50 thousand Tons Fresh Milk Production Project
A. Project outline
Tieling is an agricultural area with good natural condition and resources advantages.
Developing milk industry is one of the most important economic increasing point of
livestock industry of Tieling, also Liaoning province.
It’s known that provincial milk production value of 1996 0.12billion RMB is only
0.64% of whole livestock industry. In developed country it will be 30-40%, the world
average standard is 20%. Diary production is the recognized high efficient industry
with good quality and foodstuff saving. Milk is livestock product with best nutrition
and highest raising reward. Also it’s important industrial material of foodstuff industry.
In developed country it can be made into two or three hundred kinds of diary products
to create considerable economic and social efficiency. The main reason of present
slow development of diary industry of Tieling and Liaoning is lagging production
techniques and short keeping fresh period etc. So it plans to build a large mild
production enterprise to make keeping fresh milk so as to bring along development of
Tieling diary cattle industry.
It’s estimated that total investment of this project is 167.88million RMB. It is to
import advanced fresh milk production techniques and keeping fresh equipments as
part of investment or purchasing overseas.
B. Location and conditions
There’re two cities, three counties, three districts in Tieling with 2.86 million
agricultural population. In normal year foodstuff output is 2.75 million tons, stalk
output 2.75 million tons, good pasture 490 thousand tons.
Plain is a half part of whole areas. There’re Liao river, Kou river, Qing river, Cai river,
Fan river etc. and about ten reservoirs.
Tieling is provincial energy sources base. Tiefa coalfield with industrial reserves 2.2
billion tons. Tiefa diggings has becomes one of national ten coal bases.
There’re two big power plants, Tieling power plant and Qing river power plant with large capacity.
Tieling is in the middle of Liaoning, near Shenyang, Fushun, Siping City etc. 102
national way, Jingha express way and Hada railway pass through Tieling. Tieling
economic development zone is in the south of Tieling, at the crossing of Jingha
express way, 102 national way and Tiefu highway, 50km from Shenyang, 80km from
Taoxian airport, 290km from Yingkou port, 5km from Tieling railway station. It has
very convenient transportation condition for selling and purchasing.
This project plans to build this enterprise in Tieling economic development zone. Its
transportation and natural environment and resources is very suitable for development
of diary cattle industry. At present there’re about 2000 cattle, annual fresh milk
15thousand tons in development zone. It has basic conditions and full experience of
advantageous diary cattle raising and diary production.
C. Project scale and products blueprint
This project plans to raise 10 thousand basic diary cattle and 2000 heifer, to product
fresh milk 50 thousand tons. It will adopt company and farmers form for raising diary
cattle in Shuyatun Village as raising base to build a 5000 diary cattle farm, five 1000
diary cattle districts. The company will purchase basic cows and stud cattle, sign
reclaimation contracts with raising farms, put all basic cows in the raising farms. The
company will raise stud cattle heifer and breed calves, make raising and management
standard, uniform breeding and techniques consultation service, uniform reclaim fresh
milk and production and products price. In order to guarantee quality, quantity and
sanitation this project plans to build four fresh milk stations with annual 15thousand
tons fresh milk for each station, to use three international advanced production lines
with daily 200thousand boxes fresh milk for each line. The verlidity of box packaging
fresh milk is more than three months. At the same time it will produce acidophilus
milk and all kinds of nutritious milk.
1. annually produce box packaging fresh milk 0.18billion boxes(450 thousand tons);
2. annually produce acidophilus milk and nutritious milk 20 million boxes(50
thousand tons);
3. annually reclaim 4000 heifer;
4. annually reclaim 4500 bull calves and eliminated cows;
5. eliminate 1000 basic cows;
6. sell 1000 heifers.
D. Market forecast
Milk has abundant nutrition with assimilation rate 98%. It’s good food for baby and
healthcare food for old people. The base of our national milk industry is very weak,
average. Person all and only occupies 7km milk. With improvement of people’s lives,
change of meal structure, milk consumption will increase to a great extent. In
northeast China, there’re plenty of big and middle sized cities Shenyang, Changcun,
Haerbin etc. eleven heavy industry cities around Tieling economic development zone
with about 37million population. If with good brand it can take possession of north
market of China. So it has great market prospects.
E. Investment budget
1) Construction investment
1. purchase 10thousand basic cows 100million RMB
2. purchase stud bull 100thousand RMB
3. build 100sqm stud bull shed 80thousand RMB
4. purchase 10 transportation vehicles 800thousand RMB
5. 200mu land 10million RMB
6. build three fresh milk reclaim station 1000sqm 600thousand RMB
7. build production plant 3000sqm 3million RMB
8. purchase three production lines 30million RMB
9. other construction expense 500thousand RMB
10. other unprecedented expense 1million RMB
sum 146.08million RMB
2) interest during construction period 1.8million RMB
3) current capital 20million RMB
The total investment of this project is 167.88million RMB, thereinto permanent
capital 146.08million RMB, current capital 20million RMB, interest during
construction period 1.8million RMB.
