Alina Oprea • 5 April, 2023 at 8:57 AM
FirstFarms/AS, a group of companies owned by several Danish investors active in the arable land market in Romania, continues to invest locally both in the agricultural area and in the area of green energy production. To begin with, the company installed photovoltaics in one of the warehouses in Romania, for self-consumption, but it included in its long-term plan the expansion of the installed capacity to sell energy. At the same time, they will also invest in irrigation systems.
The Danish company FirstFarms, which directly cultivates 5,100 hectares and indirectly controls, through its holdings in Agri Invest A/S, another 600 hectares of land, foresees another difficult year in the grain market, with large price fluctuations and direct costs above those of 2022.
At the group level, Fist Farms is also active in Slovakia, Hungary, Czech Republic.
The producer plans to invest in green energy and an irrigation system needed for better yields.
“FirstFarms expects a more uncertain 2023 in terms of crop production. We expect large price fluctuations which will still lead to a satisfactory average price. The group is prepared to operate in increasingly extreme weather conditions in the future. Therefore, we are constantly investigating and taking measures to counter the negative effects of extreme weather on crop production. In Romania, where long and recurring periods of drought are gradually becoming the norm, the plan is to implement a major irrigation project," the company's financial report states.
In terms of grain prices, FirstFarms says it has made up for lower yields and the Group has received state subsidies due to the drought.
FirstFarms owns a total of 18,900 hectares, of which 8,300 hectares are owned in Romania, the Czech Republic, Slovakia, and Hungary. Among the countries in which they operate, only in Romania, do they have exclusively vegetable production. In the other states the Danes have pig farms and dairy cattle.
Negatively affected by energy costs, the company installed photovoltaic panels with an installed power of 500 kW on the roof of the FirstFarms Agro East warehouse in Surdila Greci, Buzau.
In 2022, the company initiated a solar panel project in Romania.
"First of all, we have to produce the energy we need. I believe in the importance of energy independence, given that we have no control over external factors. The next step will be to make money from the energy we produce," said Henrik Hougaard, president of CA.
"We have chosen to start with photovoltaic systems, which we are already in the process of installing on our buildings, warehouses, and animal shelters. Installing panels on your roof is the fastest way to start producing electricity. From the moment we decide until we produce, it only takes a few months", says the manager.
The land will also be used for energy production.
“Land areas have much more potential compared to solar panels, but it takes at least 2-3 years to get the right permits, get started, and connect to local supply networks. The next stage will be the gradual development of the energy business in our fields", says Henrik Hougaard.
Also related to green energy, the company opened a new silo in Slovakia, where it also bought a biogas plant.
As far as the acquisition plans are concerned, the Danes want to further expand their farmed areas, but indirectly, by acquiring smaller stakes in the Agri Invest company. In 2022, FirstFarms invested 24 million crowns for the phased acquisition of a 5.8% stake in the capital of Agri Invest A/S, a company that owns and cultivates 10,500 hectares in Buzău, Caraș Severin, and Teleorman.
Agri Invest A/S from Denmark owned 100% of the shares of Agri Consortium SRL, a business with a turnover in 2021 of 2.4 million lei, managed by the Danish citizen Preben Hansen.