AGRO TRADING BULGARIA Ltd. - GEORGIKA EFODIA IKE

The business challenge that the investment addresses is through cross-border cooperation between the beneficiary enterprise in Bulgaria & the beneficiary enterprise in Greece to increase their capability to access new markets & expand their economic activity. For this the enterprise from Bulgaria with main NACE code 46.21 will purchase new equipment for increasing its productive capacity by incorporating new technology which can handle higher volumes of production/deliveries – sale of grains. The enterprise from Greece with main NACE code 46.21 will purchase new equipment for increasing its storage capacity, incorporating new technology which can handle higher volumes of deliveries – sales of fertilizers, agricultural products, certified seeds, machinery and agricultural products to farmers and livestock professionals. Both enterprises will collaborate as the Bulgarian partner will benefit by buying certified seeds in a friendly competitive price and the Greek company will benefit by providing the produced cereals in a competitive price to its clients.

The investment targets development & ultimately profit in CB area by involving 2 enterprises in the project. Project formation is based on extremely profound, professionally constructed analyzes on the most up-to-date statistics & practical experience. The business challenges the investment addresses is through cross-border cooperation between 1 enterprise in BG & 1 enterprise in GR to increase their capability to access new markets & expand their economic activity in the sphere of wholesale with grains & sales of certified seeds. Trade on the external & internal market with cereals & oilseeds, incl. wheat, sunflower, rapeseed, corn and barley & trade with certified seeds for grain production in the CB area both individually & collectively, have a significant socio-economic & public interest. The processes in these economic activities are characterized by high dynamism & ambiguity in their course. Market environment in the analyzed sector is relatively normal, competitors are numerous & with comparatively low market shares, the concentration of economic activity leads to natural economies of scale & scope.

The objectives of the investment plan are:
1) Increasing the productive capacity of both enterprises by incorporating new equipment which can handle higher volumes of deliveries - increasing the volumes of grains & certified seeds sold.
2) Increasing employment in both enterprises.
3) Enterprises expansion into new markets, either new market segments or new geographic market - the market of BG is a new market for Georgika Efodia IKE since they do not have exports in BG & the market of GR is a new market for „AGRO TRADING BULGARIA” Ltd. since they do not have exports in GR

BG enterprise is engaged in purchase & trading with grains. Grains trading sector in BG operates on a competitive market principle acc. to the EU grain market rules, the EU Common Market Organization for Grain. There are no unnecessary licensing & registration regimes for grains trading forming a more favorable business environment. GR enterprise is engaged in sales of fertilizers, agricultural products, certified seeds, machinery & agricultural products to farmers & livestock professionals. CB area market analysis shows the trading potential between BG & GR companies with grains & seeds and the 2 enterprises will cooperate in the following manner: BG company will benefit by buying certified seeds in a friendly competitive price & GR company will benefit by providing the produced cereals in a competitive price to its clients. LBE will start to sell certified seeds to agricultural producers & after that it will buy from them the released production & could sell it in GR. So, BG enterprise will expand its trading activity on the GR market & GR enterprise will expand its trading activity on the BG market. The market segmenting criteria to the investment are: geographical criteria - BG enterprise will offer products on the GR market & GR enterprise will offer products on the BG market; behavioral criteria for segmentation of consumer organizations' markets: type of buyers; purchase decision; purchase methods; organization of purchases and company policy; relationships; situational factors; personal characteristics of decision-makers. To access new geographic markets the investment plans communication measures - printed materials, social media promotion, company webpage for LBE & others such as publications in media.
The necessity for the expansion of both beneficiary enterprises through CB collaboration on the project is identified as an important benefit because it is based on the trading potential between the two countries in the sphere of grains & seeds. Both enterprises plan to expand their equipment in order to expand their productive capacity.