Tuesday, September 16 , 2014
By the end of 2014 Ukraine is likely
to reduce the sales of petfood while the local market already lost much of its growth
prospects because of the ongoing political crisis and military conflict in the
east of the country, according to local experts and market players.
In particular, Ukrainian
analytical agency Retail Studio with reference to foreign experts has noted
that the market for petfood production in the country in the end of 2013 was
considered among the top ten most promising in the world. Average annual growth
rate in the period 2009–2012 was 15–20%. Currently, however, the industry is
facing serious challenges. "Indeed, the demand that was showing stable
growth over the last five years, around March–April this year, dropped, and
still remains unstable,” said Anton Greenfeld, manager of Nora Company, local distributor
of animal and veterinary products. “Today, many experts predict that this year
sales of food for cats and dogs will decrease for the year in general by 10%, mostly
due to a fall in purchasing power of the population.”
Currently, the Ukrainian
feed market for dogs and cats is 88,000 metric tons. In monetary terms at
wholesale prices (import and producers’ prices) its size is US$130 million,
while in retail prices it’s about US$240 million, according to official country
statics. The market is dominated by international teams of Mars (Pedigree
Petfoods, Royal Cannin, Nutro), which occupies 70% of the market, and Nestle
(Carnation, Spillers Petfoods, Ralston Purina), with a 15% share of the market.
Representatives of the
largest companies in general admit that production probably will fall, but do
not consider the situation critical. In particular, according to the
spokespersons of Mars in Ukraine, the sales volume is likely to drop in the premium
segment of the market, while in the economy segment they may even grow. This is
connected primarily with the fall of exchange rate of hrivnia, which increased
costs of all imported products in the country.
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