Expansion of agribusiness holding KG Group to benefit both countries
In order to improve the quality of animal feed and bring in new industry standards, the EBRD is supporting the expansion of the major Lithuanian agribusiness holding KG Group in Belarus with a € 10 million working capital loan.
KG Group is one of the largest manufacturers of compound animal feed and premixes, flour and poultry meat in the Baltics. The investment will promote cross-border cooperation by bringing best industry standards and technologies to the Belarusian market.
Integration is one of the six transition qualities defining the EBRD’s work. The Bank believes that a well-functioning market economy should be competitive, inclusive, well-governed, green, resilient and integrated.
The KG Group, which is compliant with ISO, BRC Global Standard for Food Safety and many others, has been operating successfully in the Belarusian market for a decade. After initially concentrating on the distribution of products through its local subsidiary KLM, it later moved into production of animal feed premixes at its subsidiary Belfidagro.
Both KLM and Belfidagro are borrowers of the EBRD loan against a parent guarantee of KG Group. The loan proceeds will be used to finance the working capital needs of the both companies, including the production of animal combined premixes and supplements as well as for trading of seeds, crop protection, veterinary pharmacy and animal feed additives.
Alex Pivovarsky, EBRD Head of Belarus, said: “It is very important for us to support such fine examples of cross-border cooperation. The KG Group brings to Belarus best practice and know-how, which will make the local economy more competitive and resilient to external factors.”
“We see that the market segment of animal feed premixes manufacturing is developing in Belarus. It means we can share our experience we gained in Lithuania and other countries by manufacturing premixes, feeds, retailing veterinary pharmacy. The investment we are receiving will be directed to local companies, so they work effectively with modern manufacturing and cultivation technologies. This is really important not only for our business, but also for this segment of the Belarusian market too.“ – says Tautvydas Barstys, Chairman of the Board of KG Group.
Since the start of its operations in Belarus in 1992, the EBRD has invested almost €1.8 billion in some 70 projects in various sectors of the country's economy.
KG Group is one of the largest and economically strongest business mergers in Lithuania. The activities of the group are focussed on entire agricultural production chain.KG Group develops 11 different business; it owns 20 companies in Lithuania and other countries. KG Group annual turnover is € 450 million.