Project detail - POLYFARM UKRAINE LTD.


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Who is our client

Polyfarm Ukraine Ltd. is a 100% subsidiary of Ukrag Holding BV. At present, the shares of Ukrag Holding BV are held by Theeuwes Holding BV, ASN BV and Beheermaatschappij Chris Geene BV. Polyfarm’s main activities are (i) dairy farming and (ii) the cultivation of agricultural products such as grains, oil-yielding crops and sugar-beet on 5,500 hectares (with an ambition to grow to 10,000 hectares). Besides this, Polyfarm breeds calves (partially kept as own stock and partially sold) and small bulls (all sold). In June 2008, FMO/FOM extended to Polyfarm a USD 3 million subordinated term loan for the startup of its agricultural farm in the Ukraine.

Funding objective

After a successful initial loan of USD 3 million, FMO provided a second loan of USD 1 million to Polyfarm. The first component of FMO’s additional USD 1 million financing was used for investments in a 4,000 MT storage shed, since storage capacity is extremely important for such an agricultural company as Polyfarm. Storage enables the company to sell its products later after the harvest for much better prices. The second component of the investment was related to improvements on and expansion of the dairy farm. Through the investment in the dairy farm (two new or reconstructed stables) all Polyfarm’s dairy cattle will be housed in one location. This is important for efficient herd-management, increased animal welfare and to further increase productivity.

Why we fund this project

By funding this project, FMO supported this successful agricultural company in introducing best-practice environmental and social standards to this rural Ukrainian region. FMO also contributed to the revitalization of the three rural Ukrainian villages in which Polyfarm is located. FMO’s involvement was additional, as no commercial financing was available on terms in line with the financial markets.

Website client
Europe & Central Asia
Agribusiness, Food & Water
Signing date
Total FMO financing
USD 1.00 MLN
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)