99% of the shares of an agricultural company specializing in growing potatoes for the production of chips are being sold.

This enterprise is located in the Vladimir region, Gus-Khrustalensky district, has an operating history of more than 70 years, since the times of the USSR, and was privatized and became a joint-stock company since 2006. The company employs 51 people, the main office is located in the village of Ulyakhino (Google coordinates 55.335103, 40.749604). The distance from Ulyakhino to the city of Gus Khrustalny is 15 kilometers, from Gus Khrustalny to the city of Vladimir 90 kilometers and from the city of Vladimir to the city of Moscow 200 kilometers. And from the agricultural enterprise to Moscow is more than 300 kilometers or 4 hours on the road.

The agricultural company includes 33 land plots with a total area of 4 900 hectares (12 250 acres); 2 200 hectares (5 500 acres) are owned and 2 700 hectares (6 750 acres) are leased. In photos 2 and 3 you see a map of fields, all lands are concentrated in the area of three villages – Zalesye, Parakhino, Ulyakhino – go to the map HERE

The agricultural enterprise also includes 29 buildings and structures – an office, repair shops, livestock farms, warehouses, houses for workers, and the main vegetable storage facility for 14 500 tons. The company owns 40 units of agricultural machinery and tractors from brands such as Grimme, Class, Jone Deer, MTZ, a Yenisei grain harvester, 6 pivot sprinklers, 2 coils, 2 consoles, everything necessary for watering and harvesting fields with potatoes and carrots , beets and other tubers, such as tapinambur and sweet potatoes.

Another very valuable asset of the company is the lease of the forest fund from the state for 49 years; this forest area consists of 7 300 hectares with the right to cut down 14 000 cubic meters of wood annually. The composition of this forest has the following structure: 55% pine, 40% birch, 2.5% spruce, 2% aspen and 0.5% black alder. The average forest density is 140 cubic meters per hectare, which means the company can cut down 100 hectares of forest annually. Renting a forest area of 7 300 hectares costs the enterprise annually 35 040 US dollars (3.8 US dollars per hectare) per year, restoration work – sowing birch and pine seeds costs 25 000 US dollars per year. All these costs and profit can be covered by selling standing timber to third-party loggers; the prices for such cooperation are as follows:
– pine 30 US dollars per cubic meter;
– birch 6 US dollars per cubic meter;
– aspen 4 US dollars per cubic meter.
If we take 14 000 cubic meters of which 55% is pine 7 700 cubic meters * 30 dollars per cubic meter then we get 231 000 US dollars, there is also birch 6 300 cubic meters at a price of 6 dollars per cubic meter and that will be 37 800 US dollars . This results in revenue of $268 800 for one year.
But the company has its own sawmill, which makes it possible to process wood into boards and receive 3 times more revenue, which will be brought by simple resale to timber processors.

Article about Karelian birch and other rare birch derivatives HERE

The price of 99% of the company’s shares is $3 300 000.

“GeoBuro” experts believe that the company has clear signs of an incorrect valuation, this company should be worth much more, the second important factor is that the company has weak management.

During the Soviet era, the enterprise had a population of 3 500 cows of the Kostroma dairy and meat breed.
And from 2006 to 2019, the company had 450 head of Ayrshire cattle, of which the milking herd was 210 cows. Ayrshire milk is quite fatty and suitable for cheese production, but the company did not process the milk itself into finished products like butter or cheese, but sold it at a minimum price of 0.35 US cents per liter to the dairy plant. This approach to doing business did not allow the company to generate income in this direction, and in 2020, during the drought, the company slaughtered all its cows for meat. In Russia, in recent years, Holstein cows have been used for dairy production.

Now the company, having 4 900 hectares of agricultural land, almost 25 territories, the state of Monaco uses no more than 340 hectares in its crop rotation, about 300 hectares are sown with first-class potatoes for the production of Lays chips from the Pepsico company and 40 hectares for seed potatoes.
The company, having 4 900 hectares and a 4-year crop rotation, could annually use at least 3 600 hectares.
1 200 hectares can be fallowed annually, 1 200 hectares can be sown with perennial grasses (read our article HERE), and hay can be sold, 1 200 hectares can be allocated for grazing 600 heads of beef cattle, 1 200 hectares can be left for growing vegetables – potatoes, carrots, beets, cabbage, onions, garlic, everything that Russian people eat in their favorite soup BORSHCH.
By financing these areas of agricultural business, you can increase revenue several times. If you add the processing of these products into chips under your own brand, into Russian pickles, which the local population really loves, and add vegetable storage facilities to sell the products not at the time of harvest, but in the winter when the price increases 2-3 times.

In the scenario described above, we did not even take into account that 40% of the birch growing in the leased forest cannot be sold to other lumberjacks or made into boards, but if you make plywood, you can buy the nearest plywood factory for 2.5 million dollars (the object can be viewed HERE). You can also sell 55% of the pine for boards or timber, or better yet, make kits for the construction of wooden houses, furniture panels, all these actions will give even greater added value and a faster return on the invested money.

CONCLUSION: with proper financing and a competent marketing policy, this enterprise will return the investment not in 9-10 years, but within 7-8 years, increasing its capitalization by at least 2 times.


Property Description

The Vladimir region is a subject of the Russian Federation, located in the central part of the East European Plain. It is part of the Central Federal District. The population of the Vladimir region is more than 1.4 million people.
The region borders on its outskirts:
in the west and southwest – with the Moscow region;
in the north – with the Yaroslavl and Ivanovo regions;
in the south – with the Ryazan region;
in the east – with the Nizhny Novgorod region.
The Vladimir region is the central part of the “Golden Ring of Russia” route, being one of the richest in terms of the number and variety of preserved monuments of national culture.

