Conaprole Exp.

completed

Created in December, 1935, the Cooperativa Nacional de Productores de Leche (Conaprole) is an existing client of IFC and Uruguay’s leading dairy processor. Starting 70 years ago as a cooperative, the Conaprole Group is now the largest private enterprise and the number one dairy products exporter in Uruguay. It is also the largest milk exporter in Latin America. Sales in 2006 totaled USD 297 million, 60% of which was exported to 54 different countries (Mexico 21%, Brazil 12%, Venezuela 18%, Cuba 14%, USA 7%). IFC is proposing an investment which entails the following:- Building a powder milk plant with a capacity to process 1 million liters of raw milk per day, and associated milk reception and storage infrastructure; and- Investing in equipment and machinery modernization. The major capital investment will be at Conaprole’s Plant 8 at Villa Rodriguez, province of San Jose, the Cooperative’s main milk base (50% of total milk receipts). Currently, this is a cheese and UHT milk processing plant, located in the same milk collection area of Plant 11. This plant is projected to become Conaprole’s main export production site, and will now be expanded to include drying facilities as well as a larger cheese production facility. This decision follows a review of alternatives, space availability for expansion, milk supply prospects and water supply.