Profitability of the project 

Products

Annual design capacity:

• poultry meat –260tons;
• commercial egg -122 million pieces.

Project

This investment project envisages the construction of a poultry farm for meat and egg production in the region of East Kazakhstan. The designed annual production capacity is 122 million eggs and 260 tonnes of chicken meat.

Initiator

Akimat of the East Kazakhstan region

Market

• According to OECD and UN FAO forecasts, global poultry meat consumption will increase. The average annual growth rate (CAGR) in 2021-2024 will be 1.8%. In 2020, the volume of poultry meat production and consumption in the Republic of Kazakhstan will be 96.5 thousand tonnes and 246.2 thousand tonnes, respectively.
• Domestic poultry meat production covers 84% of consumption, the rest is covered by imports. The average annual growth rate of poultry meat consumption in Kazakhstan in 2021-2024 will be 1.3%, reaching 263.9 thousand tonnes. The increase in poultry meat consumption will be facilitated by population growth, as well as a gradual change in the nutritional culture of the population in favour of healthier and more nutritious products.
• The per capita consumption of poultry meat in the Republic of Kazakhstan will be 12.4 kg per person in 2020. Per capita consumption of poultry meat is expected to increase to 12.9 kg per person by 2024.

Investment attractiveness of the project:

• Investment amount–5 646 mln. tenge 
• NPV -5 402 mln. tenge
• IRR -26.5%
• Payback period of the Project -6.05 years

What is the attractiveness of the project? 

• The location of the project. The East Kazakhstan region has an extensive road transport and logistics infrastructure: there are highways of republican and regional importance in the region, with access to regions of the Russian Federation, China and cities of Kazakhstan.
• Government support. The activities carried out under the project are included in the list of priority sectors for state support and obtaining appropriate benefits and preferences.
• Food supply. The East Kazakhstan region is traditionally engaged in agriculture, which provides a suitable basis for the development of poultry farming. The region has favourable climatic conditions for poultry farming and feed production.

Investment proposal.

 The project requires financing in the amount of 5 646 mln. tenge, of which

70% (3 952 mln. tenge) - debt financing (if collateral is available) or investor participation;

30% (1 693 mln. tenge) - investor 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.