IMC Ukraine

completed

The proposed investment is to assist Industrial Milk Company (the “Company” or “IMC”), a large-scale primary agricultural producer operating in Central and Northern Ukraine, in expanding the scope of its agricultural operations. IMC is a large scale producer of agricultural crops and to a lesser extent raw milk and beef with operations in Northern and Central Ukraine. IMC currently has 120,000 ha land bank in Poltava, Chernihiv and Sumy regions of Ukraine and has a target to manage 185,000 ha by 2015 and expand within the existing regions as well as in a few new regions. IMC is planning to invest in other neighboring countries in the long term.. The Company’s crop portfolio includes corn, sunflower, soybean, wheat, fodder crops, sugar beet, rye and potato. IMC is also Ukrainian’s TOP10 industrial milk producer by volume. There is no meat processing in place. IMC has approximately 9.000 heads of cattle. Company has storage facilities for grain, oilseed and potato as well. Company’s vehicle park includes more than 500 agricultural vehicles. Every region has a few number of mechanical maintenance workshops for equipment maintenance. There are 5 fuel storage facilities. IMC acquires a sugar processing plant recently and planning to renew and operate it.IMC consists of 14 companies with in 3 regions. Chernihiv region consists of 2 clusters; Chernihiv and Nosivka Clusters. There are 14 subsidiaries under IMC’s management and ownership under 4 clusters in 3 regions.IMC’s investment program involves: (i) expansion of agricultural land, (ii) expansion of storage capacity, (iii) further modernization and purchase of supporting farm machinery and infrastructure, and (iv) increase in working capital. No new investment is considered in dairy section.There are no Indigenous Peoples in the project vicinity, thus PS7: Indigenous Peoples does not apply. While issues related to PS8: Cultural Heritage are considered unlikely, the Company will develop a formal chance find protocol providing appropriate protection in the event of unexpected discovery of items of cultural heritage.