EIB Supports Lantmännen's €50M Pea Protein Factory in Sweden

Lantmännen’s investment in the Lidköping facility is not just about producing plant protein – it is about creating a sustainable future for Swedish agriculture.

The European Investment Bank (EIB) has announced a €50 million loan to Lantmännen, a major Swedish agricultural cooperative, to help finance the construction of a groundbreaking pea protein isolate factory in Lidköping. This factory, the first of its kind in Sweden, represents a significant step in advancing sustainable food production and addressing the growing demand for plant-based protein alternatives.

The loan, which covers approximately half of the total investment cost for the project, will enable Lantmännen to build a state-of-the-art facility with an annual processing capacity of over 40,000 tonnes of peas. These peas will be sourced from Lantmännen’s cooperative members, ensuring that the project benefits local farmers and supports the Swedish agricultural economy.

The new factory is expected to be completed in the first half of 2027 and will create around 30 new jobs in the region. Once operational, it will manufacture high-quality plant proteins that can be used in a wide variety of products, including protein bars, drinks, bread, plant-based milks, and meat substitutes. This aligns with the growing trend of consumers shifting toward plant-based diets and the EU's long-term goals of improving food sustainability.

A Key Contributor to EU Sustainability Goals

The project is seen as a key contributor to the European Union's targets for increasing plant protein self-sufficiency, reducing dependence on imported soybeans, and promoting sustainable agricultural practices. By producing plant-based protein locally in Sweden, Lantmännen’s facility will reduce the need for imported soy, which is often linked to deforestation and other environmental concerns. This will significantly reduce the carbon footprint of the food production process, further supporting the EU’s climate action plans.

According to Thomas Östros, Vice-President of the EIB, “By supporting Lantmännen’s investments in pea protein production, we will strengthen both food security and climate action in Sweden and across the European Union. This project is also a great example of how EU cooperation can deliver benefits on the ground.”

Peas and beans, the primary crops to be processed at the new facility, are versatile, climate-friendly, and offer a low environmental impact compared to other crops. They require less water and fewer nutrients to grow, and their cultivation improves soil quality by fixing nitrogen, which reduces the need for synthetic fertilizers. In addition, peas are beneficial for biodiversity, further aligning the project with global sustainability goals.

A Boon for Swedish Agriculture and Food Security

Lantmännen’s investment in the Lidköping facility is not just about producing plant protein – it is about creating a sustainable future for Swedish agriculture. By supporting local farming communities, the project will help to diversify crop production and promote higher-value food products for export. Furthermore, the new factory will contribute to enhancing food security both in Sweden and the broader European market by producing essential ingredients for the growing plant-based food sector.

Michael Sigsfors, Chief Financial Officer at Lantmännen, expressed his enthusiasm for the project’s long-term impact, stating, “We are delighted that the EIB recognises the long-term value of investment in the food of the future – plant protein – and that it has chosen to support our Lidköping facility. Promoting exports and expanding food production not only leads to better profitability for farmers, but also ensures improved food security. This is a grand and important project, and I am happy that the EIB is supporting our work to this end."

The project is expected to play a pivotal role in increasing Sweden’s self-sufficiency in plant protein production, an area where the country has historically been dependent on imports. By utilizing locally grown peas, Lantmännen’s factory aims to fill a gap in the market and provide a reliable, sustainable source of protein for a variety of food products. In doing so, it also helps strengthen the EU’s position as a leader in sustainable food production and climate action.

Lantmännen’s decision to invest in pea protein production reflects the cooperative’s commitment to sustainability and innovation in the food sector. It is part of a broader strategy to diversify agricultural production, improve food security, and reduce environmental impact through the promotion of plant-based protein alternatives.

As the demand for plant-based foods continues to grow globally, the Lidköping factory is poised to play an essential role in meeting the needs of the future. With its emphasis on sustainability, local sourcing, and climate action, the facility will not only create jobs and support farmers, but also contribute to a more sustainable and resilient food system for generations to come.