Products
Upon reaching full design capacity by 2027, the projected sales volumes are as follows: butter – 432 tonnes, cheeses – 648 tonnes, ricotta cheese – 78 tonnes, albumin curd – 104 tonnes, mixed nuts – 27 thousand tonnes, tomato sauces – 68 tonnes, dried apples – 34 tonnes, dried pears – 34 tonnes. The company plans to sell 80% of its products in the domestic market, and export the remaining 20% to Russia, South Korea and the UAE.
Project description
The Project provides the construction of a plant to product cheese-based products and cheese for the hotel and restaurant business in the Almaty industrial zone. A land with an area of 1 ha was leased for the construction of the plant (cadastral number 20-321-029-109, rent agreement until 12/31/2023). A positive summary conclusion has been received on the state review of Project plans (design and estimate documentation). Earth work has been completed to clean and mark the territory for future construction. Equipment has been ordered for cheese and vegetable production, as well as auxiliary equipment.
Company
The Project Initiator is Green Works LLP, which was created in 2019 to realise a production Project for the hotel and restaurant business. Green Works LLP is a subsidiary of Honest Group LLP, and has been specialising in restaurant and public catering business consulting services since 2015.
Market
- In 2022, the volume of cheese and cottage cheese production in Kazakhstan amounted to 35 thousand tonnes, and the volume of consumption - 29 thousand tonnes.
- In 2022, the volume of production of dried fruits, butter, tomato sauce and nuts in Kazakhstan amounted to 69 thousand tonnes, 22 thousand tonnes, 17 thousand tonnes and 6 thousand tonnes, respectively.
- At the end of 2022, the main suppliers of butter, albumin, cheese and cottage cheese to Kazakhstan are Russia, Belarus and Lithuania.
- As of 2022, Russia is the main exporter of butter, albumin, cheese and cottage cheese to Kazakhstan.
- Advantageous location. The region is home to well-developed and extensive road and logistics infrastructure linking it to other regions of Kazakhstan and neighbouring countries. Almaty Oblast is a leader in terms of the production of raw milk, tomatoes, peppers, apples and pears. A total of 385 thousand tonnes of raw milk, 146 thousand tonnes of tomatoes, 136 thousand tonnes of peppers, 958 thousand tonnes of apples and 64 thousand tonnes of pears were produced in Almaty Oblast in 2022.
- Eco-friendly product. Food production using natural ingredients without semi-processed products and other additives is an advantage compared to imported equivalents and allows the Company to occupy a specific consumer niche.
- mport substitution. The construction of a plant to produce cheese and other food products will help reduce cheese imports in Kazakhstan (in 2022 – 35 thousand tonnes) and provide the domestic market with quality local products.
The Project requires investment of 8,630 thousand USD (at the rate of 449.2 tenge), of which:
- 70% (6,041 thousand USD) – debt financing subject to collateral;
- 30% (2,589 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.
