IFC is set to invest $25 million in KazFoodProducts LLP. KazFoodProducts is a leading Kazakh food processing company that operates in grain milling and confectionary sectors. IFC also aim to boost Kazakhstan’s agricultural sector with the investment while also expanding the company’s expansion plan along with enhancing global food security.
A company that processes and distributes flour, wheat gluten, starch, animal feed and confectionery, KazFoodProducts investment by IFC is expected to create 500 jobs while contributing to farmers and retailers through the company’s supply chain.
According to Alikhan Talgatbek, CEO of KazFoodProducts:
Kazakhstan is responsible for about 4 percent of the global traded volume of wheat and flour being both producer and their exporter. IFC investment is aimed to further increase its grain production and play a bigger role in regional food security, especially in neighboring grain-deficit Afghanistan and Tajikistan while diversifying the economy by making Kazakhstan less reliant on oil and gas exports.
Georgina Baker, IFC Vice President for Latin America and the Caribbean, Europe, and Central Asia also added:
“Agribusiness in Kazakhstan has enormous untapped potential since the country has a very large area of arable land. Unleashing that potential will help increase exports and create jobs, including in frontier regions of Kazakhstan with higher poverty rates and limited employment opportunities.”
IFC also aims to improve food safety and environmental and social standards along with the investment coupled with raising corporate governance and increase operational standards.
The largest food processing group in Kazakhstan, KazFoodProducts operates through three main subsidiaries namely: AsiaAgroFood, operating in grain milling and the country’s largest producer of flour, glucose syrup and animal feeds; Bayan Sulu which is the country’s largest producer and exporter of confectionery; and BioOperations that is the country’s only plant for the deep wheat processing of starch, wheat gluten, flour, bioethanol, and animal food.