Farming – Image by Siggy Nowak on Pixabay
(LUXEMBOURG) – The European Investment Bank signed a venture debt loan of EUR 15 million Wednesday with CrowdFarming, an online platform for European farmers that sell directly to end-consumers.
The 15 million venture debt loan will mainly fund the research and development activities of CrowdFarming, a Spain-based company with a strong presence in France, Germany, Austria, and Italy that facilitates direct sales of food between EU farmers and consumers.
CrowdFarming’s marketplace currently has more than 300 farmers from 13 European countries selling to end-consumers without intermediaries. In this innovative farmer-to-consumer system, farmers set their own prices and customers get fresh, organic, in-season food delivered straight from the farms to their doors. CrowdFarming provides farmers with the website, the logistics, customer service, training and marketing support. They are selected by agronomists (acting as farmer-hunters) who ensure that they apply the highest sustainability, quality and production standards: to join the marketplace, farms must practice organic agriculture or be transitioning towards such practices. CrowdFarming has also become a main selling channel for pioneering farmers who implement regenerative practices that are good for the environment and biodiversity.
The EIB financing will accelerate the transition to a more sustainable, efficient and fair food supply chain in Europe, as well as the adoption of sustainable and regenerative practices in the agricultural sector. CrowdFarming’s model creates a shorter producer-to-consumer supply chain by eliminating the need for intermediaries and warehousing, resulting in fresher untreated food and lower rates of food waste, CO2 emissions and energy consumption compared to the conventional cycle.
The EIB support will also help create around 200 direct jobs: over the investment period 2023-2026 there will be a need to recruit highly qualified engineers for the RDI team, agriculture specialists as farmer-hunters, and logistics specialists, among others.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery.