Bogolyubsky convent, Vladimir region.

In the 12th century, the Vladimir-Suzdal principality was the largest political, economic and cultural center of Rus’. Until the 15th century, Russian princes were married in Vladimir for their great reign, and the city of Alexandrov was for several years the capital of Ivan the Terrible.

Alexandrovskaya Sloboda (Kremlin of Ivan the Terrible) in the city of Alexandrov.

Evidence of that grandiose era are the masterpieces of white stone architecture of Vladimir and Suzdal of the 12th-13th centuries, included in the UNESCO World Heritage List.
Today in the Vladimir region there are 3 583 historical and cultural monuments registered and under state protection.

Holy Vvedensky Monastery in near the town of Intercession.

The cities of Vladimir, Suzdal, and Gorokhovets have the status of historical settlements of federal significance. 7 cities of the region are united into the tourist route “Small Golden Ring of the Vladimir Region”. The population of the city of Vladimir is 353 000 people.

Holy Assumption Cathedral in the city of Vladimir.

The city of Gus Khrustalny has a population of almost 52 000 people, and the population of the entire area is almost 95 000 people.

City of Gus Khrustalny.

The settlement on the site of the modern city of Gus Khrustalny was first mentioned in the 17th century. Perhaps it would have remained a dot on the map if not for the merchant Akim Maltsov. He founded a glass factory on the Gus River. Initially, simple glasses and shot glasses were produced here, but later they began to produce crystal products that received worldwide recognition.

Since its founding, the plant has constantly expanded, and the developments of French and English glassmakers and innovations from Bohemian and Austrian industries were introduced into production. Gusev crystal, having a high level of performance, was accessible to all segments of the population.

Maltsov’s heirs cared not only about the quality of the crystal, but also about the appearance of Gus-Khrustalny. At the beginning of the 20th century, nice red brick houses, individual cottages for management personnel and the beautiful St. George’s Cathedral designed by the architect Leonty Benois were built for workers. Currently, the cathedral houses a museum dedicated to crystal.

The Crystal Museum (formerly a cathedral) in the town of Gus Khrustalny.

Gus-Khrustalny is surrounded by coniferous forests, swamps, rivers and lakes. This amazing region is called Meshchera. To preserve the natural uniqueness of the region, the Meshchera National Park was created in 1992. You can start exploring its territory at the visitor center in Gus-Khrustalny. Here is a model of the park, on which all the tourist sites and eco-trails are marked.

Deciding on the direction of the walk will not be easy, because all the routes have their own twist. For example, in the village of Tasinsky, Gus-Khrustalny district, the “Russian Compound” museum was built among a dense forest. Open-air exhibitions will tell you about the “structure” of ancient settlements and peasant life.

Open-air museum Russian Compound.

50 kilometers from Gus-Khrustalny near the town of Sudogda, among the dense forests, hides the estate of Life Guard Colonel Vladimir Khrapovitsky, unique in its beauty and scope. Its main house, like a fairy-tale castle, is dilapidated, but this only adds to the mystery and mystery of the place.

Being a large timber merchant and the owner of factories for the production of glass products, Khrapovitsky had enormous capital. He turned the modest estate he inherited in 1884 into a palace and park ensemble in the style of the European Middle Ages.

The total number of buildings on the estate reached 70 buildings, and a railway line was laid specifically to the estate through dense forests and rolling stock was purchased. There were over 80 rooms in Khrapovitsky’s palace. Each of them was decorated in a special way, had a telephone and was illuminated by electric lamps from an autonomous locomobile (steam engine).

Khrapovitsky’s estate modern photo.

Khrapovitsky’s estate photo from 1900.

30 km from Khrapovitsky’s estate there is a place referred to by local residents as “Vladimir Karelia”. The comparison is not accidental – here sheer cliffs of several levels are adjacent to tall pine trees.

Vladimirskaya Korelia view of the Dyukinsky quarry.

The mountainous landscape near the village of Bolotsky was formed as a result of the mining of limestone, the deposit of which was discovered in 1928. After some time, the equipment left the quarry, and its bottom was overgrown with forest. The resulting landscape turned out to be so picturesque that tourists quickly fell in love with it. The quarry is also popular with rock climbers – there are more than ten routes of varying difficulty. Dukes are also rich in flora and fauna. In the summer you are likely to see the legless spindle lizard and the northern lady’s slipper orchid.

Rocks of the Dukinsky quarry.

Park Hotel “Meshcherskaya Estate” boasts not only the presence of a Spa center with an indoor pool, sauna, jacuzzi and a restaurant with Italian cuisine, but also its own territory. The main building of the estate is surrounded by majestic pine trees, where the atmosphere of comfort and tranquility is complemented by a pond and the finds of a landscape designer. The rooms are designed in a classic style, each of them has its own balcony. The price includes a buffet breakfast, access to the pool, sauna, and jacuzzi.

Park Hotel “Meshcherskaya Estate”.

Photo of a hotel room in Russian style.

If you need a rest or a hotel for an overnight stay, then the “Meshcherskaya Estate” Hotel is waiting for you https://usadba-mescherskaya.ru

You can read more about the cities and churches of the Vladimir region here:

1. The small town of Hrachovec is here

2. A little more about the Vladimir region here

3. Vladimir region, the city of Vyazniki is here

4. Vladimir region, the city of Alexandrov is here

5. Vladimir region, the city of Petushki here

Not far from the town of Petushki lives an English farmer, John Kapiski, you can watch his interview here

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