Deutsche Investitions- und Entwicklungsgesellschaft (DEG) has agreed to provide a long-term loan to Peru-based agricultural company Agricola Pampa Baja.

Pampa Baja is a family-owned company, which produces and markets food such as fruits, vegetables and milk.

With the $20m financing provided by DEG, the company plans to expand its cultivated areas for vegetables and establish a production site in the Olmos region of northern Peru.

DEG Management Board member Monika Beck said: “With its financing and advisory services, DEG enables private companies to grow in a developmentally effective way. It is our pleasure to accompany Pampa Baja on this path.”

“We are delighted to share with DEG our vision and passion for the agricultural business and also the confidence in a promising future.”

Other investors include Dutch development bank FMO and the Inter-American Investment Corporation.

Pampa Baja president and founder Octavio Paredes y Del Carpio said: “We are delighted to share with DEG our vision and passion for the agricultural business and also the confidence in a promising future.”

The expansion of cultivated area would see the creation of 1,500 employment opportunities, increasing the existing count from 2,200 permanent and seasonal workers to 3,700.

In addition to generating local income in the form of wages, salaries and taxes, the construction of the site will boost the local economy in northern Peru.

Pampa Baja is required to comply with international environmental, social and corporate governance standards.

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