Summary of Proposed Investment
Project Number
7851
Company Name
Patagonia Mint S.A.
Date SPI Disclosed
Oct 23, 1997
Country
Argentina
Industry
Agribusiness and Forestry
Status
Completed
Sector
Vegetable Fats and Oils
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Dec 24, 1997
Signed : Mar 24, 1998
Invested : Apr 15, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Argentina-Patagonia Mint |
| Region | Latin America - Argentina |
| Sector |
Projected Board DateNovember 24, 1997
Company NamePatagonia Mint S.A.
Technical Partner and/or Major Shareholders
The Project will be equaly one-third owned by (a) A.M. Todd Co., a privately held company based in Michigan and which is one of the largest mint oil processors and dealers in the world; (b) Wyckoff Farms, also privately held, and a large producer of mint primarily in Washington state; and (c) Peñaflor S.A., a large Argentine privately held company, which produces grapes, wine and fruit juices, and is based in Mendoza.
Project Cost Including proposed IFC investment
Total project cost is estimated t US$18.5 million. IFC is considering a US$11.0 million investment in SBT, of which US$6.0 million for IFC’s own account (“A” Loan of US$5 million and “C” Loan of US$1 million) and US$5.0 million for participant’s accounts (the IFC “B” Loan).
Location of project and Description of site
About two thirds of the plantation will be located in the Mendoza province and the remaining one third in the Cordoba province. Studies have been conducted on the soil and water quality at the intended production location, and have been found satisfactory; in general agro ecological conditions are similar to those of established mint production areas in the US.
Description of Company and Purpose of Project
The Project consists of developing approximately 2,800 hectares of mint plantation and a mint oil distillery. About two thirds of the plantation will be located in the Mendoza province and the remaining one third in the Cordoba province.
The plantation will utilize modern irrigation and harvesting equipment. Production will primarily target export markets, where mint oil is used for flavoring commercial products such as candy and toothpaste. Mint production is presently concentrated in few countries, and the Project responds to demand from mint users, primarily multinational consumer goods companies, for a broader supply base to ensure more consistent quality and procurement reliability.
The Project supports investments in rural areas of the country, and will convert low value, currently unused land into a modern plantation. The Project involves substantial technology transfer to Argentina from leading companies in the international mint industry. The Project is expected to generate employment for about 120 people, and provide export earnings of US $ 8 to 9 million per year. Successful implementation of this project may lead to diversification of Argentina’s agricultural exports and Argentina becoming a major mint producer in the world.
Environmental Category and Issues
This is a category B project according to IFC''s environmental review procedure. Key environmental issues associated with this project include pesticide handling and application, water supply, liquid and solid waste disposal, power supply, air emissions, employee training, provision of personal protective equipment, and fire protection. The mint oil distillation process produces little waste. The extracted plant matter is returned to the farm as a soil amendment, and small amounts of wastewater are likewise used for irrigation. Pesticide use, handling and storage follows US regulatory specifications and meets the World Bank guidelines. The company has a detailed health and safety training program in place and the distillery meets international health and safety standards.
The is from the Public Information Center.
| Date SPI sent to PIC | October 23, 1997 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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