Danish -owned JD Agro Cocora, which owns a 6,000 – hectare farming land plot in Ialomita county, in Romania recently received the green light from local authorities for warehousing activities at a silo and a warehouse with a total capacity of 40,000 tonnes. The value of the investment- the silo is already built – is estimated at some EUR 4 million.
JD Agro Cocora is owned by Danish Jantzen Development, which has been active in Romania for the last six years. The company has so far invested around EUR 40 million.
Jantzen Development is involved in the purchase and management of farmland on behalf of land owners.
“The investor leases the land to a professional farmer. As the farmer does not have to achieve a return on the land investment, the farmer is willing to pay a significant portion of the profit from operating activities to the landowner as lease rental. By entering into 5 to 10-year lease agreements, the farmer gets access to the same economies of scale as ownership of the land would provide,” according to the company.
Danish investors are among the most active investors in Romanian farmland.
(photo: JD Agro Cocora’s Facebook page)