BIO commits USD 2 MN towards SME investment in Mongolia
Microfinance Focus June 14, 2011: Belgian Investment Company for Developing Countries (BIO) recently committed USD 2 million to Suu, a dairy processor based in Ulaanbaatar, Mongolia.
The investment program aims at increasing and modernising Suu’s processing capacity and extending its raw milk supply chain. As a result, 2500 existing and 1500 new herders involved in the milk supply chain will obtain a higher and sustainable income, quality standards will be raised and the country’s self-sustainability for domestic milk product supply will be improved.
Founded in 1958, Suu is a Mongolian dairy processor, with a current processing capacity of 150t/day, producing 51 different products including milk, yoghurt, butter, curd and ice cream. Presently, milk supply is sourced via 19 milk collection points, where more than 2000 herders delivered their production in 2009-2010.
50% of Mongolia’s population depends on agriculture (being herding in particular) and 36.1% live below the poverty line. As households selling milk have an average income three times higher than households who do not, the herders’ welfare depends on their ability to sell milk.
BIO’s commitment will allow the company to increase and upgrade its existing processing/packaging capacity, extend the raw milk supply chain, including the establishment of 22 milk collection points, 13 cooling units, 2 milking parlours and working capital to fund additional milk purchases. In addition it will improve the quality standards, including health and safety.
The investment program aims at increasing and modernising Suu’s processing capacity and extending its raw milk supply chain. As a result, 2500 existing and 1500 new herders involved in the milk supply chain will obtain a higher and sustainable income, quality standards will be raised and the country’s self-sustainability for domestic milk product supply will be improved.
Founded in 1958, Suu is a Mongolian dairy processor, with a current processing capacity of 150t/day, producing 51 different products including milk, yoghurt, butter, curd and ice cream. Presently, milk supply is sourced via 19 milk collection points, where more than 2000 herders delivered their production in 2009-2010.
50% of Mongolia’s population depends on agriculture (being herding in particular) and 36.1% live below the poverty line. As households selling milk have an average income three times higher than households who do not, the herders’ welfare depends on their ability to sell milk.
BIO’s commitment will allow the company to increase and upgrade its existing processing/packaging capacity, extend the raw milk supply chain, including the establishment of 22 milk collection points, 13 cooling units, 2 milking parlours and working capital to fund additional milk purchases. In addition it will improve the quality standards, including health and safety.
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