EBRD furthers investment in Turkish dairy sector with €10m loan
EBRD, which is funded by capital investment from countries and organizations around the world, announced yesterday it had awarded a loan of €10m to Mar Tuketim Maddeleri Ihracat Ithalat Sanayi Ve Ticaret.
Ultra-heat treated (UHT) cows' and goats' milk, yogurt and cheese are sold under Mar Tuketim Maddeleri Ihracat Ithalat Sanayi Ve Ticaret's Kay brand in Turkey.
Kay is among the top ten Turkish dairy manufacturers in terms of sales, according to EBRD.
With the EBRD loan, the Turkish dairy plans to shift production to a new plant and purchase equipment to support the expansion of its yogurt and white cheese portfolio.
“With the support of the EBRD, we will be able to start commercial production in our new facility," said Ergün Ayhan, general manager, Kay.
"We will also be able to pack fresh goat milk which will be coming from our own goat farm nearby. This project will allow us to grow together with all our farmers and distributors,” Ayhan added.
Stronger, more efficient
With its financial assistance, EBRD expects Kay to "become a stronger and more efficient" player in the Turkish dairy sector.
"It will also boost competition in the Turkish dairy sector and improve the company’s ties with suppliers and distributors while bringing higher quality products to consumers,” said Jean-Patrick Marguet, EBRD’s director for Turkey.
Demand for cheese and yogurt drove Turkish retail dairy sales of $3.989bn in 2014, according to Euromonitor.
It expects Turkish retail dairy sales to increase to $4.272bn in 2015 and $5.534bn in 2019.
Last year, EBRD made its first investment in the Turkish dairy sector.
In January 2014, it partnered with The Abraaj Group to acquire a majority stake in Turkish dairy manufacturer, Yörsan.
Speaking with DairyReporter then, EBRD said the country's young population and the current shift from open to packaged products make Turkey's dairy industry a “very attractive” venture opportunity.
“There are attractive macro fundamentals such as Turkey’s young population and increasing disposable income. It also has a very defensive industry,” Tamara Tosic, an associate banker at EBRD, said in January 2014.
“Secondly, we have the growth of the organised retail sector which should further support the conversion from open to packaged products. And thirdly, there is more demand for healthy products.”
