OUR INVESTMENTS - Egeli & Co. Agri Capital

Our endeavors continue for consolidating uncultivated land and bringing them in the agricultural ecomomy

The scope of Bati Tarimsal Yatirimlar A.S. (“Bati Agriculture”), which operates in Denizli is;

Breeding sheep for milk and meat and
consolidating non-cultivable land and seasonal planting

Established by Egeli & Co. Investment Holding in March 2011, 90.99% shares of the Company were acquired by EGC Agri Capital in June 2011. Upon transfer of the remaining 9.01% shares in September 2012, EGC Agri Capital has all the shares of Bati Agriculture.

SENYAYLA FARM – Sheep Breeding for milk and meat

The operations of Senyayla Farm are; raising dairy sheep for its milk and raising meat sheep for slaughter, as well as selling mature & fertile sheep -of both dairy and meat kind- in Denizli region.

Batı Agriculture realized this farm investment, approximately for TL 4.8 million. For the first phase of investment Bati Agriculture was found eligible for grant of TL 1.6 million as to use in investment of dairy sheep farm in July 2013, within the scope of European Union Instrument for Pre-accession Assistance for Rural Development (IPARD), declared and managed by the Agriculture and Rural Development Support Institution (TKDK) and supported by European Union (EU).

With the grant taken, the Company started its construction and infrastructure investments in the fastest manner. It completed a huge investment within in a very short period of time which can be considered as a record, at a location 10 km far from the closest residential area. The construction of the facilities erected on a land of approximately 40 decares and was completed five months after announcement of the grant, in December 2013. Installation of the equipment was completed in January 2014. The Company started its operations at the end March 2014 as planned, with the purchase of the first batch of 300 sheep.

On the farm land, there exist 6 barns each with a capacity of either 300 sheep or 600 lamps, feed storage and silage, milk production facilities, an administrative building, sphered house, veterinary office and social facility.

Milk sales of the farm are made to dairy farms operating in Denizli and lamp sales are made to integrated meat processing companies. To apply an industrial sheep breeding system in 2015, preparatory infrastructure works were completed in the farm to ensure sustainable milk production in the farm. Thus, a reproduction program was started as to enable the herd to produce milk throughout 12 months in a year. In Senyayla Farm effective, premium and efficient milk sales are made, since the herd growth is kept under control and non-stop milk production is procured. Additionally, thanks to this program, besides the milk sales, wool, fertilizer and sheep sales were also affected positively.

Dairy races in the farm are Sakiz and Tahirova and beef races are Merinos. At the end of 2014, with the newly purchased sheep and organic growth, the total of the herd size reached total 1,961 consisting of total 851 dairy sheep -429 of which are Sakiz race, 422 of which are Tahirova race-, 570 Merinos race, 519 lamps, 21 rams. When the newborn lamps and lamps sold in the farm considered, the farm hosted around 2,000 animals.

Based on the organic growth of the herd, it is planned that 3 additional barns with a 300 sheep capacity each, would be constructed in 2016.

Collection of non-cultivated land and seasonal planting

The objective of Bati Agriculture is contributing to regional development and economy by enhancing prosperity and employment in the region while providing long term returns to its shareholders. In this context, its endeavors continue for consolidating uncultivated land and bringing them in the agricultural economy through acquiring title deeds, obtaining by inheritance and/or power of attorney.

As of the end of 2014, Bati Agriculture approximately has 1,200 decares area within the scope of land development project and the land development efforts are still continuing in the area.

Conducting infrastructure investments on uncultivated lands purchased for consolidation, Bati Agriculture efficiently brings the right technology to the region and brings these lands in the economy by designating the vegetation convenient for the region. In this context, the required infrastructure investments for the purchased lands were made in line with the data obtained from the researches took place in the consolidated region and also season plantings were done in line with the regional product range.

Whereas Bati Agriculture, continued its bait and seasonal crop cultivations throughout 2014, achieved 685 decares and 610 decares of bait cultivation in 2013-2014 and 2014-2015, respectively. The Company also made walnut and almond cultivation in 2014-2015.

Upon completion of the continuing development work, it is planned that 700 decares of bait would be cultivated in 2015-2016. Bati Agriculture, having planned to cultivate thyme, reserved 100 decares of its land for cultivation of thyme within the scope of the cultivation program in 2015-2016. Thyme is convenient for dry farming and also has a low cost since it harvested seed for five to seven years after planting once. Therefore thyme production will lead to significant improvements in terms of profitability within the frame of the cultivation activities.

As the thyme, convenient for dry agriculture, yields within five-seven years after cultivation, its cultivation is low-cost. Therefore, the thyme production will result in considerable enhancement in respect of profitability within the frame of the cultivation activities.

Batı Agriculture that obtained the highest amount of grant in the region, made several attempts to act on the new subjects of activity in 2014 besides dairy farm and land consolidation as well as seasonal cultivation.

In addition to the lands set aside for seasonal planting and dairy sheep farms, Batı Agriculture reserved a land of 50 decares to produce eggs of both cage-free chickens and cage chickens in 2015. Additionally, it completed cultivation of bait seeds required for the egg production, in 2014. Development studies of these projects are still continued as of the end of the reporting date.

As of December 2014, the total herd size increased to 777 of which 317 are wet cows.

90, 05% of shares of Doga Tarim Hayvancilik Gida Pazarlama San. Ve Tic. A.S. (“Doga Agriculture ) were purchased by EGC Agri Capital in June 2012. Upon transfer of the remaining 9.95% shares in July 2013, EGC Agri Capital has all the shares of Doga Agriculture.

The Company aims to utilize its high technology and infrastructure to produce high quality and healthy milk from imported, high yield bearing animals.

Having a license for comprising 600 wet cows; Doga Agriculture is holding a Certificate for Plants Free from Infections and Environmental Impact Assessment (EIA) Report. Doga Agriculture is an approved dairy farm by the Republic of Turkey of Food, Agriculture and Livestock for milk and dairy product exports to the European Union.

The infrastructure of the farm which started its operations with 220 Holstein breed pregnant heifers imported from USA in June 2011 was completed in 2012 and the building permits were obtained. Since its establishment, the company has invested a total of 6.2 million TL. 3.4 million TL of this amount was invested by Egeli & Co Agri Capital to increase wet cow capacity up to 600 heads. As a result of this capacity increase efforts, extra 200 pregnant heifers was imported and joined to herd in October, 2014.

Total herd size of Doga Agriculture, at the end of 2013 was 536 of which 281 were wet cows. As of December 2014, the total herd size increased to 777 of which 317 are wet cows.

Doga Agriculture has milking cow barns with 600 capacity, an infirmary and delivery room, a young heifer barn with 135 capacity, calf barns with 400 capacity, a pregnant heifer and cows barns with 160 capacity, a milking parlor, an administrative building, folder storages, corn silage area, manure pits, walking areas, commodity storage in the farm.

Doga Agriculture had produced, 1,967,220 liters and 2,882,000 liters milk in 2013 and 2014 respectively.

With the target of transition to contracting farming in 2015, Doga Agriculture will reach to 840 total herd size - of which 500 are wet cows- at the end of June 2015 by organic growth of current herd and with the additional 200 pregnant heifer which was imported at the third quarter of 2014. With this foreseen herd size, Doga Agriculture will complete its first phase investment for development. With additional import planned at the end of 2015, the total herd size of the farm is planned to reach to 1,050 of which 600 are wet cows.

Among the medium term investment plans, there is a plan to build a facility similar to the existing plant, with the 600 wet cow capacity on the lands available but not currently in use.

For more information please visit our company web site.