ZRNO – They have proven that it is possible to achieve good business results without soil cultivation and mechanization

As the crown of their previous work, the announcement came a week ago that David Pejić, the director of Zrno, the oldest Croatian ecological farm, was named the best ecological farmer in the European Union. He won the European Commission award in Brussels in a competition held for the first time. He was the only eco-farmer from Croatia to even enter the selection and then win in the finals of the ‘EU Organic Awards’ among two hundred registered projects in eight categories from 26 EU member states.

In thirty years of existence of the eco-farm in the municipality of Dubrava in Zagreb County, many boundaries have been successfully pushed, and they continue to be pushed. Pejić applies the no till/no dig agricultural technique on the farm, which means cultivation without soil processing in the largest bio-intensive garden in Croatia and the neighborhood, and he has opened Zrno bio bistro in Zagreb, the first and only certified eco-restaurant in Croatia.

Importance of Innovations

For Pejić, the award is certainly a sign of recognition for the work and innovation of the eco-farm Zrno (spanning 22 hectares), which he has led for six years and which possesses 150 certified organic products. He believes that in circumstances where we are still realizing all the negative effects of conventional, chemical agriculture on the environment, organic agriculture provides a unique opportunity. He is convinced that organic agriculture is a tool that can improve the quality of life, but also ensure it for generations to come.

– As farmers, organic agriculture allows us to protect our soil, as consumers to preserve health, and as a society to develop without endangering ecosystems. Innovations in production enable us to create products that are practically unique in their category, such as our certified organic gluten-free sourdough bread. In recent years, the innovation that has yielded the most results and attracted the most attention is the establishment of the largest no-till/no-dig bio-intensive garden in the region. This is a new approach to organic gardening that, on small areas, without the use of machinery, yields exceptionally good results and thus represents the future of development for small farmers who struggle to access larger areas. We are exclusively present in the Croatian market, except for occasional exports of surplus agricultural crops. In our production system, we have complete control over the input raw materials and the final product because the entire production cycle is on our farm. Our goal has always been to offer products marked and defined by these unique circumstances. We also strive to be aware and increasingly develop our role in educating and promoting organic production – explains Pejić.

Own Sales Channels

The history of the eco-farm Zrno from Habjanovac begins in the late 80s when it was initiated by Zlata Nanić, a pioneer of organic farming and healthy lifestyles in these areas. In this regard, she was very close in vision and partnership with the parents of David Pejić: Jadranka Boban Pejić and Zlatko Pejić, who received a UN award as an environmental activist 30 years ago. In 2010, Zlata Nanić sold Zrno, or Bio-zrno d.o.o., to the Pejić spouses, and it became part of the business ecosystem of the Pejić family, which includes the company Biovega, the publishing house Planetopija, and the educational institution Makronova.

– The acquisition of Bio-zrno was financed from the operations of Biovega, but Biovega itself was ‘self-raised’ in the early 90s from initial educational activities and activism that conditioned the further development of business activities. At that time, organic products and whole foods were unavailable, and it was necessary to organize basic trading processes and activities so that people could access products whose use was recommended through educational programs. Biovega is part of our business family and the most important partner of Zrno. It supplies us with organic raw materials that cannot be grown with our own capacities, and Bio-zrno markets its products exclusively through Biovega, or its retail chain of 17 eco-product stores bio&bio. The existence of our own retail channel has allowed Zrno’s products unique positioning and presence in the customer experience. Additionally, the production model of Bio-zrno, where the primary agricultural product is used in several further, own operations, has enabled a high level of control and utilization of any surpluses or different classes of agricultural crops. In this sense, the market penetration of Zrno’s products is complementary to the growth of the bio&bio retail network and meets its needs – states Pejić.

