Project detail - Kischenzi LLC

Who is our prospective customer?

Kischenzi LLC is a medium-sized, fully integrated farm operating across arable crops, dairy, vegetables, and pig production in the Cherkasy region of central Ukraine. As of today, the Company cultivates approximately 15,000 hectares of black soil land and owns a dairy herd of around 2,500 milking cows and young stock, as well as approximately 1,500 sows. Its integrated business model—combining crop production, in-house feed production, and manure-based nutrient recycling—creates a circular, low-cost system that enhances efficiency, cost control, and operational resilience. FMO has maintained a relationship with Kischenzi for over 15 years, reflecting sustained collaboration and ongoing operational engagement.

What is our funding objective?

FMO will finance Kischenzi’s multi-year CAPEX program to strengthen its integrated dairy and arable farming model and enhance operational resilience. The investment will fund (i) the expansion of dairy production capacity and (ii) upgrades to arable machinery and equipment, improving efficiency, reducing input losses, and increasing productivity across core operations. In addition, part of the CapEx program focuses on on-site manure management and biodigester system improvements, which are expected to reduce methane emissions and generate renewable electricity, thereby further strengthening the farm’s environmental performance in a challenging operating environment.

Why do we want to fund this investment?

FMO supports this investment because it strengthens an integrated dairy and arable farming operation that contributes to value-added agricultural production for both domestic and export markets. Supporting resilient private-sector agribusinesses remains important to sustain economic activity and employment under challenging operating conditions. Participating in this project also enables FMO to continue its long-standing relationship with a locally based company under Dutch management, with a proven long-term track record.

What is the Environmental and Social categorization rationale?

Based on Environmental and Social (E&S) risks and the countries' and regional contexts, the E&S risk category for this investment is B+. The E&S risks of this project are limited, site-specific, and can likely be readily addressed through generally accepted mitigation measures. Kischenzi operates integrated crop and livestock activities in central Ukraine, where key E&S considerations include nutrient and manure management, agrochemical use, emissions and climate related impacts, animal welfare, occupational and community health and safety, and construction related risks linked to capacity expansion. The following IFC Performance Standards (PS) apply to this investment: PS1–PS4 and PS6, covering environmental and social risk management, labor and working conditions, resource efficiency and pollution prevention, community health and safety and biodiversity considerations relevant to mixed farming systems. IFC PS5 does not apply as land is leased on a voluntary, willing lessor basis, while Indigenous Peoples (PS7) and Cultural Heritage (PS8) are not relevant in the project context. Periodic E&S reporting and continued oversight will ensure alignment with international standards, with risks addressed through the corporate Environmental and Social Action Plan.

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