and they had 85% of all total sales. And the rest you see is distributed in small portions, and we see here already milk with 4%, which we just started in the new line of more sustainable organic products, dairy, oat flakes, and eggs. We started in May, and this we discuss later what we wanted to achieve with this new FMCG line.
Okay, we need to talk about why we sold our food processing factory, Grybai LT. Grybai LT was producing ready-to-eat soups and preserved products, which I just mentioned before, we had 85% in sales. So it's important to mention that this is business unit. This was developed from in our company six years before we started, and we developed a successful business with generating not only gross, but net profit and EBITDA, and the products were exported to 30 countries. When I first time started designing this, actually, processing facilities was like eight years before. We not yet, we were not any food processing company. We were a mushroom growing company and farming company.
We done this project quite well, and this is why we can sell the company and the split spin out this business unit for very favorable price for the company. Why we sold this company? Why we not developed more? This is because the company was sold, it is no longer aligned with the group strategy. Honestly, only 80% of raw materials in these products came from our farms. The rest is we're importing from all the world around to accomplish and to produce ready meals. So we don't want to be one extra food processor, which process different kind of products.
We want to be more integrated with previous primary farming business, where we need to we want to produce products more sustainable way to process and with farmers together get the value out of this. So this transaction is we received EUR 6.3 million cash from this transaction in the third quarter, and it will increase the consolidated profit by approximately EUR 7 million-EUR 8 million in Q3. So we will be able to invest where we see huge opportunities, and this is why these transactions were made in fourth quarter. AUGA's new product line for consumers.
So by spin-offing or selling this, ready meals products, soups and ready vegetables, we launched new products, which will be developed only from AUGA's produced raw materials. And AUGA's or in future, farmers which cooperate with AUGA, which works like with in line with AUGA's production technology. So we launched it in May 2023. It consists of everyday consumers food basket, dairy products, oat flakes, eggs. This produced exclusively for organic raw materials and of AUGA farms. And this is important to mention, this is will be a brand and a label which consumers will vote it for sustainability, not only for organic products.
It's important because the farmers' attention and farmers' decisions to more sustainable practices need to be awarded in certain way with consumers voting in supermarkets. So these products are already available in the biggest retail chains in Lithuania. In Lithuania, we do want to grow now out of the country at the moment. We wanna test consumers' behavior on the sustainability messages. What's important to mention that with these products, milk products, and the main, let's say, main food basket products, we are in much larger category like we were in soups and preserved products.
So soups and preserved products, for example, our large market, like in United States, they have, like, $2 billion in sales of this kind of soup products in the market, and the total grocery market is $1 trillion, close to $1 trillion. So it's the business area which we sold is very small, and whereas business area which we're entering now at the moment is much larger in sales and volumes. And the most important that we would like. We... By implementing new standards in farming, we also will create new category in the food, which is carbon neutrality food or the no cost to nature food. Strategy implementation. So like we said before, we established a new business model, which is established by AUGA Community Umbrella Company.
So what, I just wanted to remember what this every company does. So AUGA Technologies will identify emissions problems in the farming, will create solutions, and develop and scale technology. AUGA SOFA, it's a certain platform where sustainable farming standards and certifications is done. It's important to mention, organizational structure for technology sharing is one of this AUGA SOFA activities, and know-how, and digital farming management tools for farmers. So here, the farmers will have possibility to get access to the AUGA's and another sustainable technologies, access to the technology to provide better food in more sustainable way. AUGA Trade will take responsibility for brand marketing. AUGA-led contract manufacturing, what we do now at the moment in Lithuania with this milk processing, so we don't have any processing facility.
We contracting this facility, and we can create sales without having our own premises. So co-branding and AUGA sustainability labels. We strongly believe that big food brands, the major food brands in the world, which are committed to carbon neutrality in one day, or is 2023, or to or is 2035 or 2040, they need us, they need our solutions, they need our sustainability, science-based measured emissions measured commodities, which we need to use to reduce these emissions. 70% of emissions coming from these food companies is coming from Scope 3 emissions from farming inputs materials. So without solving farming emissions, we can't solve these emissions themselves.
