Investment Projects

Construction of a meat processing plant with slaughtering facilities for up to 300 sheep and goats and 50 cattle per shift

  • Indicator Results
  • Investment amount, thousand US dollars 2 509
  • NPV of the Project thousand, US dollars 5 700
  • IRR, % 31,2%
  • EBITDA yield, %
  • Payback period, years 3,64
  • Discounted payback period, years - - 4,02

Products

Upon reaching full capacity in 2027, annual sales volumes will be 1,750 tonnes of frozen and chilled beef, 787.5 tonnes of frozen and chilled mutton, 61,250 units of cattle, sheet and goat offal, 52,500 units of sheep, goat heads, 61,250 units of sheep, goat and cattle hides. Company plans to export 80% of beef and mutton to the Middle East (UAE, Saudi Arabia, Qatar, Oman, Bahrain and Lebanon, the remainder, as well as offal, hides and heads will be sold domestically.

Project description

The Project envisages the construction of a meat processing enterprise with an area of 0.54 ha and slaughter capacity for 300 sheep and goats and 50 cattle per shift in the town of Abai, Karaganda Oblast. At the moment, a 0.72 ha site has been acquired in the town of Abai, Karaganda Oblast. (Cadastre No. ЗУ 09-141-026-24). Discussions are currently being held regarding the receipt/acquisition of 2 ha of grazing land from reserve land/private land to breed cattle, sheep and goats and create a full-cycle enterprise.

Company

The initiator of the project is Alisha Group LLP. The Company was created to implement a project to build a meat processing facility with slaughter capacity for 300 heads of sheep and goats and 50 heads of cattle per shift.

Market

  • In 2022, 72,217 thousand tonnes of beef and veal and 16,206 thousand tonnes of mutton were produced globally. According to the UN FAO, the production of beef and veal will increase to 74,690 thousand tonnes by 2027, with CAGR for 2022-2027 at 0.7% and the global mutton production will reach 17,295 thousand tonnes by 2027, with CAGR for 2022-2027 at 1.3%. 
  • GIRA has predicted that beef consumption in MENA countries will grow in 2021-2026, with CAGR at 3.3%. Mutton consumption will grow in MENA countries over the same period at 2.2%
What is the attractiveness of the project?
  • Advantageous location. Production in Karaganda Oblast offers optimum natural and climate conditions for developing animal farming and access to an international airport to export product to the Middle East. The region is also known for its significant investment in agricultural production and processing. Agriculture accounted for 7% of the region’s total gross regional production in 2022, of which 41% was generated by animal farming product.
  • State support. The Project is recognised as a priority for state support as well as concessions, including the state “Business Road Map 2025” programme, which subsidies loan interest rates, commodity mark ups, and partial loan guarantees

Investment proposal

The Project requires investment of US$ 2,509 thousand (at the rate of 449.2 tenge), of which:

  • 85% (US$ 2,133 thousand) – investor participation;
  • 15% (US$ 376 thousand) – initiator’s own funds.
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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