Cheese maker Land’Or clinches US$3.95m financing to fashion, expand Moroccan facility

MOROCCO – Land’Or, Tunisian dairy processor specializing in cheese making has received a €3.5 million (US$3.95m) loan financing from the European Bank for Reconstruction and Development (EBRD) to support its expansion in Morocco.

The facility will finance the acquisition and installation of additional equipment and construction of a storage extension at its new cheese manufacturing plant in Kenitra, Morocco.

These funds, which are the EBRD’s second financial package for Land’Or, will also finance the working capital needs of LMI operations.

The Bank provided a €7.8 million (US$8.8m) loan package to Land’Or in 2020 to partially fund the construction of a new LMI cheese plant in Kenitra.

During that period, the bank also extended €3.1million (US$3.5m) to procure new machinery and increase the production capacity of its Tunisian plant.

The new Moroccan facility which is expected to be operational early in Q2 2022, will have a capacity of 5,000 tons of fresh, melting and canned cheese.

It is also designed to manufacture new products and new packaging with the objective of increasing export potential.

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Its projected sales are estimated at €7.5 million (US$8.87m) in 2022 and €10.4 million (US$12.3m) in 2025. The Moroccan market already represents 28% of Land’Or’s turnover.

Land’Or has been part of the EBRD Blue Ribbon programme since February 2020. The programme, dedicated to high-potential SMEs, is helping the company through technical assistance to adopt the International Financial Reporting Standards as well as to increase its export potential and operational efficiency.

EBRD heightens support to Tunisia’s food and beverage sector

The EBRD places a strong emphasis on providing finance for private-sector firms in Morocco and Tunisia. To date, the EBRD has invested nearly €3.2 billion (US$3.6 billion) in Morocco through 80 projects.

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In October, the financier dished out a US$7.19 million loan to Compagnie Générale des Industries Alimentaires (COGIA SA), one of Tunisia’s largest producer and export of olive oil.

COGIA is a subsidiary of United Arab Emirates-based IFFCO Group, with a diversified portfolio of value-added sustainable foods, consumer products and services across the Middle East, Africa, southeast Asia and Europe.

The funds were aimed to enable the producer of Rahma, Allegro and SanMarco brands, to grow its sourcing, bottling and exports of Tunisian olive oil.

Currently the company sells its products to more than 40 countries and has visibility over the entire manufacturing process to ensure the products are of high quality.

The EBRD loan will further support the development of the sector which is of strategic importance to the Tunisian economy, with a view to promoting regional integration, strengthening export competitiveness, and bolstering national economic growth.

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