Project description
The principal focus of this project is cultivation of cattle and bovine feeds based on lucerne and barley. The Project suggests creation of 20 additional work places. Production will be carried out in two land plots: One with a total area of 3,468 ha in Bayterek village (West Kazakhstan, Yanaikinsky district) and the other with a total area of 14,933 ha near the town of Stepnogorsk (Akmola region).
The projects aims fulfilling following goals:
- To increase the export potential of forage crops in the cattle and bovine feed sub-industry agro-industrial complex , which will increase the production capacity of value-added products.
- Development of new land plots, construction of infrastructure for irrigation of land and the use of modern technologies for irrigation of crops;
Azat Agro Group of Companies is engaged in crop production (with sowing areas of over 15,000 hectares) and livestock farming (operating a breeding farm with 5,500 heads of cattle). The company has more than 15 years of experience in agriculture and feed production.
The initiators of the above-mentioned irrigation projects are Central Feedlot LLP (West Kazakhstan Region) and BRESK LLP (Akmola Region).
Upon reaching the full capacity in the 3rd year of the Project operation, it is planned to sell up to 62,593 tonnes of product annually. Produced goods:
- Barley;
- Lucerne hay.
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Prerequisites for Project implementation
Project location. The Initiator holds the right of land use for two land plots for up to 49 years. The selected land plots are located near reservoirs, where the cost of water does not exceed 1 tg / cubic m, which is much cheaper than water from canals (17-25 tg / 1 cubic m).
Strong demand for hay in Kazakhstan. The consumption of dry fodder by cattle in 2019 has increased 1.5 times compared to 2015. Average annual growth rate of cattle dry fodder consumption (CAGR) for the period of 2015-2019 was 8%, indicating a strong demand for the product. The average annual growth rate of total dry fodder consumption in the country (CAGR) for the period 2015-2019. amounted to 11%.
Guaranteed sales. The company signed a memorandum for the supply of lucerne from July 30, 2020 to China in the amount of 180,000 tons with a Chinese company Kaz-Food (Alashankou) Import & Export Co. Ltd.
Governmental support. The project belongs to investment priority projects, for which various types of state preferences are provided.
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