CONSTRUCTION OF BIOTECHNOLOGICAL

COMPLEX - ALGAE ORGANIC

TURKEY 2015

Economic parameters2

Certificate Standard GMP «Good Manufacturing Practice» - is a system of rules, regulations

and guidelines for the production:

medicaments; • medical devices and instruments; • products intended for the diagnosis; •

foodstuff; • nutritional supplements; • active ingredients; • foodstuff

Annual production:40 tons of protein and vitamin feed for bees

4 th. Tons of organic fertilizer

2.5 thousand. Tons of liquid organic extracts

6 th. Tons of organic fodder

Ownership 100% private property

The amount of investment $ 11 000 000Europatent for organic fertilizers $2 000 000

Europatent for organic fodder $2 000 000

Patents are the property of the project initiators

International certification Alge Organic

Payback time 36 months

Relevance of the project

Development of the poultry industry, animal husbandry and fishery are the main

objectives of the programs of European agriculture. These goals can not be achieved

without the parallel development of the production of high-grade feed. Bio-technological

systems (factory level which lies on the project) are already built in the US, China,

Taiwan, Israel and Japan. Many countries have a desire to have such modern

production with a wide range of products. Biotechnologies – are the key areas of

modern economic development in the civilized countrie. Today, biotechnology is the

main driving force behind the development of energy, medicine and agriculture (crops,

livestock forage base).

It is proposed to build and put into operation ( in Turkey) where there are optimal

climatic parameters for the industrial cultivation of microalgae biotechnology complex.

The main products of this factory would range of bio-organic fertilizer and animal feed.

Industrial production of microalgae biomass and biomass products is highly profitable.

The main consumers are industries such as agriculture cultivation of vegetables and

fruits, as well as Pharmacology food industry, perfumery (cosmetics) and the agricultural

sector: poultry, livestock, fish farming, beekeeping.

Period of construction and installation of equipment

(including training of personnel) 6 months.

Beginning of production (realization) of products Q4 1st year of the project

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Production of bio-organic fertilizers

At the beginning of 2000 in Turkey, there were about 2,500 companies operating in the fertilizer market. About 40 companies are engaged in processing of

organic waste, followed by the production of fertilizers based on of vermicompost (biohumus). But none of them produces organic fertilizers with the active

components of algae biomass.

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We - a new factory in Turkey for the production of a whole range of bio-organic fertilizer. These fertilizers are produced by organic standards and comply

with European regulations for organic fertilizers. The product range of a new factory based on a European patent for the production of bio-organic fertilizer.

This technology will be applied for the first time in Turkey, and will provide an opportunity not only to deliver products to the domestic market, but also to

produce bio-organic fertilizers for export to Europe and the Persian Gulf.

Production of new generation of

organic fertilizers Currently, the EU allows the use of organic fertilizers based on vermicompost

(biohumus) farmers without restrictions. Biotechnological factory to produce new

generations of organic fertilizers based on vermicompost and biomass of

microalgae Chlorella intends to participate in the formation of new advanced

standards of agro-projects in Turkey. Range of ready and raw materials and final

products of organic fertilizers is extremely wide. Covering virtually all major areas

of agriculture. Industrial production of organic fertilizers is highly profitable. The

main consumers are industries such as agriculture Turkey production of tomatoes,

cucumbers, peppers, potatoes, grapes on organic and environmental standards

for delivery to the domestic market and for export.

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Production of micro and macro algae6

In the European Region are no large-capacity industrial production of biomass of

macro and micro-algae.

Therefore, not only the Turkish market, but also markets in Europe and Russia

may be provided in the case of realization of the project.

This creates a great perspective for the development of the biotechnology

business in Turkey.

Pilot plant and open cultivators for spirulina and chlorella, which can

accommodate 40 tons of suspension, designed and constructed by the initiators

of the project (location, Absheron, 20 km from Baku).

