Profitability of the project 

Project location 

Products

The project will organise the production of: wives in a package (300 grams), wheat groats in a package, millet in a package (400 grams), millet crushed in a package (200 and 400 grams), talkan in a package (100 grams). The capacity of the plant is 100 tonnes per year.

Number of jobs created: 30 people.

Product sales market: Kazakhstan (50%), China (50%). 

Project

This investment project involves the purchase of equipment and the construction of a workshop. A plot of land is available. Project location: East Kazakhstan region, Zaisan district.

Initiator

Limited Liability Partnership "QABUL-AGRO"

Market

In Kazakhstan, as in other countries, there is a growing demand for natural and healthy products. They simply fit into the trend for a healthy lifestyle, functional food and organic products. This demand is particularly high among urban dwellers and middle- and high-income consumers. As oat, talkan and millet are traditional products for Kazakhstan, there is a high level of awareness among the local population. However, industrial production of these

However, industrial production of these commodities is at a nascent stage, creating potential to capture market share.

The border location of the Zaisan district provides a convenient opportunity to export to China, which is a major consumer of food products. China is an active food importer and natural, environmentally friendly products are highly valued by Chinese consumers.

What is the attractiveness of the project? 

• Advantageous location. The agricultural potential of the region East Kazakhstan has fertile land and suitable climatic conditions for growing millet and other cereals, which contributes to the availability of raw materials for production. 
• The border with China provides access to the huge Chinese market, which has a significant demand for natural and environmentally friendly products. This opens up export opportunities.
• Government support. Kazakhstan is actively developing the agro-industrial complex and supporting projects related to agriculture, especially in the border regions. It is possible to obtain subsidies and grants for project development.

Investment proposal

The project requires funding of 424 mln. tenge, including

• 80.0% (339 mln. tenge) – borrowed capital;
• 20.0% (85 mln. tenge) – equity.

The proposed financing structure and government support measures are indicative; the final structure of financing and participation in the project will be determined based on the results of joint negotiations with the investor.