So this is why AUGA in future will work together with big brands, with co-branding and explaining to consumers why these labels, AUGA labels, are important, why we need to vote with credit cards for this, sustainability and force of better farmers which use better technologies. Technological projects, what we're doing at the moment. So we're continuing on, biomethane process in farms, so sustainable powered machinery. So AUGA M1 tractors that are on the field testing at the moment, and, all the solutions are implemented in the tractors. They are double-checked, exchange if needed, and, prepared for mass production. Biomethane infrastructure.
Three biomethane infrastructure objects have already been built, and, we need some needed regulations update in government and in public, in public documentations, because we will be first providers of biomethane connected to the grid, the distance connected for the to the grid, and this need a certain update. And, we believe that it could be done till end of this year, and that's why we planned to for biomethane infrastructure to connect at the end of the year. What it will give us, this production of biomethane, in our for cash flow situation? To current market conditions, by connecting to the gas network at full capacity of these three plants can deliver, the group will generate annual profit at least of EUR 3 million, according to today's market situation and today market prices for green biomethane.
Specialized feed technology, it's we test this technology in our farms. We see positive results, and we further develop working on further developing of technology, and when technology will be ready to share, it will be separately presented. How we can finance these technological projects? So AUGA invest a lot last 3-4 years for this R&D, for this developing to the stage we are at the moment. But of course, we can't change the industry with farming sales or farming generating cash flows. So what we're creating, this is not only for our company, we're creating for all the world technology which is not exist. We wanted to find technology to implement, to test, and it will be huge impact if you can scale it.
So actually, we mentioned that we wanted to raise capital in fourth quarter of this year and to apply for green different EU incentives. And what we see now, so that the international development public organization, which is responsible for several billion EUR projects, different projects implementation in Lithuania, we created a program for EUR 1 billion project dedicated to green technology manufacturing companies. And by internal discussions and time schedule, we are planning at the moment, the first project could be applied already fourth quarter or first quarter of next year. So it's very soon. It's very, very, very close.
AUGA company would like to concentrate on for this application, and because this application there is no limits on the amount and sum, this is mainly a very long term financing resources up to 30 years repayment schedules. This is specially built to keep Europe competition in the green industry technologies, and to keep the know-how in the Europe community. So this actually perfectly fits to what AUGA does at the moment.
First of all, we would like to participate in this program, and only afterwards we will see what kind of partnership we see to implement as soon as possible this project, and what kind of partners will be needed to get on full speed the money resources, which we will have applications and will be a positive. So at the moment, we are not validating for fourth quarter capital increase, and we will concentrate on Lithuanian National Development Program. And here we put all the major efforts. What we've done so far on this implementing this technology sharing hubs? Like I said before, from 1st of July, we started with 11 regional cooperatives, and we moved 400 employees from our company.
These cooperatives will be served with three biomethane plants, which in operations, which serve the technology, and the energy for their farming operations. And these hubs will be available to the 25% of the farmers can join AUGA Community and to get service served by more sustainable technology. So this is like a first example of sharing sustainable technology, sharing principles, and it will be very common and a very good situation for our neighboring farmers to join and to change their practices from standard conventional to sustainable regenerative farming. What situation we face here in Lithuania?
So we see that, after in 2023, Lithuanian organic farms decreased by 18% by acreage, and the number of industrial, kind of industrial organic farms, say, above 200 hectares, has decreased by 30%. This is the main reason, is decreasing prices, of course, for organic products, the gap you've just seen before, but also the price difference of organic production compared to conventional is too low. The secondary reason is that agriculture policy before this year is focused only on greening conventional farms by providing different incentives for greening incentives and paying high money for just to be, to change small, small things in the farming everyday behaviors. This is actually, we have called organic farmers, we are, we are not motivators in the new program, and that's why 40% farmers left.
