Lacteos Toni Tonicorp is one of the largest agribusiness companies in Ecuador.  Through its subsidiary Industrias Lacteas Toni SA (ILT), Toni is the leading dairy company in Ecuador.  The Group processes milk purchased from +2,400 farmers into a wide range of dairy products (UHT milk, flavored milk, cream, butter, cheese and yogurt) and produces bottled water, energy drinks and fruit beverages from concentrate under the licensed Tampico brand.  In all product categories Toni commands between 50-70% market share.  The Group also owns Plasticos Ecuatorianos SA (Plasticos), a packaging plant that supplies the dairy business and sells to 3rd parties, and Dipor SA (Dipor), which distributes all of ILTs products.  With a production capacity of ~200,000 liters of milk/day, Toni operates a plant located in an industrial area of Guayaquil.  This plant, originally designed in the early 1970s to produce 7,000 MT/year of yogurt, is currently producing +30,000 MTs. Although the Group has managed to grow its capacity over time in order to keep up with increasing demand, the plant is currently cramped, having reached a point where there is no more space to grow, or changes to the layout would derived in loss of efficiencies.  Therefore, ILT is currently planning to move the plant to a new site (the Project). This will allow increasing production capacity, generating efficiencies through better layout, newer equipment and improving E&S management. IFC will be supporting the continued growth of one of Ecuador''s leading agribusiness companies in terms of employment and linkages through the value chain and one of the most important staple food producers in the country.  The Project will contribute to improve Toni''s competititveness in the production and commercialization of dairy products, and help the Company extend its reach toward the interior of Ecuador.  Toni has a strong base of the pyramid focus as it services more than 90,000 small shops, and sources milk from approximately 2,300 small and medium-size farmers, most of them located in rural frontier regions where employment opportunities are scarce.  Its activities therefore have a considerable reach in the local economy and impact on livelihood of local population.  There are specific developmental impacts associated with the Project, which are summarized below:  Product Safety: consumption of raw milk is still very popular in Ecuador, in particular in the interior of the country. This is considered a health hazard as the product does not meet minimum health and safety standards. On the contrary, Toni''s products conform with high quality and safety standards, and therefore reduce public health risks for consumers.  Toni''s growth strategy in the interior of Ecuador will displace consumption of raw milk with high quality and safe products.  Employment: Toni''s improved performance and increased production capacity will result in higher employment opportunities at the plant, and in rural areas througout the country.  Farmers linkages: Toni sources milk from direct and indirect farmers througout the country.  As a consequence of the Project, Toni will further develop milk production and tehrefore enhance and stabilize farmers'' income and increase hired employment on dairy farms.