IFC Supports Kvarlis Baga
Thursday, October 2IFC, a member of the World Bank Group, is providing a $2 million loan to Kvarlis Baga, one of Georgia’s largest dairy farms, to support the company’s growth, strengthen the agribusiness supply chain and boost agriculture and job creation, particularly in rural areas.
IFC is backing Kvarlis Baga’s effort to significantly expand fresh milk production. The project will also spur agribusiness development, which is crucial for Georgia’s economic growth, employment generation, and poverty reduction.
“The IFC’s loan will help us purchase additional facilities, allowing us to triple our fresh milk production and making Kvarlis Baga the number one Georgian producer of fresh milk,” said Lasha Papashvili, the owner of Kvarlis Baga. “The project will hopefully serve as a role model for other agricultural projects in the country.”
The investment is expected to increase high-quality fresh milk production in Georgia at a cost competitive with international suppliers. The increased production will allow Georgia’s dairy sector to reduce reliance on imported whole milk powder and, eventually, become self-sufficient.
"While agribusiness provides employment for more than half of Georgia’s workforce, increasing the productivity of this sector is still a challenge,” said Tomasz Telma, IFC Director for Europe and Central Asia. “This investment will enable a quality fresh milk producer to scale up production and help meet rapidly growing demand in the Georgian market.”
Operational since October 2013, Georgian dairy farm Kvarlis Baga is equipped with high-standard facilities and management systems, ensuring the production of high quality fresh milk. After building additional facilities in August 2014, the company is planning to purchase new equipment and cattle to increase its daily milk production up to 10 tons daily.
Georgia became an IFC member in 1995. Since then, IFC has invested $810 million in 60 projects across various sectors and supported regional projects developed in the country. IFC has also implemented a number of advisory projects focused on the development of the private sector.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit www.ifc.org.