Bonifiche Ferraresi Spa (“B.F. Spa” or the “Group”) is an agro-industrial holding listed on Italian Stock Exchange, the largest Italian agricultural company in terms of Utilized Agricultural Area.

 B.F. has developed a business plan with the aim of positioning the Group as the reference point within the Italian agricultural ecosystem and as consequence a leading international player with a strong reputation, a role model for biodiversity, guaranteeing traceability and safety of the supply chain (“from seed to shell”): from a land company producing commodities to a food company, vertically integrated on the entire supply chain guaranteeing the traceability of the product and 100 percent Made in Italy process.  

Currently producing, selecting and distributing seeds, cultivates, processes and distributes agricultural products (mainly cereals, pulses , fruit and vegetables, olives, and medicinal plants) and food (rice, pasta, and herbal teas) and operates in the livestock industry.

Owner of more than 10,000 hectares across Italy, B.F. has significant plans for expansion within the supply chains of multiple food segments – both geographically and through the adoption of ag technologies. Rooted within these plans is a deep dedication by B.F. to sustainability, and a mission of stewardship that is driving the group toward circular economies via its Energy Plan 2020-2022.

HighQuest Partners CEO Greg Mellinger had the opportunity to talk with Federico Vecchioni, the CEO of B.F., about the group’s current projects and its immediate and long-term plans, including its goal of transforming from a “Land & Food company “ to an “agritech infrastructure”.

GM: How many more supplementary hectares of agricultural land might be bought in Italy over the next  5+ years, and for which crops? 

FV: Currently we hold around 10,000 hectares in Italy – in three regions, Emilia Romagna, Tuscany, and Sardinia – dedicated to the sectors of cereals, pulses, fruit and vegetables, olives, and medicinal plants.  We forecast the direct purchase of an additional 8,000 hectares and indirect management for approximately 20,000 hectares more, mainly dedicated to fruit and vegetables, olives, durum wheat, and rice. 

GM: In the presentation at Global AgInvesting in July 2021, reference was made to the ENI/Coldiretti relationship and to the sustainable development project undertaken in Africa.
~What would B.F.’s role be in this initiative?
~How is the Africa project integrated with B.F.’s “Made in Italy” model? Or is it a separate  corporate activity?
~Are you also considering other areas with a view to international expansion and, if so, which?  

FV: Our presence in Africa is the result of the agreement with ENI and Coldiretti aimed at promoting  sustainable economic growth in Africa and the development of agriculture with a reduced environmental  impact. At the moment we are present in Congo, Tunisia, and Ghana. The goal of these projects is the creation of local production chains to be developed through the best expertise in terms of digitalization and technologies dedicated to food. We are currently present in Africa with production chains for tomatoes, corn, rice, pulses, and varieties of wheat. Our main objective is to train professionals in agri-tech, by exporting Italian know-how and technology to support local economies through a genuine transfer of  knowledge.  

I don’t see the Africa project separately from the B.F. Made in Italy model: our business has always been a  hub for digital and sustainable agriculture in Italy. The more we strengthen at the national level, the more we will be able to create a real hub at the international level. They are two complementary paths. As for international expansion, besides the African continent, through its platform, the B.F. Group has positioned itself to be the technological partner for the innovative development of large-scale  agriculture in different areas where we see opportunity.  

GM: Continuing on this line, into what types of crops could B.F. expand, besides the current portfolio of crops/seeds? (fruit, vegetables, walnuts?)  

FV: As mentioned previously, B.F. is interested in increasing its presence in the production chains for fruit and  vegetables, apples and pears, olives, and that of durum wheat and rice.

GM: In B.F.’s plan presented at Global AgInvesting, there was talk of a transformation from a “land & food company” to “agritech Infrastructure”
~What does the Agritech infrastructure include?
~Does this concept also extend downstream, beyond agriculture, to the transformation of  raw materials and food? If so, in which technologies?

FV: B.F. wants to grow and continue to be a sustainable growth driver in all the stages of its operations; in the  hectarage, the transformation, the distribution (Le Stagioni d’Italia, i.e. Italy’s Seasons, is our brand), and  the supply of services.  

Our technological capacity extends to and provides  comprehensive solutions across all stages, from the genome to the shelf, and in all the supply chains in which B.F. has invested and is present. In addition, in regard to the services linked to Blockchain, we can control the whole cycle – from the genome up to packaging. 

 GM: B.F. highlights that all its work takes place within a sustainable business model, focused on the ability of the land to “regenerate” and on the economic, social, and civil needs of the communities where it  operates.
~How can B.F. manage to prioritize this mission in its activities? 

FV: For us, the concept of sustainability has always been an integral part of all our activities: we are aware of  the importance of handing on to the future more fertile and better land than that which we found when  the B.F. project started, i.e., in 2014. For us, it is essential to always remember that our hectares, although we  own them, are a common good to be safeguarded for the whole planet and future generations. We will do this through our  company’s advanced environmental sustainability policies through farming practices which aim to respect the land, and through innovative precision agriculture practices developed by our company “IBF Servizi”. These  enable us to stand in perfect harmony with the surrounding environment, with the goal  of also increasing the fertility of our lands.

Moreover, B.F. Spa is determined in the coming years to undertake a shift from an economic model based on the use of fossil fuels, to a fully circular economy, based on the use of renewables. In line with this goal, the  Group launched the Energy Plan 2020-2022, the objective of which is to improve energy performance and the energy management system. During 2020, the company increased electricity produced from  renewables by 6.5 percent and its own consumption by 19.9 percent.  

GM: How is the Agritech & Food Fund proceeding?

FV: We are close to the first closing, which will take place in the coming months.

GM: The “Forward 2023” plan of the Italian Agritech & Food fund aims to enhance sectors that are strategic for Italy’s growth, such as precision agriculture and seeds.
~ Will BF invest as a controlling or minority investor?
~ What is the period for holding investments made by this fund? 

FV: We will invest as a minority investor, holding the investment for between 5 and 7 years.

GM: B.F.’S Investment is subject to authorization by Consob (The Italian Stock Market and company regulator) , provided that underwriting commitments are guaranteed for a certain amount …”
~ When do you think you will obtain these funds?
~ When will B.F.’s investment be authorized?  

FV: The authorization has already been obtained and the first closing, as we said, will take place in the coming months. 

 

B.F. Group remains available for any questions/informations to be addressed to Federico  Vecchioni’s advisors, Mr.Gianni Franco Papa (giannifranco.papa@advest.eu) or Mr. Guido Bottacini (guidobottacini@fruges.it)

 

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