It was a good year for FirstFarms A/S' division in East Romania. Here the crops received the rainfall that was needed.
- In both rape and maize corn, the harvest yields were almost 25 percent above the budgeted, states Anders H. Nørgaard, CEO of the stock exchange listed group with agriculture in two cultivation areas in Romania and one in Slovakia.
On the other hand, the central European heat wave and too little rainfall unfortunately took well over the top of the yields in West Romania and Slovakia.
- In the period from 1 March till end of August, which is our growth season, we only got 220 mm rain compared to a normal of 430 mm, says Søren Nielsen, COO for the crops in Slovakia. - Thus our summer of 2015 became one of the driest and warmest summers in over 100 years, he adds.
Only little rain at a time
The worst was however, that there was only a little rain fall at a time in Slovakia.
- Only six times we got more than 10 mm consecutive rainfall. - When the temperature is around 35 degrees, it is not at all enough to cover the crops water needs, he says.
However, wheat and rye gave, despite these odds, just around 10 percent above budget - and the spring barley a whole 63 percent more. This illustrates how large the yield differences can be.
But maize corn and maize for silage only gave about half of the budgeted yield.
The sugar beets, of which a part is not yet lifted, are also expected to disappoint by only giving around two thirds of the budgeted yield.
New land gave too little in the first season
In West Romania, COO Bjarne Maj can tell more or less the same - that is too much heat and too little rainfall which damaged the crops significantly.
- Especially we had problems getting reasonable yields on the 1,100 hectares we took over in the spring 2015.
- On those the soil preparation was not carried out in the autumn, and we had to do in the spring, he explains.
In combination with lack of rain and the constant high warmth, it did cost quite a lot on the yield, he points out.
Looking forward: The winter crops are well underway
FirstFarms A/S uses Danish advisors for its field production in Slovakia and Romania.
- Both our COO's and our advisors indicate, that our winter crops in general are good established before the winter, says Anders H. Nørgaard.
Seeding is done by and large in due time, and the weed is controlled on time.
- Thus we believe that the winter crops can cope with the winter, and we can hope that the growth season 2016 will be more normal and better than this year, he says.
2016 will also be a challenging year
Anders H. Nørgaard expects that 2016, like 2015, will be challenging on the earning side for the milk production in EU.
FirstFarms continuously adapts to these framework conditions.
- We will in 2016 still work on optimising the operation and expects an improved earning power, he points out.
Picture of CEO Anders H. Nørgaard
Picture of COO Søren Nielsen
Picture of COO Bjarne Maj
Further information at FirstFarms A/S, CEO Anders H. Nørgaard on +45 75 86 87 87
FirstFarms A/S is Denmark's only stock exchange listed company with activities in the primary agriculture. FirstFarms A/S was listed in December 2006 and has now approximately 3,300 shareholders and a share capital of DKK 47,122,410. The activities are in agricultural companies and land in Slovakia and Romania. The company operates a total of 15,800 hectares, 2,400 dairy cows and employs 216 employees. In 2014, FirstFarms A/S realised a turnover of DKK 125.0 million, an EBIT result of DKK 19.2 million and a pre-tax result of DKK 11.5 million. In 2015, FirstFarms A/S expects an EBIT result of DKK -15 to -10 million.
