Investment Projects

Modernization and expansion of the existing pig-breeding complex for a breeding and hybrid center with further processing of own raw materials

  • Indicator Results
  • Investment amount, thousand US dollars 7 282
  • NPV of the Project thousand, US dollars 15 836
  • IRR, % 33,4%
  • IBITDA yield, %
  • Payback period, years 5,1
  • Discounted payback period, years - -

Products

Annual capacity: 30,000 heads, 2,300 tons of meat products, 474 tons of by-products

Project

The Project provides for the modernization and expansion of the existing pig breeding complex to achieve a production capacity of 30,000 heads per year with the creation of a selection and genetic center (“SGC”).

Company

The initiator of the project is LLP "ZhK Leninsky". The main activity of the Company is the production of pigs in live weight for slaughterhouses in Kostanay and other regions of Kazakhstan. The total area of buildings and structures of the Company is 7,563.9 sq. m. m. The staff has specialists who are current PhDs in the field of veterinary sciences and zootechnics with an average experience in pig production of over 15 years.

Market

  • In 2020, the level of world pork consumption amounted to 106.3 million tons. According to the forecasts of the OECD and the UN FAO, the demand for this type of meat will grow. Compound Annual Growth Rate (CAGR) 2021-2029 will be 1.75%. Pork consumption is projected to increase by 9.2% by 2023.
  • In 2016-2020 there was a decrease in pork consumption in Kazakhstan. In 2015-2016 the average consumption of pork per capita reached 5.4 kg. In 2019-2020 this figure returned to normal at a loss of 4.7 kg. According to the OECD forecast, pork consumption in the country will stabilize by 2029 at 4.5 kg. In general, it should be noted that domestic demand is fully satisfied by domestic production. Thus, for pork in Kazakhstan, a high export potential can be noted.
What is the attraction of the project?
  • Favorable location. The presence of a developed transport infrastructure and significant vacant land, water and specialized labor resources make the Kostanay region attractive for raising pigs.
  • Availability of necessary infrastructure. There is a plot of more than 11 hectares, which is connected to electricity and water supply systems, as well as industrial premises.
Independence from feed supplies and quality control:

The presence of equipment for the production of compound feed with a capacity of 10 t/h allows the company to reduce the cost of feed, as well as ensure the proper quality of feed.

Investment offer

To implement the Project, funding in the amount of USD 7,282 thousand is required, including:
  • 70% (USD 5,097 thousand) - debt financing (subject to collateral);
  • from 30% (USD 2,185 thousand) - investor participation.
The proposed financing structure and state support measures are indicative, the final financing structure and the stake in the Project will be determined based on the results of joint negotiations with the investor.


Return back
Install the application:
1) Open the website in Safari
2) Click save
3) Add to home screen