Profitability of the project 

Products

The volume of production and its sale in the following directions: the domestic market - 20%, for export (China) - 80%.  

Products: frozen carcasses and half-carcasses 18,800 tons, by-products of the 1st category - 400 tons, 2nd category - 1800 tons and 3rd category 800 tons. In addition, beef rennet 120 tons, beef blood and blood meal 1600 tons, skins 80,000 pieces

Project

This investment project (the "Project") plans to build a meat processing plant with a capacity of 80 thousand heads of cattle per year. The geographical raw material coverage of the meat processing plant: peasant farms, cattle feedlots, individual farms located in the Kurchum, Tarbagatai and Zaisan districts of East Kazakhstan region.

Company

One of the co-investors of the project is JSC SEC Ertis. The joint-stock company "Social and Entrepreneurial Corporation "Ertis" is a regional development institution with a 100% share in the authorized capital of the state, represented by the Akimat of the East Kazakhstan region.

 The purpose of the Company's activities is to promote the economic development of the East Kazakhstan region by consolidating the public and private sectors and creating a favorable economic environment for attracting investments.

Market

• Production and consumption of cattle meat in the Republic of Kazakhstan. Beef and veal production reached 527.4 thousand tons in 2021. In 2026, according to the OECD, the level of beef and veal production will reach 556.0 thousand tons. 
• The PRC meat market is the second largest market sector in the country's retail food market and the second largest fresh meat market in the world. And in terms of purchasing habits, the Chinese are consuming more and more meat now than ever before. Thanks to meat imports, Chinese consumers now have a wider selection of meat products. 
• According to the Statista organization, revenue in the Chinese meat market amounted to 37,312 mlrd. tenge in 2022 and is projected to reach 90 658 mlrd. tenge in 2027 with an annual growth rate of 19.42%. China accounts for 50% of pork imports from the European Union. In fact, China is the first importer of pork and lamb in the world and the second when it comes to beef.

Investment attractiveness of the project:

Investments - 3 657 thousand

The NPV of the Project is more than 45,458 mln. tenge

MIRR–more than 100.0%

EBITDA yield–55.9%

Payback period -5.20 years

What is the attractiveness of the project?

• Sufficient level of supply of raw materials in the form of livestock (cattle, cattle, horses); 
• Opportunities to increase the production of livestock farms, due to the availability of: a good feed base (pasture lands, cultivation of forage crops), qualified specialists (livestock breeders, veterinarians, etc.), an increase in the number of active actors in the livestock industry; 
• High availability of export markets. Our region is bordering the PRC. 
• Relatively high profitability. 
• Relatively low required investments. 
•  Availability of a certification and veterinary laboratory. In order to be sold, products must be certified according to the standards of the People's Republic of China.

Investment proposal

The Project requires financing in the amount of 3 657 mln. tenge, including:

• 49% (1 792 mln. tenge) – contribution of JSC SEC Ertis ;
• from 51% (1 865 mln. tenge) – investor participation.

The proposed financing structure is indicative, the final financing structure and participation shares in the Project will be determined based on the results of joint negotiations with the investor.