January 11, 2016

PensionDenmark and PKA have partnered with the government of Denmark and the Investment Fund for Developing Countries (IFU) to launch the newly formed Danish Agribusiness Fund (DAF), designed to improve agricultural production in developing countries.

Torben Möger Pedersen, CEO of PensionDanmark, told ai-cio.com that the new fund was “a good example of how public and private capital can work together to address global societal challenges…” 

Each of the pension funds has committed DKK 200 million (US$29 million) to the 700 million kroner (US$101.85 million) agri-focused fund, which is targeting raising an additional DKK 100 million (US$14.5 million) prior to a second closing, according to reports by ai-cio.com.

The fund will invest along the entire supply chain, from “farm to fork” across Asia, Latin America, Africa, and certain points across Europe, including Danish commercial ventures.

“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,” said Kristian Jensen, the Danish Minster for Foreign Affairs and Deputy Prime Minister, reports Online Post. “However, there is a need for risk capital if the potential is to be realized [sic]. 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 Danish Agribusiness Fund will be managed by the IFU which oversees 1,200 investments in more than 100 developing countries in Asia, Africa, Latin America and Europe. The funds are expected to spark investments totaling approximately DKK 6 billion (US$875 million) resulting in better food production, distribution, and sales in these emerging markets, according to BT.