IFC, a member of the World Bank Group, is lending €12 million to Italian farm equipment producer SAME DEUTZ-FAHR (SDF) to support agribusiness development in Croatia and throughout Eastern Europe.

IFC’s loan to SDF Croatia will help increase production capacity, boost income for farmers, and develop small businesses. SDF’s plant in Croatia is located in Zupanja, a less-developed region whose economy depends on agriculture.  

SDF acquired the plant in Croatia as part of a post-privatization restructuring process in 2005. Since then, SDF has modernized the plant’s operations, consolidated its on-site production of harvest combines, and introduced new products. The facility is now one of SDF’s main production plants.

“Development in emerging nations, where agriculture is the linchpin of social and economic progress, is a key goal for SDF,” said Lodovico Bussolati, SDF’s Chief Executive Officer.

Agribusiness accounts for 10 percent of Croatia’s GDP. A period of adjustment in the 1990s, however, drastically decreased the sector’s output. Investments in agribusiness will help increase the industry’s production and competitiveness.

“Increased mechanization of agriculture in Croatia is expected to lead to higher farmer income and the development of smaller businesses that provide spare parts and maintenance services for  farm equipment,” said Tomasz Telma, IFC Director for Europe and Central Asia. “We also hope that our investment will lead to increasing farm productivity and higher agricultural exports from Croatia.”

 

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