Paving the Way for Sustainable Agriculture in Romania
Paving the Way for Sustainable Agriculture in Romania
Employing over 20% of the labour force, Romania’s agriculture sector is key to the country’s growth. But this growth is under threat from changing temperatures and extreme weather events. The intense droughts of recent years, for example, have reduced production.
Farmers must employ sustainable practices, like efficient irrigation, organic farming and minimal soil movement techniques. These practices can lead to stronger food systems, reduce rural poverty and benefit the environment. To achieve this, financing and training are essential.
In 2023, we provided €10 million to ProCredit Bank, with a dedicated share targeted to farmers practicing sustainable agriculture.
Impact Spotlight
In 2004, Ionel Gheorghe founded his farm in Valea Argovei, Southeastern Romania. Faced with droughts, rising costs and EU regulations, he and his son Doru switched to sustainable agriculture.
Using a loan provided by ProCredit Bank, they invested in cutting-edge technology and implemented conservation-agriculture practices.
The father-son team adopted measures such as low-till farming and modern seeders, which preserved the quality of the farm’s soil and cut resource use by 30-40%. In turn, this boosted productivity and revenues, helping Ionel and Doru build a more resilient and competitive business.
We have been supported on our sustainability journey by ProCredit Bank, proof that they are more than just a financial institution. They are a true and reliable partner.
Doru Gheorghe, Owner of Agro Fondinvest
Our investment
Prior to investment, we conducted an in-depth market study, including policy analysis and interviews with farmers and stakeholders, to assess sustainable agriculture practices and market potential. This led to the creation of the ‘Green List’ - a catalogue of eligible sustainable measures.
We then provided €10 million to ProCredit Bank, with a dedicated share allocated to farmers practicing sustainable agriculture. ProCredit Bank has supported responsible farming for over two decades and has been ahead of its peers in recognising the importance of a green transition across the industry.
Support beyond the investment
Our Advisory & Capacity Building team supported both ProCredit Bank’s staff and its client farmers in smart, efficient and sustainable agriculture solutions. Two years from our initial investment, ProCredit Bank continues to actively educate and advise its clients.
Today, 27% of ProCredit Bank’s agricultural clients are maintaining and investing in sustainable practices in line with our ‘Green List’, and the Bank seeks to grow this client base and lending. The shift to sustainable practices creates a win-win scenario, where farmers become better performing borrowers and stronger contributors to broader economic growth and development.