If you are looking to invest in something a little different, here is a good cause that will benefit humanity in Africa….
- This Ethiopian dairy farm project will bring modern Israeli farming know-how and dairy farming technology to Ethiopia to produce milk of the highest quality in significant quantities as a source for a range of dairy products for local communities and export to Africa and the Gulf.
- The project will be a vertically integrated dairy operation, growing its own food/fodder for an initial 1500 cows and calves on 600 hectare of land it holds under a 30 year lease. Israeli department managers will operate the milking parlor and dairy factory.
- The dairy factory will produce a line of dairy products under their own private label (including fresh milk packaged in soft containers, UHT milk, chocolate milk, hard cheeses, yogurt in various flavors, and ice cream in various flavors) that are ready for supermarket shelves.
- The Management Team is headed by the third generation of an Israeli dairy farming family. A successful pilot project with 320 cows has been built in Israel and the management have consulted on similar projects throughout Africa, Europe and the USA.
- Ethiopian cows currently produce an average of 1.5 litres per day. The management team currently breeds cows in Israel that produce an average of 39 litres per day. The initial target for Ethiopia is 25 litres per day.
- The company will employ and train over 300 Ethiopians in order to set an example from which Ethiopian farmers and dairy producers can learn. The company is working with the Ethiopian Government, NGOs and the Private Sector to provide free milk for all school children in Addis Abba.
- Current projections indicate that the company is able to undercut competition of high quality dairy products, which are currently only available by import, by over 50%.
- Projected return on investment – IRR based on EBITDA is 64% (yr 3) and 86% (yr 5) on capital invested. The feasibility of the financial projections has been independently confirmed by leading US Agricultural Dairy Company, Land O’Lakes.
- The project requires U.S.$25.3m. The Development Bank of Ethiopia has pledged a loan of U.S.$17.7m (supported by the Ethiopian Government and underwritten by the World Bank) set against investor finance of U.S. $7.6m (ratio of 2.3:1). The management team has provided $300,000. Thus, the project requires a further U.S. $7.3m. Investor funds will be kept offshore in a European bank until use.
- Minimum investment is $100,000.
If you would like more information please send an e-mail to isratechsrvcs@gmail.com
Yaakov Sandler
Isratech Services
