Press Release from 2021-04-16 / DEG
DEG finances leading Costa Rican dairy company
Long-term loan of USD 19 million for Dos Pinos
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, is providing a long-term loan totalling USD 19 million to Costa Rica’s largest dairy cooperative. This will enable the cooperative “La Cooperativa de Productores de Leche Dos Pinos R.L.” (Dos Pinos) to improve its liquidity while facing the challenges of the current pandemic, and strengthen its market position in the long term. The loan will be used, among other things, to modernise and expand two production facilities and also to improve Costa Rica’s cold chain infrastructure. Supported by DEG’s Business Support Services Dos Pinos will also increase resource efficiency in many production processes.
“With this financing, we are supporting the development of the cooperative and its numerous members around the country, and helping to secure local production and marketing of dairy products and thus the incomes of around 5,000 employees,” says Monika Beck, a member of DEG’s Management Board. A further USD 11 million is being provided by European Financing Partners S.A., whose shareholders are a number of bilateral European development financiers.
Cooperative brings together over 1,300 milk suppliers
Dos Pinos was founded in Costa Rica in 1947. The cooperatively managed enterprise takes raw milk from its members and processes it into fresh milk, long-life milk and other dairy products, and then distributes them. Members receive more than three quarters of the net income. Dos Pinos is in partnership with over 1,300 milk suppliers, mostly medium-sized local farmers with an average of ten hectares of land. They also receive agricultural inputs and services from the cooperative.
Dos Pinos now is the Costa Rican market leader. The focus of the multi-certified business is on the production of high-quality milk and dairy products such as yoghurt and cheese. The assortment includes over 900 products that are sold to customers in Costa Rica and Central America.
“Dos Pinos is committed to sustainability of its business,” says CEO Gonzalo Chaves. “This includes providing social and economic development to our farmers and employees or maintaining a responsible relationship with the environment. We are also committed to providing health and wellness to our consumers through first quality products based on our continuous innovation process. We are happy about and grateful for the confidence and support from DEG and its partners in this loan facility, since it will help us to fulfil our commitments to our stakeholders.”
Major employer with commitment to local communities
As an employer and cooperation partner, the company generates local income and drives the development of the industry, for example through innovation and environmental management. “One of our goals is to support the growth of local businesses in developing markets,” says DEG Management Board member Monika Beck. “But with our loan to Dos Pinos, we are also supporting their impressive commitment to local communities in the areas of education, healthcare and sustainable waste management.”
As an international development finance institution, DEG finances and advises private companies in sectors, including agriculture, that operate sustainably and responsibly. In this way it helps to improve the supply of food in developing countries and to enhance local value added. Just recently, it provided a long-term loan of USD 20 million to a leading peanut processing company in Nicaragua.