EBRD financing is helping a local Kyrgyz dairy producer expand its state-of-the-art processing plant. The expansion will benefit local farmers and boost the Kyrgyz economy.
Siut Bulak, a Kyrgyz dairy producer, has turned to the EBRD to help it improve and grow. The EBRD acquired a 34 per cent stake in the company and the investment is helping Siut Bulak to expand its state-of-the-art processing plant in the Tiup region of the eastern Kyrgyz Republic.
Expanding product range
Local dairy farmers will also benefit from the plant’s increased capacity as there will be more demand for milk. Some 1,250 families from the Tiup region supply the dairy producer with milk, which guarantees them a regular income.
Expansion will also enable the company to widen its range of products, which will in turn support Siut Bulak’s strategy to continue growing in Central Asia and enter the Russian market. The plant processes up to 45,000 litres of milk a day during summer and produces mainly cheese and butter – popular both in the Kyrgyz Republic and abroad.
The EBRD finance comes under the Bank’s Early Transition Countries Initiative, which was launched in 2004 to stimulate market activity in the Bank’s lowest-income countries of operations by using a streamlined approach to financing more and smaller projects, mobilising more investment and encouraging economic reform.
The EBRD’s investment complements an initiative launched at the end of 1995 by the Swiss government to revive the local economy through investments in Kyrgyz companies.