WASHINGTON, D.C., September 29, 1999 —
The International Finance Corporation has long worked with Russian farmers
to privatize collective farms and help them establish viable agriculture-based
businesses. But for the first time, IFC is now investing in one of those
enterprises, Campina OOO, a yogurt maker in Stupino, Russia.
IFC has made a loan of Euro 9.4 million, US$10 million, in a greenfield,
or start-up, yogurt processing facility that will be a model for development
of the Russian dairy sector. The project, which provides a commercial outlet
for fresh milk from local farms, will set an example for the industry through
the use of modern, efficient, environmentally-sound technology to produce
high quality yogurt at affordable prices.
The company is the Russian subsidiary of Campina Melkunie B.V., a Dutch
dairy cooperative which specializes in the development, production, sale
and distribution of dairy and dairy related products for the food and pharmaceuticals
The project is the first major private investment that is directly linked
to IFC's extensive Technical Assistance Program in the CIS on Land Privatization
and Farm Reorganization. Since 1997 Campina Melkunie B.V., the Netherlands/IFC
Trust Fund financed by the Dutch Ministry of Economic Affairs, and IFC's
own Technical Assistance Fund have co-financed and implemented a technical
assistance program to support dairy farmers in the Stupino region in an
effort to create viable and sustainable business partners in the vertical
Mr. Tei Mante, Director of IFC's Agribusiness Department said that IFC
has made it an important priority in Russia to accelerate reforms in agricultural
and rural development by addressing the lack of rural credit, equipment
and access to markets. He said the investment grew from IFC's recognized
expertise in the agribusiness sector, knowledge of the country, and hands-on
involvement through the Land Privatization and Farm Reorganization.
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will reduce poverty and
improve people's lives. IFC finances private sector investments in the
developing world, mobilizes capital in the international financial markets,
and provides technical assistance and advice to governments and businesses.