In a strategic move to strengthen its foothold in the organic fertilizer market, Yara, a global leader in crop nutrition solutions, has announced the acquisition of Agribios Italiana’s organic-based fertilizer business. This marks Yara’s second bolt-on acquisition supporting its organic strategy in Europe and underscores the company’s commitment to promoting regenerative agriculture and enhancing soil health.
The acquisition brings together Yara’s expansive scale and reach in Europe with Agribios’ expertise in high-quality organic-based fertilizers, particularly in Italy. The aim is to cater to the evolving needs of European farmers, regardless of their farming methods, and contribute to the European Union’s ambitious plan to increase farmland under organic cultivation.
Mónica Andrés Enríquez, Executive Vice-President for Europe at Yara, expressed enthusiasm about the acquisition, stating, “Soil health is the foundation for resilient crop production and sustainable farming. This acquisition reflects our commitment to preserve and further improve soil health, helping grow a nature-positive food future.”
The incorporation of Agribios into the Yara family is expected to maximize synergies between organic-based and mineral fertilizers. A comprehensive analysis of long-term fertilizer trials highlights that a combination of organic and mineral nutrient sources results in the highest soil organic matter content. This approach is integral to Yara’s regenerative agriculture offering, aiming to enhance soil health, improve resource use efficiency, and boost crops’ resilience to climate change.
Giovanni Ravagnan, CEO of Agribios Italiana, shared his excitement about joining forces with Yara, emphasizing the company’s role in supporting both organic and conventional farmers across Europe. Agribios, with a broad portfolio of organic-based fertilizers produced from animal and agricultural by-products, aligns with circular economy principles, contributing to reduced environmental impact.
Agribios, producing approximately 60,000 metric tons in 2022, holds a market share of around 10 percent of the organic-based fertilizer market in Italy. With this acquisition, Yara aims to strengthen its position in Italy, the second-largest organic-based fertilizer market in Europe. The company anticipates increasing sales in the organic-based fertilizer market in Italy and neighboring countries by approximately 30% within the next three years.
Yara’s well-established sales and distribution platform in Europe will enable the company to offer Agribios’ products to customers outside Italy. The move aligns with Yara’s broader strategy to grow its organic-based fertilizer business, building on its acquisition of Ecolan, a Finnish producer of organic-based fertilizers, in 2021.
The organic fertilizer market in Europe is gaining significance in promoting sustainable agriculture and contributing to the EU’s strategic autonomy. According to Kings Research, the market is expected to grow at a compounded annual growth rate (CAGR) of 11.53% from 2023 to 2030.
Yara remains committed to exploring innovative ways to provide tailor-made solutions adapted to local conditions, recognizing the variations in crops, raw material sources, and climate conditions across different European countries. The acquisition of Agribios Italiana represents a significant step forward in Yara’s pursuit of a more sustainable and resilient agricultural future for Europe.