Regionalwert AG Bürgeraktiengesellschaft in der Region Freiburg Christian Hiß, founder and CEO of Regionalwert AG Topics for discussion decreasing number of farms – succession is a problem capital demand is high - earning power is low pressure to specialise – why diversity? different earning powers in value added chain Social an economic efforts are not widely recognised Practical approach Support entrepeneurship – easing of farm succession beyond family structures Fund-raising through public participation companies creating value added chains for equalisation of values Regarding social and ecological performance of farms as fiscal values Create specific accounting rules for agricultural companies Development of regional structures Regionalwert AG (RWAG) Bürgeraktiengesellschaft in der Region Freiburg CEO Company management Named by board of directors Board of directors Regulatory body Elected by stockholders meeting every 5 years Incorporation september 2006 4.469 shares Nominal capital 2,24 Mio. Euro 500 stockholders Stockholders` meeting Once in first 8 months of the year Regional value added chain 2013 Partnerunternehmen der Regionalwert AG service Research and development Die Agronauten e. V. Freiburg Regionalwert Immobilien- und Einrichtungs-, Vermietungs UG & Co. KG Eichstetten Regionalwert Dienstleistungs GmbH, accounting, Eichstetten Regionalwert Treuhand UG&Co.KG Eichstetten agriculture converting sale Market garden Feldmann Eichstetten Bio-Catering Maria Mocellin Freiburg Wholesale for natural food Bodan GmbH Überlingen Breitenwegerhof KG Livestock farming & cheese dairy Eichstetten TROKI Manufaktur, dry fruits, Breisach-Gündlingen Biohöfe-Frischekiste Regionalwert Lieferservice GmbH Freiburg Vineyard Andreas Dilger Freiburg Obstgut Siegel KG, fruitgrowing, Norsingen Bio-Gemüse Degen KG, market gardening, Donaueschingen Hof Gasswies livestock Zwergenküche GmbH Regionalwert Biomarkt, supermarket for natural food Breisach GmbH Breisach Regionalwert Biomarkt, super market for natural food, Waage GmbH Emmendingen Development of rural areas Two examples of financing regional entrepeneurship Joel Siegel - fruit-growing specialist - 32 years • Not originally an agriculturist – farm succession out of familiy • Succession march 2009 • 20 hectare LN > 14 hectare fruits • Conversion to organic farming • Own capital resources not sufficient • Financed by Regionalwert AG (silent partnership) • 2011 founding of Obstgut Siegel KG (limited partnership) • RWAG and others as partners liable to a fixed amount • Joel Siegel as general and management partner • Fast company build-up, no debt service Barbara Erb and Klaus Pleuler – CEO – 50 years old • Natural food super market for 20 years • Triplication of sales floor (500 qm) • Financed by Regionalwert AG • Founded as Regionalwert Biomarkt GmbH (limited liability partnership) • Doubling of sales • Interieur financed by Regionalwert Immo UG&Co.KG (affiliate of RWAG) Sustainability reporting • Indicators to catch social-ecological side effects > enhanced capital accounting • employment structure • wages • employee turnover • job quality • soil fertility (agriculture) • consumption of resources • biodiversity • Implementation of Eu – Bio regulation • distribution of value added • regional value adding • regional commitment • dialogue in value added chain benefits of a RWAG ? • connects cities with rural areas • some kind of New Local Deal as business purpose • creates regional independence of agriculture and food • creates regional value added chains • strengthens regional relationships • finances entrepeneurship by contribution of capital • goal is a profitable regional food independence • ergo: creates multiple benefits Transfer to other regions – Germany and Europe Regionalwert Treuhand UG&Co.KG (founded in 2011 as national holding company for germany) all RWAG are equal company members administrates trademark rights > is proprietor of trademark rights locates founders of RWAG in other regions offers services (marketing, legal counselling, financial counselling) for all company members founding and management counselling negotiates political solutions further development of RWAG concept RWAG´s pay royalties and counsel fees in the first three years after founding to holding Regionalwert AG Freiburg Regionalwert AG München Regionalwert AG nn Regionalwert AG nn regional company network regional company network regional company network regional company network