Pronaca Agro

General

The proposed project entails providing a corporate facility to finance the expansion of Procesadora Nacional de Alimentos C.A. PRONACA (Pronaca or the Company), a vertically integrated poultry and pork processor and one of Ecuadors leading agro-industrial companies. The Company initiated its operations in 1958 and today it produces and commercializes meats (poultry, pork, and turkey), value added foods, rice and eggs, as well as animal feed and pet foods. The proposed facility will help the Company finance its growth both domestically and abroad.

Objectives

(i) Farmers reach: Pronaca supports the activities of about 3,000 farmers. As an input to its operations, Pronaca buys about 40 percent of the country''s corn production. It also works together with the Government under an initiative called "Inclusive Business Program", a program that supports small farmers in increasing land productivity by providing technical assistance and financing for the purchase of certified seeds and inputs. It also ensures the purchase of their products (guaranteed volume and prices) via purchase agreements (849 farmers under this program). (ii) MSME development: Currently, Pronaca purchases about US$340 million from domestic suppliers, out of which over 90 percent are considered MSMEs. In addition, the Company supplies over 65,000 small retailers across the country with its products, thus supporting a vast supply chain, which is mostly composed of MSMEs. (iii) Downstream reach: Pronaca serves over 75,000 clients across the country directly and indirectly, through 43 exclusive distributors. By supporting Pronaca''s growth, the Project will generate business downstream. (iv) E&S best practices: Pronaca places high value on conducting its business in a sustainable manner and follows IFC''s best practices in E&S matters, being an example to the sector players in Ecuador.