The European Bank for Reconstruction and Development (EBRD) announced it has completed its first commitment within the agribusiness space in Greece.
The transaction was part of a €40 million (US$42.6 million) bond loan facility that included Alpha Bank, Eurobank, and National Bank of Greece in which the EBRD provided €10 million (US$10.6 million) in long-term financing to a leading Greek flour milling company, Loulis Mills.
Listed on the Athens stock exchange, Loulis Mills dates to 1782 and controls two state of the art production plants in Sourpi and Keratsini where it produces more than 120 varieties of flour, runs a highly-equipped chemical laboratory, and a pilot bakery according to the company website. This capacity has launched the company to become leader of the Greek flour industry in regard to milling, sales, and technology.
This action by the EBRD marks not only the first agribusiness deal sealed within Greece, but also the completion of a successful first year supporting Greece’s industries.
“This transaction is not only our first investment in the Greek agribusiness sector, but also the transaction that closes a very successful first full year of the EBRD’s operations in Greece, having signed some €800 million transactions to date,” said Sabina Dziurman, EBRD Director, Greece and Cyprus. “The EBRD will continue to remain active in Greece and boost its efforts to support the Greek corporate sector in cooperation with local commercial banks and through mobilising [sic] other co-financiers.”
The EBRD began investing in Greece in 2015 with the goal of supporting the country’s economic recovery through strengthening the country’s private companies, developing its infrastructure, and promoting regional integration.
“We are happy to provide direct support alongside local commercial banks and enhance the resilience of the Greek private sector at this challenging time for the country,” said Gilles Mettetal, EBRD Director, Agribusiness. “Greece has many good private companies and for them to thrive they need access to finance.”
More Mediterranean
Greece’s Ministry of Rural Development and Food notes that the economic crisis weathered by the country only served to highlight the importance of the agriculture and agribusiness industries as a viable means to fiscal recovery and path to revenue.
Toward this end, the country is aiming to boost productivity and competitiveness through the implementation of reforms to the Common Agricultural Policy. In addition, the country’s Rural Development Program is currently funded with €4 billion through 2020 to fund the promotion of research, the dissemination of innovation, and the creation of a positive market for the country’s agricultural producers.
On the buyer side, consumer trends that have been consistently driving demand for cleaner, healthier, more transparent food choices plays right into the hands of Greek cuisine and food production.
Lorenzo Boni, executive chef with Barilla America, states that factors of the traditional Mediterranean diet including the use of herbs instead of salt for flavoring, high content of fish, chicken, fruits and vegetables, grains, legumes and nuts, and a concentrated use of olive oil all align with the latest trends by consumers who are seeking to make healthier choices in their diets.
As Greece’s agriculture sector recovers and begins to secure higher levels of investment, its reach beyond the country’s borders could be the key to growth. The backing of the scientific community, willingness by industry, and the momentum of the public are coalescing to create a fertile market for the Mediterranean diet in the U.S., according to Oldways, the non-profit behind the Whole Grains Stamp, reports Food Navigator.
Oldways has undertaken a program involving raising awareness about the health benefits of a Mediterranean diet along with a stamp designed to alert consumers that a certain product falls within the Mediterranean catalog of foods. The group feels that these initiatives will foster a lasting culinary trend that will create a new path of growth within the U.S. market.
“The new scientific evidence is there,” said Dun Gifford, president of Oldways, told Food Navigator. “The second step is to communicate this evidence to consumers, and the third step involves connecting the science with specific foods.”
-Lynda Kiernan
Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration please contact Ms. Kiernan at lkiernan@globalaginvesting.com