Tunisian cheese marker Land’Or clinches US$12.89m from EBRD for Tunisia, Morocco expansion

NORTH AFRICA – Land’Or, Tunisian dairy processor specializing in cheese making has received €10.9 million (US$12.89m) loan financing from the European Bank for Reconstruction and Development (EBRD) to support its expansion in Tunisia and investment in Morocco.

According to the press-release statement by EBRD, the operation is supported by the European Union (EU).

From the total financing facility, Land’Or will use €3.1million (US$3.66m) to procure new machinery and increase the production capacity of its Tunisian plant.

It will also optimise the processes in its Tunisian plant by improving its industrial standards, investing in productivity, quality and safety.

In Morocco, the cheese maker’s sudsidiary, Land’Or Maroc Industries (LMI), will receive €7.8 million (US$9.2m) to finance the acquisition and installation of equipment at its new cheese manufacturing plant, to be built in Kenitra, north of Rabat.

This facility is expected to be operational by the end of 2021 and 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.

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.

LMI is also said that it will benefit from an EU grant through the Bank’s Value Chain and Competitiveness Programme, which aims to improve value chains and make businesses more competitive across the southern and eastern Mediterranean region.

Land’Or has been part of the EBRD Blue Ribbon programme since February 2020.

The programme, dedicated to high-potential small and medium-sized enterprises, is helping the company through technical assistance to adopt International Financial Reporting as well as increasing its export potential and operational efficiency.

Land’Or, was created in 1994 by Dr Hatem Denguezli and Dr Hichem Ayed and was listed on the Tunis Stock Exchange in 2013.

The company offers premium cheese brands namely: Land’Or, Fondue, and Campo Verde.

The EBRD places a strong emphasis on providing finance for private sector firms in Morocco and in Tunisia.

To date, the EBRD has invested close to €2.5 billion (US$2.95m) in Morocco through 66 projects. In Tunisia, the Bank has invested €950 million (US$1.12m) across 47 projects.