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Nichevel Projects of the Turkestan Region

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Nichevel Projects of the Turkestan Region NICHEVEL PROJECTS OF THE TURKESTAN REGION TURKESTAN 2018 CONSTRUCTION OF THE REACHING SITE FOR 20 000 CATTLES DESCRIPTION OF THE PROJECT: Turkestan Oblast LLP "Kayyp ata" is one of the largest meat producers in the Turkestan region, witch has active feeding LOCATİON grounds up to 7000 heads of cattle, a slaughtering complex witch is located in the Kazygurt region. In the complex can be hammered about 5 thousand cattles. At present, the project for the construction of a feedlot for 10,000 cattles is being implemented. Also company has 1 000 hectares of pasture land, Agribusiness agricultural machinery, etc. LLP "Kayyp Ata" has established sales channels for finished products both İNDUSTRY in the Kazakhstan market and in foreign countries like Uzbekistan, the United Arab Emirates, Iran, and in other countries. Production of meat PRODUCTS STATE SUPPORT: Under the state development program "development of the agroindustrial complexes 2017-2021" THE TOTAL COST OF $ 31.4 million production of meat products is a priority for reducing imports through increased domestic production. At THE PROJECT the expense of the state, investment costs are subsidized. The State Program for the Development of the Agribusiness provides state support through the provision of investment preferences, concessional loans TARGETED MARKETS Kazakhstan, Russia, and subsidies, as well as benefits for paying taxes and customs duties on the importation of equipment Uzbekistan, UAE, PRC, Iran PAYBACK PERIOD 4 – 5 years THE PROJECT OF CONSTRUCTION OF THE DISTRIBUTION SITE AND MEAT PROCESSING PLANT ON BEEF PRODUCTION HAS 5 MARKET PRECONDITIONS FOR IMPLEMENTATION: Stable growth in demand for beef in domestic and world markets BREED COW Kazakh-white-headed Favorable geographical location of the country in the neighborhood with China and Russia, which provides convenient access to two large and capacious markets. Relatively low costs, including the cost of skilled labor, favorably affect the control of the cost of production of meat products. Party A (Kazakhstan): “Kaiyp Ata” LLP The growth of imports in neighboring countries opens up opportunities for pursuing the target niche in the Party B (foreign investor): Indefined structure of beef imports in China and Russia. Price differential with neighboring countries. COST FOR USE OF MUNICIPAL SERVICES 0,5<20 36,0 tg 19,4 tg 101 tg 0,5>100 13,84 tg 158 tg 156 tg 205 tg Average salary Natural gas Electricity Diesel (L) Petrol (L) Water (m3) Land tax (per 0,01 ha) Sewerage (m3) (kW / h) (thousand) (m3) CONSTRUCTION OF THE PREVENTIVE SITE FOR 20000 THOUSAND CATTLES Project cost Consumers: Meat industry is one of the important sectors of the food industry in Kazakhstan Construction and installation work 2.3 billion tenge due to the relatively high consumption of meat per capita. According to the Organization for Economic Cooperation and Development, following Slaughter equipment 0,7 billion tenge the results of 2016, Kazakhstan is on the 9th place in terms of beef consumption and Refrigeration equipment 2.5 billion tenge the second largest consumption of lamb in the world. Such a great demand is provided not only by significant imports, but also by locally produced meat. Purchase of cattle 4 billion tenge Kazakhstan is distinguished by a balanced diet of consumed meat products, as well as a high proportion of beef and lamb consumption, compared with the average figures Agricultural machinery 0,285 billion tenge according to the OECD. Feed 0,014 billion tenge Veterinary services 1 billion tenge Market prerequisites: Current assets 0,2 billion tenge There is a large solvent demand for good quality beef (organic products) with different geography and export volumes-in the Russian Federation, China, and TOTAL 11 billion tenge ( 31,4 $ million) European countries. The total volume of imports of these countries exceeded 944 thousand tonnes of cattle meat in 2016. Project capacity \ ton per year 8 000 The price differential for beef meat with neighboring countries is more than $ 4.5. The cost price of meat \ kg 1 250 tg. per kg. The strategic geographical location of the country in the neighborhood with China and Russia provides convenient access to two large and capacious sales markets. Slaughter weight of one bull 200 – 220 kg Low production cost of production is achieved due to the availability of a cheap feed base (65-70% in the structure of production costs of feed), cheap labor. The land for growing cattle and beef production is available in Kazakhstan, supply infrastructures are developing. The availability of the land plots is available in the following areas: There is an opportunity to involve companies with international experience in the Ordabasy- 15 014 hectares. meat production and distribution sector with the aim of expanding their presence in Aris - 21 734.6 hectares. the markets of Eurasian countries using their proven