IFC Proposes Investment in Mongolia Dairy Processor
Sept 10 - IFC's specialist has reviewed technical information provided by Suu JDC (“Suu” or the “Company”), a 94% privately owned dairy processing company whose remaining shares are traded on the Mongolian stock exchange.
The scope of IFC’s appraisal primarily included a compliance review of Suu’s operations with IFC’s Performance Standards and Mongolian environmental, social and occupational health and safety regulatory requirements. IFC also reviewed the Company’s management capacity and organizational structure to provide adequate oversight of environmental, social, health and safety aspects of its business operations.
The review relied on documents and reports made available by Suu and interviews conducted during meetings with senior management team of Suu in Ulaanbaatar, Mongolia. Site visits to Suu’s processing facilities in Ulaanbaatar and three milk supplier sites within the Tuv and Selenge provinces which supply milk to the Company were also included as part of the scope of IFC’s review.
Project description
Suu was founded in 1958 as a state owned company and was subsequently partially privatized in 2002 with full privatization occurring in 2006. Suu is the leading Mongolian dairy processor, with a current processing capacity of 150t/day, producing 51 different products comprising milk, yogurt, butter, curd and ice cream. Presently, Suu’s milk supply is sourced via 19 milk collection points, where more than 2,189 herders supplied their production in 2009/ 2010.
IFC’s investment will:
(i) increase of the dairy production capacity, including purchase of additional milk packaging, butter packaging, BactoScan milk quality laboratory equipment, an additional ice cream machine, an Alfa Laval separator and company infrastructure renovations (factory and buildings);
(ii) extension of the raw milk supply chain, including the establishment and development of 22 milk collection points (MCPs), 13 milk cooling units (MCUs), two milking parlors and working capital to source additional milk purchases;
(iii) Introducing and implementing management systems consistent with ISO and HACCP.
The scope of IFC’s appraisal primarily included a compliance review of Suu’s operations with IFC’s Performance Standards and Mongolian environmental, social and occupational health and safety regulatory requirements. IFC also reviewed the Company’s management capacity and organizational structure to provide adequate oversight of environmental, social, health and safety aspects of its business operations.
The review relied on documents and reports made available by Suu and interviews conducted during meetings with senior management team of Suu in Ulaanbaatar, Mongolia. Site visits to Suu’s processing facilities in Ulaanbaatar and three milk supplier sites within the Tuv and Selenge provinces which supply milk to the Company were also included as part of the scope of IFC’s review.
Project description
Suu was founded in 1958 as a state owned company and was subsequently partially privatized in 2002 with full privatization occurring in 2006. Suu is the leading Mongolian dairy processor, with a current processing capacity of 150t/day, producing 51 different products comprising milk, yogurt, butter, curd and ice cream. Presently, Suu’s milk supply is sourced via 19 milk collection points, where more than 2,189 herders supplied their production in 2009/ 2010.
IFC’s investment will:
(i) increase of the dairy production capacity, including purchase of additional milk packaging, butter packaging, BactoScan milk quality laboratory equipment, an additional ice cream machine, an Alfa Laval separator and company infrastructure renovations (factory and buildings);
(ii) extension of the raw milk supply chain, including the establishment and development of 22 milk collection points (MCPs), 13 milk cooling units (MCUs), two milking parlors and working capital to source additional milk purchases;
(iii) Introducing and implementing management systems consistent with ISO and HACCP.
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