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Investment Project in Russia
2010-01-01
Brief:A Russian company that has reached success in this field invites interested investors to construct a farming system consisting of 50 farms in the Samara region of Russia to produce and process 50,000 tons of organic poultry meat per year.

A Russian company that has reached success in this field invites interested investors to construct a farming system consisting of 50 farms in the Samara region of Russia to produce and process 50,000 tons of organic poultry meat per year.

On each farm there will be four poultry sheds (dimensions 13x102m), where 102 thousand broilers will be placed.
The production capacity of the farm is 1000 tons of poultry meat per year.

Each farm will purchase 2000 ha of plough-land for growing cereal cultures that are included in the feed rations for broilers in the Samara Region (Russia).

The cost of the farm is 1.61 million Euros.

The farm's owners will contribute assets with equal shares to organize two cooperatives.

The first cooperative is for production of day-old chicks, therefore it should build:
·Four farms with five poultry houses on each one to grow replacements, dimensions of each building are 13x102m. The cost of one farm is 2.0 million Euros.

·Eight farms with five poultry houses on each one to grow parent stock, dimensions of each building are 13x102m. The cost of one farm is 2.16 million Euros.

·The hatchery for 50 million eggs per year. The cost is 4 million Euros.

The cost of the first cooperative for production of day-old chicks is 29.28 million Euros.

The second cooperative is for processing and sale of produce, therefore it should build:

·Feed factory with a capacity of 30 tons/hour, the cost is 6.1 million Euros;

·Slaughterhouse with a capacity of 9000 birds/hour - 8 million Euros;

·Processing factory producing sausages and semi-finished products - 6 million Euros;

·Garage for 100 units of machinery - 7 million Euros;

·Laboratory and administrative building - 3 million Euros;

·Three hundred stores - 16 million Euros;
 

To construct a farming system to produce and process 50,000 tons of organic poultry meat per year

 

The cost of the second cooperative for processing and sale of produce is 46.1 million Euros.

The total cost of the project is 155.5 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 and the development stages have been determined;
·the investment costs have been estimated;
·the evaluation of the project’s commercial effectiveness has been carried out;
·the first pilot project’s broiler farm has been put into operation;

Each farm in the System works on its own balance sheet and pays only for services that are rendered by the System's cooperatives, therefore profits stay on the farm.

The farm's owner appears to be an owner of the whole technological chain from land to store that maximizes the received profits.

Within the proposed project on each farm there are birds of the same age that include replacements, parent stock and broiler farms and no more than one hundred thousand birds on each farm, using principal "empty-full"sheds.Farms and all facilities of the Project will be situated on a distance of two to ten kilometers from each other, which fully guaranties the safety of the birds. This is very important with the present epidemic situation of bird flu around the world.

Internal rate of return (IRR) as a measure of the Project’s profitability is 31.2%.

Payback period with discounting–4 years.

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 3.11 million Euros.

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