Interview with Richard Vattay, CEO, Water&Soil, Hungary

28 Apr Interview with Richard Vattay, CEO, Water&Soil, Hungary

The Water Retainer is the flagship project of your company. Could you tell us about your company’s growth over the past 10 years, its current structure and key focus?

We launched the Water Retainer in Hungary and then expanded into export markets in our second year. The agricultural sector is quite conservative, so gaining farmers’ trust took time. For instance, in Morocco, a farmer tested the product on one hectare of his 20-hectare apricot farm in the first year and by year three, he used it on the entire field. Building trust through testing and demonstrations took years, but he’s now a regular customer. We focus on educating people and building relationships to foster long-term success.

The Water Retainer reduces evaporation loss from soil. When Water Retainer is applied, tiny hygroscopic droplets absorb vapor, transforming it back into liquid water that is retained in the soil, making it available to plant roots. This simple yet effective process helps save 40-50% of water that would otherwise evaporate, which is a significant amount. For example, if used across Egypt’s farmland, it could conserve enough fresh water to support 75% of the population. The product organically degrades without any remedies and complies with EU organic farming standards. We’re also proud that the FAO has included it in their official publications.

Is your company focusing on specific markets like Hungary, or are you aiming to expand into new ones?

We are present in Hungary even though our country hasn’t suffered from water scarcity in the past. We are actively targeting new countries and their markets. Those ones where water scarcity is a big problem in Africa, Asia or the American continent. We are glad that some of our distributors started to implement our idea to introduce the Water Retainer to agricultural schools. It is always good if the young generation knowsabout new and sustainable technologies. They will also bring home to their parents the good news.

Our goal is to reach as many countries as possible. With the right financial support, we can boost sales. We have distribution in Kazakhstan and the product is registered in Azerbaijan and Turkey. We also have a distributor in Iraq and the product is well-tested in Egypt. We’re looking for strong partners in Egypt and have distributors in Tunisia, Algeria, Morocco, Kenya, Peru and developing in Ghana.

The product is registered and ready for launch in South Africa. In Europe, we’re present in Greece, Romania, Poland, Albania, Croatia and Hungary. We are conducting tests in the US, where the results have been very promising and the same applies to Chile.

What’s your stance towards potential investors and partners? Do you work through subsidiaries, or do you directly export?

We work with distributors in various countries who have established sales networks, which is crucial since selling to farmers relies heavily on trust. We are open to inviting investors to help expand the product into more countries, as additional financing is essential for growth.

The product is used at 10-20 liters per hectare, so large volumes need to be delivered, for example from Hungary to Morocco. Licensing production to local manufacturers can reduce transportation costs and CO2 emissions. Governments must also address water scarcity: while they may subsidize seeds and fertilizers, without sufficient water, farmers can’t fully use these resources. The Water Retainer can save up to 30% of irrigation water, increasing irrigated land by 42%. With shrinking agricultural land, improving water usage presents significant potential to boost food production.

We are open to collaborating with private partners, governments and NGOs, as they can help spread awareness and knowledge, allowing local businesses to take over and grow. We focus on using soil humidity sensors in modern irrigation systems to optimize water usage. By reducing evaporation, we’ve observed immediate savings in water use. We believe in integrating digital platforms to showcase our work and its benefits to agriculture.

How do you see the potential of the Hungarian agricultural sector, considering its geopolitical location and opportunities in the sector?

Hungary has excellent soil quality, which allows us to produce a wide range of crops suited to our climate. However, due to climate change, the drought situation is worsening. The Ministry of Agriculture acknowledges this and suggests we must adapt. For example, we may need to reduce wheat production and focus more on fruits and other crops, while still maintaining enough wheat for domestic consumption.

Irrigation in Hungary has been very limited, with only about 2% of agricultural land irrigated some years ago. The government is now working to increase the area of irrigated land, particularly in regions facing drought. In the 19th century, efforts to control the Tisza River altered natural water systems, but we plan to restore water reservoirs and recharge groundwater for irrigation.

Where do you see the company in the next five to 10 years and what steps are you taking?

We aim to attract investors to help us expand into new markets. Over the next five years, we plan to establish production in five to 10 countries, creating regional hubs for distribution. We’re particularly focused on establishing a strong presence in the US and China, which are significant markets.

Why should investors in agriculture partner with your company?

Hungary’s historical trade connections and its modern, favorable business environment make it an attractive location for investment. With a low 9% corporate tax rate and a 15% personal income tax, Hungary offers a competitive economic atmosphere. Our company, Water&Soil, is growing rapidly and investing in us means being part of this success. Agriculture relies on water and our product plays a critical role in improving agricultural efficiency globally.