Agriculture Agriculture Production of Potato Starch
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Agriculture Agriculture Production of potato starch Project description: Market prerequisites Construction of an integrated complex consisting of Export potential a potato starch production plant and a cattle Growing imports of potato starch by neighboring fattening site for slaughter. countries offers an opportunity to occupy a niche in Planned production capacity: the China, Russia and Uzbekistan markets. The total • Main: potato starch - up to 14 tonnes a year; potato starch imported by these countries in 2018 amounted to about 74 thousand tonnes and has a • Secondary: beef; potato juice, potato squash, tendency to increase. For example, the average cow subproducts. annual growth rate of imports of potato starch by Location: China over the past 5 years was 12.7% in physical Pavlodar oblast, Pavlodar region, Kenesskiy rural terms. district. , Novoyamishevo village. No local production and high level of import Project initiator: dependency «Kereku Agro» LLP There is no production of potato starch in the country, despite the fact that in the food, textile, paper industries potato starch is superior to corn starch in terms of quality. The average annual volume of imports of potato starch in Kazakhstan is relatively stable and in recent years has amounted to about 4.2 thousand tons for an amount of about US$ 2.5–3 million. Key investment indicators Project profitability: Indicator Results Investment amount, US$ thous. 44,948 Project NPV, US$ thous. 30,760 IRR, % 28.7 EBITDA margin, % 30-38% Payback period, years 5.1 Discounted payback period, years 7.1 Key facilities of the Complex: Location of the Project: Pavlodar oblast Irrigation system Pavlodar oblast Creating an irrigation array with an area of 6000 hectares for Cattle fattening site growing additional raw The one-time capacity of materials and fodder the site is designed for crops (cultivation and 5000 heads. The number processing - through the of cycles per year is two. Initiator) Mainly breeding of Starch plant Kazakh white-headed Production of potato and Hereford breeds. starch with a capacity of 15,000 potatoes per hour and more than 2,000 starch per hour. KAZAKH INVEST: December 2019 2 Investment proposal Agriculture Complex for the breeding and incubation of fish, the production of fish and related products Project overview: Market assumptions Organization of integrated farming for the breeding Growing demand for fish - According to the and incubation of catfish and barramundi, the OECD and FAO UN projections, there will be an production of fish and related products. increase in total fish consumption in the world. The Project location: average annual growth rate (CAGR) will be equal to Almaty Oblast, Talgar district, Kaynar rural district, 1.8% in the years 2019-2025. So, if in 2018 fish 25 km away from Almaty. consumption per capita was equal to 20.3 kg per Initiator: capita, by 2027 it will reach the level of 21.3 kg per Zor Fish LLP capita. Project’s peak capacity: Import substitution - The share of imports in the 729 thousand units of canned catfish (Clarias structure of consumption of fish and fish products in gariepinus), 900 tonnes of barramundi (Lates the country equals to 74%, which indicates a high calcarifer), 600 thousand units of fry per year. import dependence of the country. Principal products: Thus, in 2018, Kazakhstan imported 30 thousand Canned food, fish, fish products, chilled fish, fish tonnes of frozen fish, which is 5 times higher than products and semi-finished products in the range. its own production. Production process: Export potential - Kazakhstan also provides Fish farming, fish processing (production of canned biogenous fish products for export. In 2018, exports food, fish products, semi-finished products, minced of fish amounted to 12.5 thousand tonnes, showing fish). an increase of 64% compared with 2013. Key investment indicators Project profitability Indicator Results Investment, US$ thousands 18,716 Project NPV, US$ thousands 23,739 IRR, % 23.38% EBITDA returns, % 61.8% Payback period, amount of years 5.87 from the start of production Discounted payback period, amount of years from the start of 8.04 production Project location: Land Almaty Oblast Soil Type/Purpose Area, sq. m Nur-Sultan Building developments 13,786 Covering 10,887 complex of Zor Fish LLP Planting 43,569 Almaty Ponds 12,737 Total 80,979 KAZAKH INVEST: December 2019 3 Investment proposal Agriculture Construction of a complex for breeding and incubating commercial sturgeon and beluga Project overview: Market assumptions Construction of a complex for breeding and Рост Growing demand for fish - According to the incubating commercial sturgeon and beluga OECD and FAO UN projections, there will be an Project location: increase in total fish consumption in the world. The Atyrau Oblast, Atyrau, Ural river, Sadok channel average annual growth rate (CAGR) will be equal to Initiator: 1.8% in the years 2019-2025. So, if in 2018 fish consumption per capita was equal