16 August 2017
Development Bank of Kazakhstan extends a credit facility to Makinsk Poultry Farm LLP

"I would like to announce that we have started financing of the construction of the Makinsk Poultry Farm. This is not only the largest investment of DBK in the food sector of Kazakhstan. The Project will become the largest investment in the entire history of the poultry industry of the country. The cost of the first line of the Project totals to 33,5bln tenge, of which 16.1 bln tenge will be provided through the DBK loan", Mr. Duman Aubakirov, Deputy Chairman of the Board of DBK, said on Wednesday at the press-conference in Astana..

According to the Deputy Chairman of the Board, the Project will be implemented by Aitas Company Group which has an enormous previous experience in the manufacture of the chilled poultry meat products by the Ust-Kamenogorsk Poultry Farm and selling at the market of Kazakhstan under the brand of "Kus & Vkus".

The annual designed capacity of the Makinsk Poultry Farm will achieve 60 ths. tons of the live-weight production. Commissioning of the first line of the facilities with the competitive capacity of 30 ths. tons of broilers per annum is planned for the third quarter of 2018.  

"Chilled poultry meat is our key product, and it will be available at the stores of Astana, Karaganda and other cities of the North of Kazakhstan in October 2018", said the stockholder of the Company Group, Mr. Serik Tolukpayev.  

The first line of the Project includes launching of the four broiler-rearing sites, each having 12 poultry houses, the Hatchery and the poultry processing plant. The second line, which will be commissioned in 2020 and which envisages building of the additional 48 poultry houses located at the four sites, will, accordingly, increase the operational capacity of the enterprise up to 60 ths. tons of the live-weight production.

According to the stockholder of Aitas, the total investments of the Project will arrive at 47 bln kzt, including the governmental funding  into the infrastructure of the poultry plant.

The Project is aimed to significantly reduce the share of the imported products in Kazakhstan. Mr. Tolukpayev estimates that  the current volume of the imported poultry meat amounts to about 150 ths. tons.

"60 thousand tons, which will be produced by the Makinsk Poultry Farm, will allow to reduce the import of the abroad poultry meat by nearly one third of the total market volume", he remarked.

The Company already considers itself as an exporter of the products. Thus, neighboring Russia may become one of the promising sales market.

"After we put into operations the second line, which will take place in 2020, I think we will be in a good position to reach the Russian market. And as to the market of Russia, it should be understood that 500 tons per month is a minimum required volume if we want to have a serious business. In this regard, I believe that in 2020 we will be able to achieve our goals, namely, to reach those operational capacities which I just referred to", the speaker said.

The competitive advantage of the products of the Makinsk poultry farm is based on two major factors: price and quality.

"Today, many sellers offer frozen products which contain water.  As I mentioned earlier, all key products of the Makinsk Poultry Farm are chilled rather than frozen. It naturally means that our products do not contain water, and it will be far more advantageous for customers to choose them. In addition to that, our products are clean, they are fresher and actually tastier", the Stockholder of the company  said.

For the purposes of the biological security and environmental friendliness, the company will use the high-technology and energy-efficient equipment for the major operational stages such as rearing in the Hatchery, slaughtering and production of the meat and bone meal.   

It is also planned that new technologies and optimization of the costs associated with the delivery of the products will allow to cut the primary costs of the production by 6-7 % from the current level.

Moreover, the Project will create approximately a thousand new jobs in the city of Makinsk, and its contributions to the oblast budget will be about 1 bln tenge for the first phase, reaching 2 bln tenge within the second phase.  

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