Luxembourg company Fri-El International Holding operates the largest area of land in Romania which is a conversion to organic production. In about two years foreigners may sell both locally and export bio grain priced 30% higher than those grown normally.
In about two years,Tulcea there will be the largest holding organic cereals cultivated in Romania, which covers an area of over 6,267 hectares. The land is leased from the Tulcea County Council and is operated by SC Delta-Rom Agriculture Ltd owned by Fri-EL International Holding, a company with headquarters in in Luxembourg and Romania performing projects in renewable energy segment.
"The land that we manage is located in the Delta, where there is by law restrictions on fertilizer or herbicides treatments that we use. Now we are in the third year of the conversion ( from conventional agriculture to organic ) and replace traditional technology with one that has no negative impact on the environment, " said the ECONOMICA.NET Florin Cernodolea, general manager Rom Delta Agriculture.
According to him, usually the conversion period lasts 4-5 years and then production can be valued at prices up to 30% higher. Investments in organic agriculture but also they are 20-30% higher than in traditional agriculture. "There are many companies in Romania that have applications for organic products in the Netherlands, Germany and Hungary. We now work with traders, companies in Romania and one from Austria, but we are open to new collaborations.
In the future, when we have all the certifications for organic cereal production we will try to find clients both in Romania and in the EU, "said the manager of Delta-Rom, a company called APIA this year agri-environmental payments for agriculture Organic.
Investment of 12 million euros in Romania
So far, Luxembourgers from Fri-EL International Holding, which operates in all, the Delta-SEL and Anglo Rom Rom Agriculture Agriculture Ltd, 13,200 hectares of land in Romania, have invested around 12,000 euros in Romania, part of equity, partly by accessing European funding.
They managed to irrigate at their own funds and European funds that grow over the surface and were equipped with machines. The company also plans to build a biogas plant that will use byproducts of cereal. The investment will be 4-10 million.
"Now we have ongoing investment totaling of 4 million euros to build a base of silage with a capacity of 29,000 tons, which will have access and other producers in the region. The project is carried out at a rate of 40%, so it will be ready in 2015. Moreover, we want to establish a biogas plant for which feasibility studies.
The problem is we have no clear data on subsidies for renewable energy. We would not exist fluctuations in relation to provisions on green certificates because this affects our long term ", said Florin Cernodolea.
Good agricultural year. Problems with traders
Delta-Rom manager says that despite massive investments, the business Record profit, but is limited. And this is because traders are operating locally "and used unorthodox methods."
"2014 is a good agricultural year with rezultatre as expected. Hopefully sunflower and maize are developing very well, but we come to your access barrier involving the development of products. It is the policy of price made by the big players in the market in cereals (traders) who works with unorthodox methods.
We find unhealthy price fluctuations are not consistent with what is happening on the international markets, "said Cernodolea. According to him, in early June 2013, during the wheat harvest, the price fell in Constanta port at 40 euros per tonne, from day to day. Internationally, however, the decrease was only 10 euro per ton.
"Regardless of the reasons traders believe that farmers should be asocioeze better and find a solution together with the Ministry of Agriculture. There were held meetings with representatives of the Ministry and attended by all the major manufacturers, but we hit the egos and we did not put a boss who represent our interests, "says the manager who encourages small farmers to apply for EU funds "the market has room for everyone.
It is difficult to get funding, but we found support from all sides. It is a unique opportunity that Romania has, "he said.
Society of Romania reported turnover last year of 11.4 million and a net profit of more than 86,000 euros (0.7% of turnover). Aswell, Anglo Rom Agriculture SRL Business reported last year about 2.3 million and a net profit of 104,000 euros.
7 Iul 2014 – Sursa: Economica.net
For other informations click to