Investment Projects

Creation of a full cycle for the cultivation of sugar sorghum, processing and production of sugar syrup and animal feed

  • Indicator Results
  • Investment amount, thousand US dollars 53 961
  • NPV of the Project thousand, US dollars 39 159
  • IRR, % 34,1%
  • EBITDA yield, %
  • Payback period, years 4,0
  • Discounted payback period, years - -

Products

Commissioning is scheduled for 2023, reaching the design capacity in 2023. The planned range of products: organic syrup 67% concentration from sorghum - 16,277 tons per year, bottled organic syrup 0.25 l - 3,500 tons per year ; high-calorie organic animal feed - 71,290 tons per year, including hay - 9,362 tons per year; pellets (granular feed) - 26,928 tons per year; bulk silage - 20,000 tons per year; vacuum-packed silo 25-50 kg - 15,000 tons per year

Project

The project provides for waste-free cultivation of sugar sorghum on a land plot of 1,700 hectares near Almaty. Sweet sorghum juice is processed to make a 67% food syrup, while field waste and sweet sorghum green mass are used to produce high-calorie animal feed. All products will be classified as organic.

Company

KazBioSorgo LLP was established in 2008. The main activity is the cultivation of other one- or two-year-old crops not included in other groups. The project was created within the framework of cooperation between Debor Consulting (Canada), Ecology Mir Group (USA) and KazBioSorgo (Kazakhstan).

Market

  • The volume of imports of sugar syrups and other sugars in the Republic of Kazakhstan over the past five years has increased at an average annual rate of 1.4%. In 2021, the volume of imports of sugar syrups and other sugars in the Republic of Kazakhstan reached 8.3 thousand tons.
  • Over the past five years, silage consumption in the Republic of Kazakhstan has steadily increased. In 2021, 330 thousand tons of silage were consumed, which is 97% higher than in 2017.
What is the attraction of the project?
  • High yield. Sugar sorghum is a fodder crop, which in dry conditions can exceed the main silage crop, corn, by 30-40% in terms of green mass yield. Among field crops, sorghum is the leader in terms of drought resistance, heat resistance, salt tolerance and undemanding to soils.
  • State support of the Project. Activities within the framework of the Project are included in the list of priority sectors for providing state support and obtaining appropriate benefits and preferences.
Investment proposal

To implement the Project, funding in the amount of USD 53,961 thousand is required, including:
  • 50% (USD 26,980.5 thousand) – debt financing (if collateral is available);
  • 50% (USD 26,980.5 thousand) - investor's participation.
The proposed financing structure and state support measures are indicative, the final financing structure and the stake in the Project will be determined based on the results of joint negotiations with the investor.


Return back
Install the application:
1) Open the website in Safari
2) Click save
3) Add to home screen