Agreco Greenhouses

Location (OLT)


Is a county of Romania, in the historical regions of Oltenia and Muntenia (the regions are separated by the Olt river). The capital city is Slatina.

The county is a mainly rural one, with over 60% of the population living in villages

This county has a total area of 5,498 km².

The county lies in a flat area on the Western part of the Romanian Plain. It is crossed byrivers from North to South, the main one - the Olt River giving the county its name. The Danube forms a wide valley in the South, with lots of ponds and small channels.

Agriculture is the main occupation in the county - over 58% of the population having agriculture astheir main occupation. Both extensive agriculture, and small-scale, vegetables and fruits are practiced. The area is well suited for irrigations.



The climate of Olt County is temperate-continental, a little wetter in the north and drier in the south.

From a hydrographical point of view, by size, the Danube river is the longest. The second is the Olt river, crossing the county from north to south on 100 km (of its total length of 670 km from spring to influence).

The soil quality considerably varies between the plains and the forests. The cultivated landrepresents 80.5% of the county's area, ranking 5th in Romania, while forests and other vegetation lands represent 10.6%, on the last position in the South-West Region.

With vast fertile lands, Olt County is among the most important farming areas of the country. The vastest areas are covered by chernozem in the Caracal, Boianului and Burnasului Plains.

Because the farming area (440 016 ha) represents 80% of the county's total area, agriculture is one of the main activity. Arable land (385 190 ha) represents 87.6% of the county's farming land, pastures account for 7.9% and vineyards and orchards are 4.4% of the county's farming land.

The main touristic destinations are:

  • The city of Slatina.
  • Fishing on the Danube and on the Olt River.
  • City of Corabia with an ancient roman citadel, large orthodox cathedral, Danube sunbathes, sailing and fishing.
  • The town of Scorniceşti - the birthplace of Nicolae Ceauşescu.


Investment Structure


The investment structure is very simple:,
The pre-tax profits are shared 50-50 between Agreco and the investors. Agreco will manage and administer the entire project.

Taxes to the Romanian government will need to be paid, currently standing at 16%, although there is the possibility that the rate of tax on Agriculture related profits maybe reduced to 5%.

The returns will be paid annually, after winter harvests, at the start of spring.

All investors will receive:

  • A Booking Contract to be completed and signed along with a copy of their passport.
  • Upon payment a Contract as Beneficial owner per unit purchased, is prepared.
  • The investors receive a report showing all returns and profits.

The table below shows the use of funds:
Initial Setup costs and first year farming cost

   Land Acquisition & Preparation € 2,500
   Annual farming costs € 8,000
   Legal & Consultancy fees € 750
   Greenhouses, Machinery & Irrigation € 18,250
   Commissions and Marketing costs € 3,500
   Contingency € 2,000
   Total € 35,000

Annual ROI


Typical production levels of the specialty Asian vegetables (bitter gourd, apple gourd, bottle gourd, aborigine, and okra) should be approximately 6-10kg per plant.

Using these base crops for our costing's gives us the grounds of our profit analysis.

Each greenhouse is 500 sqm of covered area; approximately 1,500 different vegetable plants can be planted in each greenhouse.

This gives approximately 9,000 to 15,000 kg of crop during the summer months. Winter crops of spring onions, cabbages and so forth will add another revenue stream.

The above specialty vegetables sell in the UK market retail at between £3 and £5 per kg (€4 to €6.50 per kg). Wholesale price per kg to retailers would be between €1.50 to €2.50 per kg net of transport and packaging.

With a low yield and low wholesale price 9,000 kg * €1.50 gives a return of €13,500.

With a high yield and high wholesale price 15,000 kg * €2.50 gives a return of €37,500.

After annual farming expenses of €8,000 this leaves a return of between €5,500 - €29,500. This gives an annual return on investment (ROI) of 16% - 84%.

Assuming a medium yield of 12,000 kg and wholesale price of €2.00 per kg gives a return of €24,000 subtracting annual costs of €8,000 leaves a net return of €16,000 a return of 45% per annum.

Profit will be split 50%-50% between the management company (Agreco) and the investor.

This return is pursuant to high value crops being grown, such as, okra, bitter gourd, bottle gourd, apple gourd and aubergine, along with standard tomatoes and cucumbers.

The returns can also be supplemented by preparing certain crops such as onions and shallots within the greenhouses, before moving onto open ground, and additional profits from winter crops.

With smart management, and further economies of scale, regular returns of over 40% are possible.

Unlike regular farming, Greenhouse farming is far more consistent and controlled. The quality of crops and production levels can be maintained to very high standards.


Maps and Photos


  • The land is located 250 km from Bucharest, 55 km from Craiova, 65 km from Ramnicu Valcea, is located in the South of Valcea county, in an area that was considered the grainer of the south. Before 1990 they use to have some of the best harvests in the country.
  • The plots are divided in platforms located in-between the forest, this creates like a natural greenhouse, that keep humidity and protects the crops from strong wind and in very dry seasons.
  • The quality of the soil is premium red clay soil. The land was not worked for the last 7 years that gives a very good quality of the soil that rested and keep all necessary proteins.




Overview:


  • We have divided the land in 3 zones.
  • The zones where divided from South to North.
  • The works and land development will start from zone 1 to 3 and it will be done in stages.
  • The land preparation and seeding will start from May-June 2012 until Oct.-Nov. 2012

Area Overview :




Zone 1= 1 platform with 450 hectares in one plot:




Zone 2= divided in to 3 platforms with total surface of 380 hectares:




Zone 3 = 1 platform with a surface of 325 hectares:




Photo zone 1:




Photo zone 1, from helicopter last summer:




Photo zone 2:




Photo zone 3:





Soils Map




Agreco Greenhouses Booking Contract


Agreco Contract
Click here to download the Contract

Soil Analysis


Attached we have the test for the soil where will be placed the greenhouses.As we can see, the soil conditions are good, we just need to add phosphorus and potassium to balance deficit.