IFC Helps Kazakh Poultry Business Expand Production, Improve Standards
Tashkent, Uzbekistan (UzDaily.com) --
IFC, a member of the World Bank Group, is providing Ust Kamenogorsk Poultry Farm with a $2 million financing and advisory services package that will help the company expand production and improve standards to meet growing domestic demand, reducing the country’s reliance on imports.
The support from IFC and from KazAgroFinance, a government-sponsored agricultural leasing company, will enable a $30 million capital expenditure program for UKPF, Kazakhstan’s only domestic supplier of chilled poultry meat. The program includes expansion of annual production to 16,000 tons, modernization of operations, and improvements to bird nutrition and bio-security. In addition, IFC Advisory Services will provide guidance on upgrading the company’s food safety standards and energy efficiency.
“This partnership with IFC is very important for us as we continue to expand our operations and improve our production standards,” said Serik Tolukpayev, UKPF Chairman of the Board. “IFC’s financial support and technical advice will help us become more efficient and expand our capacity to supply Kazakhstani consumers with high-quality chilled meat.”
“We are pleased to partner with Ust Kamenogorsk Poultry Farm on IFC’s first agribusiness transaction in Kazakhstan." added Tomasz Telma, IFC Senior Country Manager for Central Asia and Azerbaijan. “By supporting strong companies in the agribusiness sector IFC can help Kazakhstan realize its strong potential in primary agriculture and food processing and reduce the current dependency on imports.”
Agribusiness is a priority sector for IFC in Europe and Central Asia: at June 30, 2010, IFC’s agribusiness investment portfolio in the region stood at $1.4 billion. For fiscal year 2010, IFC’s new agribusiness commitments in the region totaled $522 million. IFC advisory programs are helping to strengthen agricultural supply chains, increase food safety, develop agri-insurance, and improve access to finance for farmers and entrepreneurs.
As part of IFC's special initiative to increase investments in Central Asia and Azerbaijan, our new investments in Kazakhstan reached a record $353 million in fiscal year 2010.