What does it mean? What, what kind of discrimination we had? So this, we, our company also, we are above 200 hectares, and we had a rule that above a certain, above 200 hectares, your subsidies, organic subsidies are decreased by 30%. So this is quite substantial amount of, of money, which our company and bigger farmers also not receive, and they do not earn this money, which is earned by smaller farmers. And if you compare, how, how much in this from 2015 that we moved to, to the organic farming till now, so this is approximately EUR 30 million are kept and was not paid to our company. So it's a huge amount, which could be changed a lot in, in the farming. You can prepare better for technology change and so on.
So this is actually a long-term, it can't be accepted. That's why bigger farmers are left, and, that's why we see also that our sustainable future technologies is, we not see huge demand if we keep it only on, on organic technology, because, shrinking farmers markets, it also shrinks our future possibility to cooperate with the farmers. And, one thing, second thing, that, about, agriculture policy, that, after this, we see now big, dumping in the farming area. We expected that, the farmers will increase to 13%. And now we could decrease to 8%. So we reduce it now. We are proposing now for next year already, that we not use this cap in future anymore, and we increase a little bit, organic subsidies. We are...
This discussion is already on table on government bodies. What does it mean to, in future for next year? So this, for next year, even if we stay with, 60%-70% of farmland in organic for next year, so the subsidies amount still will be EUR 1 million more, even with by reduced, acreage. So, so honestly, these, certain kind of actions we need to do before the, the farmers are leaving the business, and now for them, the government bodies, to keep it farmers left, this, this will be not so easy. So, but AUGA's new business model is based on application of technology and sustainable farming standards from a franchise principle farming co-community.
So we still believe that, and this most important, that what we developed for biomethane cycles, feed technology, this, these technologies are available for both farming principles, conventional and organic, too. So, what we've done and what decisions are made? AUGA made decision, partial diversification into regenerative conventional farming. We made decision convert up to one third of our, approximately one third of our arable land, to conventional regenerative farming. How it will be? What opportunities are out of our change? First of all, we can scale our technologies and sustainable farming standards in conventional farms, too. So this means that 92% of our neighbors will be also, could be, applicators for our technology, versus 8% of existing farms.
Also, we can supply our more sustainable raw materials to food producers in larger markets than before. So the big corporate, these are big brands, we have produced maybe 5%, 7%, 8% of all their product lines in organic standards. The rest is produced by conventional standards. So it could be not easy if you stay on organic to fulfill the requirements of this 92% market share. So, because organic standards requires much more limitations, and this will be always more expensive to produce if you compare the standard conventional practices. So, and not especially every food brand would like to have organic, so we are good with sustainable conventional or regenerative standard.
That's why big corporate is already establishing requirements for future farmers and regenerative farming practices we would like to see from a farmer side. But not that we are pushing farmers towards organic practices. We keeping on the conventional ones. So also, we'll have a much bigger impact to reduce emissions, because we can across the entire agriculture sector, not only on organic. And we also calculate that that maybe is for period of time, our emissions a bit will increase, but per kilogram of production, per kilogram of tonne of production, it definitely we expect that there will be decrease with AUGA's practices, what we are planning for next coming years.
The diversification and the change, one third of our farms to conventional ones, benefit to financial flows as well. First of all, is diversifying sales channels and markets. At the moment, we work only on one organic market. If this market is, has 10%-15% too much products at the moment, so you can't do on market. So, and this is a fluctuation in the markets, depend year by year, and by adding extra conventional products, we will be less fluctuation, we will have less fluctuation. And the second, revenue from conventional production enters the cash flow more rapidly. What does it mean?
So organic standard, what we are producing at the moment, we need to harvest and keep in our storages and deliver to our consumers, which are mainly consumers in Europe, till next harvest. So if the consumption in Europe is little bit less, so we need to wait before we'll open the sales opportunities. So we need to wait with full bags of our storage, and this increases our, of course, working capital needs. With conventional business, close to 30%-40% of conventional crops from Lithuania sold directly after harvest, and this normal business practice. And, actually, with this practice, we can sell immediately after harvest our conventional products and stay with organic products and wait for the best offers till next harvest.
