Products
The project is focused on the sale of products on the territory of the Republic of Kazakhstan and export to Russia, Estonia, Belarus and China. Commissioning of the Project is planned for Q2. 2024 Product range and planned annual capacity:
- cottage cheese - 22,275 thousand pieces / year,
- yogurt - 18,225 thousand pieces / year.
This investment Project (hereinafter referred to as the "Project") plans to build a complex for the production of dairy products and therapeutic and preventive nutrition products in the Akmola region. For the construction of facilities, a land plot of 68 hectares was allocated, which is at the disposal of the Company. The implementation of the Project will allow to carry out the following tasks:
- providing employees of hazardous industries (including the mining and metallurgical complex) with dairy products and therapeutic and preventive nutrition products;
- creation of up to 200 permanent jobs.
CHK JV BAYAN AGRO HOLDING LTD was established to implement this Project.
Market
- The consumption of milk and dairy products is growing annually both within the country and abroad, thereby ensuring a stable increased demand for products. According to the OECD, the level of consumption of dairy products will increase over the next 9 years at a CAGR of 2.1%, increasing from 457 million tons in 2022 to 541 million tons by 2030
- The demand for yogurt in Kazakhstan in value terms has been continuously increasing from USD 30 million in 2017 to USD 39 million in 2021 at a CAGR of 6.8%.
- Demand for cottage cheese and other cheeses will reach USD 357 million in 2024, with a compound annual growth rate for demand for cottage cheese and other cheeses over the period 2021-2024. will be 7.2%.
- Therapeutic and prophylactic properties of the products are acquired by adding inulin and pectin to the composition, which, according to the expert opinion of the Kazakh Academy of Nutrition, remove toxins from the human body. Also, additives contribute to the absorption of vitamins and microelements, normalize immunity, providing a number of other positive effects on the consumer.
- Favorable location. The location is within a 1-2-hour car accessibility from the target sales market with a solvent customer base - the city of Astana. The city is also a major transport hub in the country, through which the main railway and highways pass, which will ensure prompt delivery to the regions of Kazakhstan and the Russian market. 10% of the population of Kazakhstan lives in the Akmola region and the city of Astana (1.8 million people). Production will be part of the food belt around the capital. In addition, historically, the region is characterized by the presence of highly qualified specialists in the agro-industrial complex.
To implement the Project, funding in the amount of USD 9,919 thousand is required, including:
- 70% (USD 6,943 thousand) – debt financing (subject to collateral);
- from 30% (USD 2,976 thousand) - investor participation.