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» Investment project: Organization of bacterial concentration products production for dairy industry.
Investment project: Organization of bacterial concentration products production for dairy industry.
A. Project Opportunity Description:
A1. Project Name:
Organization of bacterial concentration products production for dairy industry
a. Short name:
Organization of bacterial concentration products production for dairy industry
b. Full name:
Organization of bacterial concentration products production for dairy industry
c. Summary description:
Creation of contemporary scientific bacterial concentration products production for dairy industry enterprises. Planed production capacities to 12000 kg in dry condition (At present about 350 kg of dry concentration products are produced in the course of a year and 2500 kg of frozen one (not produced in country). Equipment intended for biotechnological productions (practically all by imported production: Switzerland, Germany, South Korea and etc.): fermenters, centrifuges, leofilic drying apparatus, freezing system, packing equipment – are required.
A2. Progress Status:
A documentation of project and estimate for the first starting turn is worked out.
A3. Organizations involved and their roles:
a) Institute for the Meat and Diary Industry, Subsidiary National Research and Manufacturing Unitary Enterprise at the Food Research and Engineering Center, National Academy of Sciences of Belarus, National Unitary Enterprise, Short name - NUE «Institute for the Meat and Dairy Industry» 220075 Minsk, 172 Partizanski Ave. b) director: Meleshchenya A.V.; c) tel./fax: 3443852, d) Е-mail: meat-dairy@tut.by bacterial concentration; e) WEB-page: instmmp.by
A4. Project Description:
In the first place the project takes aim at the substitution of import, but partial export providing a full designed power is possible. First stage: 2008-2010years – ensuring of country necessity to 30% (output of 3500 kg of dry concentration products and 2500kg of frozen concentration products). The project price is 17 mlrd of roub. .The going out at designed power is in 2011 year. Second stage: 2011-2013 years – expansion of production till ensuring of total necessity of bacterial concentration products (12000 kg of dry concentration products and 2500 of frozen concentration products a year) by building of new shop and putting of additional equipment. Total volume of investments – 16,6 mln. USD, including technological equipment – 13,8 mln.USD, building and assembly works 2,8 mln. USD. Financing sources –republic budget, bank credits, own funds. Planed level of profitableness of realized production is 25%. The volume of realization of production is about 25 mln USD providing a full designed power.
a. Project cost (mln USD):
16.6
A5. Background / history / overall programme / related or similar projects:
Today in the Republic of Belarus the experimental manufacturing produces about 150 thousand portions of bacterial ferments and concentrates (it is about 350 kg) with total requirement in the republic more than 10 ton per year. It forces more than 95% of concentrates to import from outdoors of the country for sum of about 20 million of dollars USA. От basis of a collection of cultures and technologies, developed in the NUE «Institute for the Meat and Dairy Industry», this project involves the creation of producing power of concentrates to reduce import and to fix the Belarusian enterprises up with domestic concentrates. Developed technology is protected by the patent of the Republic of Belarus.
A6. Environmental impact summary:
As far as manufacturing is concerned it is ecologically clean. There is no emission on a new production. After cleansing and equipments cleaning the polluted waters are thrown down to an urban drainage system. The insignificant content of washing material doesn’t impact on environment because its contest’s percentage is acceptable for equipment and ware handling, which have direct contact with foodstuffs and additions.
A7. Possible obstacles/ problems/ risk assessment:
The results of marketing researches point out that the valuation capacity of bacterial concentrates of the Belarusian market compiles 20 mln. dollars USA subject to increase dairy production, especially for cheeses, up to 2010 year it may reach 29 mln. dollars USA. The realization of the project provides to support full demand of the Belarusian inner markets. NUE «Institute for the Meat and Dairy Industry» will not have any native competitors in the inner market of the republic. The native producer has a lot of indisputable advantages in spite of the active work of other western distributors – the producers of biotechnologies, who frequently use to pursue a policy of aggressive marketing, are directed on a sales promotion. On the one hand – lower price. This factor has a great importance, because dairy enterprises of the republic very often have a lack of fund. On the second hand, we should mark the high stability of domestic concentrates to bacteriophage (viral infection that destroys bacteria’s). The enquiry is that foreign preparations are not adapted to microflora of our country its structure looses its reproductive capability and going to degradate. In consideration of all these fact, the level of competitors in target market can be valued as low, by no means not threatening to the realization of the project, and at the same time proposes to our consumers some alternative.
A8. Term of realization / term of recoupment:
6/7
A9. Project’s branch:
Dairy industry
B. Capital Cost Items (additional requirements for project):
B1. Project physical components
B2. Capital cost (mln USD)
Equipment
13.8
Building and assembly works
2.8
Total
16.6
B3. Sub-projects by location
B4. Project cost (mln USD)
C. Capital Resources Available from Sponsors/ Proposers:
C1. Resources 'in kind', grants, investments, equity / ownership, etc.
C2. Amount (mln USD)
Own funds
1.0
Bank credits
1.1
State budget
2.1
D. Required Financial Assistance:
D1. Financing gaps, type of financial assistance required:
D2. Sources of finance
D3. Type of investment
D4. Amount (mln USD)
Share holding
Investments funds
12.4
D5. Financial/ International Institution Name:
Bank credits - 1 mln. USD - by «Belagroprombank»
E. Demand (users) and revenues:
E1. Type of users/ markets, volumes, pricing, revenues, quantifiable benefits/ savings:
According to a marketing research the valuation capacity of bacterial concentrates of the Belarusian market compiles 20 million dollars USA subject to increase dairy production, particularly for cheeses, up to 2010 year it may reach 25 million dollars USA.
