Frank Godon

Bottineau, ND (USA)
Role(s):
Other

Raven Wolf Agribusiness Russia

Find More Startups Startup
Location: Tver
Industry: Agriculture
Year Founded: 2020
Number Employees: 1-10 people
Business Stage: Creation/Idea
Entity Type: Sole Proprietorship
Description: SHORT SUMMARY Purchase of 16,270 hectares of agricultural land in the Russian Federation, I'm in search of an investor to invest in 16,270 Hectares of land to be developed into one of the largest suppliers of forage grasses (80% Alfalfa 20% other) and forage grass seed for the increasing agricultural market in Russia and international markets in Asia and Europe. At this time there are numerous buyers ready to contract thousands of tons of alfalfa and forage in Saudi Arabia, UEA, China, Japan, and South Korea THE MARKET Due to international sanctions Russia has had to focus on developing its agricultural industries from Dairy and Beef cattle to Cereal/Oil crops and Hay/Alfalfa forage production - enticing foreign investment in both land and agri industry development. After the fall of the Soviet Union millions of hectares of land went undeveloped and unworked. Much of this land now is coming up for sale some of it at very low prices when compared to western land of the same quality. Enter global agricultural players like India Brazil and China there is a market for even the simplest crops such as steppe hay for the next 5 - 10 years. Add to the foreign buyers large Russian corporate farms in need of forage feed for its growing and expanding dairy and beef. PROPERTY DETAILS Nizhney Novgorod region is one of the largest industrial regions of Russia. The area is 77,000 sq. Km. The population is almost 3.5 Million people, 80% of them are urban residents. Nizhney Novgorod region borders the Ryazan region and Mordovia in the south and Chuvashia and Mari Republic in the east, Kirov and Kostroma regions in the North and Ivanovo and Vladimir regions in the west. Nizhney Novgorod region is located in the central part of the East European plain, in the temperate continental climate zone. The average temperature in January is -11C, and the average temperature in July is +35C. Annual precipitation varies from the North-West to the South-East from 600 mm – 400 mm. Farmland occupies 41% of the territory with 68% arable land. Perennial crops (clover, alfalfa, medicinal herbs) 2%, Hayfields 8% and Pastures 22%. There are Cattle (meat and dairy) Pigs, Goats, and Sheep. Poultry (geese, ducks, chickens) and Fish farming. Crops grown are Rye (winter), Wheat (spring, winter), Triticale (Winter), Oats, Barley, Millet, Buckwheat, Corn, Peas, Beans, Sugar Beets, Flax, Canola, Soy, Sunflower, Ginger, Potatoes, Onions, Apples, Strawberries, PROJECT DESCRIPTION Our agricultural company registers an LLC in the Nizhney Novgorod region and purchases land and equipment. Investors will receive 5% of RWAR and we will pay investors a dividend of 5% of the total gross profits from the agribusiness, taking the first year to set up building and clearing the land for production. We will pay 5% for 6 years, after which we purchase your 5% share at the appraised value. During this time, we will also look at selling smaller portions of the land at increased prices, 500 to 1000 Hectares each. We will also insure our company against crop losses from drought or other losses in agriculture. BREAK DOWN OF INVESTMENT The investment in Russia is set up as follows $1,800,000 to purchase land, $180,000 commission to land broker, $4,020,000 to purchase equipment and machinery/buildings and $1,000,000 for operating costs.