Investment in sustainable diary sector

Dairy cows

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Investment in sustainable diary sector
Investment in sustainable diary sector
Calf rearing and rearing cycle.
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Investment in fields for breeding of dairy cows and financing of heifers for dairy farms. These funds buy calves from productive units and specialize in raising them until they become heifers that will be sold with financing to the same dairy farms. The fields are owned by cooperative units of the dairy producers themselves and the financing of the sale will be made against withholding of payment.

Expected Impact

Financial solutions in the rearing phases with a financed repurchase option linked to social and environmental goals will have an impact on levels of profitability and general sustainability of the business and the sector.

How is this information gathered?
Updated: 13 Dec, 2023 Date of Production: 1 Nov, 2022
Uruguay
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in GPM)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 50 million - USD 100 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Industry, Innovation and Infrastructure (SDG 9) Zero Hunger (SDG 2) Gender Equality (SDG 5)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Responsible Consumption and Production (SDG 12) Good health and well-being (SDG 3) Partnerships For the Goals (SDG 17)

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Sector Sources
  • (1) https://www.inale.org/uruguay-lechero/. (2) Development Strategy 2050. (3) Estimates of qualified informants from INALE (National Milk Institute), based on the sector's perspectives in response to the increase in the international price of milk and current stocks. (4) https://otu.opp.gub.uy/ (5) FOGALE: https://www.siga.com.uy/garantias/fogale. (6) https://www.conaprole.uy/ or https://www.claldy.com.uy/es/ (7) https://proleco.com.uy/ (8) http://proleco.com.uy/wp-content/uploads/2022/03/FFIEL.pdf (9) According to INALE sources and Inale Report 2021https://www.inale.org/wp-content/uploads/2022/05/Situacionyperspectivasversionfinal.pdf (10) https://www.inale.org/wp-content/uploads/2022/05/Situacionyperspectivasversionfinal.pdf
IOA Sources