Alkis Alexandrou is the General Manager at Piraeus Bank, overseeing the Agribusiness sector. He speaks with Qorus about the current state of Greece’s agricultural sector and how the bank supports its farmer clients.
Could you briefly tell us about the agricultural banking landscape in your region, highlighting any unique challenges the sector needs to deal with?
The agricultural sector is a crucial component of any economy. It plays a vital role in ensuring the population’s nutrition and food security, while also being a key supplier for many manufacturing and trade industries. More specifically for Greece, the country's geographic location and favorable climate provide substantial advantages in the production of certain agricultural products, such as olive oil, peaches and cotton. It is worth highlighting that Greece is the EU’s main cotton grower, with 80% of European cotton area. According to Eurostat, the output of the agricultural industry in Greece, valued at current prices, was €15.2 billion as of December 2024.
However, like most of the EU countries, Greece faces challenges. The main difficulties are the moderate educational level of farmers and the small scale of farms. Greece’s farming population is getting older. The farmers have limited training and are mostly adhering to outdated practices and mindsets. Based on the most recent data from Eurostat for the year 2020, only 0.7% of farm owners in Greece had completed a full agricultural education. Thus, enhancing farmers’ education will result in the adoption of new technologies like AI tools and smart irrigation systems, enabling farmers on smaller plots to be more productive.
Empowering smallholder farmers: How financial institutions lead the way towards sustainable agriculture
How does your bank support the adoption of sustainable and environmentally friendly practices among farmers through financial incentives, guidance or education?
Piraeus Bank has strategically decided to align its operations with the emerging global framework for sustainable banking and the sustainable development of the Greek economy. As a bank we are committed to supporting our customers in the transition to a greener future. A notable example is the greenhouse initiative, that we support in collaboration with the Greek government, aiming to advance the agricultural sector. Additionally, we collaborate with universities across Europe to learn best practices and adapt them to benefit the Greek market.
Does Piraeus establish or build partnerships with agricultural associations and government bodies to promote sustainable growth in the agricultural sector?
Piraeus Bank is considered as the agricultural bank of Greece. We support and establish partnerships to promote greenhouse development. The primary objective is to comprehend climate change and upgrade the primary sector. Furthermore, we have created the Contractual Banking Program. This initiative fosters beneficial partnerships between farmers and businesses engaged in trading, processing and selling agricultural products, thus enhancing the entire production, supply and processing chain.
In addition to supporting farmers, how does Piraeus Bank address and support the broader digital agricultural ecosystem, including food and agriculture supply chain companies and agtech firms?
Piraeus Bank has finalized the initial phase of its business partnership with NEUROPUBLIC S.A., a privately held enterprise specialized in the technological development and e-business of the Greek agrifood sector. This strategic collaboration, marked by Piraeus Bank acquiring a 5% minority stake in NEUROPUBLIC S.A., represents the shared vision of both partners for sustainable development in the agrifood sector, while also addressing the challenges posed by climate change.
The financing agreement between Piraeus Bank and NEUROPUBLIC aims to promote sustainable solutions by adopting innovative technologies to transform the agrifood sector, enhancing competitiveness while considering environmental and social factors.
Could you share examples of successful innovative projects or initiatives implemented by your bank?
Piraeus Bank is creating a new financial product designed to protect farm incomes from the fluctuations of the dairy market. A standout feature of this loan product is its built-in ‘flex triggers’, which can modify repayment terms based on changes in the price of manufacturing milk, thus providing farmers with necessary cash flow relief during critical times.
What are your bank's key priorities in the agricultural sector for the next 2 to 3 years, particularly in terms of sustainable agriculture, digitalization and addressing the challenges faced by smallholder farmers?
Piraeus Bank has outlined several key priorities for the agricultural sector. We are supporting sustainable agriculture by promoting investments in renewable energy, such as agrivoltaics and high-tech greenhouses with CHP that offers 100% autonomy. Furthermore, we encourage the adoption of smart farming technologies to optimize resource use and improve crop yields.
Last but not least, Piraeus Bank is deeply involved in sustainability initiatives and has been instrumental in developing the UN Principles for Responsible Banking (PRB). We are committed to supporting corporate clients in setting and achieving sustainability targets. This commitment is realized through the creation of a Sustainability-Linked Loans Framework, which integrates Environmental, Social and Governance metrics into corporate loans. This framework ensures that growth and profitability are aligned with social and environmental sustainability goals.
Delve deeper into agribanking and read other interviews in this series
