May 3, 2013
Ukraine expects feed production to rise
Ukraine''s animal feedproduction is expected to grow in tandem with the growth of the country''s poultry meat and pork industries, which grew tremendously over the last decade and will continue to grow.
By the end of 2012, Ukraine had about 120 companies specialised in animal feed production, of which 40-45 are fully independent, the remainder are part of vertically integrated companies in the poultry or pork industries. About 65% of premixes and additives are being imported while the total market is growing, as poultry and pig industries continue to grow.
The pork sector is responsible for about 70% share of the animal feed market. Total production capacity is estimated to be 12-15 million tonnes per year- although capacity is only at half-strength at the moment.
Grains are Ukraine''s most important compound feed component, comprising 70% of the total volume, followed by oil seeds at about 20%. The feed is sold to the poultry sectors (50%), pigs (20%) and others including sheep, goats, and aquaculture (30%).
Currently, French, Austrian and Dutch companies, producing concentrates and additives for animal feed production dominate the Ukrainian market, including La Roche, Aventis and Rh？′ne-Poulenc (France) and Nutrifeed, Agrifirm/Nuscience CHV Korm (the Netherlands).
Cargill will build a compound feed factory in Kutsivka, in the Kirovohrad region, with an annual capacity of 50,000 tonnes per yearat an estimated cost of US$7 million. Other foreign companies have also displayed interest to invest in Ukraine- among them companies from France, Germany, Czech Republic and Thailand.
The majority of production facilities in Russia were built between 1970 and 1980, and both plants and technology require upgrades. These former state-owned facilities not only need the equipment replaced, but also the reconstruction of buildings and infrastructure.
Foreign agribusiness companies may see opportunities in supplying modern technology in production facilities. This could refer to machinery, but also to consultancy management and retail.