The Aga Khan Fund for Economic Development is an international agency which supports the private sector in development countries. Proparco is more specifically supporting the fund’s work in Africa, the Middle East and Asia.
Project description
Proparco’s financing will support SUU’s upgrading of its infrastructure and development of its supply chain. Its investment plan comprises financing for material and equipment (packaging lines, production lines, laboratory equipment), equipment upgrading (refrigeration system, electric system, heating), the installation of new milk collection units, and working capital requirements.
Project impact
This project will allow SUU to increase its production capacity and strengthen its quality control system, and thereby improve the quality of its range of dairy products. It will also allow it to extend its collection network to an additional 1,500 traditional dairy farmers (i.e. a total of 4,000 traditional farmers), and thereby contribute to improving living conditions for populations.
Client presentation
SUU is listed on the Ulan Bator Stock Exchange and is today the largest Mongolian dairy product company. It offers a wide range of fresh and long-life milk, yoghurts, creams, butter, ice cream and, since recently, fruit juice. The company has developed a unique model for sourcing from local dairy farmers. It relies on a collection network of 2,500 dairy farmers and breeders.
04/12/2014
Date of signature of the project
Financing tool
55 184 911 Euros
Amount of funding
Loan of 67 MUSD
Financing details
AGA KHAN FUND FOR ECONOMIC DEVELOPMENT S.A.
Client