SUU is the leading dairy product producer in Mongolia and aims to increase its production. It consequently needs to upgrade its facilities and develop its supply chain. This will benefit 1,500 additional dairy farmers.
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.
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.
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.