I'm looking for investors to support me bring my business idea for producing and selling garlic in Ukraine into life. Variety of 2-year garlic will be grown. The project is going to be implemented on 15 to 30 ha garlic during the first 5 years. The growth each year is planned to be as follows: 10-15-20-25-30 ha of garlic fields. This will require to arond 150 ha in total taking into consideration crop rotation. At the end the garlic field is to reach 100-300 ha. I expect high profitability of 50-100%.
The investment payback perod is 4 years.
NPV is 588,1 thousand USD and IRR is 50,1 %.
The idea is good because of the product deficit in the Ukrainian market. All garlic grown and harvested in the beginning of August is sold by the end of the month. Taste and size of "teeth" and "head" of the garlic I am growing are unique. The taste is traditional and much more stronger than the one of Chinese garlic.
We are looking for a private investor to start a new company for taxation reasons. In the case of agricultural taxation there is no profit tax at all.
I have good quality staff capable to realise the idea, with 15-20 years of experience in agriculture.
Main competitors are the Chinese garlic producers. The taste of their products is more tender. However, local people like the traditional stronger taste of garlic. In August - when the product is sold out - there's no import of garlic in the market. The main barrier to newcomers are the huge expenses for growing garlic, mostly related to acquiring land. Local farmers are not capable to produce in big quantities. The main local competitor has 120 ha., some have 3-5 - 10-15 ha, but all the rest have 0,5-1 ha the most.
Funding is needed for machinery, seeds, fertilisers, pesticides, and labour.
Investment instalment schedule:
Jan 2012 - 300.000 USD
Jan 2013 - 300.000 USD