NVTS LLC

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NVTS LLC (NVTS) and its subsidiary Monegg LLC (“Monegg”) lead the egg and poultry industries in Mongolia. Poultry and eggs form a cheaper alternative to the typically consumed beef and mutton, which have seen a steep price increase in the recent years. However, local production is low and a large part of eggs and poultry are imported.

BIO has extended a USD 5,4 million loan to NVTS to support the expansion of the egg farming business to a capacity of ultimately 1 million hens and production of 210 million eggs per year. This enables NVTS to respond to the growing demand for poultry and eggs, as well as reduce the import of the product.

By producing eggs locally NVTS can reduce costs substantially. For this expansion project, NVTS acquired an additional 65 hectares of land 1.5 km from its existing farm. The Company is outfitting the plant with top-of-line technology and chicken battery cages fully compliant with the current EU norms. In addition to the benefits to the Company’s top and bottom line, the expansion will result in 150 new jobs in Bayanchandman soum.

NVTS’ expansion has far stretching positive economic and social impacts:

• Employment creation

• Improving living standards in the region : Bayanchandmani Soum (countryside village 80 kms north of the capital) has a poverty rate hovering around 45-50% (versus national average 33%) and suffers from youth unemployment and depopulation because of the lack of local employment ; besides direct employment creation, the project should have a trickle through impact on other local sectors (catering, lodging..)

• NVTs has effectively integrated itself with the local community and is supported by the local stakeholders. Its activities will provide an employment outlet for the local technical school

• Import substitution and valorization of local wheat as feedstock – increased value chain

• Organic fertilizer production

• Water production ; purified wastewater is perfectly suitable for agriculture purposes

• Contribution to national and regional fiscal income

NVTS is studying the possibility to convert manure into biogas and thereby be self-sufficient in terms of energy for the factory.

Website : www.nvts.mn

  • Investment amount (€):

    USD 5,4 million

    Agribusiness - Poultry

  • Contract signature :

    2013

  • Nature of intervention :

    Loan

  • Development impacts :

    • 1 — Employment creation
    • 2 — Improved living standards in the region
    • 3 — Import substitution and increased value chain
    • 4 — Contribution to national and regional fiscal income

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