Kyiv, Ukraine, April 13, 2021 — A new loan by IFC, a member of the World Bank Group, will give consumers in Ukraine more access to quality food items by supporting the expansion of Nyva Pereyaslavshchyny, a leading meat producer in the country. The $20 million investment will allow the company to expand its operations sustainably, adhering to European Union animal welfare standards and using renewable energy and bio-fertilizers.
The company's expansion will ensure the supply of high-quality and sustainably produced pork in the Ukrainian market, while supporting the nation's climate goals. Ukraine's agriculture sector employs 18 percent of the country's workforce and is responsible for 9 percent of gross domestic product (GDP). Meat and grain production, the two main business lines of the company, are vital components of the nation's agribusiness. The COVID-19 pandemic put significant pressure on the sector via supply chain disruptions and reduced access to finance.
IFC's loan will support Nyva with the construction of two new farms, whose operation will be aligned with the EU's Animal Welfare Directive. The loan will also support the company's climate projects, such as installing biomass boilers and manure disposal systems.
"Nyva Pereyaslavshchyny has been committed to renewables for decades, generating energy from straw grown on-farm. We are proud to be the second largest pork producer in Ukraine with minimum energy consumption and good soil quality due to organic fertilizers. IFC's financing will enable us follow good animal welfare standards, while helping the meat production grow during this challenging time for Ukraine, when all efforts are focused on combating COVID-19," said Oleksandr Mostipan, the Founder of Nyva Pereyaslavshchyny.
IFC's new financing is part of a long-term investment program, which was launched in 2015 and continued with critical financial support in 2020. The latter was a key component of IFC's $8 billion global fast-track financing package to support business activity and preserve jobs in the face of COVID-19. IFC's support enabled Nyva to create nearly 2,000 new jobs for rural workers and to pay taxes regularly, helping local communities to handle the crisis.
Jason Pellmar, IFC's Regional Manager for Ukraine, Belarus, and Moldova, said: "IFC's new investment aims to support Nyva's commitment to innovative and sustainable agricultural production based on best global practices. The program will also support residents of rural areas by creating quality jobs at a time of global economic uncertainty."
Improving productivity in agriculture, promoting inclusive growth in rural areas, and helping companies find business opportunities through adoption of environmental and social best practices are part of IFC's strategy for improving food security in Ukraine and the region. Since 2004, IFC made $1 billion of agribusiness-related investments in Ukraine across a diversified portfolio of projects and implemented a wide-ranging advisory program.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
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About Nyva Pereyaslavshchyny
The company is the second-largest market player in the Ukrainian industrial pork market. For more information, visit www.niva-group.com.
