January 20, 2021

By Lynda Kiernan, Global AgInvesting Media

IDeA Agro Fund, the first private equity fund in Italy focusing on investment opportunities in agricultural businesses, has announced its final close at EUR110 million (US$133.5 million).

Since its launch in 2018, and working with advisory company Ettore Fieramosca, IDeA Agro has deployed capital across seven deals with the potential to strengthen Italy’s agricultural industries and supply chains including: walnuts in Romagna, hazelnuts in Piedmont, intensive olive groves in Lazio and Tuscany with the Buccelletti family, biodynamic and organic seedless grapes in Puglia, chestnuts in Irpinia with the Ingino family, and a producer of healthy frozen meals that uses locally grown vegetables in Calabrian Gias.

“We are really proud of the work done up to now, which makes IDeA Agro the most important private equity fund, specialized in companies operating in the agricultural sector,” said Pier Felice Murtas, managing director, IDeA Agro Fund.

Adding to these endeavors, IDeA Agro has partnered with Agrintesa Cooperativa Agricola to undertake the development of approximately 100 hectares of land in the province of Latina in Italy to be planted in Zespri’s (Gold 3 variety) SunGold kiwifruit.

Under the terms of the agreement, the owners of the land have agreed to allow for the management of an additional 60 hectares that will be partially converted for the construction of a new plant.

“I am very happy to announce, together with the launch of this ambitious project that sees us as partners with a leading operator in the Italian fruit and vegetable world…,” said Murtas.

Agrintesa, which is one of the four Italian licensees of New Zealand-based Zespri, a leading global marketer of kiwifruit and the owner of the genetics and patent rights to the Gold 3 variety, will act as an operational partner in the deal, with a 10 percent stake in the specifically established vehicle, Agro Gold.

Multiple factors contributed to the decision by the partners to undertake a development project for SunGold yellow kiwi in Italy. Not only is the country the most suited and largest producer of kiwifruit in Europe, but this particular variety is higher yielding than Hayward green kiwifruit and fetches a higher price.

Additionally, being a producer of a kiwi variety produced under license in the country that is Europe’s top producer, the crop harvested will be aligned with demand and growth trends driving the market, according to the partners. 

“We are proud to have been involved and to participate in the development of this important and ambitious kiwi cultivation,” said Cristian Moretti, general manager, Agrintesa. “Thanks to the know-how achieved by our professionals, we will support Agro Gold, which is associated with our cooperative, during all stages of cultivation. To date, the production and economic results achieved on the variety are very positive and we believe that they can remain satisfactory in the future too.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.