The European Bank for Reconstruction and Development (EBRD) is providing a US$7m loan to support the expansion plans of Obour Land, an Egyptian dairy producer.

Obour Land’s plans include the establishment of a dairy farm with an estimated production of 60 tonnes of milk per day.

The EBRD funds will support Obour Land to establish a greenfield dairy farm, with imported milking equipment and 2,500 dairy cows. The farm will supply raw milk to a newly-established ultra-heat treatment (UHT) for packaged milk operations.

In addition, staff will be trained by experts in the latest dairy-milking operational technologies and processes.

The EBRD suggests developing the farm will achieve high-quality milk production and increase the potential for exporting to neighbouring countries.

Established in 1997, Obour Land for Food Industries is a joint-stock company incorporated in Egypt and involved in the production of different types of white cheese, UHT packaged milk and juices.

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Egypt is a founding member of the EBRD. To date, the bank has invested more than EUR4.5bn (US$5.16bn) in 87 projects in the country since it began investing there in 2012.