Egypt’s frozen fruit and vegetable exporter Farm Fresh is set to build a factory in Alexandria using funding from the European Bank for Reconstruction and Development (EBRD) and the European Union (EU).
The plant will have high-tech production lines and feature machinery and equipment for sorting, blanching, freezing and packaging fruit and vegetables.
The financing package of €7.3m includes a €2.1m loan from the EBRD, a €0.3m grant from the EU, a €2m loan from Ahli Bank of Kuwait and €2.9m equity from its existing shareholders.
Upon completion of the facility, Farm Fresh expects to triple its production of frozen fruit and vegetables. The vast majority of the products will be exported to the EU and the US markets.
The investment is expected to support local farmer’s businesses, which provide all of the company’s fresh produce.
Founded in 1987, Farm Fresh is a family-owned company, which is engaged in the production and distribution of a wide range of products, including peas, spinach, sweet corn, green beans and strawberries.
The initiative is supported by the EU through an EBRD programme, which has been designed to strengthen value chains and competitiveness in SMEs in Egypt, as well as in Jordan, Morocco and Tunisia.
Additionally, Italy, through the Small Business Impact Fund, has provided an investment in order to support the company to implement a work-based learning programme and increase its capacity.
In January, EBRD agreed to provide a loan of $12.5m to Ukraine’s Nyva Pereyaslavschiny Grou for improving pig breeding practices.
