- EBRD working capital loan of €30 million to Scandagra Group
- Funds to support green agricultural practices in the Baltic states
- Organic production for greater efficiency, reduction of CO2 emissions
In a significant contribution to green agribusiness in the Baltic states, the European Bank for Reconstruction and Development (EBRD) is providing Scandagra Group with a loan of up to €30 million for its long-term working capital needs.
The EBRD financing will be used mainly to support Scandagra, an agribusiness trader and commodities supplier to more than 1,000 farming estates in Estonia, Latvia and Lithuania, in its plans to promote and expand environmentally friendly and sustainable agriculture in the Baltic states. Some of the funds will help Scandagra procure organic crops from Moldova and Ukraine.
Growing demand for locally produced organic crops will stimulate a further shift from a conventional to organic use of land. The Bank’s loan will contribute to the European Union’s Farm to Fork strategy, which aims to make 25 per cent of the EU’s arable land organic by 2030.
As part of the project, Scandagra will be implementing a monitoring, reporting and verification system, which will help the company and associated farmers monitor and control greenhouse gas emissions.
Food production and processing are important contributors to the Baltic states’ GDP. By encouraging more organic production, the EBRD and Scandagra are improving the competitiveness and sustainability of the region’s agriculture. This project is supported with donor funds provided by the TaiwanBusiness- EBRD Technical Cooperation Fund via the EBRD Green Innovation Programme.
The funds are used to provide training of staff on emerging practices and innovative technologies in organic and sustainable agriculture, such as the use of bio-residues.
To date, the EBRD has invested more than €2.8 billion through 304 projects in the Baltic states.