August 28, 2010

IFC helps enhance Ust Kamenogorsk Poultry Farm's production

IFC is providing Ust Kamenogorsk Poultry Farm with a US$2-million financing and advisory services package that will help the company expand production and improve standards to meet growing domestic demand.

The support from IFC, a member of the World Bank Group, and from KazAgroFinance, a government-sponsored agricultural leasing company, will enable a US$30-million capital expenditure programme for UKPF. The programme includes expansion of annual production to 16,000 tonnes, modernisation of operations, and improvements to bird nutrition and bio-security. IFC Advisory Services will also reduce the country's reliance on imports.

"This partnership with IFC is very important for us as we continue to expand our operations and improve our production standards. 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," said Serik Tolukpayev, UKPF Chairman of the Board. UKPF is Kazakhstan's only domestic supplier of chilled poultry meat.

"We are pleased to partner with Ust Kamenogorsk Poultry Farm on IFC's first agribusiness transaction in Kazakhstan. By supporting strong companies in the agribusiness sector IFC can help Kazakhstan realise its strong potential in primary agriculture and food processing and reduce the current dependency on imports," added Tomasz Telma, IFC Senior Country Manager for Central Asia and Azerbaijan.

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 US$1.4 billion. For fiscal year 2010, IFC's new agribusiness commitments in the region totalled US$522 million. IFC advisory programmes 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 US$353 million in fiscal year 2010.