Cairo – Mubasher: The European Bank for Reconstruction and Development (EBRD) on Monday announced providing $7 million in financing to Egypt’s Obour Land.
The Egypt-listed dairy firm will use the loan to finance its expansion, including the establishment of a dairy farm, whose production is estimated at 60 tonnes of milk per day, the EBRD revealed.
“The prospects for expansion are promising. Growth in the dairy products market – driven by high demand and by consumer preferences shifting towards packaged milk following increased health and safety awareness in Egypt – has encouraged dairy farms to expand rapidly,” the EBRD said.
Obour Land will also use the loan for a greenfield dairy farm with imported milking equipment and 2,500 dairy cows, the bank added, indicating, in a statement, that this greenfield farm “will supply raw milk to newly established ultra-heat treatment (UHT) packaged milk operations.”
The funds will also be used to train staff to use the latest dairy-milking operational technologies and processes.
The development of such a farm can achieve “high-quality milk production and increase the potential for exporting to neighbouring countries,” the EBRD noted.
Listed on the Egyptian Exchange (EGX), Obour Land is a leading dairy firm in Egypt, registering sales of EGP 2.1 billion ($114.8 million) in 2017.
Obour Land last reported EGP 179.3 million in consolidated profit for the first nine months of 2018, up 1.6% year-on-year from EGP 176.46 million.
