[Business Scene] Cezareja Does Not Want to Export Wheat, but Must Because We Lack Processing Capacity

The company Cezareja from Ivankovo, which this year marks a quarter of a century of operation, is one of the largest purchasers of agricultural products in Croatia and among the largest companies in the Vukovar-Srijem County.

Cezareja came into the public spotlight in early 2019 when Uskok filed charges against its founder, owner, and CEO Marijan Novoselec and 18 others for suspected tax or customs evasion. After that, Novoselec transferred ownership to his daughter Misli Varzić. The company does not comment on the case and believes in the presumption of innocence. 

The company is engaged in the wholesale of grains and oilseeds, mineral fertilizers, seed products, and plant protection products. They are primarily focused on cooperation, but the farmers they work with are no longer referred to as cooperators but as business partners because they are large and reputable agricultural producers who achieve serious yields and notable results. They produce field crops on their own 500 hectares.

– In addition to cooperation, we are engaged in our own seed production, processing of seed crops, and providing services in the field of agriculture. We are probably the only company that exclusively does wholesale for companies and family farms. We have technologists who advise and train them, organize various presentations and lectures. Year after year, our partners show us increasing trust in all segments of business – explains director and board member Branimir Kopić.

They offer services in their own centers in Nijemci, Otok, Ivankovo, Bošnjaci, Drenovci, and Čajkovci, and seed processing is located in Bošnjaci.  They also fully own the company Meretine, which operates 400 hectares  mostly with seed products.

The largest part of their revenue, 70 to 80 percent, comes from trading in commercial goods, while 20 to 30 percent comes from raw materials.

– Last year, revenues increased by 17 percent, but profits were slightly weaker due to significant fluctuations in grain prices  – explains Kopić. 

They export 40 percent of their production, a third to Bosnia and Herzegovina, some to Italy and other European countries, and to Russia.

– My idea was to skip the middlemen and export directly. We would love to sell everything here, but Croatia has very little processing. We export raw materials, and then in the shopping center, we buy a roll baked from semi-frozen dough made from our wheat.  Three or four years ago, they ranked us among the top 10 exporters and invited us to come for an award, but I did not go  –   says our interlocutor.

Last year, they built a new facility in Ivankovo of 5,500 square meters, a multifunctional facility that can serve as both a floor silo and a warehouse, so we will significantly reduce the use of services from other companies.

Like other companies, Cezareja is burdened by the skyrocketing prices of energy and raw materials, which has led to market disruptions, difficulties in procurement, and a chain increase in the prices of other goods, but our interlocutor believes that this is unsustainable in the long term.

–  It was a bit tense with the delivery of fertilizers, but we managed to procure everything on time. It is very inconvenient to work in times of sudden price changes. If you buy stock today, it may have much less value tomorrow; if you sell in advance, the price may rise. It is not good to buy and have, nor to sell and not have. In the end, prices will have to be corrected sooner or later. You just have to survive until then – concludes Kopić.

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