Location: Ukraine, Nikolayev district
Shareholders: 1 owner (100% ownership)
Short description of the business
The company was established in 2010, as a result of farming business buyout and transfer of assets to private enterprise. At the time, when the business was bought it covered the area of 160 ha.
The company is engaged in production and implementation of organic small fruits and transplanted plants of following types:
- Everbearing raspberry: Polka, Gerakl, Gusar, Glen Eypl, Rafzaku, Oktavia.
- Black currant: Yubileynaya kopanya, Cherniy Velikan
- Gooseberry: Komandor, Sirius, Bezshipiy, Severniy Kapitan, Barkhat, Malakhit.
- Strawberry: Kleri, Elsanta, Honey, Rusanovskaya, Korona, Albion, Florin.
The product of the company is ecologically clean and produced with the use of EM-technology, without mineral amendments and toxic chemicals, and as a result causing the positive effect on the quality of transplanted plants, small fruits yield, berrying and transportation, and also tastiness.
EM-technology is the biotechnology of effective microorganisms’ usage. It was discovered in Japan, where it is also very popular. EM-technology was acknowledged in a lot of countries throughout the world (approximately in 160) and adapted it on the governmental level, as a part of nation politics in farming industry.
The main advantage of EM-technology became the possibility in 3-5 years to bring back the high soil quality and also to produce a high quality, ecologically clean product, by excluding the usage of chemical amendments and pesticides.
Company passed the “Organic Standard” certification and received a European-level certificate, and proves the cleanness and ecological compatibility of the product.
In the framework of organic economy, starting with 2011 is conducted the bacteria implementation:
- 2011 year – 6 t (80 UAH/l) – 480 000 UAH
- 2012 year – 6 t – 480 000 UAH
- 2013 year – 4 t – 320 000 UAH
- 2014 year – 4 t – 320 000 UAH
- 2015 year (plan) – 2 t (130 UAH/l) – 260 000 UAH
Value of equity unit`s lease (average size – 5,5 – 6 ha)
2013 year – 3500 UAH per equity unit
2014 year – 5000 UAH per equity unit
2015 year – 8500 UAH per equity unit
Seasonality of the business:
March-April – seedlings and transplanted plants selling
May-June – sale of strawberry
June-July – sale of currant
June-July – sale of gooseberry
June-July – sale of wheat
June-November – sale of raspberry
August – sale of strawberry seedlings
September – yield and sale of sun flower
October-November – sale of currant, gooseberry and raspberry transplanted plants
Production distribution
- Sun flower and soya – export contracts with Germany (Bioline)
- Small fruits distribution – local market / was purchased by wholesaler till 2014 (currently is not on market)
- Transplanted plants are purchased by local players / site sales / advertisement boards.
Main assets of the company
|
Characteristics |
Price, $ |
|
TANGIBLE ASSETS, of them: |
|
|
Land bank |
289 600 |
|
362 ha of organic land (32 ha are on the registration stage) with share lease for 10 years (ratable value - $800 per ha) |
289 600 |
|
Property |
337 000 |
|
Property complex – 1645 sq.m. (land lot with area of 27 ha is on the registration stage land lease for 25 years): buildings in ownership - workshop, storages, farm, administration facility |
330 000 |
|
Well – 92 m (136 000 UAH) and water pumps (24 000 UAH) + 2 towers |
7 000 |
|
Transport and equipment |
150 000 |
|
Truck MTZ-82, t-150, t-130, ЮМЗ, walking tractor “Zubr ”, seeding-machines, ploughs, cultivators, sprinklers etc. |
150 000 |
|
Non-distributed stocks |
|
|
Incomplete production |
358 600 |
|
Wheat (organic) – 60 ha (350 euro) / 4 t per ha |
92 400 |
|
Barley (organic) – 80 ha (200 euro) / 2 tper ha |
