PET FOOD ▶▶▶
Kormotech’s pet food is opening up new markets
Kormotech, a family-owned pet food manufacturer in Ukraine, is coming through the pandemic with capacity expansion and growing export sales. The company is expected to triple its revenue in the next few years, harbouring plans to eventually enter the list of the world’s largest pet food producers.
BY VLADISLAV VOROTNIKOV, CORRESPONDENT I
This year the company
opened its first foreign facility in Lithuania.
n 2019, Kormotech was ranked 3rd in the Ukrainian mar- ket in monetary terms and a leader in volume. Also, in 2019 Kormotech was ranked third most fast-growing company in the world (revenue) according to Petfood In-
dustry Magazine. This year the company has transformed into a full-fledged multinational business structure by opening its first foreign facility in Lithuania while continuing to strength- en positions on the domestic market. “Despite the lockdown, we launched a new facility in Lithuania, installing equipment online. We also increased our presence and sales in Ukraine and 12 new countries, and our R&D and marketing team con- tinued working on product development,” said Nazar Shchyrba, Export Director at Kormotech. During the first nine
months of 2020, Kormotech’s share of the Ukrainian pet food market climbed by 5% compared to the same period in the previous year, reaching a record 33%. “The Covid-19 pandem- ic also did not prevent Kormotech from expanding its export sales. Norway, Italy, Spain, Jordan, Denmark, and Malta are among new export destinations,” Shchyrba said. “Export sales have doubled in volume and cash compared to 2019. The most significant growth has been in Belarus and Romania,” Shchyrba said. Against this background, the company pro- jects growth in revenue of more than 15% by the end of 2020 compared to the previous year. Kormotech traces its history back to 2003, when feed pro- duction technology was developed in cooperation with Pet Food Worldwide Development, USA, and the first diets were launched in collaboration with Pet Food Specialties, Poland. At that time, Ukraine, just like all other post-Soviet space countries, was mainly importing pet food. The first dry pet food plant was launched in 2005, and it took the company only four years to became a leader of Ukraine’s pet food market.
Growth on home ground Although Kormotech is increasingly looking beyond its bor- ders, the domestic US$ 40 million market also still has some- thing to offer to the company. “Since 2015, the Ukrainian pet food market has been growing by 15% annually. We predict a slowing of growth in 2020. But it will still grow by about 10%: pet food isn’t a product that can easily be re- placed,” Shchyrba said. “We observe growth of Kormotech sales in each segment after nine months of 2020 with a 6.7% growth in the standard segment, a 2% in the premium segment, and 0.7% in the super-premium segment in
28 ▶ ALL ABOUT FEED | Volume 28, No. 10, 2020
PHOTO: KORMOTECH
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