Industry: Food processing plant Region: Russia Transaction price: $1 million Transaction method: equity investment
The Project
The Company has concluded investment contract with the government of Kazakhstan and received 8 separate pieces of land as part of state in-kind grant. Subsequently, after completion of construction of pig farm, the Company will be eligible for tax preferences, custom duties exemptions and subsidies.
The company has made a preliminary agreement with the Genesus, the world leader in hyper prolific gilts being produced from the largest registered purebred herd in the world. The company will also use Genesus breeding technology under a franchise agreement.
Usage of the gilts of advanced genetics from Genesus and subsequent breeding in accordance with the latest technologies will allow the Company to maintain production cost of circa $1.09 per 1 kg of pork meat produced.
The Market
Currently, there is a strong global demand for pork, primarily caused by outbreak of African swine fever.
Due to large amount of land surfaces suitable for agricultural production, high export volumes of grains and favourable epizootic conditions, Kazakhstan possesses great prospects for development of agribusiness within the country.
The government of Kazakhstan is actively supporting the agricultural industry with subsidies (reimbursement of expenses) and various indirect support mechanisms, such as support in obtaining offtake contracts, concessional financing, insurance support.
Team and the Company’s financial state
The company includes team of professionals who possess vast experience and expertise in pig breeding and animal husbandry.
There are no external bank loans, pledges over company’s assets or active litigations or claims. All expenditures to-date have been financed by the shareholders’ loans.
Shareholder’s structure does not include any PEPs (politically exposed persons)
Investment Opportunity
The company is looking for potential strategic or financial partner. The amount of investments and share in a project are subject to negotiations.