Agricover: driving innovation in agribusiness

Amid a very complex and challenging context for the agriculture sector at the international level, Agricover’s role in supporting farmers to reinvest in a new agricultural cycle is more important than ever. Liviu Dobre, the CEO of Agricover Holding, sat down with Business Review and talked about what the company is doing to help increase the efficiency of local farmers. 

By Anda Sebesi

What were the biggest challenges Agricover faced in 2023?

2023 was a complex year for the entire agricultural sector. The good news is that global markets have stabilised, with the prices of inputs (especially plant nutrition products) returning to a bearable level for farmers. However, this year’s crops were established at the high costs of 2022, productivity was affected by drought, and at the same time, selling prices for cereals were low. In this context, 2023 brought increased pressure on farmers’ profitability.

Read more about

One United Properties: developments that reshape life in the city

read more

What were the most important projects the company carried out in 2023?

In 2023, we placed special emphasis on innovation and digitalization. At the beginning of this year, we implemented SAP within Agricover Credit IFN, and marked the first SAP financing services implementation in southeast Europe. This technology has allowed us to grow efficiently, optimise processes, and provide better service to farmers. Another important project was the launch of version 2.0 of the CROP360 digital agriculture platform, with new functionalities and an improved user experience based on user feedback. This year we also launched the distribution of agricultural drones. Furthermore, we invested in a new logistics hub, with a much larger storage and delivery capacity, which allows to improve farmer services, offering them faster and more efficient logistics solutions.

What’s the current state of agriculture and what changes should we expect to see in the coming years?

Romanian agriculture is going through a challenging time. In the last ten years, there has been an impressive increase in productivity for the country, with the growth rate of Romanian farmers’ productivity even surpassing those of top-tier countries such as Germany, France or Australia. The performance leap of the last decade has been supported by the accelerated use of advanced technologies. Statistics on aggregate growth rates in the 2012-2021 period show that Romania has recorded a significant increase in cereal production (9.6%), the highest among the main worldwide producers. However, there is still plenty of agricultural land that is not exploited at a professional level, indicating a great potential for growth in the Romanian agricultural sector.

How important are ESG and sustainability criteria for Agricover and the agriculture industry in general?

This year we adopted an ESG policy inside Agricover and we will release our first report next year, demonstrating our commitment to sustainable practices. ESG and sustainability are not just important, but vital for us and the entire agricultural industry. Agriculture is one of the sectors with the most significant impact on the environment, and adopting sustainable practices is crucial for our future. We integrate ESG principles into all aspects of our activity.

What were 2023’s main challenges from a management point of view?

This year, we focused on supporting the continuous growth of our business, both in the distribution of agricultural inputs as well as in specialised financing. It was essential for us to secure the necessary resources to support this growth. At the same time, we worked on strengthening our business model, which has demonstrated resilience and adaptability in the face of difficulties. It was a year in which we turned our attention to growth and sustainability, innovation, and efficiency—successfully, we believe.

What is the outlook for the agriculture industry in 2024?

We anticipate a challenging start to the year, especially due to the impact of drought on crops, and we expect financing needs in agriculture to remain high. Still, we are optimistic. In 2024, it will be extremely important for farmers to be efficient, to optimise their production costs, and to maximise the monetisation of their production. We think it will be a year in which the adoption of precision agriculture technologies will accelerate farms’ performance growth. In this context, we aim for prudent growth in 2024 and hope to consolidate our position as a leader on the agribusiness market.