New animal feeds ALGAE ORGANIC

We have the know-how for the production of a new generation of bio-organic

feed, which contain vitamins and active biological substances. The unique

formulation of new bio-organic foods contain vitamin in their composition and

biomass of microalgae Chlorella basic protein of macroalgae. These mixed

fodders are in great demand in the Turkish market, and feed production

increases annually by 7%, with the highest demand observed by the sector of

feed for cattle, broiler production and fish farms.

Since the feed industry does not provide for the use of the technology of

forage grasses in raw form, because of the low processability, short shelf life,

difficulties with transportation and preservation, the question of using them as

a part of the liquid feed protein and vitamin based on food microalgae

Chlorella, becomes relevant . And the most affordable and cost-effective

technology is extrusion. Because in the process of extrusion, there is a loss of

moisture (in some cases up to 50% of the original), it becomes possible to

add in the mixed fodder ingredients with high humidity - liquid protein and

vitamin concentrates of algal (biomass) chlorella, spirulina.

Algae Organic has know-how that allows to produce mixed fodders

containing omega-3!

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Mixed fodder potential of Turkey

Feed production (million tonnes) prognosis in

Europe and Turkey

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Turkey offers a number of contributing factors to potential investors in the agri-food sector; support mechanism from the Turkish authorities includes

supportive legislation, the tax structure, competitive and inexpensive labor and encouraging investors. According to McKinsey and Co., Turkey offers

significant investment opportunities, especially in sub-processing of fruits and vegetables, animal feeds, animal husbandry, dairy and functional products,

fish farms and related (in particular: cold chain, greenhouses, irrigation and fertilizers).

One of the goals set for the agro-industrial sector in Turkey by 2023 - to enter the top

five world producers.

Turkey ambitious vision of the situation in 2023 provides for the following goals:

•Agricultural production overall gross amount of 150 billion US dollars

•Exports of agricultural products worth $ 40 billion. US dollars

•Getting into the top five leading countries in agricultural production

•The increase in irrigated area with 5.4 million. Ha to 8.5 million. Ha

•Superiority in the development of fisheries in comparison with Europe

"Conservation agriculture" i.e.. Organic time in the future could become the national

standard for Turkey.

Government agencies, the Agricultural Producers and Farmers, politicians, technical

experts and non-governmental organizations have come to the conclusion that it is

necessary to expand the use of innovative methods of farmers conservation

agriculture, which contributes to an increase in productivity, while protecting the

environment.

Algae Organic mixed fodder factory

We offer in our mixed fodders natural β-carotene

(provitamin A). As the demand for protein increases

worldwide, so does the search for sustainable, nutrient

dense feed sources and additives. Omega-3 rich algae

oil or whole algae containing Omega-3s can be used

as efficient and nutritious feed additives. The biomass

from algae processing can also be used as an

alternative high-grade protein source for aquaculture

and livestock feed.

Alge Organic fodder provides full development of the

animals, increasing their productivity while reducing

consumption of balanced complete feed

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Process incorporates all the necessary steps to obtain full fodder for all major groups of farm

animals. Factory provides the receipt, storage, supply to the shop and preparation of different

groups mixed fodder formulations that include natural vitamins, green biomass, high-quality

protein components dosage, mixing, packaging of finished products with precisely specified

characteristics.

Prices and market structure of mixed fodder in Turkey

The mixed fodders market structure Turkey market

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Mixed fodder industry dynamics

over the years in Turkey

In 2013, Turkey spent on the import of mixed fodders a record amount - $ 3 billion - according to the Association of producers of mixed fodders of the

country. Turkey annually increases the volume of imports of feed production by 5-10% due to rising demand from the animal husbandry. At the same time

Turkey itself can not meet the growing demand, and even more than that - can not hold current levels of production at the proper level.

Manufacturers Association of mixed fodders made a proposal to organize a comprehensive agricultural support to farmers who specialize in growing

forage crops. Turkey in 2013 reduced harvest in almost all the most important categories of forage crops due to a severe drought, which according to

preliminary estimates has all chances to repeat in 2014. Thus, the wheat crop is likely to fall by 14.3% compared to the 2013 level. As a result, according to

experts, in 2014 Turkey has increased its imports of mixed fodders more than 10%.

