€7.25 million loan to boost production and launch new products
The European Bank for Reconstruction and Development (EBRD) is supporting Serbia’s Farmina Pet Foods with a €7.25 million loan to support the company’s expansion.
Farmina Pet Foods will invest a total of €14.5 million into an expansion programme, which will also include the launch of a new product line. Plans include an increased production of dry pet food as well as the introduction of a wet food production plant. As part of the investment project the Farmina will source needed raw materials from local farmers.
The EBRD loan will be complemented by a loan of the same amount provided by Societe Generale Bank Serbia.
Farmina Pet Foods is the part of the Farmina Group which operates in more than 50 countries worldwide. It was established in 2006 in Serbia and started with dry pet food production in 2010, which now produces pet foods not only for Serbia and other regional markets, but also exports outside the region. The company focuses on premium quality products and seeks to enhance presence on the existing and expand to new markets.
Miljan Zdrale, EBRD Agribusiness Head for South-Eastern Europe said: “By supporting this investment the EBRD promotes foreign direct investment in Serbia’s agribusiness sector and local producers, as well increases strengthening of the private sector’s competitiveness. Farmina will source raw materials for its first ever wet food plant from Serbian farmers. Agribusiness value chains are one of the key elements of EBRD strategy in Serbia.”
“This new cooperation with the EBRD is very important for our company. We’re pleased to have such a strong partner and take it as a confirmation for the strength of our company. We see our partnerships with the EBRD as a milestone for the expansion of our operations”, added Gabriele Vecchi, Group Chief Financial Officer.
Since the start of its operations in Serbia, the EBRD has invested around €4.4 billion in over 200 projects across the country. The Bank invests in many sectors of the economy to support private sector development and regional integration.