The Danish agricultural industry may be experiencing hard times domestically, but a new initiative intends to increase the export of Danish agricultural technology and know-how for the benefit of developing countries.
The Foreign Ministry and the pension funds PensionDanmark and PKA are investing 700 million kroner in the new Danish Agribusiness Fund.
Exporting Danish efficiency
Kristian Jensen, the foreign minister, explained that the project will combine furthering Danish commercial interests and development goals.
“Danish agricultural and food companies are among the most efficient in the world. Consequently, these companies can help to increase the production of much-needed food in developing countries,” he said.
“However, there is a need for risk capital if the potential is to be realised. That is exactly what the new fund will contribute to. Accordingly, this initiative is in line with the global UN goal to increase private investment in the agricultural and food sector in developing countries.”
The 700 million kroner of investments comes from development aid (88 million kroner), the Investment Fund for Developing Countries (212 million kroner) and from PensionDanmark and PKA (200 million kroner each).
The expectation is that the funds will generate investments of nearly 6 billion kroner in improving production, distribution and food sales in developing countries.