Agricultural enterprise (crop and livestock)

Business description

Agricultural enterprise located in the territory of the Stavropol region, is looking for an investor/buyer for the business development in the field of livestock and crop production.

Farmland enterprises located in ecologically clean area, the Central part of Stavropol territory, the climatic conditions which provide in the technology of grain production — grain yield 60 t/ha and above. Principal activities of the enterprise: growing 3,500 hectares of arable land and the prospect of creating a sheep breeding complex up to 50,000 heads.

Form of ownership — limited liability company.

The office is located in the city of Stavropol. Selhozproizvoditeli division, the principal activities of which are growing and in the future animal carries out the works on the lands, located in Stavropol region near the town of Stavropol.

The ownership has 29 real estate listings, including storage warehouses, barns, calf-house, barn, granaries, ownership rights on all objects registered with the Ministry of justice of the Russian Federation, there are up to 100 units of automotive vehicles, agricultural machinery, tillage and agricultural equipment, ownership rights on which are registered in the traffic police authorities and Gostekhnadzor.

The estimated market value of the company is 450 million rubles excluding investment in the project of animal husbandry.

This offer is made in order to attract investors. Cooperation form is negotiable and can be seen in the form of direct investment or joining partners, the founders of the company.

Developed long-term plan of development of the enterprise in the creation of the largest in the province breeding sheep pasture-stall complex with a strength of 50 000 head.

The required investment is 580 million.

Already on the fifth year of operation the company will reach its design capacity and will reach sales of lamb live weight and wool for the sum about 300 million rbl. a year. The idea of the project is modernisation of the existing industrial complexes (warehouses, houses, auxiliary facilities) and the construction of new houses with accommodation in the 800 ewes in each. This project will create 26 of these sheep pens for fattening and breeding sheep with a closed production cycle. The project envisages implementation of breeding stock, lamb and wool. It is further possible construction of its own feed mill that will sell specialized feed, and slaughter and processing plants, which will sell the sheep and rams not live weight, and carcasses, protosome and in split form.

LTD has been successfully operating on the market of agricultural producers for over 12 years. In the production of agricultural products involved the latest technology. At the disposal of OOO has a land plot with a total area of about 13,000 hectares, of which 7500 ha of grassland, 2000 ha of hayfields and 3500 ha. of arable land, allowing for the expense of own means to create the necessary forage base for growing the planned livestock and will provide them with grazing.

Market analyst of sheep

Sheep breeding is one of the most promising sectors of the Stavropol APK. A huge potential has its own, rapidly growing, consumer market. The popularity of mutton as an environmentally friendly product has been growing steadily every year. Providing in the needs of mutton in Russia today does not exceed 10-15%.

Besides domestic market, according to experts, the sheep also has a substantial export potential. The lamb much more potential than pork and poultry. Today we export lamb $ 20 million. It is almost 2/3 of an appropriate volume of exported pork. Meat can be sent to Israel, Iran, Iraq, Syria, Saudi Arabia, United Arab Emirates, Turkey, and North Africa. They are ready to buy. But of course, the lamb must be of high quality.

The uniqueness of the project

With this project we aim to get the highest profit from the sale of meat and wool. Profitability will be increased to 70%, excluding state subsidies, and with them, more than 80%. The way to achieve the goal is primarily to reduce the cost of production of products through the use of pasture-stall housing systems of sheep. This system is applicable to our climate zone, where there are winter pastures, and possible self-procurement of the required amount of feed for the feeding of ewes during the period of agneya and feeding sheep in winter and early spring periods, which is characterized by a significant predominance of the length of the grazing period on the stall (11 months of the year).

Channels of monetization

1 channel Creation in the Stavropol region of large complex on processing of lamb from holding "Damate" will give a substantial impetus to the entire sheep industry in the province, will solve the issue with processing and marketing of products for large farms, and farmers. The project involves the construction before the end of 2020, the largest to date in Russia complex for production of lamb meat with a processing capacity of 700 thousand heads per year. Lamb "Damate" will sell through the Federal retail network and also to export to Israel, the Middle East and North Africa. Stavropol Krai is the most attractive in the region today for the launch of such projects: first, there is a tradition of cultivation and consumption of mutton, second, the favorable climate and good food supply. The demand in the target markets of the Middle East and North Africa is even higher than the potential of the industry of sheep breeding in Russia. Nisha, in principle, free. The potential of the European market is now about 115 thousand tons of mutton a year. If “Damate” will be able to find suppliers of quality raw materials at good prices, the fact they will go.

And that's what we want to offer "Damate" is to supply quality raw materials at a good price. Exit to the planned capacity, we will be able to deliver annually at a meat processing plant, OOO "Stavropol farmer" more than 1250 tons of high quality lamb live weight in the amount of about RUB 300 million Preliminary agreement for the acquisition from us of evaporable to the slaughter with "Stavropol farmer" nami concluded.

2 channel: output of the enterprise the planned capacity, it is expedient the construction of slaughter and processing plants, which will sell the sheep and rams not live weight, and carcasses, protosome and in split form, and is direct out on the counter to the end consumer. As appropriate, the construction of its own feed mill that will sell specialized feed. During the implementation of this channel of monetization and direct to the consumer may increase net profits to 250 million rubles per year.

Sales strategy and marketing

As we plan to give the status of a breeding plant for your company, the prices for products can be as stud farms for breeding livestock, and be set at the level of Treaty with the meat processing enterprises. This will allow us to sell the product at the best price prevailing at the time of implementation.

You will use two methods of pricing:

— elastic (flexible) price — responsive on the ratio of supply and demand;

— negotiable.

Every year we offer for sale:

— ewes – 5600 heads

— bright this year – 6880 goals

— sheep producers – 50 goals

baranchiki current year – 12430 goals

— wool – 130 tons.

The scheme of payment of prepaid consumer is supposed to eliminate the risks of non-payment of goods.

Are following the program of sales promotion:

— flexible pricing policy;

— special terms of payment for regular customers.

Advertising product:

— media;

— participation in exhibitions of livestock products;

— use mail;

— presentation of the product;

communication with the public.

Economic indicators

Nested resources

The land suitable for grazing sheep, there are about 7500 ha, which will allow you to build up to 30 houses with the population numbers more than 50 000 sheep and goats. Hayfields and arable land to make the most of their own feed for growing livestock and producing hay for the winter, which in turn will increase the production and reduce the cost of maintaining livestock. OOO is subject to the convenient road connections and infrastructure.

The presence of settlements will provide animal shelters with electricity and water.

Availability of production space and infrastructure, OOO will allow you to plant arable crops necessary to feed the sheep in the required quantities and to provide their storage and delivery to the moggies in the stall period maintenance.

The investment needed 580000000 RUB.

The payback period of 8 years.

The projected net profit per year (maximum possible value) 145 000000 rubles., and in implementation of 2 channels of monetization and direct to the consumer may increase net profits to 250 million rubles per year.

Projected profitability of sales over 80%

Today the State provides significant support to farmers. And it's all kinds of subsidies, grants, reimbursement of expenses and preferential lending.

Preferential credit program for the period up to 8 years at concessionary interest rate from 2% to 5% per annum in the ratio of 25% (which is 145000000 rubles) equity and 75% loan.