Kormotech, Ukraine’s largest producer of cat and dog food, has started exporting its products to the Korean market, the company’s press service told Interfax-Ukraine.
As specified in the report, since June 17, Kormotech’s Optimeal and Club 4 Paws brands have been presented on 12 Korean specialized Internet sites.
South Korea’s pet food market ranks third among East Asian countries, after China and Japan in East Asia. In terms of money, it is three times larger than the Ukrainian market. The share of sales of specialized food for cats and dogs is 50% to 50%.
“The South Korean market is unique in that 67% of petfood sales are made through online channels. This is the highest figure in the world, according to Euromonitor reports. Therefore, one of the challenges in cooperation with South Korea is to gain experience in building and developing online sales in the premium and super premium market,” said Eduard Babenko, Head of Strategic Business Unit Ukraine, Moldova and Southeast Asia at Kormotech.
Kormotech started negotiations with a distributor, Korean company Careside co. Ltd last year, and a cooperation agreement was signed in the fall. At the end of May 2024, the distributor received the first two containers of dry and wet food Optimeal and Club 4 Paws, which is about 24 tons of products.
You Young Kook, CEO of the Korean company Careside co. Ltd. expects that experience in international markets and resources will help the Ukrainian manufacturer to succeed in the South Korean market.
“Kormotech pet food contains high quality ingredients and undergoes rigorous quality control. This is a significant advantage, especially for demanding Korean pet owners. It is impressive to see how the company is constantly deepening its expertise in understanding the approaches to pet food formulation and their impact on the health and quality of life of pets. And most importantly, the efforts it makes to develop a culture of care and companionship with pets,” said You Young Kook.
According to Vladyslav Mazurkevych, Kormotech’s Asia Export Market Development Manager, super premium and premium cat and dog food lines are already available on the following 12 e-commerce sites in South Korea: Naver, Coupang, TM, WM, G-market, Auction, 11th St., Lotte On, Interpark, SSG, CJ on style, GS Shop.
“By the end of this year, we want to start cooperation with pet stores and veterinary clinics so that customers can look at the product, inspect it, and feel it,” Mazurkevych explained.
In 2023, Kormotech’s turnover increased by 22.5% to $152 million from $124 million in 2022. The ratio of sales abroad and in Ukraine in tons is now 31% to 69%, respectively (in 2022, it was 28% abroad and 72% in Ukraine).
As of June 26, Ukraine exported 50.305 mln tonnes of grains and pulses since the beginning of 2023-2024 marketing year (July-June), of which 3.373 mln tonnes were shipped in June, the Ministry of Agrarian Policy and Food reported, citing the data of the State Customs Service.
According to the report, since the beginning of the current season, Ukraine has exported 18.268 million tons of wheat (831 thousand tons in June), 2.475 million tons of barley (89 thousand tons), 1.6 thousand tons of rye, and 29.02 million tons of corn (2.44 million tons).
Total exports of Ukrainian flour are estimated at 97.3 thousand tons (4.8 thousand tons in June), including 91.9 thousand tons of wheat (4.7 thousand tons in June).
As of June 22, Ukraine exported 2.2 million tons of corn, indicating a high level of activity in the market, according to the analytical cooperative “Start”, created within the framework of the All-Ukrainian Agrarian Council (AAC).
Analysts predict that June will be the most productive month for exports, but in July-August, the figures may decline significantly as the market switches to a new harvest.
“The global situation was unfavorable for Ukrainian corn. Although it is still in demand on the Italian market, its competitiveness is decreasing due to the pricing policy. For example, Argentine corn is sold at $212-213/ton on the Italian market, which is about the same level as Ukrainian corn. At the same time, Argentine corn is several dollars cheaper in Spain, making it more attractive to buyers. Under such conditions, Ukrainian traders are not in a hurry to sell their existing stocks, as their volume is limited,” the experts said.
According to their information, the corn market is entering the off-season, and prices are expected to stabilize in the coming weeks.
“If there is demand, the conditional prices for corn may fluctuate within $172-174 per ton. On average, on the CPT basis, the price will be around $170/ton in the coming weeks,” Pusk summarized.
In the 2024-2025 marketing year (MY, September 2024-August 2025), Ukraine will be able to export more than 60% of its agricultural products despite the constant shelling of critical infrastructure and problems with electricity, said Acting Minister of Agrarian Policy and Food Taras Vysotskyi during a national telethon.
“We remain an export-oriented country in terms of agriculture. Most of the products we grow will be exported. Most likely, it will be more than 60%,” he said.
Vysotsky called safe and affordable logistics the main component of agricultural exports during a full-scale war.
“The military has done a lot here. But again, we see that the enemy does not stop, constantly shelling, in particular, the southern regions. We will actively work to ensure this logistics and the necessary systematic access of critical infrastructure to energy,” he emphasized.
The Acting Minister also reminded that many export operations, such as unloading, sorting, and distribution, require electricity.
“There are relevant government decisions that guarantee that the infrastructure critical to the agricultural sector can have access to uninterrupted electricity supply. Basic facilities have been included in the list. Everything is being done to ensure that these two challenges do not stop our production and exports,” summarized the head of the Ministry of Agrarian Policy.
Ukraine, despite low prices on the global market, increased exports of most dairy products in May, both compared to April this year and compared to May 2023, Infagro, an industry information and analytical agency, reported.
According to experts, the reason for this is a significant increase in processing volumes against the backdrop of much weaker domestic sales growth than last year. Among the main commodity items, Ukraine exports the least amount of butter and cheese products. Exports of spreads, casein, and whey powder increased significantly compared to May last year.
At the same time, imports of dairy products (butter, rennet cheese, processed cheese) declined in May. Contrary to expectations, imports of cheese stopped growing. This is due to the upward trend in prices for milk and dairy products in Europe and, in particular, in Poland, the main supplier of this product to Ukraine, analysts explained.
“In June, exports of dairy products will increase further, while imports are likely to decline,” Infagro predicts.
As reported, in January-March 2024, Ukraine increased exports of dairy products by more than 40%. At the same time, imports decreased, but analysts urge domestic producers to pursue a reasonable pricing policy in order not to lose their positions in the domestic market.
As of June 21, 2023-2024 marketing year (July-June), Ukraine exported 49.54 million tons of grains and pulses, up 2.3% year-on-year, according to the website of the Ministry of Agrarian Policy and Food.
According to the report, in June, exports of grains and pulses amounted to 2.608 million tons, while a year earlier this figure was recorded at 3.087 million tons.
In terms of crops, since the beginning of the current season, Ukraine has exported 18.123 mln tonnes of wheat (686 thsd tonnes in June), 2.461 mln tonnes of barley (75 thsd tonnes), 1.6 thsd tonnes of rye (0), and 28.416 mln tonnes of corn (1.366 mln tonnes).
Total exports of Ukrainian flour as of June 21 are estimated at 96.7 thousand tons, which is 35.9% less than a year earlier. In June, Ukraine supplied 4.2 thsd tonnes to foreign markets. At the same time, in 2023-2024 MY Ukraine exported 91.3 thsd tonnes of wheat flour, and in June – 4.1 thsd tonnes.
