Farm 1500 ha mixed irrigated vegetable and crop farm

1500.0 ha. price on request   For sale   Horticulture / Greenhouse

Stredocesky kraj, Czech Republic


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A unique opportunity to become a major producer of fresh produce, ranking top 3 in the Czech market and an opportunity to become a Czech market leader in select irrigated crops.

Farm

Main premises of 65 000 m2 + 30 000 m2 of other premises, including

  • 600 m2 workshop with a traveling gantry crane
  • 500 boxpallet cooled-warehouse
  • 3200 ton grain silos
  • 300 m2 floor space for housing seasonal workers
  • 1500 m2 floor space for offices and housing additional seasonal workforce
  • 15+ tractors, GSM tracked and RTK navigation +-2cm
  • 50+ range of agricultural machines
  • Bungalow style family house
  • private ownership of an extensive underground irrigation pipeline network, 2 electric pumping stations and 4 mobile pumps, the largest Czech river Elbe as watersource
  • 20+ new surface irrigation machines.
  • An extensive capital expenditure programme outlined to refurbish existing 3000 m2 of dry storage space into 4000 ton cooled warehouse capacity

Cultivated Land

  • 430 ha farmland owned
  • 1070 ha farmland leased – wide and stable portfolio of long term leases
  • Irrigated
    • 2024: 330 hectares
    • 2025: 420 hectares
    • 2027: 650+ hectares
  • Not irrigated
    • 2024: 1170 hectares
  • Total
    • 2024: 1500 hectares

Soil

There is a variety of soils in different fields in the farm range. Most commonly, light sandy soils without pebbles, variations of black-earth soil types with sand content and loamy sand soil types. The fields are very flat, plough layer depth of 25 - 40 cm.

Market

This is an opportunity to respond to a shifting trend in the market: increasing preference of customers and retail chains for local produce can be observed in the recent years, however, Czech production of vegetables and potatoes is way from self-sufficient, the number of sizeable producers is limited and a lack of local produce has to be compensated by imports.

Imports:

Knipsel 2.PNG

The farm currently ranks in the Czech republic as top 7 in carrots, top 5 in celery, top 10 in potatoes, top 5 in fresh cabbage, selling to retail chains (Ahold, Schwarz Gruppe, REWE, Globus) through a farmer coop. Non-irrigated field crops include wheat, corn, rapeseed and more.

Background

The company is a successor to a large cooperative farm. It owns a private extensive underground irrigation network, originally designed to irrigate 1500 hectares of farmland, which however was not operated during 2000-2020. The farm grew common field crops such as wheat, corn, sunflower and rape seed. Under new management, over the last 5 years the irrigation network has been refurbished step-by-step: fitted with new modern pumps, new shutters, valve pieces and hydrants and equipped with new surface irrigation machines made by Bauer. During a joint venture program with a local farmer, the management and employees learned to grow fresh produce in quality demanded by the retail chains (potatoes, carrots, cabbage, cauliflower, onions). Having proven that strong yields are achievable, the time is right now to make it big.

For more information:

Please contact:

Filip Otruba

VGD Corporate Finance

mobile +420 602 247 318

filip.otruba@vgdcorpfin.eu

E-mail

  • id
    2608
  • price
    price on request
  • size
    1500.0 ha.
  • type
    Horticulture / Greenhouse
  • country
    Czech Republic
  • county
    Stredocesky kraj
  • show on map

Interfarms

About Czech Republic

The Czech Republic is bordered by two mountain ranges, the Hercynian and the Alpine-Himalayan. As a result of this, the country has a diverse countryside. The western and central parts of the country consist of undulating highlands (Ceska vysocina) and low mountainous areas (Sumava, Cesky les, Krusne hory, Orlicke hory and Jeseniky). The Zapadni Karpaty Mountains are in the eastern part of the country. The Czech Republic is also known as the roof of Europe because its only source of water is rain and snowfall. All rivers originating from this area flow out into the surrounding countries. The Republic has three rivers, viz. the Elba (flowing out into the North Sea), the Oder (flowing out into the Baltic Sea) and the Danube (flowing out into the Black Sea). There are 455 natural lakes, 350 of which are “river lakes”, which have been formed on grasslands adjoining the large rivers. A typical feature of the Czech countryside is the large number of artificial lakes, which have been laid out for breeding fish. In total, there are some 21,800 artificial lakes of this kind, covering a total area of 41,000 hectares. The two main ones are Lake Rozmberk and Lake Bezdrev in southern Bohemia. According to the 2006 census, the Czech Republic has 10.3 million inhabitants (131 people per km²), of which half are male and half are women. Three quarters of the population live in urban areas. Until 1994, the number of people living in the Czech Republic was stable, and since then the number has been decreasing. It is expected that the number will be around 10 million in 2020.

