Farmland-Organic farming

Investments in farmland and sustainable
agriculture in Eastern Europe
SECURING INVESTMENTS IN UNSTEADY TIMES
1

More secure then gold ?
Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Content of the presentation
2

1. Trends that influence the price of agricultural land
2. Pricing of agricultural land in Romania
3. Retaining/increasing the value of a land investment.
4. Why is farmland is one of the most secure
investments
5. Agriculture in Romania
6. Sustainable and organic farming and food
7. Some examples implemented by Agri+CULTURA
Transilvania SRL. Creating value and gorgeousness

Some effects on the price of agricultural land
3
 “Fixed” or decreasing amount of farm land
 Increasing world population 9-20 billion.
 Global warming has negative effect on food
production.
 Changing food habits in emerging economies.
Over eating. More meat.
 Increasing energy prices effecting transport
cost, fertilizer/pesticide prices.
 Increasing land use for energy - and industrial
crops. Replace oil based plastics
 Higher food prices. Food crisis 2008 and now.

• All indicators direct towards higher prices for agricultural land.
• No indicators direct towards lower prices.
 World economy is the only downwards risky factor. Politicians and economists
are sweeping with the tap open but offer no real solutions.
 In case of a global financial crisis gold is keeping is value long but you can’t eat it.
Food is always needed. Land is the last to go down in price.

The price of Agricultural land in
Romania
EXPERT OPINIONS
4

“Land prices in agriculture have gone up 5 times in 5 years to €1-
3,500/ha but are still 3 to 7 times lower than in most European
countries. Market estimates indicate that the price is likely to
remain on this upward trend in the next years”
Lucian Anghel. Chief economist at the BANCA COMERCIALĂ ROMÂNĂ

Some experts predict prices of 5 000 to 10 000 EUR in 3 years
time.

Double prices within 3 years are likely.

Retaining and increasing land value
5

 The scattered landownership makes consolidation into larger
plots essential.
 This is a process that takes time and costs money but has a
reward in an increase in value of 50 to 100% just because of
the consolidation.
 The way the land is used is of foremost importance to
retain/increase land value
 Just investing in land as a speculation object can easily fail.
 Organic farming increases value security.
 Top management is the key anywhere in the world in any
sector.


Agriculture in Romania Negatives
6

 Poor infrastructure
 Bureaucracy
 Scattered landownership
 Business and labor ethics
 Slopes
 Irrigation needed outside of Transylvania
 Distance to West European markets

Agriculture in Romania Positives
7

 Good to very good soils
 Reasonable amount of precipitation in Transylvania
 Cereal based animal husbandry (pigs poultry)
 High quality grassland, lucerne and maize possible for
roughage based animal husbandry
 More light/longer day length in winter then NW Europe
 Cheap land and labor
 High EU supports for investments (often 50-70%)
 EU hectare support available


Organic Farming and Food
37 million hectare world wide
8

Which sector can claim continuous 10-30% yearly growth for 40 years
Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Organic Farming
Long-term security and improving the quality of the land
9

1. No contamination and clean up risks.
2.Loss of topsoil by erosion strongly reduced
3.Increased fertility through higher humus.
4.Access to a niche market with higher prices
5.Reduced production cost due to less inputs.
Also lower yield.
6.Higher product prices and higher labor cost
7.Result is equal or better then conventional.


Organic needs high level management
10
Chemicals are replaced by understanding and using natures own
systems and prevention
Organics is strongly know-how based

Organic
arable
farming on
the contour
lines in
Argentina
and giving
room for
nature


Selected sample projects
11

Agri+CULTURA Transilvania
5 Selected organic projects:
 Dairy sheep Transylvania
Consultancy
 Dairy buffalo farming Romania
Management
 Broiler chickens Hungary
Management
 Herb production Transylvania
Management
 Arable, fruits, nuts , herbs Argentine
Consultancy

Organic dairy sheep in Transylvania
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5000 sheep, 4000 ha grazing, haymaking and arable with milk processing
Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Organic water buffalo farm in Transylvania
13

Reconstruction
of derelict farm
350 ha
350 animals
with young
stock


Organic broiler chickens in SW Hungary
14

240.000 heavy broilers/y, 600 ha arable feed production, feed factory


Organic herb production Romania
15

Start up:

•Production of propagation
material for the roll-out of
contract production

•Product and market
development Herb teas with Herbal salt pad Culinary herb
a local touch thermal salts
Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, therapy J. van Eijsden. Email: buffalo.wil@gmail.com
10/11/2011 Wil

3000 ha conversion to divers organic production
in Argentine
16

Start from
conventional
soybean/wheat
rotation

120 ha nuts and fruits, 20 ha herbs,
1200 ha arable, 700 ha lakes, 1000
ha nature

Conclusions
17

 Investing in agricultural land is probably one of the most
secure and most profitable investments at present.
 Land is still cheap in Romania and the price is likely to
increase steeply.
 Romania is in many respects a very good location for
agricultural activities, challenges however remain.
 Organic farming is a very good way of securing/
increasing land value and it is a profitable business it
selves at the same time.


Services Agri+CULTURA Transilvania SRL
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 Coordinating land acquisition
consolidating into larger plots including, the legal and financial set-up in co-
operation with experienced local legal advisers and financial experts, price
negotiations, closing deals with legal registration in the land register.

 Planning of the land use
Master plan for your organic farm business including sustainable farm-
system design, detailed plan for the use of land and facilities based on:
1) Choice of crops and animals 2) Minimizing inputs and costs 3) Maximizing
quality and quantity of outputs within the constraints of organic production
4) Infrastructure and reconstruction needs. 5) Choice of machinery and
equipment 6) Planning the processing into end products. 7) Marketing plan.

 Management and training
during the start-up.


A very strong proposition
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Contact details

Agri+CULTURA Transilvania SRL
Wil J. van Eijsden
537010 Avrâmesti (Szentábrahám) 95
Jud. Harghita
Romania
Tel +40 761 975 958
Email buffalo.wil@gmail.com

30 years of experience globally


Farmland-Organic farming

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