Romanian - Danish Strategic Joint Venture Set Up For Agricultural Consultancy

Agricover Group, a Romanian-based provider of complete solution for agriculture, and Danish Agricultural Advisory Service (DAAS), a leading European agricultural consultant, have formed the Romanian - Danish joint venture AgroAdvice to assist Romanian farmers in optimizing their operations, improve profitability and become competitive within the European Union and worldwide.

"The Romanian agriculture has a huge potential, which we intend to materialize, given the experience of Danish Agricultural Advisory Service in offering consultancy to farmers in several European countries, which will complement the local expertise of Agricover Group," said DAAS Deputy Managing Director Ejnar Schultz.

AgroAdvice will offer both technical consultancy and financial consultancy to farms in Romania, irrespective of whether their owners are Romanian or foreign. "The objective will be to optimize agricultural production considering market conditions and the legal and financial specificities of each farm in particular," said DAAS Deputy Managing Director Ejnar Schultz.

AgroAdvice consultants will assist farmers throughout the entire agricultural cycle, including the planning of crop rotation over three to five years, the performance of crop maintenance, the selection of the most efficient farming machinery, the implementation and operation of irrigation systems, as well as the economic and financial aspects of farm management. AgroAdvice will also have a technical support centre which farmers can call for emergencies.

AgroAdvice is equally controlled by the two founders, Agricover Group and DAAS. The business plan prepared by AgroAdvice for the remainder of the year stipulates investments of approximately 500,000 EUR and the beginning of a comprehensive programme for know-how transfer from Denmark. Specifically, DAAS staff and several Danish consultants will be directly involved in the development of the Romanian-based joint venture and the implementation of various projects concerning local farms. Additionally, they will train Romanian specialists employed by AgroAdvice. The company is planning to start making a profit in 2010.

The partnership between Agricover Group and Danish Agricultural Advisory Service has also materialized in the establishment of a not-for-profit organization named the European Foundation for Agricultural and Rural Development (FEDAR), of which the two companies are founding members. The main objectives of FEDAR are to support the development of the rural environment in Romania and to assist farmers to access European funds and implement the projects thus financed.

Established in the year 2000 through the merger of Comcereal SA - Buzau and Ulvex SA - Buzau, Agricover has expanded into agribusiness and is currently offering integrated solutions for farming. Agricover Group has approximately 800 employees and is organized into six divisions and companies: Agricover Distribution, Agricover Grains, Agricover Seeds, Agricover Silos, Agricover Logistics and Agricover Credit.