Investment Projects

Feed component production

  • Indicator Results
  • Investment amount, thousand US dollars 117 257
  • NPV of the Project thousand, US dollars 80 229
  • IRR, % 48,4%
  • EBITDA yield, %
  • Payback period, years 5,17
  • Discounted payback period, years - - 6,34

Products

When design capacity is achieved in 2030, product range and annual sales will be as follows: wheat – 198,188 tonnes; barley – 42,775 tonnes; sunflower oil – 29,012 tonnes; sunflower meal – 28,640 tonnes; sunflower cakes – 28,268 tonnes; husk – 4,463 tonnes; soybean meal – 915 tonnes; peas – 29,071 tonnes. The Company is planning to sell 40% of product domestically. The remainder will be exported to Uzbekistan, Tajikistan, Kyrgyzstan, Iran, Afghanistan, UAE, China, Italy and Belgium.

Project description

This investment project envisages the expansion of current wheat, sunflower, soy and pea feed component production by increasing the Company’s land bank to 185 thousand ha in Kostanai, Akmola, EastKazakhstan and North-Kazakhstan Oblasts.

Company

The Initiator of the project is Aitas Agro LLP. Company incorporates 4 agricultural crop farming companies: Sekisovka LLP, Mileiko LLP, Zaschita Uba LLP and Shalaga Agro LLP in North-Kazakhstan Oblast. In 2022, its average agricultural product yield was 26.9 CWT/ha. In September 2023, total sowing area was 33 thousand ha. The main product customers are the poultry farms belonging to the affiliated JSC Aitas KZ.

Market 

  • The global animal feed market was worth 300 billion USD in 2022. According to the Business Research Company, it will be worth 439 billion USD by 2027, which is 46.6% higher than in 2022. CAGR for 2022- 2027 is forecast to be 7.95%.
  • In 2022, Akmola Oblast was recognised as the leader in terms of the consumption of all types of feed (17% of total consumption for the country). In North-Kazakhstan Oblast, the figure was 14% 
  • Akmola region also became the leader in the consumption of poultry feed in 2022 (21% of all consumed bird feed in the Republic of Kazakhstan).
  • The volume of exports and imports of wheat and meslin in the Republic of Kazakhstan has been growing for the last 5 years. Imports to the Republic of Kazakhstan in 2022 amounted to 1,290 thousand tonnes (CAGR for the period 2018-2022 is 131%), and exports - 6,106 thousand tonnes (CAGR for the period 2018-2022 - 3%).
What is the attractiveness of the project?

  • Advantageous location. The Project is due to be implemented in EastKazakhstan, North-Kazakhstan, Akmola and Kostanai Oblasts, which are ideal for crop farming. As at August 2023, the total cereal (except rice), cereal legume and oil seed sowing area in the above regions was 15,759 thousand ha (73% of the national figure). Average precipitation in the north and east of the country is 300-600 mm (compared to 100-200 mm in the south). In 2022, average crop yield in the above oblasts for peas was – 14.8 CWT/ha, wheat – 14.3 CWT/ha, barley – 16.7 CWT/ha and sunflower seeds – 14.1 CWT/ha.
  • State support. The Project is recognised as a priority for state support, making it eligible for a number of concessions and land grants.
  • Initiator experience. The Company is a leader in the Kazakhstan agriculture sector. The Company also has an extensive client base in Uzbekistan, Tajikistan, Afghanistan, UAE and China.
  • Utilising modern technology to ensure effective management. The Company collects digital data on all production processes (IoT, CROPWISE, ERP and BI analytics), which allows for more accurate yield forecasting and detailed cost accounting. This includes real-time GPS monitoring of machinery.
Investment proposal

The Project requires investment of US$ 117,257 thousand (at the rate of 449.2 tenge), of which:

  • 70% (US$ 82,080 thousand) – debt financing subject to collateral;
  • 30% (US$ 35,177 thousand) – 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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