In January 1996, as part of the Kyrgyz–Swiss Dairy Development Programme, Sut Bulak – Dairy Sector Development in Eastern Tyup CJSC (Dairy Spring™) was established. The company was created around an integrated milk supply chain that included training local farmers in the production, collection, storage, and transportation of raw milk in accordance with high international quality standards.

Approximately 2,000 farmers and agricultural households participated in the programme. The Government of Switzerland financed the construction of the cheese production facility and milk collection centers, while a portion of the company’s shares was distributed free of charge to farmers in the Issyk-Kul Region.

The company’s mission has always been to improve the quality of life in the Tyup District.

Today, Sut Bulak produces a wide range of hard and semi-hard cheeses, with Tilsiter and Mozzarella becoming its best-known products. The company also manufactures butter with one of the highest fat contents in the Kyrgyz Republic, cottage cheese, and yogurt for corporate clients.

In 2016, after Sut Bulak CJSC had become a fully self-sustaining business, its principal shareholders—the Government of Switzerland and the European Bank for Reconstruction and Development (EBRD), which together owned 86% of the company’s shares—decided to exit the project. Their primary objective had been successfully achieved: improving living standards in the Tyup District by creating a sustainable market for locally produced cow’s milk and enabling local communities to generate stable income. As a result, dairy farming became an increasingly important source of livelihood throughout the region.

The engagement assigned to BNC FINANCE consisted of two key stages:

  1. Preparing a comprehensive Review of the Dairy Industry of the Kyrgyz Republic in the context of Sut Bulak’s business operations.
  2. Identifying potential purchasers for the 86% shareholding.

Both stages were successfully completed by BNC FINANCE.

Once potential investors had been identified, and with the technical support of the EBRD, selected buyers were granted access to a secure virtual data room. The system maintained a complete audit trail, recording who accessed, viewed, or downloaded each document. The data room contained extensive operational, financial, and technical documentation relating to the company.

Following a thorough assessment of the prospective investors, BNC FINANCE prepared recommendations regarding the most suitable candidates. Negotiations were then conducted with representatives of several shortlisted companies.

An essential criterion in selecting the successful purchaser was not the highest purchase price, but rather the investor’s understanding of the cheese-making industry, the availability of sufficient financial and operational resources, and—most importantly—the commitment to continue the social and economic development programmes in the Tyup District.

Ultimately, the shareholders selected a Swiss company whose principal shareholder came from a family with a long-standing tradition of cheese making. Following the acquisition, the company’s brand was renamed “Dairy Spring, the Spielhofer Swiss Cheese Company.”