The EIB is providing a €170 million loan in support of the Limagrain Group’s research and development (R&D) strategy in the area of seeds, the first link in the food chain. This EIB financing is guaranteed by the European Fund for Strategic Investments (EFSI).
Limagrain, via its holding company Vilmorin & Cie, will use these funds to support its efforts to research and develop field seeds and vegetable seeds with improved agricultural, food and environmental qualities.
The European Investment Bank announced today the signature of a €170 million loan agreement to finance Limagrain's R&D activities in the seeds sector. The EIB's support takes the form of a long-term loan guaranteed by EFSI. This operation is a first for the EIB in the seeds sector.
Limagrain is an agricultural cooperative owned by French farmers and the fourth-largest seed company in the world. For more than 50 years, science and research have been at the heart of the Group’s activity: in 2018-2019, Limagrain dedicated 15.9% (or €242 million) of its seed turnover to research.
This loan will thus contribute to Limagrain's overall programme of investment in research, via its holding company Vilmorin & Cie, centred specifically on improving the agricultural qualities (yield, resistance to disease and pests, adaptation to different climates and regions, drought tolerance, better absorption of nutrients, etc.) and the food and environmental qualities of field seeds and vegetable seeds.
“The EIB – the EU bank – is very proud to support the R&D activities of a European group that is one of the world's leading seed producers. This investment marks an important new phase in the EIB's promotion of a competitive agricultural sector in keeping with the best environmental standards”, said EIB Vice-President Ambroise Fayolle.
European Commissioner for Economy Paolo Gentiloni, stated: “The EU has committed to supporting research and innovation activities in the agricultural sector. By guaranteeing a €170 million loan to Limagrain, the Investment Plan enables Europe's leading seed producer to develop high-quality seed varieties that are more resistant and respectful of the environment.”
Limagrain CEO Damien Bourgarel said: “We aim to move agriculture forward to meet the numerous challenges it faces – in food of course, but also social and environmental challenges. The EU's backing, via this EIB loan, is recognition of the strategic role of seeds in the food chain and provides strong encouragement to develop innovative solutions for farmers.”
“At Limagrain, we believe that agriculture will first progress through plant improvement and that seeds are a concentration of solutions. The new varieties created as a result of our research preserve and enrich the genetic biodiversity of plant species”, added Valérie Mazza, Head of Scientific Affairs and Innovation at Limagrain.
About Limagrain
Limagrain is an agricultural cooperative owned by nearly 1 500 farmers in Limagne Val d’Allier (central France) and an international seed group with over 10 000 employees in 56 countries. The Group selects, produces and distributes field seeds, vegetable seeds and cereal products. Focused on the genetic progress of plants, it is driven by its purpose: cooperating to move agriculture forward everywhere, for everyone. Limagrain is the world’s fourth-largest seed company and through its well-known brands such as LG, Vilmorin, Hazera, Harris Moran, Jacquet and Brossard it generates turnover of €1 883 million, supplemented by €678 million in turnover from activities performed in conjunction with its strategic partners.