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SECURING INVESTMENTS IN UNSTEADY TIMES

Investments in farmland and sustainableagriculture in Eastern Europe

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

More secure then gold ?

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Content of the presentation

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

1. Trends that influence the price of agricultural land

2. Pricing of agricultural land in Romania3. Retaining/increasing the value of a land

investment.4. Why is farmland is one of the most secure

investments5. Agriculture in Romania6. Sustainable and organic farming and food7. Some examples implemented by

Agri+CULTURA Transilvania SRL. Creating value and gorgeousness

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Some effects on the price of agricultural land

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

“Fixed” or decreasing amount of farm land

Increasing world population 9-20 billion. Global warming has negative effect on

food production. Changing food habits in emerging

economies. Over eating. More meat. Increasing energy prices effecting

transport cost, fertilizer/pesticide prices. Increasing land use for energy - and

industrial crops. Replace oil based plastics

Higher food prices. Food crisis 2008 and now.

• All indicators direct towards higher prices for agricultural land.• No indicators direct towards lower prices. World economy is the only downwards risky factor. Politicians and economists are sweeping with the tap open but offer no real solutions. In case of a global financial crisis gold is keeping is value long but you can’t eat it. Food is always needed. Land is the last to go down in price.

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EXPERT OPINIONS

The price of Agricultural land in Romania

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

“Land prices in agriculture have gone up 5 times in 5 years to €1-3,500/ha but are still 3 to 7 times lower than in most European countries. Market estimates indicate that the price is likely to remain on this upward trend in the next years” Lucian Anghel. Chief economist at the BANCA COMERCIALĂ ROMÂNĂ

Some experts predict prices of 5 000 to 10 000 EUR in 3 years time.

Double prices within 3 years are likely.

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Retaining and increasing land value

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

The scattered landownership makes consolidation into larger plots essential.

This is a process that takes time and costs money but has a reward in an increase in value of 50 to 100% just because of the consolidation.

The way the land is used is of foremost importance to retain/increase land value

Just investing in land as a speculation object can easily fail.

Organic farming increases value security. Top management is the key anywhere in the world in any

sector.

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Agriculture in Romania Negatives

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Poor infrastructureBureaucracyScattered landownership Business and labor ethics SlopesIrrigation needed outside of Transylvania

Distance to West European markets

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Agriculture in Romania Positives

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Good to very good soilsReasonable amount of precipitation in TransylvaniaCereal based animal husbandry (pigs poultry)High quality grassland, lucerne and maize possible for

roughage based animal husbandryMore light/longer day length in winter then NW

EuropeCheap land and laborHigh EU supports for investments (often 50-70%)EU hectare support available

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Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Which sector can claim continuous 10-30% yearly growth for 40 years

Organic Farming and Food37 million hectare world wide

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Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Organic FarmingLong-term security and improving the quality of the land

1.No contamination and clean up risks.2.Loss of topsoil by erosion strongly

reduced3.Increased fertility through higher

humus.4.Access to a niche market with higher

prices5.Reduced production cost due to less

inputs. Also lower yield.6.Higher product prices and higher

labor cost7.Result is equal or better then

conventional.

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Organic needs high level management

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Chemicals are replaced by understanding and using natures own systems and preventionOrganics is strongly know-how based

Organic arable farming on the contour lines in Argentina and giving room for nature

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Selected sample projects

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Agri+CULTURA Transilvania5 Selected organic projects:Dairy sheep Transylvania

ConsultancyDairy buffalo farming Romania

ManagementBroiler chickens Hungary

ManagementHerb production Transylvania

ManagementArable, fruits, nuts , herbs

Argentine Consultancy

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Organic dairy sheep in Transylvania

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita Wil J. van Eijsden. Email: buffalo.wil@gmail.com

5000 sheep, 4000 ha grazing, haymaking and arable with milk processing

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Organic water buffalo farm in Transylvania

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Reconstruction of derelict

farm350 ha

350 animals with young

stock

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Organic broiler chickens in SW Hungary

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

240.000 heavy broilers/y, 600 ha arable feed production, feed factory

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Organic herb production Romania

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Start up:

•Production of propagation material for the roll-out of contract production

•Product and market development

Culinary herb saltsHerbal salt pad thermal therapy

Herb teas witha local touch

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3000 ha conversion to divers organic productionin Argentine

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

120 ha nuts and fruits, 20 ha herbs, 1200 ha arable, 700 ha

lakes, 1000 ha nature

Start from conventionalsoybean/wheat rotation

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Conclusions

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Investing in agricultural land is probably one of the most secure and most profitable investments at present.

Land is still cheap in Romania and the price is likely to increase steeply.

Romania is in many respects a very good location for agricultural activities, challenges however remain.

Organic farming is a very good way of securing/ increasing land value and it is a profitable business it selves at the same time.

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Services Agri+CULTURA Transilvania SRL

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Coordinating land acquisition consolidating into larger plots including, the legal and financial set-up in

co-operation with experienced local legal advisers and financial experts, price negotiations, closing deals with legal registration in the land register.

Planning of the land use Master plan for your organic farm business including sustainable farm-

system design, detailed plan for the use of land and facilities based on: 1) Choice of crops and animals 2) Minimizing inputs and costs 3) Maximizing quality and quantity of outputs within the constraints of organic production 4) Infrastructure and reconstruction needs. 5) Choice of machinery and equipment 6) Planning the processing into end products. 7) Marketing plan.

Management and training during the start-up.

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A very strong proposition

Agri+CULTURA Transilvania SRL, 537010 Avramesti, Harghita, 10/11/2011 Wil J. van Eijsden. Email: buffalo.wil@gmail.com

Agri+CULTURA Transilvania SRLWil J. van Eijsden537010 Avrâmesti (Szentábrahám) 95Jud. HarghitaRomaniaTel +40 761 975 958Email buffalo.wil@gmail.com

30 years of experience globally

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