Goods
The average production volumes are planned to be as follows: wool - 183 tons, vacuum-packed meat - 2,473 tons; by-products of the 1st category - 412 tons; by-products of the 2nd category - 361 tons; washed intestines - 348 tons; edible fat - 294 tons; technical fat - 51 tons; meat and bone meal - 34 tons; washed skin - 507 tons.
Project
This investment project (the “Project”) plans to create a mega-farm for the development of transhumance livestock with a livestock of at least 200 thousand sheep. Also, the Project provides for the construction of a meat processing plant with a capacity of up to 4 thousand tons per year for the processing of small cattle. The plant is planned to be built in Balkhash, Karaganda region.
Company
The initiator of the Project is Qazaq Steppe Sheep LLP, which was established in order to implement this Project.
Market
- Growing demand. Mutton consumption in Kazakhstan has been increasing over the past four years, reaching 171.3 thousand tons in 2021. According to the OECD forecast, in 2026, the level of mutton consumption in the country will reach 176 thousand tons.
- Availability of raw materials for production. In 2021, the number of livestock of small cattle in the Republic of Kazakhstan amounted to 20,856.5 thousand heads. Over the past five years, the average annual growth rate of the number of small cattle has been 3.28%. About 312.55 thousand tons of sheep and 40.52 thousand tons of goats are sent for slaughter annually in the country.
- Feed production. The country has significant sown areas, water resources and favorable climatic conditions create a high potential for fodder production. As of January 1, 2022, 37 million tons of feed were harvested in the Republic of Kazakhstan.
- Provision of raw materials. It is planned to create a mega-structure of a farm for the development of transhumance livestock with a livestock of at least 200,000 sheep. A herd of sheep and rams is planned to be imported from Mongolia during the first 2 years.
- Favorable location of the Project. Karaganda region has optimal natural and climatic conditions and geographical location for the development of animal husbandry and is one of the leading regions of the Republic of Kazakhstan in the production and processing of agricultural products. The share of agriculture in the total gross regional product of the region for 2021 is 3.6%, where 56.8% of the volume is livestock products. The pastures of the Company are located 160 km from the regional center - the city of Karaganda.
To implement the Project, funding in the amount of USD 55,476 thousand is required, including:
- 70% (USD 38,833 thousand) – debt financing (subject to collateral);
- from 30% (16,643 thousand US dollars) - investor participation.
