A successful Ukrainian food trading company have started preparation works for the pig farm's project with projected annual production of 34,000 heads in Cherkassy region, Central Ukraine. The former cattle farm premises have been renovated to build up a full-cycle pig farm in compliance with the WTO and EU standards.

Proposal to the new investor

The potential investor is offered to enter into a joint venture together with the current owner to fully utilize the potential of pig growing and meat processing available in the Ukrainian market. There is an option to establish a longer value chain and to extend a pig farm with a slaughterhouse and primary processing. The size of an investment into the project to full operations is estimated at 9.1 million EUR. The price levels for meat and fodder in the Ukrainian market allow reaching the net profitability of around 25 %.

Technology

The pig farm will conform with the most recent technological developments. Genetics and equipment will be based on the leading Danish warm-keeping technology and will be EU certified. Equipment can either be imported or purchased locally. Latter option allows government compensation schemes and tax incentives and therefore is used in the calculations.

Strong upward market potential

The Ukrainian meat market promises high volumes and a strong upward potential. The current consumption of pork per annum per capita is at 12.6 kg and makes up total consumption of around 600 thousand tons annually. The current consumption stays well below the average in the EU countries or in Russia (e.g. 42.9 kg/per capita in Poland or 20 kg kg/per capita in Russia respectively). Currently approximately 10% of the total market supply of pork is provided by unregulated low-cost import, which will be restricted with the implementation of the WTO regulations leaving that market share to the legal local producers.

Sales and distribution network

The owner of the project has extensive distribution network to support the sales which benefits from the whole value chain.

Additional Info

For further information please request the Investment Summary