Smart Grain

Concentration and sorting, fattening and breeding of sheep on existing production areas with a capacity of 50 thousand heads (9 farms), there is experience, personnel, technology. IRR=80%. Export by sea transport mainly to Muslim countries.

The project has been operating since 2013. Currently, we export about 15 thousand heads per year. Ships with live animals are loaded on average every week. We load our livestock onto them. The lack of working capital does not allow us to accumulate enough live sheep to load a full ship (up to 20,000 heads) before Kurban Bayram and receive an additional premium in price (about one additional US dollar per 1 kg of live weight).

The first category of clients are regular traders of live animals who transport them by sea on ships, there are dozens of them, with 5 of them we have business relations. The second category is local traders in Muslim countries who are ready to order a ship with animals on their own before the holiday of Kurban Bayram, understanding that the demand will be crazy. This category of clients becomes active 4-3 months before the holiday and is ready to conclude deals. They can be counted several times more than the first category. Every year dozens of such buyers contact us.

Every year, the world experiences a huge demand for live sheep before the Kurban Bayram holiday. A month before the holiday, prices sometimes double on the wholesale animal market. But not every animal can be suitable for such a holiday. It must be no older than 14 months and no younger than 6, the sheep must not be mothers, they must be neat, beautiful and well-fed. Therefore, the preparation of the batch for sale must begin no less than a year before shipment. We have all the capabilities to satisfy the most demanding requirements of buyers.

There is 1 constantly operating powerful operator on the Ukrainian market, with whom we have friendly relations. There are also 4 more operators who work for export from time to time. Competition in the market is not strong. The demand market is constantly growing, so there are no risks of not selling the product. There is always the possibility of slaughtering sheep on the domestic market and exporting frozen meat, as a complete alternative to live weight in case of disruption of sea logistics.

Our experience in sheep farming allows us to be confident in the effectiveness of our fattening and care technologies. We use fattening technology when the animal does not wait for feed, it can eat at any time and as much as it wants, together with high-quality feed, this provides good results in terms of the appearance of the animals and the taste characteristics of the meat.

Simplified financial model:

The purchase price of a sheep is approximately $50 (weighing a little more than 20 kg, purchased on the domestic market, or raised from a broodstock). The cost of fattening it for 3-4 months to a weight of 50 kg is another $50, including the cost of feed, labor, veterinary care, etc. The planned approximate cost of 1 kg of live weight is $2. Export costs (transport, fobbing, customs clearance) on FOB terms are another $0.5. The selling price for regular shipments is at least $3, before the holidays about $4 per kg of live weight.

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Preparations for the festive shipment should begin more than a year before the shipment. The farms are constantly replenishing the livestock for fattening, the best sheep are left for fattening, the worst are sold on the domestic market or sent in small batches by ship every week. This ensures the circulation of animals and funds, and accumulates the best livestock for export for the holiday of Kurban Bayram.

We have the technology, personnel and capacity to purchase, sort, care for, and fatten 50,000 head of sheep. In a year, we plan to prepare for shipment 20,000 heads of selected middle-aged sheep, one year old, with an average weight of 50 kilograms.

As experience shows, even the wars in Ukraine and Lebanon have not changed either supply or demand. Many ships from Ukraine are still heading to Lebanon. The only major risk at the moment is the ongoing war in Ukraine. But our production is located in the western part of Ukraine, and even if Ukrainian ports are closed, we will be able to ship our animals through the ports of Romania.