Complex for storage of fruit and vegetable products and its sorting (Petrykivska TC)

Project Description

Construction of the refrigerator with a controlled atmosphere, which is designed for high-quality storage of fruits and vegetables, followed by sorting, packing, delivery to consumers. Project implementation is expected in the operating space of farming enterprise «Vidrodzhennia», which is placed near existing garden.

Total complex capacity will be 5 000 tons.

Market outlets: wholesale markets, trading networks of Ukraine.

Cooperation mechanism

credit line up to 5% per annum in foreign currency;

joint venture.

Project Initiator

Farming enterprise «Vidrodzhennia»
http://www.eko-sad.com

Project duration

11 months

Project objectives

  • the construction of complex for storage of fruit and vegetable products and its sorting provides the opportunity to comply with requirements for entering to the outlet chain, namely: annual product delivery, high volumes, lot homogeneity;
  • the capacity of sorting line is 40 tons of the products per shift. It is supposed the everyday shipment of production to the trade networks during 11 months;
  • it is planned to access to international markets of fruits and vegetables;
  • the opportunity of project scale expansion: in the long term it is expected the extension of space for gardens and small fruit acreage up to 135 ha and for vegetables up to 40 ha.

Project indicators

Project total cost: $$7.6 mln
Company resources: $$2.1 mln
Required investments: $$5.5 mln
Net Present Value, NPV $1.1 mln
Profit index PI 120%
Internal rate of return, IRR 16%
Payback Period, PP 5.3 years
EBITDA $10.8 mln

Company resources

Technical parameters

Land plot

Square: 2.4 ha

Special purpose: for conducting of the commodity agricultural production

Cadastral number: is assigned

Steward: FE «Vidrodzhennia»

Engineering infrastructure header

Водоснабжение, Газоснабжение, Электроснабжение

does not require any additional investments.

Additional information

Main activities of the FE “Vidrodzhennia”:

cultivation of agricultural products:

  • fruits (apples) – 3000 tons;
  • vegetables (cabbage, onions, carrots) – 5000 tons;
  • grain crops (corn) –700 tons;
  • industrial crops (sunflower) – 1500 tons.

The complex will provide:

  • high-quality storage and marketability of the fruits;
  • uniformity of products supply throughout the year irrespective of seasonal cultivation;
  • minimal natural wastage;
  • profitability increase due to price changes in different seasons.
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