The European Bank for Reconstruction and Development (EBRD) has invested €15 million (US$16.8 million) to fund the expansion of FoodMaster, one of the largest dairy companies in Kazakhstan.
“Exactly a year ago in Astana, I announced that the EBRD would increase funding of the strategic agribusiness sector in Kazakhstan at the Foreign Investors Council which had agriculture as its theme,” said the President of the EBRD, Sir Suma Chakrabarti in a press statement. “I am very pleased that today we are announcing our first project in the dairy sector in Kazakhstan.”
FoodMaster was acquired by Lactalis, the largest milk collector and cheese processor in the world, in 2004, and Kazakhstan is the only market in the world where Lactalis owns and operates dairy farms in addition to processing milk into value-added products.
In addition to funding, the EBRD, together with the UN’s Food and Agriculture Organization (FAO), is offering professional expertise through a technical cooperation program involving private sector companies aimed at improving milk production, collection, and the quality of processed dairy products in the country. The program is targeting cooperation regarding animal nutrition, farm management, collection methods, and the meeting of industry quality standards.
“This project is very important for our company. In line with Lactalis Group’s worldwide policy, all investments will continue to be directed into the development of our milk collection points, modernisation [sic] of all three plants which are currently the most modern dairy production sites in Kazakhstan, and quality control system at all stages from farm to retail,” said Arman Aldabergenov, general manager of Lactalis – FoodMaster.
This investment is another indication of the EBRD’s financial support with the dairy sector. In September 2015 the bank announced a €10 million investment in Turkish dairy producer, Mar Tuketim Maddeleri Ihracat Ithalat San. Ve Tic. A.S., better known under the brand name, Kay.
Founded in the 1950’s, Kay is one of Turkey’s top ten dairy producers in terms of sales, and is one of the country’s leading UHT goat milk producers, having recently started its own goat farm to increase efficiency and to attain a higher standard of quality. The funding is being used to purchase new machinery to complete the expansion of its production of yogurt and white cheese products, will enable the company to move production to a modern factory adjacent to its existing feed mill, and will fund the improvement of logistics management and water and energy use.
The EBRD invested a total of €700 million (US$793 million) in Kazakhstan last year, and invested a total of €6.3 billion (US$7 billion) in the country to date, across more than 200 projects in agribusiness, energy, infrastructure, industry and finance. The EBRD began investing in Turkey in 2009, and in 2014, the country became the top recipient of investments from the bank with new investments worth €1.4 million.
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GAI News staff