Agroland reaps the profits from supplying farms

Horia Cardos, the owner of Agroland, had the courage to start a business on a market where the competition is unstructured: farm products. And his company is predicted to post a turnover of about EUR 10 million this year.

Anda Sebesi

Horia Cardos embarked on his entrepreneurial path back in 1993 when he and an associate decided to set up an ice cream distribution firm. The company thrived, importing ice cream from Hungary and distributing it in Timis County. In Timisoara alone it distributed its products through a network of about 50 stores. But despite the success the firm enjoyed, Cardos decided to exit three years later after seeing the opportunity to develop his current business, which is specialized in the import and distribution of products for farms.

Initially he started the firm with a partner whom he bought out one year later. “In 1996 I began to import veterinary products from Italy and a year later I was importing fodder for animals both through stores and distributors. First I decided to approach middle-sized and large farm owners and later we chose to develop our business targeting small ones throughout our own stores where possible,” says Cardos.

He adds that after 2002 the company expanded its activity in other counties and now has its own network of 15 stores.
“In 2004 we started to develop the franchise system and we are now active through
over 50 partners that operate about 135 stores,” says the entrepreneur.

At present the company has six categories of products: animal fodder, one-day-old chicken, seeds, products for the garden, feeding and watering accessories and pet food. “We operate now in two directions, aiming to develop our territorial network and to consolidate the sales of the existing stores,” says the Agroland owner.

The idea to set up his own business came as a natural step in his professional and personal development, as he had long wanted to become an entrepreneur. “I have always been attracted by the idea of being an entrepreneur because I wanted to build something. I was born in town and I have lived all my life there but I appreciate the healthy lifestyle from our grandparents’ stories,” says Cardos. He adds that starting his own enterprise has been an opportunity, as there was no market for such products and the competition was unstructured. “Even now there are no competitors that have more than ten stores. I am proud that I have managed to develop such a network and I can help people to buy healthy food as an alternative to the industrial products that are available on the market now,” adds the entrepreneur.

Looking back over the development of the business, Cardos says that the most difficult moment was back in 2008 when he had a serious car accident. “I saw how many things depended on me and I realized that I needed to reshape my business so that short- and medium-term activities didn’t have to be reliant on my presence.” If he started another company the Agroland owner says that he would pay more attention to the collaborators.

The recession has not hurt his firm. “The current economic crisis has been the right moment for us to extend our activity, as it is one of the few domains that have grown during this downturn. Actually we doubled our turnover during these years,” says Cardos. He adds that according to his company’s estimation, Agroland has a market share on sectors where it is active of between 20 and 70 percent.

But the main challenge that such a business faces is its acute seasonality. “You need many resources in a limited time. Very big sales are made in a very short time,” explains the owner. He adds that after his business gained significant awareness on the market, its biggest challenge was logistical – to transport the commodities rapidly where they was needed. “We distribute through our own stores and a five-car fleet, but we also work with different transportation companies. I am guided by the principle that it is more efficient to outsource this service because of the seasonality of such a business,” says Cardos. He adds that his strategy was to stay away from the price battle, with the company charging mid-level prices for high quality.

Asked about his plans for his firm, Cardos has bold ideas. “We intend in the future to continue this trend so as many people as possible get access to a healthy lifestyle. The reasons are related to health and food safety, in the context of the international food crisis. I am concerned about this problem and I have studied the changes made in Western Europe where people are concerned about food safety regardless of their social status,” says the entrepreneur. He adds that the company will start an investment in a new warehouse in 2012 to achieve a total surface area of about 5,000 sqm within eighteen months.

Company profile Agroland
2010 estimated turnover: EUR 7.5 million
2011 estimated turnover: over EUR 10 million
Number of employees: 45
Initial investment: Deutsche Mark 20,000
Total investment: over EUR 1 million
Number of partners: over 200

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