Cooperativa Nacional de Productores de Leche

Conaprole is a dairy producer co-op that receives and processes approximately
700 million liters of milk annually from some 2,600 producers. It produces
pasteurized milk and a broad range of other products that it markets locally
and for export. Exports account for more than 50% of Conaprole's sales and go
to more than forty countries. The company is Latin America's second largest
exporter of dairy products and one of Uruguay's leading exporters overall.

Conaprole was created by law in 1935. The law merged several
dairy companies and cooperatives and gave the resulting company a monopoly on
the distribution of fluid milk in Uruguay
until the monopoly was abolished in 1984. Conaprole has eight industrial plants
turning out more than 300 dairy products; fluid milk for consumption accounts
for approximately 20% of the total milk processed. Conaprole's range of
products also includes non-dairy food products (such as fruit juices and tomato
pulp). Conaprole has a technical department that provides producers with advice
on production, sanitation, and quality. The company also provides financing for
the purchase of production supplies and dairy industry equipment.

Through this project, the Corporation will help bolster the
economic viability of this co-op consisting of small and medium-size milk
producers. This long-term financing from the Corporation will provide support
for Conaprole's strategy by providing stable, timely coverage for its working
capital requirements and helping finance the replacement of productive assets.

The
proposed loan is part of the Supply Chain Financial Support Program. The specific purpose of this program is to increase the
flow of financing for small and medium-size companies in Latin America
and the Caribbean and identify potential clients that are part of a supply
chain or suppliers of larger corporations, companies, or economic groups
operating in the region.