More efficient machinery helps Graničar agricultural cooperative fight climate change

As much as it is mankind’s main source of food, agriculture is also a major contributor to global warming. It is responsible for 17% of greenhouse (GHG) emissions directly, through agricultural activities, and 7-14% through land-use changes, according to estimates by the Organization for Economic Co-operation and Development (OECD).

Switching to modern, more efficient agricultural equipment is one of the solutions that can help mitigate agriculture’s footprint and fight climate change, by reducing CO2 emissions from fossil fuels used in farm machinery. These emissions, along with nitrogen oxides and methane released from soil, fertilizers, animals, and crops, contribute significantly to global warming.

86% of tractors used by agricultural households in Serbia are more than 20 years old

Modernizing farm machinery fleets is particularly important in countries such as Serbia, where as much as 86% of tractors used by agricultural households are more than 20 years old. Besides reducing CO2 emissions, more efficient farm machinery also allows agricultural producers to lower fuel and energy costs and improve financial performance.

Agricultural cooperative Graničar invests in high-performance tractors

A step in this direction has recently been taken by agricultural cooperative Graničar from Šid, which has invested in four new high-performance tractors. The procurement is financed by GEFF Serbia Leasing through its local partner institution UniCredit Leasing Srbija.

The investment helps Graničar save EUR 20,400 on fuel annually

The four new Basak tractors reduce CO2 emissions by 62 tons a year while cutting Graničar’s primary energy consumption (diesel fuel) by 256 MWh, saving EUR 20,400 annually.

The tractors were chosen from Green Technology Selector, the European Bank for Reconstruction and Development’s (EBRD) global platform containing lists of high-performance and green technologies adapted to specific countries and markets.

For efficient agricultural production, it is imperative to modernize equipment and machinery regularly, said Janjko Nikolić, the cooperative’s director, adding that Graničar invested EUR 1 million for this purpose in 2020.

“Next year we plan to construct a cold storage system, to expand our apple export business to Russia and other markets,” Nikolić said.

Founded in 1990, Graničar owns 2,300 hectares of arable land in the Srem District of Vojvodina. The cooperative mainly grows apples, corn, soybeans, sugar beets, oilseed rape, and oilseed sunflower.

The GEFF Serbia Leasing was developed by the EBRD and is supported by the Green Climate Fund and the Government of Luxembourg.