Investment Project for Reconstruction of Pig Farm in Kurgan

Opportunity Snapshot

  • Country: Russia Russia
  • Industry: Agriculture
  • Stage: Later stage
  • Investment size: $850,000 / min. $850,000
  • Type of investment: Debt

Investment Opportunity

I own a pig farm for 400 pigs and am raising capital to expand it to 2,000-2,500 pigs and to build a slaughterhouse. Payback in 2-3 years.

I cultivate 4,500 ha growing wheat, peas and barley which are processed nearby. I own all necessary equipment (tractors, combine harvesters, machines, drills).

Investment is needed for the reconstruction of the pig farm and increasing the livestock to 2,000-2,500 animals. The business is located in Kurgan region, southwestern Siberia and southeast of the Urals. The payback period is 2-3 years. The company has been on the market for 10 years, and receives government subsidies. The price of cereals has increased over twofold over the last 6 months. It is possible to increase the sown area, for which we have all the needed equipment, and storage facilities.

Purpose of the loan: long-term development of livestock farming.
Term of the loan: 2-3 years.
Loan amount: $ 850,000. A total $ 465,000 have already been invested in the project.

The project concept envisages the reconstruction of the pig breeding farm (4 buildings) up to a capacity of 2,000-2,500 thousand pigs. The buildings were previously owned by JSC "Neonilinskoe”, and now require major repairs. The initial stage involves buying building materials and equipment. It is not expected to purchase modern expensive equipment for the project implementation, except for cubicles for sows (breeding female pigs)

All infrastructure is available: paved access roads, water supply, and electricity. A small slaughterhouse will also operate at the site of the pig farm.

At present there are 73 sows on the farm. In the process of reconstruction of the new buildings, their number will increase. No external purchases of sows will be required. The breed of pigs is a mix of Large White and Landrace.

The waste from grain processing provides sufficient food supply for the entire farm. All the waste will be utilized.

The sale of products is expected to be carried out on the regional market:
- 60% of the output will be sold by carcass weight (in carcasses and half-carcasses) to small meat processing plants that do not have their own farms or have insufficient production capacity of pork. The price will be 70 rub. /kg.
- 10% of the output will be supplied to the same customers, but live (carcass yield will be up to 75%) at the price of 60 rub. /kg.
- 30% of the output will be sold at food markets in nearby cities and towns at an average price of 180 rubles / kg.

We do not expect to engage in selective pig breeding and expect the livestock to remain at a constant level. We have regular customers.

Monthly revenue:
• Balance: 3,166,000 RUB in 2009.
• Management: 4,750,000 RUB in 2009.

A detailed business plan is available.

Investors can contact us on Merar.

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