What is proposed?
To produce and process organic milk profitably and sustainably on CHOFU Farm by satisfying market needs within the Kiev & Kharkov areas of the Ukraine through branded premium quality products (liquid milk and milk-powder), by expanding and diversifying the current cereal farm into larger dairy farm, with new milk processing facilities
Financial Projections dictate a total Investment over a 5 year period of Euro40 ml ($52 ml ), including working capital, and contingency funds, that includes prior investment of Euro 1.2 ml ($1,5ml). More than 90% of this is to be committed in first 3 years of operation
Who is proposing?
W.C., Irish, experienced organic dairy farmer & food processor, qualified in economics, marketing and agriculture science; currently farmer & agriculture consultant
M. S. Ukrainian, experienced farm manager/ entrepreneur of two mega-cereal farms, Kharkov Oblast, Ukraine; ex- Russian Army
C. H., Irish, experienced farm-contractor with team of tractors, farm machinery & equipment and experienced work-team; also experienced farmer, together make up the main principles and management team.
There is a distinct niche in the Ukraine milk market for premium organic milk, due to great dissatisfaction with the quality and image of the present supplies, some of which are often adulterated. CHOFU plans to convert, diversify and expand a conventional 3,200ha cereal farm to organic milk production over a five year period so as to capitalise on current and future market demand within the Ukraine. The farm is in Kharkov Oblast, located about 220 kilometres east of Kiev, on a 12 to 15 year -term lease, with an option to renew when the current lease expires, and options to expand to up to 30,000ha.
A combination of low-cost entry, sustainable and low-cost production, and high-tech breeding & disease prevention practices, driven by consumer-market needs, & led by a “Western” trained & experienced management team will give branded premium market prices and thus sustainable profits and competitive advantage to CHOFU.
The commencement can be immediate, as the current farm 3,200 hectare farm is available, and more land-leases are optional as required. There is a 3 year “window of opportunity”, due to WTO regulations, to start and build up milk production and processing facilities, and to develop premium milk-brands that earns loyalty fr