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Washington DC, July 28, 2015
— IFC, a member of the World Bank Group, announced an investment of USD 56 million to support Arla Foods Ingredients, S.A. (“AFISA”), a leading Argentine producer of value-added whey products for the food industry. The financing package includes an IFC loan of USD 30 million loan, and a USD 26 million loan mobilized from Rabobank. With this investment, IFC is supporting the expansion of a competitive food exporting company, and the improvement of sustainable standards of Argentina’s dairy industry.
AFISA is a leading whey processor in Mercosur, producing concentrated protein for use in packaged foods. IFC’s investment will allow AFISA to increase whey processing volumes and reduce the wasteful disposal of whey and whey derivatives, through the conversion of such waste into value-added products which can be exported. This will lead to a reduction of emissions footprint, thus contributing to climate change mitigation. IFC’s investment will allow AFISA to increase its reach to 1,900 farmers from its facility in Porteña, Cordoba.
Argentina is one of the world’s few net exporters of dairy products, with a dairy industry accounting for an estimated 85,000 direct jobs, of which 45,000 are farmers, plus an additional 100,000 indirect jobs. Whey, a by-product of cheese, has been one of the most dynamic growth sectors over the last decade.
“IFC financing will enable AFISA to pursue our sustainable growth plans. Whey is a raw material that should not go to waste, and we have the know-how and technology to turn it into functional and nutritional proteins permeate in mainstream consumer foods and sports nutrition products. Additionally the investment will further confirm our position as the leading whey protein producer in south America" says AFISA Managing Director, Bjarne Schack Pedersen.
“IFC works with its clients to make sustainability a business driver. We are glad to partner with AFISA in this investment that will promote food security, make production of dairy products more sustainable, and connect more dairy farmers to export markets,” said Tania Kaddeche, IFC Global Manager for Agribusiness.
IFC’s agribusiness strategy focuses on strengthening food security and rural incomes by improving productivity in agriculture, promoting inclusive growth, and helping companies adopt good environmental and social practices. In 2014, IFC’s global investment in the agricultural sector supported more than 3.4 million farmers worldwide. IFC agribusiness investments in fiscal year 2015 was $3.2 billion.
About Arla Foods Ingredients, S.A.
Arla Foods Ingredients, S.A. (“AFISA”) was founded in 2001 as a joint venture between Arla Foods Ingredients Group P/S and SanCor C.U.L. It processes liquid whey from dairies into products sold in the ingredients market. AFISA’s production facilities are located in Porteña, Cordoba Province, and its main office is in Buenos Aires. For more information, visit
http://www.arlafoodsingredients.com
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
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