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EBRD invests in cream of Lithuanian dairy sector
An equity investment of up to US$ 11.5 million (EUR 10.5 million) from the European Bank for Reconstruction and Development (EBRD) in AB Rokiskio Suris JSC (RS), the largest dairy processor in Lithuania, will help the country’s dairy sector expand its export markets. Lithuanian milk producers will benefit from increasing demand and technical cooperation, while RS’s cheese-making operations will be strengthened. An additional investment of up to US$ 2.5 million (EUR 2.2 million) may be co-financed by private investment funds, likely to include the East European Food Fund, managed by Jupiter Asset Management.
"By investing in Rokiskio Suris, the EBRD is supporting the development of the dairy farming sector, which is crucial to Lithuania’s economy. The project will also promote Western-standard corporate governance in local industrial companies," said Hans Christian Jacobsen, Director of the EBRD’s Agribusiness team. "By helping Rokiskio Suris to develop Western, Eastern and domestic markets for cheese, the Bank’s investment will assist in ensuring the long-term viability of the sector."
"Rokiskio Suris is particularly pleased to announce the EBRD’s new investment today," said Antanas Trumpa, President of RS. "This investment will reinforce our company’s strong performance thusfar in 1999. Beyond the resulting increase in Rokiskio’s production capacity and financial resources, we look forward to working closely with the EBRD to develop our ongoing manufacturing and marketing strategies. The EBRD’s entrance marks an exciting new phase in Rokiskio’s quest to become a truly European-standard food producer."
Manufacturing well-recognised, quality products, RS is the largest cheese producer in the Baltic states. It has an established position in the American, Russian and domestic markets (75 per cent of output is exported) and produces approximately 45 per cent of Lithuanian cheese output.
EBRD financing will allow RS to invest in additional modern cheese manufacturing equipment, to streamline its milk purchasing procedures and to increase the quality of its by-products. It will also strengthen RS’s sales and marketing programme, reduce production costs and improve efficiency by removing bottlenecks. RS is committed to meeting national and European Union standards for production quality and waste treatment and as a result of the EBRD’s investment will recycle a substantial part of this waste.
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