It will be more cash flow, more adopted to the company expenditures. So adjusted working capital, which is approximately at the August. In August, the quarter we called is a little bit different, but it's approximately EUR 40 million. And in the end of 2024, it could be substantially reduced. I think it could be reduced EUR 10 million-EUR 15 million. This reducing of working capital is, it's direct response to extra EUR 50 million in the positive cash flow, and the company can use it for deleveraging or paying out part of our debts and to keep projects and the investments which we planned before in line. And moreover, additional EUR 5 million EBITDA will be generated from if you evaluating based off today market conditions.
So from this one side of our soil conversion to the organic, or from organic to conventional, so we will generate EUR 5 million EBITDA more if we will be on today's situations. Of course, the situation's a little bit changed if the subsidies for organic farmers will be higher, so it will be a bit... the difference will be smaller. But, but what we see now, so it's definitely the margins and the incentives from organic business area is just a little bit too low to keep all 100% of our soils in organic standard.
Another important thing is that to convert 1/5 of necessary of land, we don't need extra huge and major investments to make it, because this company before we had already conventional technology, and we have all the needed necessary machines to provide on regular standard basis. Of course, in future, we would like to invest in more sustainable technologies with precision sprayers, precision drills, precision fertilizers applications. But it's also... And also, what is good to also to mention that efficiency and efficiency and sustainability in conventional farming is not against each other. So in most of the cases, saving saving fertilizers is also saves also emissions.
And this is why it's a lot of area to do here, and it's also that it's good that we can to get the knowledge before our technologies will be developed and try and to test this technology and to apply the farmers that we already have implemented this technology in our companies already. The share price, this is just statistical information from the first half of the year, and just nothing to comment. So more information you can find here, and you can ask your questions and send the letters to Arminas Kančiauskas, who is in charge now of Head of Finance Department of AUGA group, and he will comment you of your needed request to your questions.
Disclaimers, and AUGA definitely will become synonym for sustainable food and lifestyle. So thank you very much.
Thank you, Kęstutis, for the very comprehensive presentation. Now we will proceed with the questions. Before that, I would like to remind you that you can submit them in the question box, at the bottom of your screen. So the first couple of questions were received in advance, and, I'll start with the first one. What about the estimated harvest in 2023? Could you share any indications yet? What about the commodity prices? Could we expect the change in the current trend?
Okay, so what about the harvest? To say, the harvest for the year 2023, it will be average, it will be not good, not bad. But we don't see, like I said before in the presentation, no significant yield adjustments that will be falling down because of worms. We will not harvest. Of course, there are still three major crops we have not yet harvested, and the sugar beets, beans, soya, this is which will have substantial part in our portfolio, and still we're finalizing about wheat. It's summer wheat. So, but regarding the commodity prices, like I said before, we reached, my opinion, especially in wheat, we reached the moment when it is no sense for producers to sell.
It's better to wait because the prices are very close to conventional. So you can always sell organic commodities to conventional markets, but you never can sell commodity or conventional to organic markets. So this is. And of course, like I said before, partially some of the growers have left the organic market already, so like 40% of largest producer in Lithuania, we are not on anymore already on market. So we are, we are not will have from supply side. And yeah, so this is, this is mine as well.
Thank you for the answer. How much of the FMCG revenues do you expect to decline in the second half of this year compared to the first half of this year?
Okay. So we cannot predict specific numbers, but the new product line that we... With no cost to nature, this is made from our main line, from main food basket, especially from dairy food basket, will partially compensate for the same losses due to the sale of Grybai LT. It's important to note the Grybai LT business was developed for six years, so we don't not expect the new product line to immediately perform at the same level as before, in the volumes of the sales. And that's important to mention, but on the starting, even Grybai LT, it was not a cash-generating segment. It was, including the marketing expenditures, even though generating, negative cash flows.
