11ever-5793 - Developing finance scheme for growth in dairy production

Evergrowth Dairy Cooperative

Vietnam is one of the focus countries for Agriterra’s agribusiness development team. For that purpose Agriterra is interested in building up a client portfolio of farmer-led businesses in the country. In June 2011 a scoping mission to Vietnam was carried out to identify (unions of) cooperatives and other forms of farmer-led companies that could be interested in the business development services offered by Agriterra. FrieslandCampina Vietnam suggested to include Evergrowth Cooperative in the scoping exercise. The mission team came to the following conclusion on Evergrowth Cooperative: “Excellent growth potential, professional management and good governance make Evergrowth a promising client. The organisation is keen to grow and could use support in doing so. It was therefore agreed that a company assessment would be the next step as a point of departure for a possible tripartite partnership between Evergrowth, Agriterra and SNV. The company assessment took place in Soc Trang province during 24th to 28th October 2011. The Evergrowth Cooperative was established in 2004 with financial support from the Canadian government through a project implemented by SOCODEVI. Since 2008 the cooperative has been running without project support. The cooperative started with 171 members and has grown to include 1,223 members. Slightly less than half the members are female. The number of dairy cows increased from 477 in 2004 to 2,640 in May 2011 that deliver about 10 tons of milk daily. The company has the ambition to increase intake to at least 18 tons within five years. The action plan for 2012 addresses (i) capacity development for the MB, Management of the cooperative and (ii) the feasibility study to develop a bankable business plan for attraction of funding from international impact investors or financial institutions.

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