Romania

2013

WAGYU BREEDING
AND FATTENING
FARM

OVERVIEW
The business and the product
The Market and competition
Strategy
Business drivers
Management
Financials
Funding requirement
Anexa 1 Wagyu grading
Anexa 2 Biogas Graph

BUSINESS PROPOSITION
The newly formed company is to
produce for luxury markets the world
class Wagyu Cattles of A5 grade (annex
1)
Two farms 1 housing the breeding
population and 1 housing the feeding
lot to be build with a total capacity of
6000 heads
Biogas Plant 1.6 MW installation
producing 12.000 MW/year

THE PRODUCT

Wagyu Black full blood cattle with the

highest obtainable marbling due to its
own genetics and thru intensive feeding
over a period of 550-600 days
Green energy 12.000 MW/year

THE MARKET
The high cost of purchase of genetic
material and the feeding makes the
wagyu producing prohibited for most of
the farmers
The demand is high and in a continuous
growth, as refl ected in its high prices
(10,000-20,000 USD/carcass)

MARKETS
The product is designated for markets where the
luxury hospitality services are at a high or developing
Saudi Arabia, Dubai, Qatar, Thailand, Taiwan, Hong
Kong, China, Indonesia
Share of global expenditure on luxury branded products

26.8

22.
4

20.6

15.7

USA

9.5

7.1

Japan

4.4

5.1

5.8

Middle East and Others

Share of Global Sales %

37.3

36.
1

33.4
15.8

Europe

26.
8

33.1

Asia Pacific excluding Japan

2006
2011
2015

COMPETITION
Europe at this point are a small number of
farms that are having wagyu cattle mainly for
breeding purposes. Approximate number of
heads in each farm not exceeding 500-600
USA while has a much more number of wagyu
farmers, most of them are producing a mix
breed of wagyu A1
Australia AA CO - the major producer world
wide of wagyu catles having a number of
60.000 heads

STRATEGY
Obtain a population for breeding of 3000 heads
through the purchase of wagyu full blood embryos
Obtain a population for fattening of 3000 heads
through intensive breeding program over fi rst 4 years
The farm is designed to be broadly self-suffi cient in
that we are aiming to produce about 95% of our
animals feed from within the farm, using their
manure as a biomass and as fertilizer.
The building of Biogas plant that is to produce 12.000
MW/year of green energy from the cattle manure.

BUSSINESS DRIVERS
Wagyu cattle are highly adaptable to the
European climate
Black Sea International Harbor which facilitates
transport of livestock to Middle East market
Low cost of agriculture land in Romania
Low cost of labor in Romania
Low tax/profi t in Romania (16%)

MANAGEMENT
Florentina Agiakatsikas age 35 - with an
overall 15 years of work experience, out of
which over 9 years in entrepreneurship, has
proven to be trustworthy in setting up and
approaching complex projects in a simple and
straightforward manner. Her communication
skills as well as contagious optimism and "can
do" attitude makes work with her inspiring,
leading to the fulfi llment of the expected
fi nancial returns. She is a very detailedoriented person and has high standards in
terms of quality. She is a results - oriented
manager who decides strategy, identifi es
needs and changes, sets objectives, controls
target fulfi llment, manages the resources and

Cristian Dinu age 36 - working for 15

years in various fi elds, from building to
electric equipment, Cristian had acquired
vast knowledge and experience. He is a
combination of strong personality with a hard
working character. If I have to defi ne him in 3
words: Nothing is impossible. Although strong
personality his team player qualities
do not suff er.

FINANCIALS
The project aims to arrive at full
production capacity of exporting
(approx. 850 heads) in the 4 th year

OVERVIEW OF FINANCIAL INCOME

Starting with 2014 Biogas plant brings a revenue
of 2.196.000 from the sales of green
certifi cates and energy. Revenue is used to
continue investment in livestock and genetic
material
Starting with 2015 the initial cattle (6000 heads)
used for wagyu embryos implanting will be sold
recovering 90% from their purchase value
Starting with the year 2017 the fi rst wagyu cattle
are ready for export at an approximate price of
10,000 /each

WAGYU FARM - 6000 HEADS

Total investment
Salaries and operational costs
INCOME/year - starting with 2020
Export wagyu catle
Wagyu cows
Green certificates
Energy sold in the network
Government subventions
Total income
Profit before tax
Profit after TAX

