Sheep Farming Development (Projected as a Commodity Fund) (based on IOFS Livestock Ecosystem) www.iofs.org.kz
2
Sheep Farming Development y Sheep farming sector was chosen for a pilot project within the IOFS Livestock Ecosystem. y Initial phase, 2023: to deliver pilot supplies of lamb meat to GCC markets and start pilot breeding transformation by the IOFS (The company, SFD has been registered in the Astana International Financial Center). y Expansion phase, 2023 - 2031: sheep industry rebranding (investors/partners involvement) in order to provide continuous supplies of premium quality lamb at an attractive price. y The project will be developed further on the export of sheep byproducts including lambskin, leather, wool, sheep bone collagen, etc. y Investment phase objects: to upgrade local sheep population; to create modern infrastructure for the sheep industry; to establish export-oriented production with direct positive impact on food security for the OIC region. y In case of the pilot project success, IOFS plans to replicate this project in other OIC member countries with untapped export potential, such as Somalia, Sudan, Chad, Niger, Djibouti. www.iofs.org.kz 3
Pilot Case: Sheep Farming in Kazakhstan Sheep livestock by regions in Kazakhstan 4 www.iofs.org.kz
Kazakhstan Lamb Market Potential Litter of lambs in 2021, thousand heads Potential supplies of lamb meat, tons In total, 8,832 thousand lambs were born in Kazakhstan in 2021. Male lambs number amounts to 4,416 thousand (50%). 91% of male lambs potentially could be marketed, retaining enough for breeding. Average lamb weight (6 months) is 18kg • Total potential volume of lamb meat production can be up to 72.3K tons, the biggest possible supplying regions being Zhambyl, Almaty and Turkestan. • Currently there is no significant production of lamb meat because of the low demand locally and in the neighboring countries. Traditionally, farmers in Kazakhstan slaughter fully-grown sheep, in accordancewith the current consumer preferences www.iofs.org.kz 5
LIVESTOCK-RELATED IOFS PROGRAMS under Strategic Vision 2031 6 www.iofs.org.kz
EXPECTED OUTCOMES of IOFS Livestock Ecosystem ¾ Enhancing domestic livestock sector for economic development, food security and poverty reduction (with focus on rural areas). ECONOMIC PROSPERITY ¾ Growth of intra-OIC livestock production and market through increase of mutual trade and investments. INTRA-OIC MARKET ¾ Special support to smallholder farmers and livelihoods through sustained IOFS livestock ecosystem. SOCIAL DEVELOPMENT ¾ Food safety and Halal compliance assurance. FOOD QUALITY ¾ Long-term off-take contracts between livestock-producing MCs and livestock-consuming MCs and price stability. SUPPLY-CHAIN RESILIENCE 1 2 3 4 5 www.iofs.org.kz 7
¾ Initial sales, 2022: y IOFS has intentions to start shipment of quality lamb meat to Qatar with a further intention to sign an offtakecontract y The expected price CIF Doha Airport is USD 7.5 per 1 kg of premium quality chilled lamb y Meanwhile the sheep breeding rebranding will be performing Action Plan for 2022 * Australian Chilled Lamb Forequarter 1kg Weight – USD 12.6 retail price inclusive of VAT (according to LULU Hypermarket) FARMERS SLAUGHTERING PACKAGING FREEZING DOCUMENTATIO LOGISTICS WHOLESALES (USD 5.2) (USD 1) (USD 1.3) USD 7.5 Purchasing price: live animals Slaughtering: USD 0.4 per 1 kg Packaging, freezing, documentation: USD 0,6 Air transportation cost: USD 0.9 (estimated) Other logistics costs (shipment to airport, vet certificate, customs clearance, etc.) – USD 0.4 The final CIP price for wholesalers 8 www.iofs.org.kz
9
Action Plan for 2023-2031 ¾ IOFS is attracting investors/partners for the Sheep Farming Development with total amount investment required 70 million USD including: y Breeding and polycycle technology rebranding y Capex y Operational cost y Trading activities ¾ Upon offtake contracts y Annual supply of 500 tons of premium quality lamb annually to OIC Member States, preferably to Gulf markets y Annual supply of 1000 tons from the trading activities for first 2 years as a pilot ¾ Meanwhile the SFD is to be replicated in other OIC countries, such as Somalia, Sudan and Chad 10 www.iofs.org.kz
11
MANGILIK YEL AVE. 55/21, UNIT 4, С 4.2 (AIFC), ASTANA, REPUBLIC OF KAZAKHSTAN +7 (7172) 99-99-00 +7 (7172) 99-99-75 [email protected] www.iofs.org.kz @Islamic Organization for Food security @Islamic Organization for Food Security @iofs_kz www.iofs.org.kz