EBRD Provides $20 Million Loan to APU Dairy to Support Mongolia's Agribusiness Growth
Source: DairyNews.today
The European Bank for Reconstruction and Development (EBRD) has announced a $20 million loan to APU Dairy, Mongolia’s second-largest dairy producer, as part of its efforts to strengthen the country’s agribusiness sector.
This financing, which will be provided in Mongolian Tugrik equivalent, is aimed at enhancing APU Dairy’s processing and packaging capabilities, expanding its raw milk sourcing, and addressing working capital needs. The loan is part of a broader strategy to support Mongolia's agribusiness sector, which employs nearly one-third of the national workforce and contributes approximately 13% to GDP.
In addition to the loan, APU Dairy will receive up to $2 million in concessional finance from the Canadian government, under the High Impact Partnership on Climate Action (HIPCA). The funding will help the company modernize its operations and increase production capacity to meet growing domestic and international demand for dairy products.
The expansion will also focus on improving the resilience of local farmers, including over 1,700 milk suppliers. The initiative aims to enhance climate resilience for these farmers and support small-scale yak herders in Mongolia’s Arkhangai region. Through the provision of modern technologies and market skills, the project will boost agricultural productivity and sustainability.
Technical assistance for climate-smart farming practices will be provided by Canada and implemented by the United Nations Food and Agriculture Organization (FAO). This initiative underscores the focus on sustainable agricultural practices to address climate change challenges and market volatility affecting Mongolia’s dairy sector.
The project is further backed by a parallel loan from the Asian Development Bank, underscoring a multi-dimensional approach to financing Mongolia’s agribusiness growth.
To date, the EBRD has invested over €2.4 billion in 150 projects across Mongolia, with nearly 90% of this funding directed towards the private sector. The support for APU Dairy is expected to enhance the company’s operational efficiency and market competitiveness while contributing to the long-term sustainability of Mongolia's dairy industry.
In addition to the loan, APU Dairy will receive up to $2 million in concessional finance from the Canadian government, under the High Impact Partnership on Climate Action (HIPCA). The funding will help the company modernize its operations and increase production capacity to meet growing domestic and international demand for dairy products.
The expansion will also focus on improving the resilience of local farmers, including over 1,700 milk suppliers. The initiative aims to enhance climate resilience for these farmers and support small-scale yak herders in Mongolia’s Arkhangai region. Through the provision of modern technologies and market skills, the project will boost agricultural productivity and sustainability.
Technical assistance for climate-smart farming practices will be provided by Canada and implemented by the United Nations Food and Agriculture Organization (FAO). This initiative underscores the focus on sustainable agricultural practices to address climate change challenges and market volatility affecting Mongolia’s dairy sector.
The project is further backed by a parallel loan from the Asian Development Bank, underscoring a multi-dimensional approach to financing Mongolia’s agribusiness growth.
To date, the EBRD has invested over €2.4 billion in 150 projects across Mongolia, with nearly 90% of this funding directed towards the private sector. The support for APU Dairy is expected to enhance the company’s operational efficiency and market competitiveness while contributing to the long-term sustainability of Mongolia's dairy industry.
