Introducing MilkCoin: An ambitious agricultural project in the industrial hub of Central Russia

The state of food supply in Russia

Food imbalance is a growing global problem, with climate change and droughts affecting large parts of the African and Asian continents, directly leading to food crises such as in South Sudan and decades of malnutrition in South Asia.

In Russia, the struggling economy has to contend with food embargos and Western sanctions, with more than 51% of milk and dairy products imports under embargo. Before the embargos in 2014, Russia relied on more than 80% of its milk and dairy products from imports.

Despite a system of subsidies and direct investments of more than RUB 2.28 trillion (approximately EUR 30 billion) to the Russian agricultural and food sector, the country has failed to meet the demand for dairy and meat products, seed crops and animal feed.

As poverty increases, food shortage is becoming a more severe problem with each passing day. Even urban families are now starting to rely on food donations and food sharing programmes as more and more Russians share food to survive.

What is MilkCoin?

The MilkCoin project is an agricultural enterprise ICO. It is an extension of an existing Russian company, HSK, which has already been active in industrial agriculture for years, owning 3,500 hectares of land just 20km away from the administrative centre city Voronezh — the economic, cultural and industrial hub of Central Russia. Simply put, it is the agricultural capital of Euro-Russia.

Here, the company believes that its experience and potential makes it well-placed to create a niche in the commodity market, taking advantage of insufficient raw milk production in Russia and growing demand for local dairy and meat products. At the same time, the priority status of the project from the government (more details on the website) will help to reduce the tax base and expenses, making the project cost-efficient right after the first year of proper operation.

HSK has the firm support from the government, and has a solid business plan and financial model. It already owns all the land and infrastructure — these are all proven by legal documents openly available on the website. It has already invested some $10 million prior to launching the ICO.

Why MilkCoin?

At present, due to the economic situation in the country, it is almost impossible to obtain collateral-free project funding within the RF. Our loan application to the Russian Federation Central Bank was also rejected on grounds of insufficient collateral, as the regulations meant that our land or the inoperative buildings that we owned could not serve as collateral.

Unlike most ICOs, MilkCoin does not claim to provide the “blockchain” or “decentralised” solution to a problem (in this case, Russia’s food woes), nor does it seek to “disrupt” the agricultural sector in Russia.

MilkCoin and HSK simply recognise the business potential for an agricultural enterprise that will help alleviate food shortage, while ensuring a profitable operation.

MilkCoin is simply a tokenised vehicle for an expansion of the company’s existing activities. The ICO primarily seeks to raise monies through a public crowdsale of MilkCoin (MLCN) tokens necessary to fund clear objectives (with cost details available on website):

As is evident, the company has clear objectives for the funds, with a definite budget in place — it is not going to raise millions without a clear idea on what it needs those funds for!

The tokenised model also provides a clear way for investors to receive profits, based on a simple dividend structure, which will also include buy back options.

Learn more about MilkCoin

Having worked in the industry for years, we are very excited about the prospects of the MilkCoin ICO, which will launch on 15 November 2017. We invite you to follow us here on Medium for more daily insight into the project.

You can also read more, ask questions or join the discussions on the following channels:

1. Website: https://milkcoin.io/en/

2. Whitepaper: https://milkcoin.io/en/Whitepaper-EN.pdf

3. Facebook: https://www.facebook.com/MilkCoin

4. Twitter: https://twitter.com/milkcoinico?lang=en

5. Bitcointalk: https://bitcointalk.org/index.php?topic=2286652.0

6. Telegram: https://t.me/joinchat/D3ajrRCxVZ5vnVw-QvzSVg

7. Bounties: https://bitcointalk.org/index.php?topic=2286798

Participate in the largest real business Russian ICO at MilkCoin!