The European Investment Bank (EIB) said it is to lend French seed producer Limagrain €300 million “to accelerate the development of more productive and resilient crops.”
The loan represents one of the EIB’s largest financing operations in the agricultural sector in Europe.
“The goal is to reinforce Limagrain’s research and development programme led by the company’s subsidiary Vilmorin & Cie,” said the EIB.
“The R&D activities aim to develop innovative plant genetics to address major agricultural and food challenges.
“Research efforts will focus on improving the agronomic performance of crops – yield, resistance to diseases and pests, adaptation to climates and regions, drought tolerance and optimisation of nutrient use – as well as their nutritional and environmental qualities.
“By supporting Limagrain’s innovation drive, the EIB is strengthening the strategic role of seeds, the first link in the food chain and a key lever for more sustainable and independent agriculture in Europe.
“The loan is being made through the EIB’s TechEU programme and benefits from the InvestEU guarantee established by the European Commission to mobilise large-scale public and private investments in support of Europe’s strategic priorities.”
The loan is the second by the EIB to Limagrain, an agricultural cooperative that is the world’s fourth-largest seed company. Limagrain received an EIB loan of €170 million in 2020 to adapt its seeds to climate change.
EIB Vice-President Ambroise Fayolle said: “With this financing, we are supporting a strategic link in our food sovereignty.
“Innovating in plant genetics means giving farmers the means to face climate challenges by providing them with access to more resilient seeds.
“This project illustrates the ambition of our TechEU investment programme: strengthening Europe’s capacity for innovation in key sectors such as agriculture and bioeconomy.
“By supporting Limagrain’s research efforts with the backing of the European Union’s InvestEU guarantee, we are contributing to concrete solutions for the food security of Europeans and the resilience of regions.”
Limagrain chairman Sébastien Vidal said: “I would like to thank the EIB and Vice-President Ambroise Fayolle for providing this historic €300 million in financing and for the confidence they have shown in us.
“This support illustrates Europe’s commitment to seed innovation in the service of sustainable agricultural sovereignty. It also constitutes a strong political and strategic signal to restore food to its rightful place and value.”
Limagrain CEO Sébastien Chauffaut said: “The €300 million financing provided by the EIB to Limagrain reflects a strong conviction: Europe must invest in its agricultural sovereignty and its capacity for innovation. It recognises the relevance of our strategy – based on innovation, value creation, and responsibility – in serving farmers and local regions. Investing in agriculture and in plant innovation ultimately means investing in the stability, security and balance of the world to come.”