Farm rabbit

Project description

Brief description of the project

The main purpose of the business plan – organization of production and sales of rabbit meat in the European part of Russia. The complex goes on the market dietary meat products with B2C FMCG. Rabbit is one of the most useful types of meat. Rabbit meat is a meat diet relating to white varieties. It contains a lot of protein and low in fat compared to beef, pork, lamb.

In the meat diet of the leading European countries, the share of consumption of rabbit meat reaches 7-9 kg/year and total production of meat in recent years has reached 2, 5 million tons/year, and this is considered insufficient. According to the world health organization, intake of diet meat is equal to 5-7 kg/year, while in Russia this ratio is 100 grams per person/year.

Russian rabbit meat production in 2015 amounted to 17, 4 thousand tons. Following in 2016, production of rabbit meat in Russia has shown a tendency to increase, its value is estimated at 17, 9 thousand tons. For the period 2010-2016 production of rabbit meat increased by 3, 5 thousand tons, or 24%. Thus, according to experts, the volume of unmet demand for rabbit meat in Russia is 300 thousand tons (based on the standards of 5 kg/person per year).

Primary competitive advantages of rabbit production are the useful properties of meat, the lack of religious restrictions on consumption, high investment attractiveness of the project. There is the possibility of entering the market in terms of food embargo and weak national currency. There is a possibility of development of the complex in conditions of low dietary consumption of meat in Russia (100 gr./pers. a year). There is a possibility of a further increase in demand for rabbit in the framework of propagation of healthy lifestyle among various strata of the population. Thus, in the next 3-4 years offer a unique window of opportunity for the development of rabbit breeding in Russia.

It is proposed to organize the production and sale of meat and offal of rabbit meat in the European part of Russia. The main products of the complex represented as the carcass and/or individual parts of rabbit carcasses, liver and skin. All products will be presented in frozen and chilled form and are to be implemented in the following cities: Moscow, Saint Petersburg, Kazan, Izhevsk and Nizhny Novgorod. Our products are focused on the mid-market (mass), so prices are available for both wholesale and private buyers.

The whole complex is proposed to be located on the land plot with the size from 0, 5 ha to 1, 5 ha land Area 1, 5 ha will allow with minimal administrative barriers to expand production of rabbit meat at later stages. In the initial stages will be procured 1,000 kalikamata and 200 males. Per year for each kalikamata with a production cycle of 45 days has 8, 11 kindling. For kindling with an average of 9, 8 – 10, 5 live births of young rabbits. Thus, in the year of fattening livestock is 64 000 rabbits, equivalent to 87, 5 tons per year, which generates quarterly revenues of the enterprise in the amount of 17, 8 million. The EBITDA margin is 146%. At a discount rate of 25% and the forecasting horizon of 12 years, the net present value (NPV) is 74, 3 million rubles., and internal rate of return 45, 5%. Therefore, the entire project pays for 4, 4 years.

The total project cost (including working capital for 3 years and the cost of maintaining the Directorate) is 83 million, including 41, 9 million are capital investments, and the remaining amount – the amount of working capital. It is planned to attract funds of the investor in the amount of 10-20 million rubles with the share to 49%. The remaining amount will be attracted through Bank loans.

The complex management is focused on intensive development and reinertson, so after reaching the payback period, it is planned to attract further investment and phased expansion of production capacity to 10 thousand heads of livestock and increase production capacity to 900 tons per year.

Project detailed information is available to investors after authorization.

Project detailed information is available to investors after authorization.

Translated by "Yandex.Translator"
Project No. 38159
Created on: 26.07.2018

Russia


Project price: 42 000 000

Investments volume: 15 000 000


Stage: Business for sale


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Russia
Agriculture