Four Production Units

Organic farming has always been a defining characteristic and part of the code of Zrno, says Pejić, and initially, the principles of organic farming were something that was routinely belittled. Today, Pejić has no doubt that the direction and practice of organic farming is the future direction of agricultural development. According to him, the price and effects of conventional, or chemical agriculture on the environment and individual health are extremely significant, and change is necessary, which is also recognized by EU action plans that prioritize the development and expansion of organic agriculture. The breakthrough of ecological awareness is also evident from Zrno’s revenues, which amounted to 9.1 million kuna in 2021 and have averaged a growth of 10 percent over the past seven years. This year, it is on track to achieve a growth of about five percent with 40 employees.

– Bio-zrno has four production facilities, or units. In primary agricultural production, we grow about 60 crops, mostly vegetables: salads, root, fruit, or leafy vegetables. In processing, we use these agricultural crops for a series of unique processed products, mainly naturally fermented products such as pickled daikon (Japanese white radish) and sunchoke (from the family Asteraceae; tuberous sunflower, wild sweet potato). Then, through bakery production, we offer a total of 52 products from sourdough bread and pastry products to ready-made sandwiches and salads. Finally, in hospitality and the bio bistro Zrno, we combine all previous production lines into original dishes and gastro offerings – lists Pejić.

Pejić faced difficulties due to starting production in a rural area with limited infrastructure.

Unpredictable Agriculture

Moreover, he emphasizes that organic agriculture is demanding, just like agriculture in general, and the results are at least partially unpredictable. This is a certain level of risk that Pejić needs to factor into planning, which is particularly important for Zrno, where one production process flows into another, so any deficiency is felt throughout the entire chain. The problem of awareness and trust in the market of eco-products, where Pejić notices a significant degree of greenwashing (eco-manipulation, misleading the public about the ecological responsibility of companies and states), represents a complicating circumstance as it devalues the efforts of those who work authentically.

– The corona crisis has strongly affected our business, primarily the bistro. We adapted by introducing cooperation with delivery services, which have permanently changed the habits of guests, or customers, and now represent an important channel. Additionally, the corona crisis also had an effect on the performance of the bakery assortment, which has recovered over time. But we are always working on developing new and improving existing products to fully utilize the connection and interaction of our various production facilities. The new production facilities we plan will certainly enable us faster growth and expansion of the assortment, as well as a more reliable production cycle. Once we realize this, we plan further investments in education and tourism, or the potential of the eco-farm Zrno as a central point of ecological production in Croatia – expects Pejić.

Macro Plate for Eco-Gourmets

In addition to direct payments for agricultural production, Pejić says that Zrno has utilized a small loan from HAMAG BICRO for rural development and a covid loan during the crisis. It also uses de minimis support (small value subsidies) from Zagreb County based on public calls for the development of agricultural production. Recently, an investment was completed through the rural development program for a solar power plant, Pejić noted, and aside from this investment in renewable energy sources, Zrno has not significantly utilized funds from the rural development program tenders so far. They are currently working on a project for new production facilities, which they plan to apply for tenders in the future. Meanwhile, the attendance and business of the bio bistro Zrno have been continuously growing since 2015, and Pejić emphasizes that guests have recognized the unique quality of the bistro and its ‘from field to table’ approach combined with the ecologically certified offer. The bio bistro is the only hospitality facility in Croatia with an Eco gastro certificate, which guarantees a 100 percent share of organic ingredients.

– For now, we do not plan to open more bistros, primarily because the logistics of supplying the hospitality facility with our own ingredients is extremely demanding. The goal is to continuously improve the quality of the existing bistro, which, for example, offers a macro plate as a sort of daily special. It is a balanced mix of different categories of plant ingredients that adapts to the seasons and seasonal offerings from the Zrno farm. Among other dishes, we can highlight the Kaya sandwich made from our own sourdough bread, Breaded tofu, which we make from our own soy, Cordon Bleu, for which we make seitan ourselves, and many other whole dishes that are prepared ‘from scratch’ every day, ensuring freshness and a unique experience – emphasized Pejić.