to 20.3 kg per Caspian Eco-Tour LLP, specializing in the capita, by 2027 it will reach the level of 21.3 kg per development of freshwater aquaculture and eco- tourism capita. Products and capacities: Import substitution - The share of imports in the structure of consumption of fish and fish products in Commercial fish (sturgeon and beluga) - 300.0 tonnes the country equals to 74%, which indicates a high import dependence of the country. Food caviar - 2.0 tonnes Thus, in 2018, Kazakhstan imported 30 thousand Production process: tonnes of frozen fish, which is 5 times higher than 1. Keeping and feeding in a closed water its own production. installation (spawning of females, fertilization, sorting) Export potential - Kazakhstan also provides 2. Maintenance and feeding in cage (hibernation, biogenous fish products for export. In 2018, exports sorting, selling) of fish amounted to 12.5 thousand tonnes, showing an increase of 64% compared with 2013. Key investment indicators Project profitability Indicator Results Investment, US$ thousands 10,982 Project NPV, US$ thousands 13,613 IRR, % 22.9% EBITDA returns, % 52% Payback period, amount of years from 6.7 the start of production Discounted payback period, amount of 9.1 years from the start of production Project location: The scheme of the typical construction of the Atyrau Oblast cage line Fish stock Feed Harvestable Medicine Train fish fish Nur-Sultan Complex of Caspian Eco- Tour LLP Almaty Plankton Waste Plankton Waste Plankton Waste Pond KAZAKH INVEST: December 2019 4 Investment proposal Agriculture Mixed crop-livestock cattle farming complex About the Project Prerequisites for implementation of the Project Creation in Akmola oblast of the full cycle production Increase in pork imports to China - Over the (cluster) – from breeding a special breed of pigs past 5 years, China's pork imports have more than using Danish technology to the production and sale doubled, and in 2018, they amounted to 1.1 million of pork meat. tonnes worth US$ 2 billion. According to OECD Objectives & Scope: forecasts, pork production in China will slightly lag Creation of a livestock complex (cluster), which behind consumption, and in the near future, China includes a pig complex and a meat processing plant; will import about 1.4 million tonnes of pork per Increase of meat production on the local market and year. This indicator will increase if the epidemic of increased exports of meat products; African swine fever is not localized. Implementation. of the use of innovative equipment Low cost of production – The extensive and and technologies in the Republic of Kazakhstan. cheap fodder base for the Project - agricultural Initiator: AIC Bavaria Product LLP enterprises of northern Kazakhstan - will significantly reduce the cost of fattening and the Project location: maintenance of pigs. Also, the costs of manure Akmola oblast, Astrakhan region, Jarsuatian rural disposal, water tariffs and employee wages are district, Jaltyr village several times lower than at EU enterprises or other Principal products: producers. chilled or frozen pork meat Export of premium products – China and Russia Project’s peak capacity: mainly import pork from countries in Europe and Breeding stock – 2,050 sows; America, which forces suppliers to transport frozen meat. The geographical location of Kazakhstan Pork meat production – 5,500 tonnes per year in allows for the supply of pork (by road) to both China slaughter weight and Russia in a chilled form, which will allow the Project to sell products at higher competitive prices. Investment attractiveness of the Project Geographical remoteness of the project Indicator Results implementation region from other pigfarms – Investment amount, US$ African swine fever has shown the vulnerability of 35,061 thous. the pig industry to epidemics and diseases. The Project NPV, US$ thous. 12,951 factors protecting the Project’s livestock from infection of this disease and other diseases are the IRR, % 20.8% remoteness of the Project’s implementation site from other pig farms and households with infected EBITDA yield, % 29-37% pigs. Payback period, years 6.6 Discounted payback period, 10.7 years Project Location: Akmola oblast Project Profitability 37% 35,000 35% 35% 40% 30,000 31% 35% 29% 30% 25,000 25% 20,000 Bavaria 20% Pigfarm 15,000 15% US$ thousand thousand US$ 10,000 10% 5,000 5% 19,535 23,403 25,505 27,382 29,115 0,000 0% Year 3 Year 10 Year 15 Year 20 Year 24 Revenue, US$ thous. EBITDA margin, % KAZAKH INVEST: December 2019 5 Investment proposal Agriculture Rainbow Trout Production Complex Project overview: Market assumptions Construction of a full cycle aquaculture complex. Growing demand for fish - According to the OECD The project envisages the creation of a modern and FAO UN projections, the world will see an production for the cultivation and processing of increase in total fish consumption. The average marketable fish of valuable species in closed water annual growth rate (CAGR) in the years 2019-2025 supply installations with subsequent sale in the domestic and foreign markets.