35 200 |
|
Sun flower (organic) – 200 ha (700 euro) / 1,5 t per ha |
231 000 |
|
Crop-growing (breed shed, for cultivation) |
482 500 |
|
Currant (breed shed) – 140 000 transplanted plants / 2300 bushes (60 ares) / Average price of transplanted plants (organic) (2 years – from 8 to 18 euro) Derivation at the common rate (average transplanted plants) – $1,5 per transplanted plant Types: Yubileynaya, Kopanya, Chernyi Velikan, Suita, Slastena, Vladimirskaya |
210 000 |
|
Raspberry (breed shed) – 250 000 transplanted plants (1 ha) / Average price of transplanted plants (1 year / organic – from 5 to 8 ЕВРО) Derivation at the common rate (average transplanted plants) – $1 per transplanted plant Types: Polka, Gerakl, Gusar, Glen Eypl, Rafzaku, Oktavia |
250 000 |
|
Strawberry– 45 000 bushes (1 ha) (1 euro/bush) Derivation at the common rate (average transplanted plants) – $0,3 bush Types: Kleri, Elsanta, Honey, Rusanovskaya, Korona, Albion, Florin |
13 500 |
|
Gooseberry – 4 500 transplanted plants (1500 bushes) Average price of transplanted plants (organic) (2 years – from 8 to 18 euro) Derivation at the common rate (average transplanted plants) – $2 bush Types: Komandor, Kooperator, Sirius, Bezshypyi, Severniy Kapitan, Barkhat, Malahit |
9 000 |
|
Animal breeding (под разведение) |
64 440 |
|
Goldshtem cow (1) |
22 000 |
|
Breeding bull – 400 kg (28 000 UAH) |
1 300 |
|
Goats (30) |
7 000 |
|
Pigs (150): 50 – to 15 kg (1500 UAH); 50 – 50 kg (3000 UAH); 50 – breeding (10 000) |
33 000 |
|
Turkeys (40): 1,5 month (200 UAH) |
370 |
|
Mamut geese (40): (150 UAH) |
270 |
|
Chickens (300): Red bro – 100 (40 UAH); master grey – 100 (40 UAH); brama – 100 (30 UAH) |
500 |
|
NON-MATERIAL ASSETS, of them: |
20 000 |
|
European certificate organic for 330 ha, legalized since 2011 |
15 000 |
|
TM |
5 000 |
|
GRAND TOTAL |
1 702 140 |
INVESTMENT PROJECT
Investment project involves active development of activity of the enterprise in a part of: produceability upgrade, focusing on profitable ways of development, processing and product storing implementation, land bank expansion.
Needed investments
Amount of the needed investments: from $ 500 000 to $ 2 000 000 (equity participation from 20% to 50%)
Type of investment: cash in
Desired competences of co-investor:
- Distribution of small fruit product (including international economic activity)
- Processing of small fruit production
- Storing and freezing of small fruit production
- Greenhouse activity organization
Strategy of company development and implementation of investments plan for 2015 – 2016:
|
|
Items of investment expenditure |
Amount, $ |
|
1st STAGE |
||
|
1 |
Land bank expansion on 150 ha for 500 ha (budget $150-$200 per ha) |
30 000 |
|
2 |
Fertilizer distribution (bacteria) |
20 000 |
|
3 |
Organization of cooling machinery for freezing and transportation of small fruits to cold storage facility |
from 100 000 (assessment is required) |
|
4 |
Transport and equipment purchase for small fruits` transportation) (2 refrigerators 18 m per 2,5 m) |
from 20 000 (assessment is required) |
|
5 |
Organization of 1 greenhouse complex on 1 ha (12 sections) |
from 300 000 (assessment is required) |
|
6 |
Small fruits` plantation establishing (strawberry + bushes) – 10-50 ha |
from 200 000 (assessment is required) |
|
7 |
Organization of organic jam manufacturing department |
from 200 000 (assessment is required) |
|
8 |
Organization of small fruits drying |
fкom 50 000 (assessment is required) |
|
9 |
Cow purchasing (to 200) for organic fertilizers production |
(assessment is required) |
|
10 |
Marketing events for organization of organic small fruits distribution to Europe starting from 3 t |
(assessment is required) |
