Nyva Pereyaslavshchyny LLC would also use the money to partially refinance some short and middle-term loans. An EBRD note said the company "is one of the most efficient crop-producing and pig-breeding operations in Ukraine". It added that the company’s expansion would "generate strong linkages with meat processors and retailers by increasing the supply of high and consistent quality and biologically safe pigs and pork…".
The bank predicted that this should potentially increase Ukraine’s consumption of domestically-produced pork, raising prices for premium segments. It added the loan would also "set standards of corporate governance and business conduct in the pig-breeding sector in terms of advanced sustainable energy solutions, environmental and health and safety standards".
A key issue would be the company gradually adopting the most recent EU animal welfare standards. A bank environmental impact study noted that while compliance with Ukraine animal welfare requirements "was good in most cases", with the company training and certifying staff in animal handling and transport, improvements were needed to meet EU welfare standards. These related to housing for sows and gilts; stocking densities for finishers; and the need for "further enrichment in cages".
The assessment also highlighted concern about controlling dust emissions from feed mills and uncovered slurry tanks at the pig farms. It added that the sanitary protection zones of the company’s meat processing facility and one farm incorporate residential houses. The assessment said: "The key health and safety risks identified during due diligence are with regards to the meat processing facility and include uncontrolled access near to people performing hazardous operations, use of [personal protective equipment] PPE while using knives, guarding on saws, and improved drainage areas to minimise slip hazard risk."
The loan should receive a final approval this month.