Growth of prices for fodder in Turkey

We offer in our mixed fodders natural β-carotene (provitamin A). In France, premixes for highly productive

cows that are at the peak of lactation, add β-carotene.

In our laboratory had been developed formulation of mixed fodders, feed mixes, vitamin and mineral

supplements for highly productive breeds of the main farm animals - cows, sheep, horses, buffaloes. For poultry,

especially chickens in the egg industry. For the industrial production of fish. For bees.

Specialists of Algae Organic developed premix

formulations for dairy cows taking into account the

particular mineral and vitamin content of local and

imported feed. It is possible to receive up to an additional

1.5 kg of milk per day.

12Know-how ALGAE ORGANIC

A special technology has been developed for

biotechnological complex in Turkey. The main FACTOR

for the project in Turkey is the presence of the

superproducer (seed-material) SPIRULINA,

CHLORELLA, DUNALIELLA, HAEMATOCOCCUS.

Developed regulations of the production (technology +

target formulation of products, more than 25 types of

items) which are KNOW-HOW.

Organic fertilizers of Algae Organic are intended to provide

almost all major areas of agriculture. Industrial production of

organic fertilizers is highly profitable. The main consumers are

Turkey agriculture industries, such as productions of tomatoes,

cucumbers, peppers, potatoes, grapes on organic and

environmental standards for delivery to the domestic market

and for export to Europe.

Organic feed (Spirulina) for bees

Only strong and healthy bees are able to collect honey. Bees need vitamins and proteins.

Our feeds for bees are the innovative biotechnological products which by their nature are protein-vitamin preparations based on microalgae

spirulina and natural bioorganic components:

natural eco-friendly product; provides a high level of immune system of bees;

helps digestion of bees; does not include any chemical or synthetic additives or preservatives;

increases resistance to diseases of bee colonies to 10 - 18%;

increases the hardiness of bee colonies by 50%;

increase egg production of queens by 40%; increases the life of bees up to 5 - 7 days!

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Turkey is geographically favorable for the development of the beekeeping industry. Good

climate promotes the development. Honey season begins in April- May. Basically, the owners

of apiaries roam the country from west to east. In Turkey there are about five thousand

melliferous plants, and some of them may not be found anywhere else.

More than 90% of the pine honey produced in the world is exacty from Turkey, and only

beekeepers from Mugla Province receive 75% of it. Muğla Province has played a leading

role in beekeeping in Turkey, the number of bee colonies that looked after by the beekeepers

in the province, is about 8% of the total in the country. In the province of Mugla beekeepers

receive 20% of the honey produced by Turkey.

Bees, the Millennium Challenge

The problem of mankind in the 21st century - the death of bees

The main world problem - the extinction of bees. We are talking about the mass exodus of workers from

the hives of bees. A phenomenon that was first described in 2006 and is now officially confirmed the

United Nations. "Colony collapse disorder" is characterized by the fact that one day the worker bees

"crazy" and massively permanently leave the hive. According to the World Wide Fund for bees, the

number of colonies in Europe has declined over the past 20 years. In the US, the scale of the disaster

is even greater: each winter in the country dies out up to 40% of bee colonies. Since 1961, the

population of American bees has been halved, and the density of insects per 1 ha field has fallen by

90%.

In Turkey it is not uncommon to have apiaries within a limited area gathered up to 10 thousand hives.

Such crowding in the history of beekeeping has never happened before. Not surprisingly, the

epidemic spreads with lightning speed.

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10-20% of bees die because of the uncontrolled use of

pesticides and herbicides.

As a result, in the USA yield crops pollinated by bees dropped

sharply - in the first place, this are fruit trees and shrubs (of 80

crops - from melons to cranberries). Most victims are

considered apples and almonds - in 2009-2012 due to the low

level of pollination farmers gleaning 30% yield of these crops.

In California, which accounts for 80% of all landings almond

farmers with the assistance of the Ministry of Agriculture in the

spring of each year hives with bees are imported from other

states.

