INVESTMENT
PROJECT IN RUSSIA
To construct a farming
system to produce 110000 tons of milk, 6100 tons of meat and 7000 heifers
per year
A Russian company that has made a success in this field invites interested
investors & farmers to construct a farming system consisting of 50
dairy farms in the Samara region of Russia. All farms will work on their
own balance sheet.
Each farm will have 1000 ha of land, 500 cows, 1000 calves, and the following
structures (cow shed – 4808 sq. metres, calve shed – 1620
sq. metres and fattening areas – 14160 sq. metres), milking parlor
and a house for the farmer.
Each year farm will produce 2 200 tons of milk (using milk yield 4 500
liters of milk from one cow), 450 calves of which 225 heifers and 225
bulls that will be kept for 18 months.
Production of beef will be 122.2 tons and 225 heifers of which 137 will
be sold and 88 heifers kept as replacements.
There will be perennial grasses sawed on the farm under irrigation, organization
of pastures for the summer period and preparation of silage in rolls for
the winter.
Cost of one farm on
a 'turn-key' basis is 2.78 million Euros, including:
- 500 heifers costing 0.92
million Euros
- land costing 0.08 million
Euros
- agricultural machinery and
equipment costing 0.52 million Eeuros
- buildings and structures
costing.1.2 million Euros
- preparation of pastures
costing 0.06 million Euros
The Farm’s owners, paying in equal shares, will organize a Cooperative
and build:
- a milk plant costing 5 million
Euros
- a slaughterhouse costing
2 million Euros
- one hundred and fifty shops
costing 6 million Euros
The Milk plant will organize the following:
- technical service for maintaining the equipment, machinery and supply
spare parts;
- shop to sell materials and inventory;
- records of productivity and gene pool of cows;
- supply of bull’s semen and control of in-calf cows.
The total cost of the project is 152 million Euros.
At the moment the project implementation is going through the stage of
attracting necessary investments; the following work has already been
done:
- preparation of a business plan;
- the main idea has been formulated, the development stages have been
determined;
- the investment costs have been calculated;
- an evaluation of the project’s commercial effectiveness has been
carried out;
Since each farm works on its own balance sheet and appears to be an owner
of the whole technological chain (land-farm-processing-shop), all profits
stay on the farm.
Resultant financial and economic indexes of the project – profitability,
recoupment, net current cost and others – characterize it as attractive
for direct investment as well as for financial institutions. Internal
rate of return as a measure of profitability is 26.1%.
The Farm’s owner is the owner of the whole technological chain from
land to store that maximizes received profits.
The initiator of this investment project invites interested Russian and
foreign farmers and investors to participate in this project by buying
a “participant package”.
The cost of one “participant package” is 3.04 million
Euros.
If a company or private person wants to participate in this investment
project, please, send your requests to
Moscow
Trade House in UK
London, United Kingdom
E-mail: chegeo@globalnet.co.uk
Tel : + 44-20-8201-8869
Fax : + 44-20-8201-8869
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