CDP and BCC Iccrea Group: new supply chain contract for the fruit and vegetable sector

CDP and BCC Iccrea Group: new supply chain contract for the fruit and vegetable sector

The agreement, valued at 49.5 million euro, comprises four loans to four organisations connected with the supply chain of Orogel, the leading national producer of frozen fresh vegetables in Italy

The operation comes under the 5th Supply Chain Contracts Procurement Notice managed by the Italian Ministry of Agriculture, Food Sovereignty and Forests (MASAF)
 

Contribute to the growth of the agrifood industry by supporting businesses in the fruit and vegetable sector. This is the main objective of the new Supply Chain Contract supported by Cassa Depositi e Prestiti and the BCC Iccrea Group for the benefit of the Orogel, the leading national producer of frozen fresh vegetables in Italy. The operation comes under the 5th Supply Chain Contracts Procurement Notice managed by the Italian Ministry of Agriculture, Food Sovereignty and Forests (MASAF).

The investment programme, entitled “Sustainability and development of the integrated Fruit and Vegetable Supply Chain in Veneto, Emilia Romagna and Basilicata”, is valued at 49.5 million euro and involves support for four organisations in the Orogel supply chain, including the Arpor, Apora and Vitroplant cooperatives of Policoro, Rovigo and Cesena respectively. As well as the financial resources, the agreement also includes a Research & Development programme aimed at improving the environmental sustainability of the supply chain.

The loans granted by the BCC Iccrea Group amount to a total of 15.4 million euro, the same value as the subsidised loans issued by Cassa Depositi e Prestiti, and are also joined by the contribution of around 20 million euro in capital grants by MASAF using the funds of the PNC (“Complementary National Plan”). 

The entire operation is aimed at supporting the development of the production, packaging and storage systems of the Orogel supply chain and making a big impact in terms of ESG factors.

The Orogel supply chain currently comprises a production base of almost 10,000 farmed hectares, with a total of 2000 employees and 11 production sites distributed across Italy, plus 14 collection centres that use 49 distribution platforms. Elements that make Orogel the leading national producer of frozen fresh vegetables and the second biggest company in the frozen products market.

Bruno Piraccini, Chairman of Orogel, concluded by saying, “Our goal has always been to promote the work of agricultural producers and build a strong and sustainable supply chain. This project is an important step that will allow us to strengthen our production capacity and continue investing in innovation and research for the benefit of the entire supply chain.”
Alessia Valentinetti, Head of Subsidised Financial instruments at CDP, commented: “This agreement is an important step for the growth and sustainability of the Italian agrifood sector. We are proud to support businesses like Orogel and to contribute to the development of projects focused on innovation and respect for ESG criteria. Finally, we believe that the combined use of public and private funds can act as a key lever in generating value right along the supply chain with positive impacts also on the areas where these organisations are present.”