Read the information document of the issuer here
Part I of II
The owner of the company, Mr. Tsogtbuyan is one of the first professional breeders in the country trained back in 1980’s by the western experts. After socialist system collapsed in 1990, Mongolian state owned factories and farms were all privatized and most of them closed the door, due to poor management. However, Mr. Tsogtbuyan persisted his dream to provide healthy dairies to the consumers and took risk to establish his own farming business in 1992, during the most vulnerable economic period of the country.
What started as a small diary business with only 11 cows now reached to 150 milk cows and increasing demand from the market. The company’s ultimate goal is to fully replace imported dry milk with its own high quality, fresh, liquid milk, since 80% of the domestic dairy factories use imported dry milk for their production, while the country has over 4 million cattle.
In 2014, Mr. Tsogtbuyan started to produce its organic and tasty dairy products in local market and the products are unique because the company uses its own small farm using the traditional methodology. The livestock of the company’s farm is raised on Mongolian natural pasture and feed by nutrients which were planted organically without any pesticides and fertilizers. All of the products are rich in vitamins, minerals, nutritious and environmentally sustainable. The company believes it can affect consumers’ decision to choose environmentally friendly purchase by using reusable glass bottles for the products.
In December 2016, the company successfully introduced 8 new products to the market and it immediately increased its sales income threefold. Now the company is producing 20 products in 8 categories with 14 full time staffs.
There is a very high demand for their products, especially from mothers with babies and toddlers, elderlies who get essential nutritional needs through the dairy products, however the company is not able to meet this market demand with its current production capacity.
In order to meet their market demand, the company is seeking loan 605 million MNT to buy new dairy equipment, 2 refrigerators and 2 more distribution trucks. It will increase job opportunity for 4 more full time staffs. By implementing the project, the company will be able to double the daily production capacity.