IFC Agribusiness Investments Hit Record $2 billion amid Financial and Food Crises

In Washington, D.C.: 
Irina Likhachova 
Phone:  (202) 473 1813 
E-mail: ilikhachova@ifc.org 
Web: www.ifc.org/agribusiness




Washington, D.C., October 16, 2009—IFC, a member of the World Bank Group, 
significantly increased its support for agribusiness in fiscal 2009 to boost 
the food supply in developing countries in response to the global food price 
hikes and volatility.   

Food security was a central issue during recent G-8 and G-20 Summits that 
emphasized the need for increased investment in agriculture. IFC invested a 
record $2 billion in FY09 across the agribusiness supply chain—from farm to 
retail—to help boost production, increase liquidity, improve logistics and 
distribution, and expand access to credit for small farmers. FY09, which ended 
June 30, was the fifth consecutive year of growth in IFC’s agribusiness 
investments and witnessed a 42 percent increase over FY08.   
  
IFC invested $874 million directly in agribusiness companies and $362 million 
more to support fertilizer production, agricultural infrastructure, and food 
retail. Through partner banks, IFC channeled $758 million to support rural 
farmers and trade finance activities. Half of IFC’s agribusiness projects were 
in low-income countries. Investments in Africa’s agribusiness sector rose 38 
percent over the previous year and reached $160 million for projects in primary 
farming, distribution and storage, grain milling, plantation rehabilitation, 
and trade finance.  

“Food availability at affordable prices, particularly for the poor, remains a 
top IFC concern,” said Oscar Chemerinski, IFC Director for Global Agribusiness. 
“IFC works to address the challenges by helping the emerging markets grow and 
develop their agricultural sectors. This can help increase the food supply and 
create opportunities for rural communities.” 

Although the prices of agricultural commodities have declined from their 2008 
peaks, major grain prices remain above their long-term trend. Maize is 50 
percent more expensive than its average price between 2003 and 2006, while rice 
prices are 100 percent higher. Food prices remain volatile. The economic crisis 
compounds the impact of high food prices on low-income populations. Over a 
billion people are chronically hungry. 

With food prices expected to remain high and volatile for some time, IFC is 
leading World Bank Group efforts to support private sector to increase 
production. IFC’s agribusiness strategy includes supporting intraregional 
investments to transfer knowledge and technology, increasing access to credit 
through wholesale facilities with traders and financial intermediaries, and 
bringing land into sustainable production. IFC also focuses on increasing 
production in middle-income countries with strong agribusiness potential; 
improving logistics, infrastructure, and water efficiency; and developing 
modern financial instruments for agriculture.  

About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape 
poverty and improve their lives. We foster sustainable economic growth in 
developing countries by supporting private sector development, mobilizing 
private capital, and providing advisory and risk mitigation services to 
businesses and governments. Our new investments totaled $14.5 billion in fiscal 
2009, helping channel capital into developing countries during the financial 
crisis. For more information, visit www.ifc.org.