The Czech social security system (including compulsory national health insurance) is largely similar in structure to other E.U. countries. Czech employees working for a Czech employer contribute part of their salary towards covering their social security benefits; this contribution reduces their income-tax base. The employer also pays a contribution; this contribution is tax-deductible for the employer. The Czech Republic has the following taxes: 1. income- and corporation tax; 2. sales tax; 3. excise; 4. road tax; 5. transfer tax (for real estate); 6. gift tax; inheritance tax and transfer tax; Tax rates vary from 15% to 40%. The latter rate applies to taxable incomes higher than CZK 822,600. For certain types of income from Czech sources, taxes are raised at source, and this also determines the final tax assessment. Dividends, for instance, are subject to a 25% tax rate. The sales-tax system is largely based on the system that applies in EU countries. Though the current Czech sales-tax system resembles other EU countries system, there are a quite a few differences. There are two sales-tax rates: the general rate of 22% for most goods and a reduced rate of 5% for most services. With a few exceptions, foodstuffs are taxed at 5%. Of the services that are taxed at 22%, we can mention: hospitality- and advertising services, rental of some movable goods, and services provided by representatives, brokers, and agents.

The climate of the Czech Republic is influenced by the interaction between maritime and continental climates. Westerly winds prevail, while air masses are regularly set in motion by intensive cyclone-like activity causing considerable rainfall. The effect of the maritime climate is mainly felt in Bohemia, while the continental climate has a greater impact on Moravia and Silesia. Altitudes and relief also greatly affect the climate. 52,817 km² (66.97%) of the Czech countryside is at an altitude of 500 metres, 25,222 km² (31.68%) lies at altitudes from 500 to 1000 metres, and only 827 km² is at 1000 metres above sea level. On average, the Republic lies at an altitude of 430 metres above sea level. The Czech Republic has mild summers and winters, with moderate rainfall. Average annual temperatures are between 6.6 °C (in Mariánské Lázně) and 9.7 ºC (in Prague); average annual rainfall in these areas is, respectively, 690 and 491 mm.

The share in GDP (Gross Domestic Product) of the primary sector (including forestry and fisheries) fell from 3.9 percent in 2000 to 2.4 percent in 2007. According to the latest figures, there were 1,583 agricultural cooperatives and 4,428 commercial farming operations active in 2006. Before the Republic’s accession to the EU in 2004, the number of commercial farming operations was 2,069. So this number has doubled. To all probability, this is due to farmers becoming eligible for CAP subsidies. In the period of 1990-2006, employment in the agricultural sector decreased by 60%. Currently, about 3.5 percent of the workforce works in the agricultural sector. Of all sectors, the cattle sector has decreased most. In the period of 1990-2006, the number of cattle fell from 3.4 million to 1.4 million. The total area of cultivated lands did not decrease much due to increased cultivation of rapeseed, sunflowers, and poppy. These crops are used for the production of bio-energy. (Source: EVD.) The total area of farmland is stable and amounts to 4.3 million hectares. Most cultivated land is used as arable land. In arable farming, the staple crops are grain, oilseed, potatoes, and sugar beets. 

In the Czech Republic, there are many good soils suitable for agriculture. These soils allow for the cultivation of a wide range of crops. Quality-wise, the black soils and brown soils are best. As mentioned before in this chapter, the Czech Republic has different kinds of farm land. The differences in crop conditions are easy to see during the growing-season. This is due to the type of soil, quality, and different altitudes in the countryside. Another factor that often applies is the use of artificial fertilizers and crop-protection agents and, to a lesser degree, the availability of expertise. Hence the working-capital of a farm plays a part in the yield of its crops. 

In the table below, the average yields of various crops are roughly represented. 

Note that there is a great diversity of soil types. 

Crop Average yield per hectare (tonnes/ha) 

Beets 40 

Potatoes 20 

Wheat (Moravia) 8 

Wheat (Bohemia) 6 

Maize 35 

As is shown, the tonnage of beets and potatoes falls somewhat behind if compared with the U.K. With regard to wheat, good yields are realized with a small amount of artificial fertilizers (100 kg of pure nitrogen). A significant effect is shown with regard to the yields in Moravia and Bohemia. The difference is mainly due to the better average quality of soils in Moravia. With regard to maize, too, yields vary from area to area.