The
World Bank’s International Finance Corporation (IFC) has completed an appraisal
of a proposal to invest in Suu, the leading Mongolian dairy processor, with
three principal goals. The first is to help increase its production capacity,
including purchase of additional milk packaging, butter packaging, BactoScan
milk quality laboratory equipment, an additional ice cream machine, an Alfa
Laval separator and company infrastructure renovation. The second is to help
extend the raw milk supply chain, including the establishment and development
of 22 milk collection points, 13 milk cooling units, two milking parlors and
working capital to source additional milk purchases. The third is to introduce
and implement management systems consistent with ISO and HACCP.

The
IFC promotes competitive markets in developing economies and provides
skills-training for transitioning governments. Its appraisal primarily included
a compliance review of Suu’s operations with IFC’s Performance Standards and
Mongolian environmental, social and occupational health and safety regulatory
requirements. IFC also reviewed the Company’s management capacity and
organizational structure to provide adequate oversight of environmental,
social, health and safety aspects of its business operations.

Suu
was founded in 1958 as a state owned company and was partially privatized in
2002 with full privatization in 2006. It is 94% privately owned with the
remaining shares traded on the Mongolian stock exchange. Its current processing
capacity is 150t/day, and it produces 51 different products comprising milk,
yogurt, butter, curd and ice cream. Presently, Suu gets its milk from some
2,200 herders through19 collection points.