Tunisia’s #2 dairy company Land’Or receives $12.9m funding from EBRD

Land’Or, Tunisian dairy processor specializing in cheese making has received €10.9 million (US$12.89m) loan financing from the European Bank for Reconstruction and Development (EBRD) to support its expansion in Tunisia and investment in Morocco. Land’Or has been part of the EBRD Blue Ribbon programme since February 2020.

To date, the EBRD has invested almost €2.5bn ($2.95bn) in Morocco in 66 projects. In Tunisia, it has invested €950m ($1.12bn) across 47 projects.

In January 2020, Africinvest’s Maghreb Private Equity Fund IV (MPEF IV) acquired 1.8m new shares, representing 16.2% of the capital of Land’Or. Land’Or, which was founded in 1996, is a local market leader in processed cheese and owner of the Land’Or, Fondue, and Campo Verde cheese brands.

Land’Or will use €3.1million ($3.7m) to buy new machinery and increase production capacity in its main Tunisian processing plant.

Land’Or’s Moroccan subsidiary Land’Or Maroc Industries (LMI), will receive €7.8 million ($9.2m) to finance the purchase and installation of equipment at its new cheese manufacturing plant in Kenitra. LMI will also receive a EU grant through the Bank’s Value Chain and Competitiveness Programme, which aims to improve value chains across the southern and eastern Mediterranean region.

In 2019, the company started construction on a new $11.3m 3,300m² cheese factory in Kenitra, north of Rabat. The facility is due to come online in Q1 2021 and will produce canned cheese, processed cheese for use in cooking and fresh cheese.

In 2018, Land’Or had a turnover of 110.3m dinars ($38.9m), of which almost two thirds came from its operations in Tunisia and one thirds from exports. Its main export markets are Morocco, Algeria and Libya. Morocco already represents 28% of Land’Or’s turnover.

As a result of the new factory, Land’Or’s projected sales in Morocco are estimated to rise to €7.5m ($8.9m) by 2022 and €10.4m ($12.3m) by 2025.