1. Lyashkovsky community, Dnepropetrovsk Region
dairy farm
Lyashkovsky community, Dnepropetrovsk Region

2. Lyashkovsky community
Administrative center: Lyashkovka
Ukrainian name:
Ляшківка (Lyashkivka)
EDRPOU code: 
COATSU (Classifier of Objects of administrative-territorial system of Ukraine) :
Address: Dnipropetrovsk region, Tsarichansky district, Lyashkovka village, Tsentralnaya street, 1
Postcode : 51012
Contact phone: 
Chairperson(head): Omelian Julia Victorovna
Web-
site : lyashkivska.gromada.org.ua

3. About the project
The project stipulate creation of agricultural sector and receives investment capital in an amount of 1444,4 thousand UAH.
The main type of farming activity is dairy production.
Planned total number of milk herds – 50 items.
Agricultural sector will work at regional dairy sale market.
According to economic calculations and with abilities of premises for keeping animals, it would be useful to procure 50 heifers, by price 20 UAH. per 1 kg.of live weight , with weight 350 kg., which in monetary terms will be 350,00 thousand. UAH.
Enterprise will realize milk at an average annual cost 298,00 UAH. for 1 cistern and it will receive 849,3 thousand UAH., in case of full load it will provide 108,7% of profitableness for enterprise. These calculations shows that investment capital, in an amount of 1444,4 thousand UAH. will be recouped in the fourth year of project.

4. Market and competitors
There are some manufacturers which produce similar products at the market of agriculture products in the Dnipropetrovsk Region. That is why, it is very necessary to know, who and in which volume produces similar products, at what prices it is sold и and what demand it has. The main task of research, both for competitors and the market, in general is the identification of measures, which should be taken to win the competitions and to keep high competitiveness. There are enough number sources of information about competing companies: advertising, annual reports, reviews of commercial publications, trade exhibitions, fairs. Besides, researching about activities of competitors should be based on operational / primary sources of information, including data collected directly from consumers, from industry experts, and from state and commercial structures. One of the key methods of obtaining data on the activities of competitors - consumer survey.
Similar projects and existing processing capacities:
The project «Cooperative dairy farm and services»  implemented by Danone Ukraine e.danone.com/) and by CIDA/SOCODEVI ( Demonstration-training farm for 60 cows(with possible expansion to 120 cows).
Dairy plant «Pridneprovskyi» is based in Dnepropetrovsk Urban Dairy Factory №2. Company includes 4 milk processing enterprises. Everyday they process more than tons of milk, which comes from 5 different farms, what are situated in Dnepropetrovsk Region. This plant is in top-4 among the biggest producers of child dairy nutrition with 16% market share.
Lasunka is the second in volume ice-cream producer in Ukraine with 19% market share. Company includes 4 enterprises. The main office situated in Dnepr-city.

5. Planning activities
The recommended list of technological equipment for providing complex mechanization and automation for keeping 50 heads of dairy herd
Procedure
Name of technological
equipment
Mark
Price, UAH.
Number, items.
Loafing
Boxes ОС
20800 2
Cleaning excrements
Scraper setting up
УСГ-4
30600
Preparation of feed, mixing and feed distribution
Loader,agitator, feed distributor
ИСРК-12Г
263000 1
Milking in milking parlor
Milking machine (2x4)
УДЕ-16
126000 3
Milk cooling and storage
Thermo tank-cooler
РПО-1,5
94500
Refrigeration unit
МХУ-8С
54000
Milk cleaning, separation
Separator-cleaner
Г9-ОСП
30000
Scales
РП-150Ц 13 Т
1100
Dairy pump
НМУ-6
2000
Water pump
ВКС - 2/6
1990

6. Core financial and operational indicators Need for financing
Calculation of the current costs of the project, thousand UAH
Expenditures
The amount of quarterly expenses for 1 year
Expenses for 2 years
Expenses for 3 years
Expenses for 4 years
Expenses for 5 years 1 2 3 4
Feed
61,5
44,7
35,8
203,5
Energy carriers
5,1
3,7
3,3
17,2
Works and services
4,5
4,6
18,2
Other material costs
3,6
14,5
Salary
28,7
114,8
General production expenses
9,6
9,5
10,1
38,8
в т.ч. амортизация
7,4
7,3
8,1
30,2
ВСЕГО
113
94,8
86,2
407,0
Calculation of financial costs, ths. UAH.
Index
Amount for 1 year
Amount for 2 year
Amount for 3 year
Amount for 4 year 1 2 3 4
Loan repayment
19,5 78
Payment of interest on the loan
9,35
32,8
28,1
23,4
18,7
TOTAL financial expenses
28,85
110,8
106,1
101,4
96,7

7. Core financial and operational indicators Need for financing (continuation)
Calculation of net cash flows, ths. UAH.
Index
Initial period
Amount for 1 year
Amount for 2 year
Amount for 3 year
Amount for 4 year
Amount for 5 year 1 2 3 4
Investments for purchasing an equipment
929,4 -
Repair of premises
115
Investments for the purchase of dairy herd
400
Operating costs
113
94,8
86,2
407,0
Financing costs
28,85
110,8
106,1
101,4
96,7
TOTAL expenses
1444,4
141,85
123,65
115,05
517,8
513,1
508,4
503,7
Profit from sales of milk
159,3
219,8
321,9
148,2
849,3
Profit from the sale of offspring
33,6
TOTAL receipts
882,9
Net cash flow
-1444,4
17,45
96,15
206,85
6,35
365,1
369,8
374,5
379,2
Discount coefficient
0,9809
0,9622
0,9439
0,9259
0,8573
0,7938
0,735
0,6806
Discounted net cash flow
17,1
92,5
195,2
5,9
313,0
293,5
275,3
258,1
In t. h. cumulatively
-1427,3
-1334,8
-1139,5
-1133,6
-820,6
-527,1
-251,8
6,2

8. Core reasons for investing Solve problems
Providing quality dairy products for region, for consumers as well as for dairy processing plants.
Creating work places for the community.
Providing an additional source of financing social and infrastructure projects of the community.

9. Business model
Due to small amount of herd and raw specialization of the farm, distribution of products will be basically carried out by selling of raw materials to wholesale buyers.
I.e., the main channels of distribution of products will be:
Enterprise - manufacturer –> wholesale.
Enterprise- manufacturer –> consumer (members of the community).
Enterprise- manufacturer –> consumer (milk processing enterprise).
Enterprise- manufacturer –> export (as the perspective direction).