Press Release from 2023-01-10 / DEG
DEG: EUR 10.9 million for Peruvian vegetable and fruit producer
Financing for expansion of business operations
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, is providing a long-term loan totalling EUR 10.9 million to the Peruvian vegetable and fruit producer Virú S.A. The total volume of financing stands at EUR 32 million, with other European development finance institutions also participating via funds from the European Financing Partners (EFP). The funds are earmarked for expansion of its business operations. DEG has been advising and supporting Virú for many years. Already in 2013, DEG provided a long-term loan to the company.
With a cultivation area of more than 7,000 ha, Virú is one of Peru’s largest agricultural producers. Hundreds of smallholder families deliver their produce, such as white and green asparagus, artichokes, avocados and blueberries, to Virú, where they are, for example, processed into canned vegetables and exported to more than 40 countries worldwide.
Continuation of long-standing cooperation with Virú S.A.
Supporting the transformation of companies is a focus of DEG. In recent years, DEG, via its Business Support Services, has supported its customer Virú not only in dealing with the COVID-19 pandemic, but also in its transformation towards a more efficient and resource-saving production. Since Virú is operating in regions with relatively low precipitation, an efficient water and wastewater management is of particular importance. It thus uses modern drip irrigation systems to reduce water usage and has installed computer-based groundwater level monitoring tools.
Focus on climate and environmental goals
Monika Beck, DEG Management Board member, comments: “DEG's strategic orientation geared towards climate and impact is also reflected in the cooperation with long-standing customers such as Virú. The company stands for the protection of biodiversity and for the conscious use of resources. Together we are contributing to achieving the global environmental and sustainability goals."
Yoselyn Malamud, CEO Virú commented: “We are very happy to continue the path we started with DEG 10 years ago. We appreciate very much DEG´s support, it has helped us grow and develop in a sustainable way, giving the opportunity to generate employment. We hope we can continue to grow together.”
Virú has 12,000 employees, for whom it provides services such as health care, child care, social security and further training opportunities.
DEG also supports other Latin American companies with their transformation: For instance, it advises the dairy cooperative Dos Pinos from Costa Rica. After a thorough resource efficiency check an energy management system is being implemented and water efficiency measures are being introduced on site, among other things.