An Agricultural cooperative from Lithuania, having more than 14 year experience in breeding of broiler chicks, is planning to construct poultry slaughterhouse and is looking for basic investor under the Financial agreement or Joint venture agreement. The investor would be provided with the entire infrastructure, important in breeding of broiler chicks. The cooperative is also offering shares of other companies of the cooperative under the Acquisition agreement.
A Lithuanian Agricultural cooperative is looking for investors for poultry slaughterhouse. The cooperative specializes in breeding of broilers and manages 7 complexes of growing broiler chicks. It grows and sells approximately 26 000 tons of chicks (live weight) per year. It is approximately 20-22% of all broiler chicks grown in Lithuania. In 2014 Agricultural cooperative establish a new company to manage one-day old chicks incubator. Also a compound feed plant is in a process of construction. The plant will produce qualitative feed intended solely for growing meat broiler chicks and layers. Currently the cooperative is looking for investors for poultry slaughterhouse. Already in Lithuania there are only two slaughterhouses intended for slaughter of broiler chicks. Both belong to the same company, so the market of the final product of broiler chicks is a monopolistic and there is a place even though for one or more new players in this market. This will expand the variety of products that will provide the needs of the market and consumers. It would be also useful for breeders of broiler chicks in the region, as extended the possibility of their products sales. The planned poultry slaughterhouse could produce approximately 6500 chicks per hour. This will allow to produce annually 40-45 thousand tons of chicks meat, intended for sales, and it will provide an annual income of at least 80-85 million euros. Chicks will be supplied to the slaughterhouse from the complexes of cooperative broiler chicks (approximately 30 000 tons of chicks per year) and from other breeders of Lithuania, which are currently expanding operations and will grow approximately 20-25 thousand tons of chicks per year in the next 3-4 years. This will ensure sufficient supply of raw materials to achieve the goals set for the slaughterhouse. The final product would be sold in Lithuania and other markets: other countries of EU, Russia, China, USA market, recently opened for Lithuanian meat producers. The cooperative had already acquired a land plot of 4.2 hectares for the planned slaughterhouse in a very convenient location - next to the central motorway of Lithuania, linking three largest cities in the country (Vilnius, Kaunas and Klaipeda), almost in the centre of Lithuania. All the communication networks, electricity, gas, sewerage, necessary for slaughterhouse, are located close to the acquired site. The construction of the slaughterhouse would require an investment of approximately 15 million euros. It is planned a complete pay-back in a fairly short period of time - in 2-4 years. Assessing the common practice in the region, the net profit of the poultry slaughterhouse is at least 12-15% (of turnover). The Agricultural cooperative is interested in Acquisition, Financial or Join Venture Agreements with basic investor. The cooperative would provide the basic investor with entire infrastructure, important in breeding of broiler chicks: the breeding and supply of chicks, incubator, compound feed plant. After the construction of slaughterhouse all stages of the business of the chicks breeding and sale, a specific closed cycle will be under the common supervision with the investor, that would achieve savings, higher earnings at each stage of business and would ensure an uninterrupted supply of raw materials to the slaughterhouse and also the quality of the final product. The investor could buy a significant share in all businesses of the cooperative.
Innovations and advantages
• There is only one big poultry producer in Lithuania, therefore there is some space in the market for other one. • The slaughterhouse is the last and the most profitable stage in the business of broiler chicks generating the highest added value. The average net profit of the poultry slaughterhouses in region is approximately 12-15%. • Production of poultry could reach 6500 chicks per hour and approximately 40-45 thousand tons of chicks meat per year. It will provide an annual income of 80-85 million euros. • The sufficient supply of raw materials will be ensured from the cooperative growing broiler chicks complexes (approximately 30 000 tons per year) and from other breeders of Lithuania. • The final product would be sold not only in Lithuania, but other markets – EU countries, Russia, China, USA. • The complete pay-back is planned in 2-4 years. • The cooperative might be a small shareholder in the project of slaughterhouse and would provide the basic investor with entire infrastructure, important in breeding of broiler chicks: the breeding and supply of chicks, incubator, compound feed plant. • The investor could buy a significant share in all businesses of the cooperative.
Market application codes
09005 Agriculture, Forestry, Fishing, Animal Husbandry & Related Products
Area of partner's activity
The Agricultural cooperative is interested in cooperation with foreign investors and partners under the Financial agreement or Joint venture agreement. The investor would be the main owner of a new poultry slaughterhouse. The cooperative might be a small shareholder in the project of slaughterhouse and would provide the basic investor with entire infrastructure, important in breeding of broiler chicks: the breeding and supply of chicks, incubator, compound feed plant. The cooperative is also offering Acquisition agreement – the investor could buy a significant share in all these businesses of the cooperative.