building the largest dairy farm in europe - cisionmb.cision.com/main/515/9244651/2256.pdf · the...
TRANSCRIPT
BUILDING THE LARGEST DAIRY FARM IN EUROPE
Press Conference, 11 April 2012
2
The single largest dairy farm in the EU to be built in
Estonia by Trigon Dairy Farming
Key Highlights
This farm aims to be one of the global leaders in
environmentally friendly large-scale dairy farming
The farm is planning to apply a cutting edge
integrated business model:
cereals, milk, biogas CHP, organic fertilizer, large-
scale fish and vegetables farming
2
3
1
3
Väätsa/Kaiu Development Plan
TDF will develop the single largest mega-farm in the EU with over 4,000 milking cows
• By combining and expanding Väätsa
and Kaiu farms we plan to create the single largest industrial scale dairy
farm in the EU
• Over 8,000 dairy animals (4,000 milking cows and 4,000 young-stock)
• Integrated dairy and crop farming with farmed land of over 6,000 ha
• Up to 80% self-sufficiency in animal
feed production from own farmland
• Over EUR 20 million in new
investments planned
• In 5 years, this farm alone is planned
to produce 48 million kg of milk every year (i.e. equal to 7% of Estonian
raw milk production)
4
Environmental Sustainability
• Agriculture is one of the largest sectors
contributing to global warming
• Our on-farm biogas plant would capture methane gases to produce electricity, heat
and environmentally friendly organic fertilizer
• Globally unique large-scale integrated fish and
vegetables farming to fully utilize the heat
• The largest modern on-farm biogas
plant in the Nordic and Baltic region
• 3 MW biogas CHP plant planned in Väätsa/Kaiu
Full agricultural waste recycling through a modern biogas CHP technology
Source: Agentur für Erneuerbare Energien
5
Example On-Farm Biogas Plant
So
urc
e:
Sch
au
man
n
500 kW plant in Gut Hülsenberg, Germany
Väätsa/ Kaiu plant to be six times larger
6
Environmental & Social Responsibility
Our aim is to be among the global leaders in
environmentally sustainable large-scale milk production
Environment
Own feed production, selected use of seeds & fertilizers,
waste-to-power conversion, limited environmental impact
1
Personnel
Each farm has a dedicated team of farming experts with
competitive compensation plans
3
Animal Welfare
Housed farm systems have shown improved fertility, better
nutrition control and a general improvement in animal welfare (UK National Farmers Union)
2Technology
Our farms employ automated milking parlours and
computerized herd monitoring systems
4
Source: Helsingborg
7
TDF Today
A fast-growing industrial-scale milk producer
operating in Estonia and Russia with socially responsible farming methods
Karla
650 cows
Kaiu / Väätsa
2,300 cows Dobruchi
850 cows
• 4,000 milking cows
• 8,700 ha of farmland cultivated
• 28 million kg of annual high quality milk output
• Best cows producing up to 15,500 kg annually
2011 pro-forma results
• Revenue 13 mln EUR / EBITDA 3.3 mln EUR / Assets 35 mln EUR
• TDF goal is to expand its operations to ca. 11,000 milking cows over the next 3-4 years
• As previously announced TDF is in talks
with external equity investors about
increasing its share capital
As of April 2012
Source: Progressive Dairy Solutions
ESTONIA
LATVIA
RUSSIA
8
Our Track Record: Kaiu Farm
• In 2006, we acquired an outdated Soviet-style collective farm which was in the bottom quartile for productivity
• Invested in farm modernization and automation
• Highly experienced team of dairy farmers
• Now produces the highest quality raw milk sold at above-market prices
• Aim to achieve yields of 12,000 kg
We have already built the 2nd most efficient large-scale dairy farm in Estonia
6,060
6,8607,220
8,440
9,430 9,530
5,000
6,000
7,000
8,000
9,000
10,000
11,000
2006 2007 2008 2009 2010 2011
+9% p.a.
10,4
00
9,5
30
9,5
00
14,0
00
13,3
00
13,3
00
11,8
00
13,5
00
12,5
00
6,000
8,000
10,000
12,000
14,000
Po
lva
Ka
iu
Tart
u
Ca
rmiy
a
Re
fet G
alil
Alm
ara
i
Al S
afi
Sp
ring G
rove
Cra
ves D
airy
Estonia Israel S.Arabia U.S.
Further Yield Improvements AchievableProven Farm Turnaround Experience
Selected best-yielding large-scale farms (kg/cow)
Sources: PRIA, Public sources
Milk Yield (kg/cow)
+30-50%
9
Global Dairy Trends
Global dairy demand will grow
25% by 20201Global supply imbalances are to
increase dairy trade by 15%2 Positive outlook for milk prices3
Source: OECD-FAO Agricultural Outlook 2011-2020
India46
China40
R of Asia19
S America
17
MENA13
N America
11
R of Africa
8
Europe6
Dairy Demand Growth in 2010-20F (mln tonnes)
TOTAL GROWTH160 mln t
1995 2000 2005 2010 2015 202020
25
30
35
40
45
World Dairy Product Exports (mln tonnes of milk equivalents)
1990 1995 2000 2005 2010 2015 20200
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Whole Milk Powder Price (USD/t)