.De Heus subsidiary Koudijs has opened a new feed additive plant in Khylchytsi in the Lviv region, Ukraine for €7.8 million (US$9.2 million), the company said in a statement.
Koudijs is expected to manufacture 1,500 tonnes of various vitamin and mineral supplements for agricultural animals per month.
De Heus said the plant was designed “to optimally serve farmers and integrators to produce good quality products.”
“We have automated our production processes and operate with utmost care for the environment. The technology prevents emissions to land, water, and air,” Fedir Shopsky, General Director of Koudijs Ukraine, was quoted as saying in the statement.
“I have great confidence that through the delivery of products from this premix factory, in combination with the elaborate knowledge and services offered by our specialists, we will take the next step together to further build on the potential of the sizeable Ukrainian market,” Koen de Heus, CEO De Heus Animal Nutrition said during the solemn ceremony.
Ukraine’s Ministry of Agricultural Policy and Food said the new plant is 8 floors and utilises automated control systems. The plant is described as state-of-the-art, comprising specialised equipment from the world’s leading companies, automated control systems, an automatic packaging line, and robotic technology.
Ukraine produces around 6 million tonnes of feed per year. Over the past several years, the demand for pig and cattle feed in the country was hampered by problems in the pork, milk, and beef industries. However, the demand for poultry feed is on the rise. Which has been driven by Ukraine’s large agricultural holdings – MHP and Avangard, who put a lot of effort into expanding export supplies.
De Heus is the first big international player to open a feed additive plant in Ukraine. However, this is not the first investment project for the company in this country. In May of 2021, the Ukraine Antimonopoly Committee approved the deal of acquiring local feed premixes producer D-Mix by De Heus, which was inked in 2019.
D-Mix was a family-owned business in Western Ukraine focused on the production of concentrates, speciality feeds, and complete feeds, mainly for poultry and pigs. The company had a production capacity of 80,000 tonnes and crushed 50,000 tonnes of sunflower seeds and soybeans per year. Following the acquisition, De Heus promised to build a premix plant in Ukraine.