The total damage from a deficit of bees in the USA amounts

to 5 billion dollars annually

Example to the world - New Zealand, where

the average performance of one bee

colonies can reach 500 kg of honey (for

comparison, in Europe is considered good

70 kg).

New Zealand - is the only country in the world

where in beekeeping it is completely forbidden

to use antibiotics. Infected hives (about 1% per

year) are simply burned, but due to high rates of

production and economy on the Vetpreparations

such losses are justified.

Turkey in the global industry of honeyThe historical center of the Turkish beekeeping is Anatoly. Judging by the archaeological site, the population of the region engaged in

beekeeping 9 thousand years ago. The first ever law on beekeeping was recorded four thousand years ago, at the Hittite clay tablet,

preserved to this day.

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In the Beekeepers Association of Turkey (APT) there are 79 regional associations

and 56 thousand. Members. All beekeepers registered as a joint project of the PLA

and the Ministry of Agriculture (Apiculture Registration System - ARS) and have the

appropriate certificates and private numbers. During the honey harvest 4.4 million

beekeepers migrate with their bees on various routes by up to 2 thousand

kilometers. Wintering bees are imported in the areas adjacent to the coast of the

Black Sea, Aegean and Mediterranean seas.

The number of bee colonies amounts to 5.9 million. Average

beekeeping farm has 113 bee colonies. Beekeepers must label their

hives approved types of codes. Increasing attention in recent years

on quality control of honey, ensure "transparency" (clarity,

accessibility of information) it moves all the way from producer to

consumer. Turkey has already moved to EU standards in the field of

packing and labeling of honey.

In recent years, Turkey produces 94 thousand. Tons of honey per year, and this indicator is ranked second in the world after China.

In early 2000, Turkey exported up to 12 thousand. Tons of honey per year in the

EU, the US and other countries. Later, however, exports fell sharply due to the

detection of the Turkish honey residues of antibiotics and other "contaminants". In

January-August 2014 the Turkish exports of honey to the United States amounted

to 1.1 thousand tons.

Environmental safety of the project

Algae Organic project is based on the principles of 100% introduction of ecological BAT. "Best available techniques“ - BAT means to achieve a high

level of environmental protection the most effective way. "Available" - ready-operating in factories and suitable for the intended production.

Technology - a set of tools to improve the environmental performance of production. Starting from the new equipment, new materials and finishing

techniques of management - all that helps to reduce waste and improve the methods of of their utilization, the amount of harmful emissions, improve

safety, reduce risk of accidents and more.

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ALGAE ORGANIC Enterprise of Green Economy

ECOLOGICAL CHARACTERISTICS OF THE PROJECT:

Algae Organic – during the production of valuable biological preparations and vitamins, food, organic feeds for agriculture and organic fertilizers provides:

1. Energy saving and ecological cleanliness;

2. High performance and quality;

3. low cost.

Microalgae biomass and vermicompost (biohumus) production is an environmentally friendly technology, and can be used for purification and recycling of

water. Biotechnological production can be located on the rocky, desert or salinized lands not suitable for traditional farming.

ALGAE ORGANIC - The main criteria of for project success

In Turkey, it will be the first company, that will produce organic food agriculture and bio-active organic fertilizers based on protein-vitamin biomass of macro and

micro-algae.

For this ALGAE ORGANIC has at its disposal:

1. Highly efficient strains of Arthrospira (Spirulina), Chlorella, Dunaliella, Haematococcus - which are the property of the initiators of the project;

2. Development of European Patent for a new generation of bio-organic fertilizer based on algal biomass and vermicompost;

3. Development of European Patent for bioorganic protein-vitamin feed for bees;

4. Highly qualified specialists (human capital) Experience (at the industrial level), innovative technologies and know-how;

5. Ability to export its products to Europe and the Persian region (UAE);

6. GMP Certification, which provides access to international markets, food production bases, is a huge advantage in the competitive struggle;

7. The high profitability, clean environmental technology and a potential annual production (business plan) in excess of $ 15 million.

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