Products
The Company is planning to sell 30% of product domestically in Kazakhstan, and export the remainder to neighbouring countries (Russia, China and Turkey), and also to Thailand, Vietnam and the Philippines. Design capacity, which is planned in 2027, will equate to the following product range and production levels: meat and bonemeal tankage (category 1) – 2,656 tonnes; feather meal – 1,216 tonnes; blood meal – 344 tonnes; meat and bonemeal tankage (category 2) – 447 tonnes; feeding fat – 958 tonnes; technical fat – 129 tonnes.
Project
The Project envisages the construction of meat and bonemeal tankage production plant in the village of Kasym Kaisenov in East-Kazakhstan Oblast’s Ulan District. The Project will be implemented at JSC Ust-Kamenogorsk Poultry Farm (UKPF) on a 34.5 ha site (0.99 ha and 33.47 ha), held on a long-term 32-year lease. UKPF is one of the largest poultry farms in Kazakhstan, slaughtering 30 million birds per year (meat production of 60 thousand tonnes per year). Currently, the Project plans are being developed (should be completed by October 2023) and talks are being held with potential core equipment suppliers
Project initiator
JSC Aitas KZ is a leading agricultural company in Kazakhstan, specialising in poultry meat production and processing, as well as grain and oil crop farming. Total meat production at the Company’s Makin and UstKamenogorsk poultry farms amounts to 160 thousand tonnes per year. The Company’s poultry farms also produce meat and bonemeal tankage (9 thousand tonnes in 2022). Company product is represented extensively in Kazakhstan commercial and retail networks under the “Kus&Vkus” and “AMP” brands. The Company’s Almaty pedigree poultry reproducer has capacity for up to 80 million eggs per year.
Market overview
- In 2022, the global animal protein feed market was worth 275.33 billion USD. The Business Research Company is also predicting that by 2027, the global animal protein feed market will have increased to 343.45 billion USD, with CAGR for 2023-2027 at 4.3%.
- In 2022, the production volume of meat and bone meal in Kazakhstan reached 12,018 tonnes, which is 22% more than in 2021. Imports of this product amounted to 2,824 tonnes in 2022, exports were 173 tonnes.
- Advantageous location. East-Kazakhstan Oblast has well-developed and extensive road and logistics infrastructure, linking it with other regions and neighbouring countries. By basing the Project at the UstKamenogorsk Poultry Farm, which slaughters 30 million birds per year, the Company will be able to control end-product cost for the entire supply chain, including the supply of feedstock (meat processing and mortality surplus). East-Kazakhstan Oblast enjoys optimum natural and climate conditions and geographical position to develop animal farming.
- Initiator experience. JSC Aitas KZ is a leading company in the agricultural sector with 25 years of experience. It specialises in poultry meat production and processing, as well as grain and oil crop farming. Total meat production at the Company’s Makin and Ust-Kamenogorsk poultry farms is 160 thousand tonnes per year. Its poultry farms also produce meat and bonemeal tankage (9 thousand tonnes in 2022). Company product is represented extensively in Kazakhstan commercial and retail networks under the “Kus&Vkus” and “AMP” brands. The Company’s Almaty pedigree poultry reproducer has capacity for up to 80 million eggs per year.
The Project requires investment of 13,705 thousand USD (at the rate of 449.2 tenge), of which:
- 30% (4,112 thousand USD) – debt financing subject to collateral;
- 70% (9,594 thousand USD) – investor participation.
