Ukraine pet food producer poised to export pet food from EU

26-08-2020 | |
Photo: Shutterstock
Photo: Shutterstock

Ukraine’s biggest pet food producer Kormotech plans to open a trade house in Lithuania to export its products, says general director Rostyslav Vovk.

During an online conference in late July, Vovk said that this would allow Kormotech to export its products to the neighbouring Baltic countries, Scandinavia, the US, and Canada. The company already has a long list of international customers and supplies pet food to 31 countries, including the United States, the United Kingdom, Germany, France, Finland, Sweden, and the Netherlands.

Lithuania paves way for further expansion

Lithuania brings a geographical advantage which paves the way for further expansion worldwide, said Vovk. The company is set to gradually ramp up the production capacity of its new factory in Lithuania, from 10,000 tonnes in 2020 to 20,000 tonnes in 2022 and possibly to 30,000 tonnes in 2024.

The company considers further large-scale expansion plans

Kormotech is considering purchasing a competitive pet food producer or establishing a new production facility outside Ukraine, Vovk said. Additionally, the company has invested € 2 million in increasing dry pet food production in Ukraine, and is planning to invest a further € 10 million in the Ukraine division by 2022 in order to further boost the production of wet pet food, Vovk added. Kormotech launched the wet pet food plant in Lithuania’s Kėdainiai Free Economic Zone in June 2020. The total investment was € 15 million. The European Bank for Reconstruction and Development (EBRD) provided a € 10 million loan, to “support the first cross-border investment of the Ukrainian company.”

Plans to be included in top 50 players in global pet food

Kormotech aims to be among the top 50 players in the global pet food industry by 2023. Vovk said that in order to reach this goal, the company plans to increase its revenue and capitalisation 3 fold. In 2018, Kormotech manufactured 37,000 tonnes of pet food, according to Vovk. In monetary terms, the sales jumped by 33%, reaching UAH1.3bn (US$ 51m). Kormotech accounted for 34% of pet food sales in Ukraine in physical terms and for 21% in monetary terms.

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The company has repeatedly expressed confidence in the good prospects of Ukraine’s pet food market, where sales have been steadily increasing over the course of the past few years. It is believed that an increasing number of pet food owners are switching to commercial pet food, and this trend is gaining momentum.

Kormotech will strengthen the pet food manufacturing industry in Lithuania, Mantas Katinas, General Manager of Invest Lithuania said in a statement. The company’s product portfolio includes over 500 SKUs sold under 5 brands. Kormotech also produces a range of white-label brands for clients around the world.

Vladislav Vorotnikov Eastern European correspondent