The project will support Milko's investment plan during 2019 to 2020 by financing dairy procurement and processing expansion and permanent working capital investments for smallholder farmer and herder supply of raw milk and berries.
| Project Name | Gender Inclusive Dairy Value Chain Project | |||||
| Project Number | 53306-001 | |||||
| Borrower/Company | Milko Limited Liability Company Teso LLC |
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| Country | Mongolia |
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| Location | Nation-wide | |||||
| Type or Modality of Assistance |
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| Strategic Agendas | Inclusive economic growth Regional integration |
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| Drivers of Change | Private sector development |
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| Sector / Subsector | Agriculture, natural resources and rural development / Agro-industry, marketing, and trade |
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| Gender Equity and Mainstreaming | Gender equity | |||||
| Responsible ADB Department | ||||||
| Responsible ADB Division | ||||||
| Responsible ADB Officer | Jeong, Juhyun | |||||
| Project Sponsor(s) | ||||||
| Description | The project will support Milko's investment plan during 2019 to 2020 by financing dairy procurement and processing expansion and permanent working capital investments for smallholder farmer and herder supply of raw milk and berries. | |||||
| Objectives and Scope | The project will support the expansion of Milko's raw milk and fruit procurement and dairy processing capacity. The increase in raw milk and fruit procurement capacity will ultimately benefit women and men smallholder farmers and herders as they are included in formal value chains. The project will also support Milko to increase exports of its end-products. The project is fully aligned with the Government of Mongolia's goals to enhance agricultural productivity, increase local value addition, diversify exports, and create jobs. | |||||
| Linkage to Country/Regional Strategy | The project is aligned with Strategy 2030 which calls for ADB to: (i) scale up its financing for agribusiness; (ii) consider smaller deal sizes with potentially higher risk and development impact, including inclusive business models; and (iii) promote gender equality in at least 75% of the number of ADB's committed operations by 2030. The project is aligned with all three strategic pillars of ADB's country partnership strategy for Mongolia, 2017 to 2020: (i) promoting economic and social stability, (ii) developing infrastructure for economic diversification, and (iii) strengthening environmental sustainability. The project is also aligned with ADB's Independent Evaluation Department's validation of the country partnership strategy and its emphasis to promote diversification of the economy with a focus on improving the productivity of agribusinesses. The project is aligned with ADB's operational plan for regional cooperation and integration, as it supports greater regional agribusiness value chains and greater inclusion of smallholders into value chains. The support is expected to increase the number of herders and smallholders farmers supplying Milko as well as increase the volume they supply. Milko's exports to a number of economies across the region will increase (e.g., Kazakhstan and the PRC, and potentially Japan and Taipei,China) and will provide additional sales to Milko's clients in these economies. ADB's financing is expected to further attract capital and partnerships from across the region. |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | In compliance with ADBs Safeguard Policy Statement (SPS, 2009), the project is classified as category B for environment. ADB has undertaken a corporate and site-level compliance audit. Environmental impact from construction activities is minimal considering the scale and nature of the milk collection facilities. During operational phase there would be impact on waste, wastewater and some occupational health and safety risks. Corrective actions will be implemented to address gaps identified at corporate and subproject-level, to establish a formal environmental and social management system at corporate level, and to comply with ADB SPS 2009 requirements. An environmental and social monitoring report will be submitted to ADB on an annual basis. |
| Involuntary Resettlement | In compliance with ADBs Safeguard Policy Statement (SPS, 2009), the project is classified as category C for involuntary resettlement. The activities related to the implementation of this project will be undertaken within the existing facilities and does not require any land acquisition or relocation of people. |
| Indigenous Peoples | In compliance with ADBs Safeguard Policy Statement (SPS, 2009), the project is classified as category C for indigenous peoples. The activities related to the implementation of this project is not expected to impact on any distinct and vulnerable group of Indigenous Peoples as defined under ADB SPS. |
| Stakeholder Communication, Participation, and Consultation | |
| Timetable for assistance design, processing and implementation | |
|---|---|
| Concept Clearance | 02 Oct 2019 |
| Credit Committee Meeting | 06 Nov 2019 |
| Approval | 22 Nov 2019 |
| Last PDS Update | 02 Dec 2019 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
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Evaluation Documents See also: Independent Evaluation
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Related Publications
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ADB, Mongolia's Milko Sign Deal to Expand Dairy Operations and Improve Rural Livelihoods
ADB today signed a local currency loan equivalent to $7.5 million with Milko, a member of Teso and a leading dairy company in Mongolia, to support the company’s plans to expand its dairy operations, while empowering...