Information for fruit and vegetables business in CIS
Oilseed crushing company Chumak to draw a $15 mln EBRD loan
The European Bank for Reconstruction and Development (EBRD) has taken a decision to grant the Kherson-based foodstuff company Chumak - one of the biggest Ukrainian producers of ketchup, sunflower oil and canned products - a $10 million credit and open a revolving credit line for $5 million
The EBRD Board took this decision on June 8 this year.
According to the report of EBRD Kiev office, Chumak intends to expand its capacities for extraction of crude vegetable oil, to fund development of its marketing and branding system and its raw material supplies base. The Bank has informed that the total worth of the company's operational expansion project is $23.9 million, and the rest of the sum is intended to be drawn from local banks.
In 2003 the company increased its output of packed sunflower oil by 14 percent against 2002 - up to 39,867 tonnes. However, the mayonnaise production dropped 37.1 percent - to 1,640 tonnes.
The company processed 68,394 tonnes of sunflower last year - down 12.5 percent from the year before.
The company estimates its share of Ukrainian refined and packed sunoil market in 25 percent.
At present the company's operational capacities are spread over three enterprises: Kakhovka Canning Plant (ketchups, mayonnaise and seasonal vegetable conservation), Skadovsk Canning Plant (tomato juice and paste) and "Oliya Chumak" Plant (refined sunoil brands "Chumak" and "Oliya Domashnyaya").
The company Chumak was established by Swedish South Food, jointly with several food processing plants operating in Kherson Region, in 1996. In 1998 Chumak acquitted two sunoil crushing plants and since July 1999 has been producing its renowned sunoil brand "Chumak".
In 2000 all the company's affiliate enterprises were incorporated into Close Joint Stock Company "Chumak". In August 2002 the Norwegian Orkla Foods acquired 15 percent share of the company.