Business Forum • 9 September, 2024 at 11:56 AM
Norofert, the leading producer of organic agricultural inputs and biotechnology provider for agriculture in Romania, listed on the Bucharest Stock Exchange on the AeRO market (BVB symbol: NRF), is expanding its international presence by entering the Brazilian market. The establishment of the new entity, Norofert Brasil LTDA, represents an important step in the company's strategy to bring its advanced technology to one of the world's largest agricultural markets.
Norofert has partnered with Engenutri Group, a top player in agribusiness, with over 25 years of experience in providing innovative solutions for nutrition and plant protection, to construct a factory and distribute products in Brazil. The assembly of the new production line in Brazil will begin in November 2024, replicating the successful technical model implemented in South Dakota, USA.
Vlad Popescu, President of the Board, Norofert: “Brazil offers a significant opportunity for our expansion, considering its vast area of over 96 million hectares of arable land and the continuous growth of the market for special products for plant nutrition and microorganisms. Our aim is to be recognized in the markets where we operate for innovation in using biotechnology and the development of efficient and customized agricultural solutions, and our investments in this direction are starting to yield results. The partnership with Engenutri Group, renowned for its expertise in bacteria-based products, will allow us to bring Norofert technology to Brazil, replicating the successful model implemented in the USA. In the first phase, we will certify 16 products under the Norofert brand for this new market.”
The project to access the Brazilian market began in August 2023, and the company Norofert Brasil LTDA was established this year. The new entity is owned 50% by Norofert S.A. and 50% by Engenutri Group, which has a turnover of €30 million and is part of the PH2 Participacoes holding. Norofert Brasil LTDA will begin constructing the factory in November and the works are estimated to be finalized in approximately two months. The 500 sqm space for the production line has already been contracted. The production capacity will be 15,000 liters/day and the bacteria produced in the laboratory in Filipeștii de Pădure, Romania, will be utilized. The approval process for the product range under the Norofert brand that will be distributed in Brazil is expected to be completed by June 2025. The total investment for this project amounts to approximately €500,000, made in 2 years and financed by both partners.
The ceremony for the establishment of the Romanian-Brazilian company Norofert Brasil LTDA, which marks the expansion of the Norofert Group into the Brazilian market, was attended by the Romanian Ambassador to Brazil, Her Excellency Mrs. Monica Mihaela Știrbu, and the General Consul of Romania in Rio de Janeiro, Mr. Florin Marian Palade, who highlighted the importance of this investment for strengthening economic relations between the two countries.
Brazil stands out for its predominant crops of corn, soy, wheat, and sugarcane, and the market for special plant nutrition products and microorganism-based solutions has seen significant growth in recent years.
Norofert is the leader in regenerative agriculture research and one of the largest producers of inputs in Romania, founded in 2000 by the Popescu family. In the midst of expanding the production facilities to support sustainable agricultural practices, internationally, Norofert demonstrates commitment to the goal of climate neutrality and the ability to innovate in an area crucial to the future of agriculture and food security.
With a mix of business lines, Norofert has developed in recent years its production capacities both in the area of inputs and agricultural farming, lines that will see development in the coming years. With 65 products in its portfolio, the company caters to both conventional and organic farmers, with a new niche of liquid conventional products in growing demand.
From 2020 the company is listed on the Bucharest Stock Exchange on the AeRO market and from October 2021 Norofert shares are included in the BETAeRO index. During the 4 years of activity in the capital market, Norofert raised RON 14 million through capital increases and RON 11.5 million through a private placement of corporate bonds. The company's corporate bonds are traded on the AeRO market of the Bucharest Stock Exchange under the symbol NRF25 starting June 5th, 2020.