Two of Denmark’s biggest pensions have joined forces with the country’s government to launch an agriculture fund to boost food production in developing economies.
PensionDanmark and PKA have both contributed DKK 200 million ($29 million) to the Danish Agribusiness Fund, alongside emerging-market developer IFU and government money. In total the fund has raised DKK 700 million, and has targeted an extra DKK 100 million in a second closing.
“The funds are expected to generate investments of close to DKK 6 billion in improved production, distribution, and food sales in developing countries,” PensionDanmark said in a statement. The money will be invested in projects “from farm to fork” in developing markets, all backed by Danish companies.
Torben Möger Pedersen, CEO of PensionDanmark, said the new fund was “a good example of how public and private capital can work together to address global societal challenges,” as well as supporting domestic companies and investors.
PensionDanmark and PKA previously collaborated with IFU in 2014, investing in the Danish Climate Investment Fund. This project has funded wind farms, solar power plants, and biofuel developments in several emerging countries.
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