Investment Projects

Industrial quantity hydrophonic green feed farming with a capacity of 20 tons per day

  • Indicator Results
  • Investment amount, thousand US dollars 1 781
  • NPV of the Project thousand, US dollars 938
  • IRR, % 25,5%
  • EBITDA yield, %
  • Payback period, years 5,72
  • Discounted payback period, years - - 9,09

Products

The Project focuses on product sales throughout Kazakhstan. In 2025, production will reach 7.3 million tonnes of hydroponic green feed (“HGF”) at full capacity.

Project

The investment Project envisages the farming of hydroponic green feed in industrial quantities in the Akmola Oblast village of Novomarkova. The 20 tonne/day Project will be implemented on a 0.8809 ha site. 

Current Project status:

  • Design and estimate documentation has been drafted;
  • The Company has a site connected to the required infrastructure at its disposal;
  • Foundations are being created to build an HGF plant; talks are being held with equipment suppliers.
Project initiator

Zhana-Bereke LLP is part of the Altyn Taga (Holding) production cooperative and specialises in cattle breeding, cereal and legume cultivation, and feed production.

Market overview

  • In 2022, the global animal feed market was worth 300 billion USD. CAGR for 2022-2027 is forecast to be 7.95%/
  • In 2022, Kazakhstan produced 1,741 thousand tonnes of ready animal feed. CAGR for ready animal feed production in 2018-2022 was at 6.5%.
  • The gross harvest of green feed grass, haylage, silage, grass meal and for other products increased 22.4% in Kazakhstan in 2022 to 571.2 thousand tonnes. CAGR for the same in 2018-2022 was at 1.3%.
  •  Animal feed imports into Kazakhstan were worth 61 million USD in 2022, which is 9% higher than in 2021. CAGR for imports into Kazakhstan in 2018-2022 was at 10.7%
What is the attractiveness of the project?

  • Eco-friendliness and high productivity. The hydroponic system enables the effective use of water and energy resources. Plants receive only the quantity of humidity and nutrients thy need, which helps reduce water and energy consumption compared to traditional feed cultivation methods. In addition, the modern hydroponic equipment used means plant cultivation processes can be automated and controlled. Automation simplifies management and increases the accuracy of any impact on plants, which aids optimum growth and productivity.
  • Experience. The Initiator owns a cattle breeding complex and specialises in cattle breeding, cereal and legume cultivation, and feed production. It has 5,000 heads of cattle at its disposal, feed yards for 5,000 heads, and a meat processing plant with its own laboratory (60 heads per day).
Investment proposal

The Project requires investment of 1,781 thousand USD (at the rate of 449.2 tenge), of which:

  • 70% (1,247 thousand USD) – debt financing subject to collateral;
  • 30% (534 thousand USD) – investor participation.

The proposed financing structure and state support measures are indicative. The final financing structure and Project interests will be determined based on the results of negotiations with the investor.



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