Reconstruction of a milk processing plant (Mezhivska TC)

Project Description

On the territory of the community there is an industrial enterprise for milk processing, which has the necessary permits, infrastructure and engineering network with the capacity of up to 10 tons per day. Currently, the company is not working.

The volume of milk produced by farmers on the territory of the community is from 5 to 10 tons per day.

Cooperation mechanism

  • Joint venture.
  • Sale/Rental.

Project Initiator

Mezhivska territorial community

Project duration

11 months

Project objectives

  • development of domestic milk production and products of its processing;
  • increasing the number of dairy and beef cows;
  • supporting the rural population through the dairy cooperative movement;
  • promoting the intensification of milk production technology and the introduction of new technologies for the production of eco dairy products;
  • introduction of new eco dairy products to the markets of domestic distribution networks;
  • export of finished high-quality products;
  • іntroduction of modern dairy farming technologies;
  • energy saving and biofuel production on dairy farms.

Project indicators

Required investments: $200 thousd
Net Present Value, NPV $ 5.4 mln
Profit index, PI 110 %
Internal rate of return, IRR 27 %
Payback Period, PP 2.6 years

Company resources

Technical parameters

Land plot

Square: 1.5 ha

Special purpose: industrial land

Cadastral number: 1222655100:04:005:0001

Steward: leased until 27.04.2025.

Engineering infrastructure header

Water supply

Gas supply

Power supply

gas supply: medium-pressure gas pipeline Ø50 mm, 0.005 MPa to 0.3 MPa - 0.02 km; power supply: the substation is located on the territory - 250 kVA; water supply in the territory is served by the public utility “Komunservis" of the Mezheva Village Council.

Additional information

 Main project objectives:

  • restoration of the milk processing plant functioning on the territory of the community;
  • creation of new workplaces and rural population employment;
  • providing high-quality dairy products to residents of Dnipropetrovsk and Donetsk regions.

Project rate of return – 39 %

Transport infrastructure:

  • Highways: T-0406 – 0.6 km and T-0428 – 1.8 km (junction E50 and M04);
  • European highway E50 – 15 km;
  • Prydniprovska zaliznytsia, “Mezheva” station – 1.5 km.

The land plot is located within the village of Mezheva. The connection to all communications are availlable, which requires less investment in the development and restoration of the enterprise. It is possible to implement other investment projects on the territory.