BIO disburses USD 5,4 million loan to NVTS in Mongolia

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In December 2013, BIO disbursed a USD 5,4 million loan to the leading egg and poultry business, NVTS in Mongolia. NVTS produces chicken meat and eggs for local consumption, a product that has risen strongly in view of soaring beef and mutton prices in Mongolia.

Local production has been very limited and most eggs are traditionally imported from Russia. NVTS is responding to the growing demand for poultry and eggs and reducing Mongolia’s dependence on import by expanding its capacity strongly to ultimately 1 million laying hens with a production capacity of 210 million eggs per year. BIO’s investment supports the expansion project, as local long-term funding is hard to obtain.

The expansion project entails local employment creation and improved living standards in one of the poorest areas of Mongolia, Bayanchandmani Soum. Besides the creation of direct jobs in the factory, a trickle-down effect is expected for additional services to cater for a larger workforce.

Not only import of eggs will be reduced, local wheat is valorized as feedstock and substitutes import, leading to an increased value chain. In terms of environmental impacts, NVTS envisages the production of organic fertilizer, purify wastewater to be used for agricultural purposes and producing biogas from manure to produce electricity.

The factory uses battery cages that are built to the current norms for cages valid in the EU. Overall, NVTS proposes an impressively progressive and environmental solution for one of Asia’s poorest countries.

Read more on BIO's investment in NVTS.