Modern greenhouse farming

Project summary

Investment proposal

Expansion of an existing greenhouse farm to 1 ha

Investment participation is offered in the expansion of an already operating modern greenhouse farm from the current area of about 0.2 hectares to a total area of 1 hectare.

Today, the farm is operational, has many years of practical experience in growing greenhouse cucumbers, established sales channels, its own infrastructure, boiler room, intelligent hydroponic irrigation system, microclimate, and a high level of process automation.

This is not starting a business from scratch, but scaling an already working model, which is confirmed by actual productivity, real demand, and practical experience.

Current status

The operating greenhouse has a size of 20 × 105 m and consists of 4 blocks. Each block has automated microclimate control, ventilation and irrigation.

On average, about 4,000 greenhouse cucumber plants of the Yani and Meva varieties are planted.

Cultivation takes place in two cycles per year:

the first turnover - from mid-January to June;

the second round is from September to mid-December.

The actual yield for the first rotation is about 60 tons, or approximately 15 kg per plant.

Reason for expansion

The main limitation to development today is insufficient production space.

Demand for the products already exists, but the current production volume does not allow to fully satisfy the needs of buyers. The products are sold through wholesale channels, stores, bazaars and intermediaries.

The essence of the project

To achieve the target area of 1 hectare, approximately 0.8 hectares of new greenhouse areas need to be completed.

It is planned to build a modern greenhouse complex with a full cycle:

galvanized metal frame with reinforced trusses;

greenhouse covering;

heating system;

hydroponic irrigation;

pumping equipment;

tanks for water and nutrient solution;

electrical part;

automation, sensors, controllers;

greenhouse management software.

The approximate cost of a fully finished greenhouse area is about $125 per 1 m².

Taking into account the completion of 0.8 hectares, modernization of the boiler room, launch of production, working capital and a reserve for unforeseen expenses, the total investment need is estimated at:

1.1–1.2 million USD

Alternatively, the project can be implemented in stages.

Realistic payback period for investments:

3–4 years

In the baseline scenario, the estimated payback period may be about 2.8 years, however, it is advisable for the investor to focus on a more cautious return on investment period of 3–4 years.

Key benefits

The main advantage of the project is the presence of an already operating production base.

The farm has:

real many years of experience;

current production;

confirmed yield;

well-established sales;

hydroponic growing system;

automated watering;

automated ventilation;

automated microclimate control;

own technical and software developments.

A separate strength is the creation of our own greenhouse management software. The system allows for more precise control of watering, microclimate, ventilation, substrate condition, nutrient solution, and other important parameters.

This reduces the human factor, increases crop stability, optimizes costs, and creates a technological advantage over less automated farms.

Cooperation format

Possible options for investor participation:

investment in expansion with a share in the project;

phased financing of construction;

partnership profit sharing;

individually agreed investment return model.

Specific conditions can be determined after the investor familiarizes himself with the current production, detailed estimate, and financial model.