|SUMMARY MANAGEMENT PRODUCTION LOCATION MARKET TECHNOLOGY FINANCE 2.PAGER Why SMB|
For the purchase of the collective farm and the farm credit for the cultivation (period 18 months) a capital of € 35.39 million is needed. A capital of € 16.38 million is necessary for the construction of the drying / silo plant and the purchase of strangers. Realization of a biogas plant up to commissioning will cost EUR 9.37 million.
Total requirements: € 61.14 million/ 65.08$ | Net Profit after 7 years of Operation: 59,299,962 EUR
The registered office of the Company can be in the investor’s country or in Switzerland. The production company remains in the Ukraine. The exact tax aspects and tax flows can be worked out as soon as the project is implemented into practice.
Break Even & ROI
The farm’s break-even is after a maximum of three years, with an ROI of approximately four to five years.
Excellent Investment Offer
Swiss Management Baumann, with their many years of professional experience, previous achievements, knowledge, and passion for the farming, their excellent local and European network, management “Swiss Made” and application technology “Made in Germany”, offer investors an excellent, unique and safe investment to become co-owner of a company with high return on invested capital.
An unexpected personal situation of a management team member may aggravate daily operations but is not expected to alter the production schedule significantly. A replacement can be found quickly
External risks are seen as rather small to negligible. The biggest risks in this case are a collapse of world prices for staple foods, these conditions are extremely unlikely. Even long-term climate change in the wake of global warming, or perhaps the Ukraine becoming unattractive for agricultural production are two extremely unlikely scenarios.
The pure production risks are largely eliminated through appropriate crop rotations. The remaining risks such as damage caused by crime, theft, crop failures, etc. are insurable and considered in the revenue and cost calculations made in each case.
Ukrainian Agriculture runs independently of economic and political influences.
Investment Guarantee - Protection of Investment
International Investment outside Switzerland will be protected and covered from Stat Secretariat for Economic Affairs (SECO) Switzerland. The Stat Secretariat for Economic Affairs (SECO) is responsible for negotiating international law disciplines on foreign investment particularly in the form of bilateral investment promotion and protection agreements. These agreements seek to protect Swiss foreign direct investments in the event that the recipient country’s government acts in breach of international law. In investment chapters of free trade agreements, SECO negotiates the term for market access of (direct) investments so as to ensure that international law provisions apply to all economic activities carried out by Swiss companies in the recipient country i.e. that no restrictions are placed on the right to establish business activities and that discriminatory practices are avoided.
SECO represent Switzerland in bodies of international institutions dealing with investment policy and investment law (e.g. WTO, OECD, UNICTAD, etc.). It is also actively involved in the formulation of Swiss investment policy.
The investment amount covered by SECO regarding an investment in Swiss Management Baumann in Ukraine in case of political instability will be at least 20 mio CHF. This amount will be provided as an investment guarantee from SECO for Swiss companies business abroad.