Founded in 1959 by Mr. Jorge Cavelier, Alqueria is currently 100% owned by the Cavelier family (the “Sponsor”).

The total Project cost over the 2010 – 2012 period is estimated at $36 million. IFC is considering providing the Company with a $ 15 million A-Loan and up to $ 5.0 million in preferred shares.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity	5.0

* These investment figures are indicative

With a production capacity of 317mn liters/year, Alqueria operates 3 production plants in the 3 main cities of Colombia: Cajica (near Bogota), Cali and Medellin. In addition to these, it also owns a distribution center in Bucaramanga. The proposed investment will involve all 4 plants.

IFC will be supporting the continued growth of one of Colombia’s leading agribusiness companies in terms of employment and linkages through the value chain. It will improve Alqueria’s competitiveness in the production and commercialization of dairy products, helping the Company increase its reach in the interior of Colombia.

There are specific developmental impacts associated with the investment program, which are summarized below:

Employment: Alqueria’s improved performance will safeguard employment opportunities in rural areas throughout the country.

Farmers linkages: The Company sources its milk from direct and indirect farmers throughout the country (23% are located in Colombia’s frontier regions). As a consequence of the Investment Program, Alqueria will further develop milk production and therefore enhance and stabilize farmers’ incomes and increase hired employment on dairy farms.

IFC is expected to play a critical role and contribute positively to the project by supporting a locally-owned company by providing long-term financing. IFC is uniquely able to support growing companies operating under volatile financial markets. Overall, IFC’s involvement in the Investment Program will enable Alqueria to (a) improve product quality and safety standards enabling the Company to keep diversifying into new products; (b) benefit from the implementation of IFC’s environmental and social performance standards; (c) improve its corporate governance and financial transparency; and (d) maintain its competitive position by reducing costs. Finally, the proposed investment would also improve the risk profile of a local player in the dairy industry by strengthening its balance sheet, and provide a valuable Stamp of Approval, as the Company considers a possible public listing in the near to medium term.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects as the project has no elements with diverse, unprecedented negative social or environmental impacts. Overall company organization and roles and responsibility for environmental, OH&S and social issues including community engagement were deemed to be comprehensive and the existing management program judged to contain the elements of a functioning, practical management system that meets IFC’s requirements. The company has comprehensive policies regarding human resources management; overall relationship of company and workers (including contractors) is well defined, communicated and seen to be cordial. Environmental management is well integrated into operations. Mitigation measures had been either proposed or were already being implemented. No issues involving the supply chain were observed. Community engagement includes many educational, nutritional and employment-based programs which the company supports on a local, regional and/or national basis.