So this is what they expect, but, but very important to mention that we work in completely different market size, because soups category, for example, and milk categories is several times more, so 20 times more. So this is, well, if we find the place in the hearts of consumers regarding sustainability our messages, so it can convert times more in the revenues compared with Grybai LT sales.
Thank you for the answer. Let's move on to the next question. Could you comment on the operating expenses? Why are marketing expenses this high year-over-year?
Okay, so it's, mainly I will, this is the jump in the first half of the year. It was related mainly to introduction of this new product line, which we, we need to make introductory step in, in the market and explain consumer what does it mean, AUGA brand, what does it mean AUGA, AUGA new claim, no cost to nature, and, and all the activities related to this. Of course, operating costs were increased by employee salaries, marketing expenditures. It's important to mention also that in future, we will, exclude also sales of green bonds, but it's also will exclude a lot of, marketing expenditures related with sales of, of this, preserves and processed markets.
If we plan for the second half of the year, we need to exclude also some marketing expenditures which were related with green bond, and we expect that second half of the year will be marketing expenditures lower comparing with 2022, second part of 2022.
Thank you for the answer. The next question is: Could you elaborate on debt maturity and refinancing interest costs, split between fixed and variable rates?
Debt maturity is extended. Green bonds maturity is next year, end of the year. In the first half of 2023, fixed rates interest costs were 37% of all interest costs, and variable rates interest costs amounted to 63%, one third to two-thirds of our debts. When discussing about maturity, we see that renewing our, how to say, the bonds, it probably will cost a little bit higher margin versus the existing four years before. But we will see that, and we will make next spring we start validating the re- and of how to repay the bonds. And here we'll see market indication, then we can publicly announce what kind of range it will be for refinancing this debts.
Thank you for the answer. The next question is: Could you provide some insight on green program from the European Union? Have you already applied for the program?
You know, this program is not yet available. At the moment, the Lithuanian government applied to the European Commission for confirmation the program before applicants can apply. And, we're preparing now all the necessary documentation for the applicants. And, the presentation is, it could be fourth quarter of this year or first quarter of next year, then we exactly will know to the regulations, what does our company will fit for these regulations. But, what we see, what we hear from the bodies which are arranging now this documentation, that this is AUGA's activity very, very well fits this R&D activity.
What we develop a stage where we are at the moment, very, very fits towards requirements of the future program.
Thank you for the answer. The next question is, do you have any preliminary results of the execution of the new strategy plan of the company presented, presented in May? For example, new innovations, some update on biomethane tractors.
Actually, I presented it already in the presentation. I more or less explained already what stage we are at the moment, and I don't think it's needed to repeat it because it's answered already in presentation.
Okay, let's move on to the next one, which is the last question of this session. So if you still have any questions, so please do not hesitate and submit them in the question box. So the last question: What was the price which you used for wheat when evaluating Q2 POH, and what is the current wheat price in the market?
Actually, AUGA never disclosed specific prices we sell in the market. This is, because it's good to have here. This is, for, also to the market, not to open arms, with the customers to, to play, on this, everyday changes. But, the wheat prices we used for first half of, both calculations are more or less the same at the current market prices. So since the, the prices are not dipping down, so we are more or less stable. If you discuss about wheat, so I can say that, the wheat price is related to the quality, because quality in organic is differs and the price are differs, but it's starting from EUR 20-EUR 40 or EUR 20-EUR 50 , let's say, more on the conventional on the prices.
So it's one of the lowest price how to premiums historical in AUGA's company historically.
Thank you for the answer. So, this was the last question so far. If you haven't sent your question yet, please do it now. But so all of the questions are answered. On behalf of AUGA group and Nasdaq Vilnius, thank you, everyone. It was a pleasure being with you today. The recording of this presentation will be available in the company's website and the Nasdaq Baltic YouTube channel. So, Kęstutis, thank you for the very informative conference, and have a great day. Goodbye.
Thank you very much, and thank you for patience. Have a nice day.