2020 became a year of challenges for various businesses across the world. However, Ukrainian market of cat and dog food has grown by 18.2% in value and by 28.2% in volume.
Kormotech, a leading Ukrainian producer, keeps developing its export markets. During the last year, the company struck deals with partners in ten new countries: Norway, Denmark, Spain, Italy, Malta, Armenia, Bahrein, Jordan, Bosnia and Herzegovina, and Serbia. Now Ukrainian cat and dog food is exported to 37 countries. The annual export value amounts to 15.4% in the company’s total sales, which is 2.9% more compared to 2019.
Kormotech’s main achievement last year was the opening of its own factory in Lithuania. COVID-19 did not prevent it from building a cutting-edge automated production facility in less than a year.
To establish a new production platform, the company attracted additional financing from EBRD in the amount of 10 million EUR. Due to lockdown restrictions, the new production line set upAs well as its official opening in July 2020 all took place remotely. Having a production facility in Lithuania will allow the company to produce 20 thousand tons of wet food per year. This brings Kormotech one step closer to its aim of breaking into the top 50 players of global pet food industry by 2023.
“To achieve Kormotech’s vision, we need to increase volumes by about 20 thousand tons every year. That is why our own production facility in Lithuania is not the end. In 2020, we invested 6 million EUR in a new line for dry food production in Ukraine. After planned expansion in 2021 we’ll be able to offer our partners up to 44 thousand tons of ready-made meals for cats and dogs, which is an increase of 29,6 % compared to last year,” says Rostyslav Vovk, CEO at Kormotech.
In 2020, Kormotech sold 53.5 tons of cat and dog food. The company is an industry leader in Ukraine with 160 new jobs created last year, which is 20.5% more than before 2019. This year, the company plans to hire 103 more employees: 82 in Ukraine and 21 in Lithuania.
By Lindsay Beaton
As work continues on creating a new nutrition label that focuses on simplifying information for consumers, challenges remain.
By Tang Yu