Project detail - CEHAVE KORM LTD

CEHAVE KORM LTD

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Who is our client

Cehave Korm Ltd. was established in 2004 as a 50/50 joint venture between Nuscience NV (100% subsidiary of Agrifirm Cooperative, a producer of animal feed) and Theeuwes Holding BV (an existing Tier 1 FOM client in the Ukraine). Cehave Korm’s objective is to deliver compound animal feed to the animal husbandry sector in the Ukraine, with emphasis on the pig sector. The presence of Cehave Korm Ltd. is important for the Ukrainian husbandry sector as it produces high quality feed and feed supplements. In addition to the supply of feed Cehave Korm Ltd. is also important for its knowledge of other essential aspects for high pig yields, such as farm management and diseases.

Funding objective

To maintain its strong position in the Ukrainian husbandry feed sector Cehave Korm Ltd. has decided to expand their production plant in the Ukraine. By expanding the production plant from a capacity of 2,500 MT per month to 3,500 MT per month Cehave Korm Ltd. will be able to increase their off-take market in the Ukraine.

Why we fund this project

By providing Cehave Korm Ltd. with additional financing FOM indirectly contributes to increasing the supply of high quality (pig) meat in the Ukraine and the development of Ukrainian small and medium enterprise production for the primary sector, as well as bringing this particular (sub)sector to a higher technical level. The shareholders, being at the same time FMO’s guarantors, are first-class agricultural companies from the Netherlands and Belgium.

Region
Europe & Central Asia
Country
Ukraine
Sector
Agribusiness, Food & Water
Signing date
6/27/2013
Total FMO financing
USD 2.30 MLN
Fund
Fund Emerging Markets
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B