Farmer Nicu Şerban: Scaling to 100 Hectares | Business Strategy

by Archynetys Economy Desk

Roxana Dobre

One of the most visionary agribusiness entrepreneurs, Nicu Șerban, sees the development opportunity even for a 100-hectare farm. The surface, an average one, allows the farmer to have an additional income, but also to diversify if he intends to live only from his own agricultural business, Nicolae Șerban, the founder of Grup Șerban Holding, showed in the Agrostrategia show on TVR 1.

From the calculations presented by Nicolae Şerban in the show Agrostrategy from TVR 1 it is shown that, in the case of a holding with 100 hectares, a very good agricultural year, with an average productivity of six tons of grain per hectare and a selling price of 200 euros/ton, can generate gross revenues of approximately 140,000 euros including the subsidies paid through the Payments and Intervention Agency for Agriculture (APIA). After deducting production costs, a profit of around 90,000 euros would remain, but these conditions are rarely reached, due to price issues and fluctuating production.

“In principle, in order to be able to have strategies, you have to go beyond the generation of average income on the economy with the farm, so to speak. I mean, today, I think we have reached 1,000 euros in net average income on the economy, that means 2,000 euros including taxes and in 12 months it means 48,000 euros, the business you are dealing with must generate the margin of at least this money. Ideally in average if you make a grain equivalent of 6 tons per hectare, that’s a very good year. You sell them for 200 euros per ton, that’s 120,000 euros. And you get a subsidy of 200 euros per hectare. Total income is 100,000 euros it costs somewhere around 1,000 euros, that means you have 90,000 euros left. So if everything is perfect, you generate two incomes per economy”, explained Nicu Şerban, founder of Grup Şerban Holding in the show Agrostrategy a co-production Agrointelligence and TVR.

Read also: Farmers, urgently call APIA! Official announcement: December 22, the last day!

A laying hen house can take your 100-hectare farm to the next level

In order to increase the chances of resilience, Nicolae Șerban recommends the integration of production, by expanding the activity to other branches, such as poultry. For example, a 1,000 m2 shed with around 9,000 laying hens could generate significant additional income, with a profit margin of 20-30%, using the raw material produced on the farm.

“On 100 hectares, theoretically, you can ensure a family’s income. Especially since on 100 hectares you don’t need employees. On 100 hectares, theoretically, you have enough time to get a job. If you have 100 hectares and you build a 1,000 square meter shed with 9,0000 laying hens, which will make you 0,000 eggs per day. And where there is a margin of 20-30%, at today’s prices maybe even higher and at the same time you also work in the field and take care of the chickens, you really don’t need employees”, explained the founder of Grup Șerban Holding, during the show Agrostrategy from TVR 1.

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