Bioparques 3

completed

Bioparques de Occidente, S.A. de C.V. (Bioparques or “the Company”) is a greenhouse tomato producer located in the state of Jalisco, Mexico. Bioparques benefits from Mexico’s favorable climate, low labor costs and proximity to the US market. As of 2015, the Company operated a total of 317 hectares including 171 hectares of semi-hydroponic (method of growing plants without soil, bark, or moss) greenhouses and 146 hectares of tomato plantations under mesh house technology, divided across four sites (Bioparques I, II, III, IV). Bioparques I is the first and main site that includes the administrative, packaging and logistics (transport) areas for the operation. Tomato harvesting at Bioparques lasts approximately 10 months a year, from late August through end of June. In peak season, Bioparques employs approximately 3,500 workers, mostly migrants who reside at one of three housing complexes owned by Bioparques. Of these, Bioparques I has 13 modules, consisting of 363 homes, with a total capacity for 1,815 persons; Bioparques II housing complex has 9 modules, 264 homes, and a total capacity for 1,320 persons; while Bioparques IV currently has 5 modules, 140 homes, and a total capacity of 700 persons. This new investment involves an A loan of $10 million for the expansion of (i) Bioparques tomato plantations using technology of French origin on 50 hectares (ha) inside Bioparques IV; (ii) expansion of worker accommodation (2 modules), increasing the total housing capacity at Bioparques IV to 980 workers. The project was approximately 60-70% complete at the time of appraisal.The project is expected to (i) increase Bioparques productivity, efficiency, and competitiveness in the local and international markets; (ii) promote the application of sector-specific good international industry practice (GIIP) and robust environmental and social standards; (iii) generate 350 jobs during construction and up to 800 during operations, and (iv) promote economic opportunity among local retailers and suppliers servicing the growing operation. Together with Agricola La Primavera, Zeppelin and Kaliroy, the other three group companies, the group is one of the largest tomato producers in Mexico and exporter to the US, with annual sales of US$109 million, 80% of which are exports to the US. The new investment will allow Bioparques to continue achieving its growth projections in a sustainable and competitive manner.