Agribusiness in Macedonia

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1 Agribusiness in Macedonia

2 BUSINESS CLIMATE AND INVESTMENT OPPORTUNITIES IN MACEDONIA

3 BUSINESS CLIMATE AND INVESTMENT OPPORTUNITIES IN MACEDONIA The Republic of Macedonia is located in the central part of the Balkan peninsula in South-East Europe, bordering with Serbia and Kosovo from North, Greece from South, Bulgaria from East, Albania from West. 2 international airports: Skopje and Ohrid 1-3 hours to international seaports: Thessaloniki (Greece) and Durres (Albania) No trade barriers with Europe, Ukraine and Turkey Near to Middle East and North Africa Perfect entry point to Europe

4 ANALYSES OF AGRICULTURAL MARKET IN MACEDONIA Republic of Macedonia is a small land-locked country with diversified natural endowments and climate and variety of ethnic groups and cultures. The Country with an area of km² and population estimated over 2 million is located in the South Western part of the Balkan Peninsula geostrategically positioned at the crossroads of two major transport corridors linking the Central Europe to the Adriatic, Aegean and Black Seas. As an independent state from 1991, after the breakdown of former Yugoslavia, the Country was going through long way of transition from a centrally-planned to a market economy. Progress in this area is quite significant with unemployment and poverty showing signs of declining, but much remains to be done towards sustained economic growth and improvement of the business environment.

5 ANALYSIS OF AGRICULTURAL MARKET IN MACEDONIA Membership of the European Union is a strategic goal of the Macedonia, ever since the country s independence. The current status of EU Candidate Country enables access to financial assistance mechanisms, but it also requires adjustments and reforms in the Country. Agriculture is the third most important sector of Country s economy. The current status of EU Candidate Country enables access to financial assistance mechanisms, but it also requires adjustments and reforms in the agricultural sector. The country is largely hilly and mountainous. The combination of Continental and Sub-Mediterranean climate, characterized by long, warm summers and short, not too severe winters, and fertile soil provide generally excellent conditions for production of a range of food products.

6 ANALYSIS OF AGRICULTURAL MARKET IN MACEDONIA The agriculture sector plays an important role in the country s economy, its contribution to GDP accounts for nearly 10% and is relatively stable. Together with food processing the percentage increases to 17%. Agriculture has always served as a shock absorber for the socio economic and structural changes in industry and other sectors of the economy. As in many Western Balkan countries, almost half the population lives in rural areas. The structure of the agricultural sector is characterized by small-sized family farms - around 80% of agriculture holdings are estimated to be ha on average; they are owned or leased, and are highly fragmented into small parcels.

7 INVESTMENT OPPORTUNITIES IN MACEDONIA

8 PROPOSAL FOR INVESTMENT IN AGRIBUSINESS Why in Agribusiness and food processing industry? - Agribusiness is one of the fastest growing sector with more than 10% increase over the past three four years - More than 400,000 people make whole or part of their income from agriculture activities - Sector comprises 16-17% of national GDP - EU standards are applied in this sector: GLOBALGAP and HACCP accepted as national standards - Great number of industrial crops suitable for growing in this region: tobacco, poppy, sunflower, vegetables, fruits, grapes, livestock, dairy products etc. - Combination of Mediterranean and Continental climate offers an excellent supply of quality products - Exceptional business conditions: flat taxation, great agriculture incentives, government technical support. - Organic production is more present in the recent years

9 FRUITS AND VEGETABLES PROCESSING INDUSTRY - Most of the processing companies in Macedonia process both fruits and vegetables - The largest portion of the processing involves canning, drying and combines production lines. - Frozen vegetables and fruits goes further in the food industry and mostly for export - The main frozen fruit product is the sour cherry; the main dried fruit product is plumb; the main fruit processed into concentrate and purée is the apple and peach - The main frozen vegetable is leek, spinach, corn, peas; the main dried vegetable is onion, peppers, leek, carrots, celery and parsley; the main vegetable processed is tomato, peppers, pickles. - The EU and neighboring countries, USA and Australia are the main export destinations for domestically produced processed products. - A NEW Important overseas market to develop is CHINA.

10 FRUITS AND VEGETABLES PROCESSING INDUSTRY Concrete business opportunity! 1. Factory for fruit and vegetable processing in Rosoman, Kavadarci - Total area of the factory cca 150,000m2 - Located strategically in the heart of Macedonia where the most of the local producers of raw material are situated. - Facilities: 17,500m2 production lines, warehouses, industrial lines - 40,000m2 asphalt road within the factory - Fully automatic equipment for processing with capacity of approximately 60,000t finished products and 20,000t fruit juice - Technological line includes pasteurization, sterilization, boiling, grilling and making concentrates as well as juices, jams, marmalades and compotes. - Range of the developed products: tomato pure, ketchup, mixed salads in jar, Malidjano, Pickles, compotes, juices, grilled peppers, Ayvar, Ljutenica, cabbage, chilly peppers etc. Current status: not-active and abandoned several years due to financial problems Estimated value of the factory: 5 Million Euros

