11.02.2021

$1000000

FAMILY DAIRY FARMS

463

Ukraine

Rivne

In progress

more than 3 years

An opportunity to invest in Ukraine’s family dairy farms

Industries

Agriculture

Goals

Investment

Project summary

For a Ukrainian village, the picture is usual when the average household has several cows. Most often, these cows are unprofitable and in the long run they are simply handed over "for meat". In contrast to households, there are "big players" - dairy farms with a long payback period.

 

Today "Family Dairy Farms" is a real alternative at the dairy market of Ukraine. FDF is a powerful project aimed to create the network of family businesses. Each of these family farms has 10 to 50 cows and uses modern technology. All farms are owned by families who feel responsible, and this adds a special motivation to each farm project, and together ensures its sustainability and efficiency. People learn, and in two years, newcomers become professional market players who can already plan to expand the farm, create craft production of cheese or other products.

FDF provides for the creation of 5,000 farms by 2026, which will be up to 10% of the national dairy market.

The format of small farms for 10-50 cows allows us to form a fundamentally new dairy business and quickly scale it.

Our project develops small business, related areas that serve dairy farms and allows farmers to deliver milk at a good price.

The Family Dairy Farm Development Program is managed by the United Nations Development Fund and the governments of Ukraine and Sweden.

The calculations of the financial model were developed in collaboration with the well-known company Baker Tilly

What is our support?

We help farmers at all stages of expanding their business - from preparing a business plan, legal support for creating and registering the right form of legal entity, to finding and even providing funding and preparing applications for grant funding from third parties. But this is not the end of our support. Once the farmers have set up their legal entity and received funding, we help them buy the right cows, build the right cowshed with all the modern technology, buy the necessary equipment for milking and storing milk, establish feed supplies and finally work with dairies that will buy this milk from farmers.

That is, our project creates not just a small business in the countryside, but a whole farming ecosystem, because farmers buy feed, dairies buy milk from farmers, farmers pay taxes to the local budget, and so on.

According to Baker Tilly, which has developed a business plan for us, 5,000 farms in 2025 is 10% of the milk market in Ukraine.

For the development of the project there is an investment program Family Dairy Investments. We have already raised about 3 million hryvnias of investments from small investors and we ask everyone interested to join the investment.

 

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