The Kupiskis dairy was founded in 1939. Originally it used to separate milk delivered by farmers in the neighbourhood. Butter production started in 1953. In 1973, following reconstruction, the company started producing skimmed milk powder. In 1982 the cooling facilities were modernised and butter production expanded; expansion of milk powder production followed in 1985. In 1989 a new milk powder shop was built and upgraded in 1994 when high-capacity equipment manufactured in Germany was installed. In 1994 the company was privatised in accordance with the law on Privatisation of the Republic of Lithuania, and AB Kupiskio pienas was founded. By 23rd December 1996 stage IV of privatisation was completed, with only 10% of the company's assets remaining under state ownership.