IFC lends USD 60 M to U.S. Smithfield Foods for expansion plans in Romania

Smithfield Romania, a leading pork producer and processor, gets a loan of USD 60 million from World Bank’s IFC – International Finance Corporation. The financial institution is supporting the U.S. company’s plans to expand its farms and processing facilities in Romania, a press release informs.

Also, the investment will promote employment in the agribusiness sector and the spread of environmental, food safety, and animal husbandry best practices in Romania.

“Pork accounts for half of all protein consumption in Romania and demand for pork remains strong, domestically and internationally. We are committed to meeting this demand with the highest performance standards for environment and social responsibility, including animal welfare,” said Dariusz Nowakowski President of Smithfield Europe.

Smithfield Romania, which adheres to U.S. and E.U. standards for environment, health and safety has operations that cover pig production, feed milling, marketing, distribution and sales, allowing the company to trace its products from livestock to consumption.

45 percent of Romanian citizens live in rural areas and over one-fourth are employed by agribusinesses. Although the country has arable land and water resources, it could be producing much more food. Developing Romania’s agribusiness sector is a priority for the World Bank Group’s partnership strategy with Romania.

“Romania’s agribusiness sector holds great potential for generating employment and improving food security in the country and beyond,” said Alzbeta Klein, IFC Director for Manufacturing, Agribusiness and Services. “IFC is investing in industry leaders who are transferring higher standards, improving efficiency, and helping Romania contribute to global food security.”

In 2014, IFC made USD 4 billion of agribusiness-related investments across the supply chain.