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As stated by the IDB Invest, this operation consists of a loan to Alimentos Kowi S.A. de C.V., Porcikowi S.A. de C.V., Genetikowi S.A. de C.V., and Nutrikowi S.A. de C.V. (collectively, the "Companies"), subsidiaries of Grupo Kowi S.A. de C.V., to finance:
(i) working capital needs; and
(ii) capital expenditures ("CAPEX") related to:
(a) the expansion of the Processing Plant,
(b) sales and marketing infrastructure, and
(c) improvements to the Processing Plant's wastewater treatment system.
The Project will enable:
(i) ensuring the timely availability of resources for the acquisition of freshly harvested grain from the Yaqui Valley (known as the "Granary of Mexico"), in order to cover feed production needs for a full annual period;
(ii) increasing the production capacity of the value-added processed product line, through the development of a new specialized processing line that will allow doubling the annual production of meat products, up to 1,200 tons, and the execution of the operational processes necessary to integrate it into the processed products expansion strategy;
(iii) investments in the adaptation of existing stores in terms of refrigeration and logistics infrastructure (merchandise receiving areas), the opening of new stores (within already existing commercial premises) in major cities of Mexico4, the strengthening of the distribution fleet (renewal of cargo transport units and other vehicles for logistical and operational support);
(iv) improving the performance of the effluent treatment system at the Processing Plant, by implementing a new Wastewater Treatment Plant (WWTP) at the outlet of the existing facultative lagoon system, consisting of a physicochemical polishing treatment to improve compliance with national regulations (NOM-001-SEMARNAT-2021 or, in the case of reuse or irrigation, NOM-003-SEMARNAT-1997).
This would be the second operation that IDB Invest would have with Kowi. The first operation was committed in 2020 and was used to finance capital investments related to the expansion process in installed capacity at different stages of pig farms and part of the working capital associated with the operation of these farms.
As stated by the IDB Invest, Kowi is a group with more than 40 years of experience dedicated to the production, processing, and commercialization of pork through its subsidiaries (Genetikowi, S.A. de C.V. and Porcikowi S.A. de C.V., which manage the pig farms at their different stages), while Alimentos Kowi S.A. de C.V. is the marketing company through which all of the group's commercialization passes. Nutrikowi Alimentos S.A. de C.V., created in 2000, is the company that has a Feed Plant and supplies food products to all of the group's farms, using raw materials of high quality standards (grains, minerals, and vitamins).
The Companies are located in the state of Sonora, one of the main pork-producing states from which more than 70% of the country's pork production volume is exported. After the local consumer market, the most important markets for Kowi are Japan and the United States, with a market share of approximately 28% of all Mexican pork exports abroad, 26% of the export market to Japan, and approximately 23% of the domestic market. Kowi is one of the three most important companies in the pork sector in Mexico in terms of sales and exports to Japan.
Porcikowi has 3 breeding farms, while Genetikowi has 4 fattening farms divided according to their stage of development. At each facility and each stage, the pigs consume diets tailored to their needs, formulated by expert nutritionists to ensure healthy growth. Additionally, in order to comply with good livestock practices ("GLP") and production certifications, and above all respecting animal welfare, preventive health programs, automated climate control systems, and constant supervision are in place to keep mortality rates and feed conversion ratios exceptionally low.
Genetikowi has a highly technified artificial insemination center, with high quality and biosecurity standards, where genetic material is managed and distributed to the group's farms. Finally, Kowi has a slaughter and processing plant with an operational capacity of 4,000 pigs per day, with modern facilities and cutting-edge technology, strictly complying with the hygienic and sanitary conditions imposed by national and international bodies under the rules of good manufacturing practices.
| Private Actor 1 | Private Actor 1 Role | Private Actor 1 Sector | Relation | Private Actor 2 | Private Actor 2 Role | Private Actor 2 Sector |
|---|---|---|---|---|---|---|
| - | - | - | - | Grupo Kowi S.A. de C.V. | Client | Agriculture and Forestry |
Client - Grupo Kowi S.A. de C.V.:
Address: Carretera Mexico-Nogales Km 1788, S/N, Guaymitas, Navojoa, C.P. 85230, Sonora, Mexico
Email: alicia.moreno@kowi.com.mx
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ACCOUNTABILITY MECHANISM OF IDB / IDB INVEST
The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IDB Invest)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IDB Invest is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).
