1. EBRD Agribusiness Activities in Serbia
Joe E. Colombano
European Bank for
Reconstruction and Development
Rome, 1 March 2005

2. EBRD Agribusiness Activities in Serbia
Transition challenges in the sector
EBRD’s objectives
Strategic priorities in Serbia
Recent projects

3. Transition challenges in the sector
Slow pace of reforms
Marginal direct investment targeted at primary agriculture
Incomplete restructuring of former State owned food processing companies
Enormous financing needs, both for seasonal working capital and for long-term investments

4. Key Transition Objectives
Promote market expansion (backward linkages and forward linkages)
Increase competition and stimulate efficiency
Allow the transfer and dispersion of skills
Demonstrate ways of successful restructuring
Demonstrate new ways and instruments to finance activities in the agribusiness SME sector
Set new standards of corporate governance
Develop frameworks for markets

5. Strategic priorities in Serbia
Finance expansion of food processing companies
Provide long-term financing to strategic investors in retail market
Provide commodity-based financing to well-performing local agribusiness companies (WHRs Programme)
Collaborate with local banks to promote lending to agribusiness SMEs

6. Selected investments in Serbia and Montenegro (fresh&co.)
EUR 12.5 m equity investment
One of the prominent local companies
Works extensively with local farmers
Procures large quantities of fruits over 20k t of fruits in 2004
Ever growing demand for quality fruits

7. Selected investments in Serbia and Montenegro (Frikom)
EUR 13.1m long-term debt facility
One of the good examples of regional expansion of key local players
Works with both milk producers and vegetable growers
Supports local farmers - increased demand of quality inputs including vegetables and milk

8. Selected Investments in Serbia and Montenegro (Grand Coffee)
Local entrepreneur with successful track record
Serbia and Montenegro's largest coffee company
€7 million debt to finance domestic and regional expansion (Bosnia)

9. EBRD portfolio in Serbia
Total €585m (August 2004)