Teso group member Milko LLC (Milko), a leading dairy company in Mongolia, signed a local currency loan equivalent to $7.5 million with Asian Development Bank (ADB) to expand its dairy operations in country.
Details provided below:
- The loan to Milko is ADBs first private sector loan in Mongolia denominated in local currency
- The new finance from ADB 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. Milkos raw milk is directly sourced from smallholder milk suppliers and herders from Milkos milk collection centers.
- The expansion project also helps herders and milk suppliers communities with extra income, while providing Milko with a sustainable and reliable source of raw material.
- As per agreement the bank will help Milko to develop and implement a plan to increase the share of women directly and economically benefitting from Milkos procurement of raw milk and wild berries, and increase the share of payments to women for raw milk.
- This loan agreement underpins the mutual aims of Teso and ADB to support rural livelihoods especially for women and to further spur dairy processing and exports by a Mongolian company, said the President of Teso Mr. Tsogtgerel Odon.