Enhanced aid for the Serbian stone crusher
In a significant development for the Serbian agribusiness sector, the European Bank for Reconstruction and Development (EBRD) has announced a partnership with Victoria Group's Mladost-Sid, an edible oil processing company. This collaboration marks the EBRD's continued support for local businesses, particularly in the agribusiness sector, across Eastern Europe and beyond.
The EBRD's innovative financing strategy for Mladost-Sid is designed to boost the company's growth and competitiveness, while also having a positive impact on the local economy. Key elements of this strategy include:
1. Sustainable Practices: The EBRD focuses on projects that incorporate environmentally friendly production methods, energy-efficient technologies, and improved supply chain management.
2. Local Economic Impact: Loans are structured to support small-scale farmers and enhance the local food industry's competitiveness.
3. Innovation and Technology: Financing encourages the adoption of new technologies or innovative processes to improve efficiency and competitiveness in the agribusiness sector.
4. Access to Markets: The EBRD may help companies like Mladost-Sid access new markets or expand their existing market reach.
5. SME Support: The EBRD provides specific support tailored to the needs of Small and Medium Enterprises (SMEs), such as training programs and advice on best practices.
The partnership with the EBRD is expected to bring several benefits to Mladost-Sid. These include increased efficiency through upgraded production facilities and processes, market expansion leading to increased sales and revenue, and improved sustainability through the adoption of sustainable practices.
The project also aims to expand Mladost's cooperation with oilseed growers in Serbia. Sojaprotein, the largest producer of soybeans in southeast Europe and a majority owner of Mladost, has the largest Soya collection network in Serbia. Since the acquisition of Mladost in 2001, Sojaprotein's oilseed crushing capacity has doubled from 100,000 tonnes to 200,000 tonnes.
The loan provided under the EBRD Agriculture Commodity Financing Programme (ACFP) will be used by Mladost-Sid to buy more sunflower seeds for increased production of crude sunflower oil and sunflower meal. The project is expected to create local and global markets for Mladost's sunflower products.
Gilles Mettetal, director of agribusiness at the EBRD, considers this project important, as it demonstrates innovative ways to give local businesses access to finance. The €10mn loan to Mladost-Sid is part of the EBRD's commitment to supporting the growth and competitiveness of local businesses in Serbia.
The innovative financing strategy by the EBRD for Mladost-Sid is intended to boost its growth and competitiveness in the agribusiness sector of Serbia. This initiative aims to help the company grow through access to new markets, adoption of sustainable practices, and improved efficiency in production. Moreover, this partnership with the EBRD is expected to contribute to the development of the local economy by fostering the growth and competitiveness of other emerging markets within the industry, particularly small-scale farmers and the food industry in the region.
