Hydrodynamic milk biorizator –Safe treatment of milk at farms

by UMKO Ltd

Low-grade raw milk spoils quickly while transported from farms to dairies

PROBLEM

Raw milk “lives” 1 day. It spoils when transported to dairy factory

DAIRY FARM DAIRY FACTORYThe reasons for spoiling:

• Harmful microorganisms activity

• Dirty stables and other farm environment

• Heating while hours of transporting

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To restore milk especial processes needed:

• Pasteurization

• Sterilization

But… IT IS EXPENSIVE

NUTRIENTS TOTALLY DESTROYED

A cheap solution for milk grade raising with no heat treatment

SOLUTION

• harmful microorganisms and somatic cells destruction

• helminth eggs elimination

• other bacteria desinfection

• Increasing grade to maximum level

MECHANICAL & HYDRODYNAMICEFFECTS

NO EXPENSIVE HEAT TREATMENT NEEDED

Milk doesn’t spoil if its grade is high. Dairy factory doesn’t need to process milk

OPEX reduction

DAIRY FARMThe biorizator is established at a farm for:

DAIRY FACTORY

3

YOU CAN BUY FRESH MILK DIRECTLY FROM FARMS!

Biorizator is as easy as pump enables high-grade milk production at farm

Effective

Reduces bacterial contamination and the

number of somatic cells by 90%

Preserves nutrients and physical properties of milk

(protein, fat, carbohydrates)

No heat treatment needed

Has 0.5 atm pressure in output: totally replaces a

pump

Cheap

OPEX:

10 times lower

Payback period is ~6-10 months

Simple

Easy to install: replacing pump and connecting to

power grid. No additional place or equipment

required

Almost no maintainance

ADVANTAGES

4

110 kg weight80x50x70 cms

Heat treatment solutions are not effective, others are expensive or even dangerous

COMPETITORS

• Pasteurization and its sub-types

• Bactofugeurization

• Sterilization

• other ways

• Ultrasound processing

• Ultraviolet radiation

5-10 TIMES HIGHER

ENERGY CONSUMPTION

MILK IS NOT RAW. NUTRIENTS AND OTHER BENEFICIAL PROPERTIES

DESTROYED

VERY EXPENSIVE SOLUTIONS AND NOT YET TESTED IN INDUSTRY SCALE

NO EFFICIENCY GUARANTEED

BROUGHT RESULTS ARE MOST SIMILAR TO OUR SOLUTION

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Proto results already proved feasibility of technologyAdjustablevalues

Inputted milk Mode 1 (better productivity)

Mode 2 (milk is high-grade)

High-grade (TARGET)

Microbiological:

QMA&OAMO (CFU/cm3*105)

1,30 0,35 0,60 1,00

Somatic cells(CFU/cm3*105)

4,2 3,7 2,0 2,0

Physical & chemical:

Productivity m3/h

-0,90

(sufficient)0,45 -

Energy consumption

- 11 -

CURRENT STATUS

PROTOTYPE WILL BE FURTHER MODIFIED TO INCREASE ITS PRODUCTIVITY

GOST 4OC

6

Worldwide dairy farm equipment market is valuated in billions of dollars

• In 2011 ~715 mln tons of milk produced *

• GAGR ~1-3% *

• Worldwide market for dairy farms equipment in 2011 is ~5$ billion

• Economical effect ~20$ billion

MARKET

* Food and Agriculture Organization, FAO

COUNTRIES WITH MOST IMPRESSIVE DEMAND ON BIORIZATOR

PAKISTAN: 35mln tons/year

RUSSIA: 28mln tons/year

CHINA: 33mln tons/year

INDIA: 114mln tons/year

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Dairy farms produce high-grade milk at a reduced cost

BENEFITS

Implementing biorizator causes not significant amortization and OPEX increasing (~X cents/liter), but the price of milk grows much more significantly

PR

OFI

T, $

TIME

DAIRY FARM’S BIORIZATOR PAYBACK PERIOD IS ~6-10 MONTHS

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TARGET MARKET:

>4 tons/day production

Dairy factories direct supply

UMKO means wide experienced developers, MBAs and MIT students. Strong mix.

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TEAM

Sergei Sidorov, MA, Founder & CTOSergei graduated Gorky Polytechnic Institute in 1985. He has more than 20 years experience inhydrodynamics and full-scale production organization. Winner of competition among small businessentrepreneurs in the scientific and technical sphere under Russian Government. Serial inventor ofhydrodynamic technologies.

Sergei Tsarapkin, CEOEx-Director of business lines of baby food at Vimm-Bill-Dann (milk market leader company, acquiredby Pepsi-Co for $3,8bln), Chairman of the Board of Directors at poultry Mirnaya and farmNikonovskoe.

Daniel Shaposhnikov, Sales executiveGraduated State University - Higher School of Economics, then started to do startups actively. Built asales network in 20+ countries at AVKLab LLC. AVKLab has developed a device for detection of explosiveand flammable liquids inside sealed vessels "Lqtest”.

Maxim Beletskiy, СDOMaxim is currently graduating from Massachusetts Institute of Technology and has graduated fromTjumenskij Gosudarstvennyj Universitet. Vice Chairman, Oil & Gas at MIT Energy Club.

Revenue – $100M in year 5

-60

-40

-20

0

20

40

60

80

100

2011 2012 2013 2014 2015

Revenue

Costs

Profit

Acc. Profit

10

FINANCES

100M

Investment offer:

$ 3.000.000 to:-Modify and increase productivity-Develop an industrial model-Conduct market research-Establish a retail production

Proposed share: up to 40%

70M

$mln

years

Thank You for attention!

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UMKO deliver new paradigm in organic milk farming and production