ADB, Milko Sign Deal to Expand Dairy Operations, Improve Rural Livelihoods
MONGOLIA - On 28 November, Asian Development Bank (ADB) signed a local currency loan equivalent to $7.5 million with Milko LLC (Milko), a member of the Teso group (Teso) and a leading dairy company in Mongolia, to support the company’s plans to expand its dairy operations, while empowering women and men throughout its supply chain. This is ADB’s first private sector loan in Mongolia denominated in local currency.
3 December 2019
1 minute read
The project will help Milko develop its raw milk sourcing and processing capacity, adding more value in the domestic market and further integrating the dairy value chain. About half of Milko’s raw milk is sourced directly from smallholder milk suppliers and herders from Milko’s milk collection centers. Direct sourcing benefits herders and communities with extra income, while providing Milko with a sustainable and reliable source of raw material.
"Investing in agricultural value chains can yield solid economic and development impacts," said ADB Country Director for Mongolia Pavit Ramachandran. "This project is good news for rural households, as one-third of Mongolia’s population lives in rural areas and their livelihoods oftentimes depend on animal husbandry and milk production."
ADB’s assistance will also help the company procure modern equipment, invest in more efficient management systems, and ensure that its end-to-end operations follow international certification standards. This will increase Milko’s export opportunities in international markets such as the People’s Republic of China and Kazakhstan.
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Source: Montsame
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