Products

Dry alfalfa hay - 147.1thousand tons of dry alfalfa hay per year

Project

The project involves the production of high quality alfalfa-based feed on a site of up to 10,000 hectares in the East Kazakhstan region. 

The project involves the phased planting of high yielding seeds using moisture-saving irrigation technology and the use of modern technology.

Initiator

Akimat of the East Kazakhstan region.

Market

In 2020, global demand for alfalfa hay will be worth 1 828 mlrd. tenge. With a compound annual growth rate of -3.3% for the period 2016-2020, Global Research & Data Services forecasts that demand for alfalfa hay will reach 2 083 mlrd. tenge by 2025. In 2022, China will import 1,694 thousand tonnes of alfalfa hay, 6% more than in 2021. Overall, there has been a positive trend in the market over the past three years. In 2022, most of the demand for alfalfa hay in the Republic of Kazakhstan will be for beef and dairy cattle feed (81.4%). Alfalfa hay is also used as feed for horses (11.0%) and poultry (3.2%).

Investment proposal

The project requires financing in the amount of 33 154,8 mln. tenge: 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.

Investment attractiveness of the project: 

• The amount of investments–33 154,8 mln. tenge
• NPV -10 909 mln. tenge
• IRR –20,3% 
• The payback period of the Project is 7.24 years

What is the attractiveness of the project?

• Advantageous location. The East Kazakhstan region borders Russia and China, allowing finished products to be sold with minimal logistical barriers. 
• There is a high demand for lucerne in China. China is a major importer of alfalfa for livestock feed. 
• The proximity of the East Kazakhstan region to China makes the logistics of supply more profitable. 
• The East Kazakhstan region has favourable climatic conditions for growing alfalfa.
• The region is characterised by fertile soils suitable for growing forage crops and the availability of water resources.
• The use of sprinkler irrigation systems makes it possible to ensure efficient use of water resources, provide uniform soil moisture and increase yields.
• There are agricultural support programmes in Kazakhstan that can be used to develop lucerne production.
• Kazakh producers are experienced in lucerne production and use modern technology to increase yields.