Juhayna Dairy

Location:

Egypt

Project number:

45657

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

26 Nov 2013

Status:

Complete

PSD disclosed:

24 Oct 2013

Translated version of this PSD: Arabic

Project Description

The EBRD is considering providing a loan of EGP 945 million to Juhayna Food Industries and subsidiary companies.

The financing will be used to invest in dairy production capacities, juice production capacities and distribution and logistics assets in addition to balance sheet restructuring (the “Project”).

Transition Impact

This project will demonstrate the development of modern dairy processing and fruit juice production capacity with environmental standards and levels of resource efficiency which will go significantly beyond currently prevailing levels in the sector.

Additionally, the project will help to make the company’s distribution system more effective. Consumers will benefit from the increased local production of milk and juices through better access to high-quality, fresh dairy products and juices.

The Client

Juhayna Food Industries and subsidiaries in Egypt.

EBRD Finance

Up to EGP 945 million 7-year loan.

Project Cost

EGP 1150 million.

Environmental Impact

The project has been Categorised B in accordance with the EBRD’s ESP 2008 and risks and impacts are likely to be site specific, readily identifiable and mitigation measures achievable. Detailed environmental and social due diligence has commenced and will include an E&S audit and analysis of the project by independent consultants, a visit to the site, interviews with key management personnel and document review.

The project is expected to results in significant and replicable environmental and social benefits, including reduction in CO2 and other pollutants through waste utilisation / generation of electric energy and improvements in hygiene standards. The project is also anticipated to provide an opportunity to supply chain farmers to improve their health and safety and waste management at the operational level.

An environmental and social action plan will be developed to address any issues identified during ESDD in order to comply with the Bank’s Performance Requirements. This section of the PSD will be updated at the conclusion of ESDD.

Technical Cooperation

A Technical Cooperation (TC) project will cover work with Juhayna’s raw milk suppliers of 85 local farmers, 70 of which are under supply contracts with Juhayna. The TC will have the following objectives:

a) Support with technical training for individual farms/farmers that supply Juhayna with milk, to help achieve health and safety and other operational certifications; and

b) Support involving provision of improvements that can be made across farm management including milking techniques, feed production, and systems integration.

The proposed TC would provide strong backward linkages to dairy production in Egypt, which is highly fragmented among a number of individual farmers with low levels of technical training and a lack of farm management skills. Furthermore, as a leader in the dairy market in Egypt, this would set a precedent for competitors to follow suit with the farms that supply their milk.

Company Contact

Mr. Sameh Zaki Al-Hodaiby, Juhayna Food Industries
E-mail: Sameh.hodaiby@juhayna.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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