Export-oriented blueberry farm

PROJECT MISSION

Meeting the demand for blueberries in the domestic market, as well as the subsequent access to international markets with a high-quality Ukrainian product.

The number of professional producers of berries in Ukraine today is limited, and fails in approaches to farming have a strong impact on the quality of products.

That is why the missions of the project is to improve the quality standards of blueberries, the production of reference products to stimulate healthy competition in the market and the formation of the correct ideas about the quality berries for consumers.

OBJECTIVE OF THE PROJECT

The project provides establishment of a joint specialized agricultural enterprise for growing blueberries in the Kiev region, Makarovsky district.

The project involves the purchase of arable land and a property complex of 110 hectares for growing berries, as well as the acquisition of the necessary agricultural machinery and equipment for the storage and packaging of berries.

KEY SUCCESS FACTORS

Starting point. The project starts from the already existing base: 28 hectares of land, equipment, qualified specialists, own proven and proven technology.

Team. Director of the company engaged in the cultivation of berries for more than 6 years. The company’s team also includes one of the leading agronomists-consultants in fruit growing (both traditional and organic) in the CIS.

Experience. The owners of the company have many years of practical experience in fruit growing, allowing not only to make optimal decisions on production technologies, but also to correctly analyze the situation on the market, responding to its requests.

Innovations. Own innovative development - organic fertilizer based on microalgae, which was tested on its own premises, and in 2017 went on sale in the market. Its use significantly increases the yield, plant resistance to diseases and stress, and also significantly increases the quality of the finished product.

Technology. Use of high quality seedlings. Modern refrigerated warehouses. Technologies of the automated gathering and packing of berries.

Standards. Compliance with technology to produce products of premium quality to meet export potential.

Sales. The company already has a well-established system of selling berries in the Ukrainian market and an understanding of the specifics of working with such a delicate product.

OPERATING BLUEBERRY FARM COMPLEX

Location: Kiev region, Makarovsky district
Business assets: Land plot of 29.5 hectares in private ownership
Communications: electricity, own Power station 100 kW, a new pump station on 30 hectares, a modern irrigation and fertigation system with a meteorological station and remote control from a telephone or laptop, a fence around the territory, lighting of the area, video surveillance, a storage reservoir for irrigation per 10,000t, 3 wells.
Agricultural machinery: MTZ 82 tractor, YANMAR tractor, front loader, tractor trailer, feed dispenser (for making substrate), bed forming machine, sprayers 2 pcs., Mowers 2 pcs., Trencher, substrate mixer, milling cutter, disc harrow, cultivator.
Real Estate: Film greenhouse - 1 ha. 2 wooden houses for managers and specialists.
Current status: Today, 0.7 hectares are bearing fruit, which were planted in 2015.
-1.5 tons collected in 2017
-5.5 tons in 2018
-10-15 tons expected in 2019
In 2018, 4 hectares were planted, 12 hectares were prepared for laying. In 2019, seedlings will be planted on an area of ​​12 hectares (seedlings 1.5-3 years).
According to them, the first harvests are planned already in 2020 (starting with 0.3 tons per 1 ha).
Sales: Ukraine. Regular customers, wholesalers, retail
Number of employees: 7 people on a permanent basis, an additional 10 people are hired for the season.

BLUEBERRY WORLD MARKET

The blueberry market is developing the fastest comparing to all  fruit and vegetable segment. Projections for further development remain positive, as the demand for these berries is growing rapidly in many countries, and we are talking not only about fresh blueberries, but also frozen ones.

According to the International Blueberry Organization (IBO), blueberry production is growing worldwide. Over the past 20 years, the production area under it increased from 25 thousand hectares in 1995 to almost 140 thousand hectares in 2016, at the same time, berry production increased more than 20 times, reaching in 2016 the level of 655 thousand tons.

This uptrend continues. It is connected mainly with the advent of new regions of blueberry production. Although the United States is still the world leader in the production of this crop (with an indicator of 250,000 tons or 87% of the global total), over the past few years, blueberry production has developed intensively in South America (Chile, Argentina, Peru). In recent years, there has been a sharp increase in production in Spain and Morocco, as well as in Asia, where China has become the leader.

Spain is the leader on the European continent - the volume of berry production is 30,000 tons, Poland is in 2nd place with 16,000 tons in 2016, for comparison, Ukraine in 2017 has an indicator of 2,000 tons.

World wholesale prices for blueberries, in US dollars per 1 kg.

BLUEBERRY MARKET IN UKRAINE

Ukrainian producers not only actively invest in the expansion of blueberry acreage, they also improve the quality of berries - they introduce frost protection systems, they invest in research of varieties of cultivated plants that are adapted for growing on a particular soil in a local climate.

The supply and demand in the market is not yet balanced, because demand continues to grow at a rapid pace, so manufacturers do not predict an excess of berries on the market in the next 3 years.

Today, blueberries occupy the third place in the structure of the berry plantations of Ukraine, second only to currants and garden strawberries. The share of blueberries in Ukraine accounts for 20% of all the areas occupied by berry plantations, managed by professionals.

Blueberry production in Ukraine has export potential. In 2015, the export of blueberries amounted to 319 tons, in 2016 - 1366 tons, in 2017 - 1900 tons.

The export of blueberries to Belarus in 2017 amounted to 739 tons, which is 49% more compared to 2016. The second largest blueberry trading partner is the Netherlands; in 2017, exports amounted to 720 tons of blueberries. Great Britain took the third place with the indicator - 419 tons. It is worth noting that exports to the UK in 2017 compared to the 2016 season increased by 300%.

As for domestic prices in Ukraine, the first wholesale shipments of Ukrainian blueberry farms in the domestic market were estimated at 2017 at the level of 230-260 UAH / kg (7.6-8.6 euro / kg), and already in the middle of the season the price dropped to 170 -200 UAH / kg (5.6-6.6 euro / kg).

KEY FINANCIAL INDICATORS, US DOLLARS

Additional information will be provided by request.