growth model, as well as the ability to supply local products to global fast food chains. CONSTRUCTION OF THE PREVENTIVE SITE FOR 20000 THOUSAND CATTLES SWOT Analysis of the Project STRENGTHS WEAK SIDES Own food supply. Own feed base allows to conduct the production process Dependence on climatic conditions. Possible low yields of feed can affect irrespective of price fluctuations in the fodder market. the growth of livestock. Staffing. The presence of foreign specialists will allow to conduct efficient Dependence on the quality of the purchased livestock. The possible low production and implementation taking into account international quality of individual individuals purchased for fattening cattle, the daily gain requirements and standards. of which may be below the average, will affect the total time of fattening cattle. Governmental support. This factor is an important factor, since it puts the company in a more advantageous position in the conduct of export operations. CAPABILITIES THREATS Veterinary risks. The incidence of livestock may lead to a decrease in weight Expansion of livestock. The availability of resources, the use of the latest gain and livestock numbers. growing technologies, as well as the additional creation of conditions will enable to increase the number of cattle. Access to new markets. In view of possible protectionist solutions, entry Growing demand. The basic quality of meat, the expansion of the range into new markets may be limited or impossible. and a more flexible policy for changing the exchange rate of the national currency provided an opportunity to develop new markets and demand segments. Entering new markets. Achieving a higher number of livestock and the quality of the product produced will allow us to enter new markets, such as China and Russia. MODERNIZATION OF DAIRY FARM DESCRIPTION OF THE PROJECT: LOCATİON Arys The company owns a land suitable for sale in the city of Arys with a total area of 2000 hectares of irrigated land of this project. In view of the current distribution channels and the increasing demand, the project implies the İNDUSTRY Agribusiness construction of a modern farm on German technology. Currently, the local investor has a farm with a capacity of 25 tons of milk per dayAs a result of investment, the production capacity will rise to 60 tons of milk per day. PRODUCTS Production of milk THE TOTAL COST OF $ 37.6 million STATE SUPPORT: THE PROJECT Under the program of state development of the agroindustrial complex 2017-2021, the production of a ready-made dairy product is a priority direction for reducing imports by TARGETED MARKETS Kazakhstan increasing domestic production. At the expense of the state, investment costs are subsidized. The State Program for the Development of the Agribusiness provides state supports through the provision of investment preferences, concessional loans and subsidies, as well as benefits PAYBACK PERIOD 5-6 years for paying taxes and customs duties on the importation of equipment BREED COW Holstein-Frisian Availability of the land plots : Party A (Kazakhstan): “Kazyna Zher LLP” In Ordabasy – 2 000 ha. Party B (foreign investor): Indefined In Arys –2 000ha. COST FOR USE OF MUNICIPAL SERVICES 0,5<20 29,9 tg 19,4 tg 101 tg 0,5>100 13,84 tg 158 tg 156 tg 205 tg Average salary Natural gas Electricity Diesel (L) Petrol (L) Water (m3) Land tax (per 0,01 ha) Sewerage (m3) (kW / h) (thousand) (m3) MODERNIZATION OF DAIRY FARM Project cost Consumers: For today in Turkestan region there are 4 large dairy-processing plants are working: SMR Farms 3 billion tenge 1) Sairam-Sut LLP 20 tons per day 2) "FOOD MASTER" LLP 150 tons per day Purchase of cattle 1.75 billion tenge 3) LLP "SHYMKENT-SUT" 35 tons per day (1 cow-500 thousand tenge, correspondingly, 4) "Burte Milka" LLP 50 tons per day 3500 cattles will be purchased) The total capacity of processing milk per day is about 250 tons of milk per day. Agricultural machinery, milking 6 billion tenge To date, on average, factories are loaded at 65%. Also Import Dependence - in equipment the structure of dairy consumption in the country the share of imports is high and is about 20%. Export of milk in the SKO 911 thousand dollars per year, Current assets 2 billion tenge Import of milk for SKO 740 thousand dollars per year (2017) (feed, staff salaries, room services, etc.) TOTAL 12.75 billion tenge (37.6 $ million) Project power \ per day \ liter 125 000 литр молока Market prerequisites: In the market for milk production, there is a deficit in domestic production to meet domestic The cost price of milk per liter 100 тг. consumption, growing latent demand, as well as a low share of milk processing at competitive prices of products sold. At the same time, the leaders in the production of raw milk are EKO, Milk from 1 cow 25 liters per day Almaty region, Turkestan region and NKO. There is an increase in consumption of milk and dairy products by the population due to their Investment climate : indispensability in the diet, dietary and curative value.
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