19,229,727
2,407,074
900 heads
300 heads
36000 G.C
12000 MW

10000/each
7000/each
46/each
45/each

9,000,000
2,100,000
1,656,000
540,000
1,056,000
14,352,000
11,944,926
10,033,738

BUSINESS PROJECTION

CASHFLOW

2013

2014

2015

2016

2017

2018

1,946,000
4,234,732
6,180,732

5,300,000
1,474,383
6,774,383

5,652,000
1,162,383
6,814,383

10,256,000
2,447,563
12,703,563

13,852,000

9,910,665
9,910,665

9,400,000
685,665
34,065

4,320,000
1,758,273
102,459

4,320,000
2,315,474
138,909

4,320,000
2,355,474
138,909

2019

2020

CashInflows

Sales
Investment
TotalCashInflows

13,852,000

13,852,000

14,352,000

13,852,000

14,352,000

2,407,074
154,389
1,806,486

2,407,074
154,389
1,911,188

Cashoutflows

Purchases
OperationalExpenses
Taxes
IncomeTax
Returnof2017liquidity
ReturnofInvestment
(ROI)
Withdraws/Profit
TotalCashOutflows
CashSurplus/Deficit
OpeningCashBalance
ClosingCashBalance

2,520,007
154,389
1,836,417

2,407,074
154,389
1,806,486

2,447,563

10,119,730

6,180,732

9,910,665

6,774,383

6,180,732

6,814,383

6,774,383

4,800,000

6,814,383

9,450,000

11,758,376
945,187
1,505,438
2,450,624

13,817,949
34,051
2,450,624
2,484,675

4,803,396
4,650,000
13,821,345
30,655
2,484,675
2,515,330

9,800,000
14,272,652
79,348
2,515,330
2,594,678

FUNDING REQUIREMENT AND ROI

Over a period of 4 years the business needs a total
injection of capital of 19.229.727
ROI (Return of Investment) starts at the end of 5 t h
year (2017) and ends in the 7 t h year (2019)

USE OF FUNDS
Building and machinery
Farm purchasing and extend the capacity to 6000 heads 34.93%
Biogas plant production of 12000 MW/year

Livestock and genetic material

48.17%
purchase 6000 heifers to be implanted with wagyu embryos
9600 Full blood wagyu embryos

Operational costs

Crops development
Utilities
Salaries
Taxes

16.90%

BUSINESS EXTENSION

In 2019-2020 a second farm can be build,

doubling the capacity (12.000 heads) and the
production for export.
An increase in profit of 100% is to be expected
by the 2023-2024

ANNEX 1 WAGYU GRADING

J MGA Grade
A5
Grade Eligibility
Fullblood Only

A4
Grade Eligibility
Fullblood Only

A3
Grade Eligibility
Fullblood Only

A2
Grade Eligibility
Fullblood Only

B3
Grade Eligibility
FB/F1

J MGA GradeSpecification

Indicative Tokyo Meat Market Price

A5 Specification
MRB
8~12
Score
Primal
meat yield

>72%

Meat
Colour

3~5

Fat Colour

1~4

A5 Producer Return Carcass/kg

2,238.00 $US29.95

Firmness
5
A4 Specification
MRB
5~7
Score
Primal
meat yield

>72%

Meat
Colour

2~6

Fat Colour

1~5

>72%

Meat
Colour

1~6

Fat Colour

1~6

1,569.00 $US20.51

>72%

Meat
Colour

1~7

Fat Colour

1~7

1,222.00 $US15.97

69%~72%

Meat
Colour

1~6

Fat Colour

1~6

Firmness

$AUD20.92

70%

$AUD16.29

55%

A2 Producer Return Carcass/kg

703.00

Firmness
2
B3 Specification
MRB
3~4
Score
Primal
meat yield

100% (1)

A3 Producer Return Carcass/kg

Firmness
3
A2 Specification
MRB
2
Score
Primal
meat yield

$AUD29.84

A4 Producer Return Carcass/kg

Firmness
4
A3 Specification
MRB
3~4
Score
Primal
meat yield

RelativeEconomic
Value

$US9.19

$AUD9.37

31%

B3 Producer Return Carcass/kg

703.00

$US9.19

$AUD9.37

31%

ANNEX - BIOGAS

PROJECT PROPOSED FOR 2013

Thank you

Entrepreneur
Florentina Agiakatsikas
Email: fl orentina_aya@yahoo.com
+30 6947407619