11 FRUITS AND VEGETABLES PROCESSING INDUSTRY Concrete business opportunity! 2. Collecting center specialized for nut fruits (walnut, hazelnut, almond), Skopje - Total needed area 2,500m2 - Total covered area 1,200m2. - Business developed by ESTABLISHMENT with a company which is producer of nut trees (saplings) and acts as the main supplier in the region - Easy for storage, long shelf-life and less risky than other fruits - Constant market demand of NUT products in EU countries: - Possibility of development of etheric oil from the lower quality products Current status: only as business plan exists but still not realized Estimated value of the project: 5 Million Euros Average prices: walnut cleaned from shell $10,99/lb., organic walnut $16,99/lb., raw almond $10,99/lb., raw hazelnut $17/lb.

12 FRUITS AND VEGETABLES PROCESSING INDUSTRY Concrete business opportunity! 3. Olive orchard in Doyran (region near Greece - border), - Total area 100 Ha (extension of area is possible) - Total covered area needed 2,000 3,000 m2. - Business can be developed with a company which is already a main trader with the olive trees from the best regions (Turkey, Greece, Spain) - Development of factory for olive processing or export as raw material - Constantly demanded product and easy for export Current status: only as business plan exist but still not realized Estimated value of the project: 7.5 Million Euros

13 FRUITS AND VEGETABLES PROCESSING INDUSTRY Concrete business opportunity! 4. Production and sell of fresh fruits - Total area 300 Ha (extension of area is possible) - Covered area as cold depo of 5,000m2 is needed (renting is an option). - Covered area for fruit drying of 1,000m2 is needed. - Covered area of approx. 500m2 for mechanization is needed. - Business can be developed a company which is already main trader with the fruit trees and has a team of agronomists which will be directly responsible for the production - Standard GLOBALGAP to be implemented for export to EU countries - To be developed list of fruits which can be exported in Middle East. Current status: only as business plan Estimated value of the project: 5 Million Euros

14 FRUITS AND VEGETABLES PROCESSING INDUSTRY Concrete business opportunity! 5. Livestock animal farming (cattle and goats) existing company - Total area 660 Ha (combination of orchard and cereals production) - Covered area of 5,000m2 with barns, silage, depo etc. - Equipped with machines, mechanization and vehicles but modernization and automatization will be needed - Current number of animals: In Macedonia there is modern factory for production of dairy products (SUTAŞ) but raw material (milk) is missing Current status: company operates and can be acquired Estimated value of the project: 10 Million Euros

15 ESTABLISHMENT WHO WE ARE! ESTABLISHMENT in 2006 as direct International Investment in Macedonian. Proposed Company Partner/Joint Venture - Main activity: Production of fruit and evergreen trees (nursery garden) on 21 Ha land Team: 3 engineers of Agronomy, 1 Forest engineer, 1 Financial manager, 5 Agronomy technicians, 4 Grafting workers, 1 Mechanization operator, 10 Season workers Well-managed agricultural assets that have long-term sustainability. Local market knowledge: local staff provide assistance and region-specific knowledge Already invested in agriculture and therefore have proven financial and operational track records and well accepted position in the relevant Government Ministry and local authorities; Licenses & Permissions for operation in the field of Agronomy acquired ESTABLISHMENT believes that a successful investment strategy must couple with sophisticated investment management and operational expertise. We believe that only through this powerful combination additional value can be created and maximum returns can be realized. Foreign languages spoken in the team: English, Macedonian, Greek, Turkish, Russian, Serbian, Croatian, Bulgarian.

16 WHAT ESTABLISHMENT PROPOSE TO YOU! Presentation of the current situation in Macedonia and particularly in Agricultural sector Opportunity to meet all relevant governmental representatives, stakeholders, decision-makers and businessmen's in this sector Opportunity to cooperate and quickly be involved in the ongoing activities in agricultural sector Short-way to acquire all relevant permissions & licenses Opportunity to get free land in Macedonia on concession agreement Approach to EU funds (IPARD) and governmental subsidy system Control over the quality of production, proper choice of the correct varieties and rootstocks, pruning system, spraying and fertilization of the plants. Together with Invest in Macedonia and various banks in Macedonia, ensure the projects are active. Take operational responsibility and/or be FINANCIAL PARTNER to the investment

17 WIDER OPPORTUNITIES FOR INVESTMENT Establishment Macedonia is in the Macedonian market since 2006 and in the Balkan region since Being active and taking participation in several crucial investments in Macedonia and Greece. Having offices in Macedonia, Greece, Kosovo and representative offices in Albania, United Kingdom and Australia brings opportunity to become mayor player in the region in several fields of work Latest investment projects will be provided on executing of a Non Disclosure Agreement by you.

18 ESTABLISHMENT THANK YOU FOR YOUR ATTENTION! Contact person: George Papamihail Tel: Skype: papamihail.lawyers