F. Analysis on benefit
1. benefit of company
income:
1) sell 180million boxes fresh milk, each box 1.5RMB
sale income 270million RMB
2) sell 20million boxes nutritious milk, each box 2RMB
sale income 40million RMB
3) sell 4500 bull calves 2.25million RMB
4) reclaim 4000 heifer 12million RMB
5) eliminate 1000 basic cows 3million RMB
6) sell 1000 heifer 8million RMB
sum 335.25million RMB
outlay:
1). Reclaim fresh milk 50thousand tons 70million RMB
2). Current capital interest 2million RMB
3). Raising fee for heifer 6million RMB
4). Raising fee for stud cattle and calves 6million RMB
5). Products packaging fee 40million RMB
6). Wage 1.24million RMB
thereinto: 30 feeders 240thousand RMB
50 workers 400thousand RMB
30 sales men(including drivers) 300thousand RMB
10 managers 100thousand RMB
encouragement wage 200thousand RMB
7). depreciation of fixed asset 19.5million RMB
thereinto: depreciation of basic cows 16million RMB
depreciation of basic construction and equipment 3.5million RMB
8). Coal water electricity 3.5million RMB
9). Transport costs 3million RMB
10). Others 3million RMB
sum: 154.24million RMB
amout of profit and tax 181.01million RMB
thereinto: net profit 119.46million RMB
tax 61.55million RMB
reclaim period of fixed asset three year(including construction period one year)
2. benefit of farmers
It is to build five diary cattle districts with annual 1000 basic cows for one. A district
will unit 50 farmers raising 20 basic cows. The company provide cows and take in
charge of breeding, epidemic prevention, fodder, technology service etc. and sign
reclaim contract with farmers. The farmer guarantees to sell 100 tons milk at least, 18
calves. 250 farmers can make profit 20million RMB.
3. social benefit
The execution of this project can bring along development of the whole city’s diary
cattle industry and promote grass planting. It does good to environment protection,
nutrition of soil etc.
Development of diary cattle will bring along relative industries as raising, milk
reclaim, storage, production, sale and meal then promote the second and third
industry.
G. Feasibility of project
For normal year there’s 2.75million tons stalk, 490thousand tons pasture in Tieling.
With execution of 100thouand diary cattle project, good quality pasture will be
planted more and more. In Tieling economic development zone there’s 2000mu purple
medic planting base and will be increased gradually in recent two years. Enough
fodder sources will provide stable basis for developing diary cattle production.
Diary cattle production has been existed for 60 years in Tieling, especially in recent
years more milk people need, better efficiency farmers get. In 2001, the whole city’s
diary cattle has increased to 13thousand from 8thousand of 2000 year. So there’s
abundant milk sources for building fresh milk production project.
In recent years city of Tieling went on opening to the outside world and strengthening
investment environment. Tieling economic development zone is the window to
Tieling’s opening to the outside world and has municipal economic management right
and county administration management right to deal with all procedures efficiently
and provide good quality service. At the same time, it has most favorable land price.
And all administration fees paid to Tieling economic development zone for
enterprises of Tieling economic development zone is free. Taiwan great wall group
has existed in Tieling economic development zone for four years with 10million RMB
profit each year by excellent operation and environment.
There’s full livestock service system in Tieling with rich technical energy. It has
formed good stud development, technology service, fresh milk reclaim, products sale
etc. series of service system. The former of Tieling economic development zone is
Tieling stud animal farm, a great national agricultural and livestock farm with fifty
years history. In Tieling economic development zone there’re about two hundred
professionals. So it will make full and perfect serice for livetock industry.
Project necessity
Nowadays standard of livestock development weighs a country’s development and
diary cattle industry and milk food production symbolize standard of livestock
industry. China’s diary cattle industry and milk production still stands in laggard
situation compared with other developing countries. After entering into world trade
organization, this problem becomes clearer and clearer. So developing milk industry
has important significance.
1. accelerating milk industry development is need of indutralization and city life
Milk products is convinient and shortcut. It may fulfil need of quick city life of
industralization development period. Milk products with abundant nutrition is easy to
digest, is idealest food for this kind of development standard. The universality of milk
products consumption fits for great scale production food.
2. accerlerating milk production development is need of agriculture modernization of
Tieling
During milk production, either fooder production or diary cattle raising management
is convinient for carrying out scale operation. A great amount of grass, purple medic,
silage corn etc. fodder plant is easier to produce mechanically than foodstuff. Diary
cattle raising and milk production is propitious to mechanical production.
3. developing milk production is need of ecotypic agriculture
Diary cattle has superiority in local transform of grass and fodder. Planting pasture is
an important way to keep ecotypic environment and decrease soil erosion and increase
organic substance of soil. So it’s a necessary way to protect ecotypic environment
adjust agricultral structure.
4. developing milk production is need of Tieling’s high efficient agriculture.
Tieling is an agricultural city, foodstuff production is main industry of rural area. 0.3
hectare grassland or silage can raise one diary cattle with annual volume six thousand
kg milk. Raising diary cattle will make ten times profit than planting corns. So
planting grass and raising diary cattle is a prosperous career with low cost and high
efficiency.
H. Measures for this project
1. full support by the government
Tieling municipal government has paid much attention to agricultural industry project.
In 1998, diary cattle beef cattle chicken etc. eight industry developing strategy was
pointed out, the government makes great support from manpower resources, material
resources, financial resources. Especially for diary cattle industry, Tieling municipal
government assignes a vice mayor to charge it and confers with financial sections on
loan support.
2. building big enterprises and opening sale channels
Laggard producing ability is being the key problem to restrict livestock development
of Tieling. The same problem also exists in diary cattle production. In Tieling there’s
only one small diary cattle production enterprise. So to develop milk production, we
must establish production enterprises, make use of fund and technology of famous
companies to strength ourseflves.
The foreign investors may build diary products production enterprise in Tieling
economic development zone by exclusive venture or joint venture. We’ll supply best
service for investors.
Contact unit: Investment Bureau Tieling Economic Development Zone
Contact person: Li Jingwei
Postcode: 112616
Tel: 0410-2690295
Fax: 0410-2690124
Email: tledz@mail.tlptt.ln.cn