Business news from Ukraine

Business news from Ukraine

Ukrainian company Kormotech invests EUR14 mln to expand production of cat and dog food

Ukrainian cat and dog food manufacturer Kormotech is investing EUR14 million to expand its production in Ukraine and Lithuania during 2022-2023, the company’s press service told Interfax-Ukraine.
Reportedly, some of the projects are already being implemented and some are planned to be implemented by the end of 2023. Investments in the Lithuanian plant in 2022-2023 will total EUR 5.4 million, and in Ukrainian plants for wet and dry feed by the end of this year will be about EUR 8.5 million.
The wet fodder production capacity at the Kedainiai Kormotech plant in Lithuania is expected to increase by 25%, and at the Ukrainian plant by 65%. At the Lithuanian plant, the company has integrated new technology for the production of wet feed in the premium and super-premium segments.
In Ukraine, the company is expanding the capacity of its wet feed factory, modernizing 50% of its existing equipment and automating manual processes, the company said. In addition, it plans to modernize its dry feed plant in 2023.
According to the press release, Kormotech continues to improve the efficiency of existing production and business processes.
According to the press release, last year it began working on a “zero losses” program to reduce all irreversible losses at the plant to zero or to recycle them. A complete energy audit of the production in the areas of heat recovery, thermal insulation and the system of monitoring of energy consumers in the processes was carried out. Kormotech began implementing the SAP ERP system in the cloud, which will help focus on innovation, reduce operating costs and improve process efficiency.
Kormotech’s 2022 results show a 12 percent increase in turnover to $124 million from $110 million in 2021. The goal in 2023 is to reach a turnover figure of $150 million and increase the export/Ukraine ratio to 30%/70% from 24%/76% previously through synchronous growth of markets, the report said.
LLC “Kormotech” is the leading Ukrainian manufacturer of food for cats and dogs, occupies the 51st position in the world ranking of petfood producers and the seventh in the ranking of the most dynamic petfood brands. Kormotech sells its own brands and partner brands in 40 countries.
The company has two dry and wet food plants in the Lviv region and a plant in Lithuania. The company produces products for cats and dogs under its own brands Optimeal, CLUB 4 PAWS (TM “Meow!” and “Woof!”) and in private label direction. The assortment has more than 650 items.
The ultimate beneficiaries of Kormotech are Elena and Rostislav Vovk.

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Romania to Limit Payments for Housing and Food for Ukrainian Refugees

Romanian authorities are introducing new rules for housing and food subsidies for Ukrainian refugees starting from May: now the money will be received only by those who have found a job, the EFE news agency reported.
In addition, those citizens of Ukraine whose children go to school in Romania will be able to count on the subsidies.
Under the new rules, the state will no longer pay housing costs to landlords who house refugees, and tenants will receive subsidies directly. Refugee camps will receive subsidies from the state as before. Details of these rules will be made public at a later date, the agency notes.
EFE explains that Bucharest has taken such measures against the background of a significant labor shortage in Romania. More than 3.8 million Ukrainians arrived in the country since February 2022, but the vast majority went to other European countries. According to Romanian authorities, about 110,000 Ukrainian refugees currently remain in the country, but less than 10 percent of them have a work contract.

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Four dry cargo ships will deliver Ukrainian food to China, Turkey, Spain and Belgium

Four dry-cargo ships with more than 250,000 tons of food left Ukrainian ports on Wednesday, the Joint Coordination Center (JCC) reports.
According to JCC the Laskaro S vessel will deliver 62 088 tons of corn to Belgium, the Astra Perseus dry-cargo carrier will carry 55 thousand tons of corn to Spain. Vessel Geneve is going to Turkey with 32 thousand tons of wheat and 33 thousand tons of barley. Andonis dry-cargo carrier set a course for China, carrying 48 502 tons of corn and 18.7 thousand tons of sunflower meal.
It is noted that four more dry-cargo ships are heading for the ports of Ukraine.
“The total tonnage of grain and other agricultural products exported from the three Ukrainian ports is 22,747,287 tons. The total number of agreed ship movements is 1,543,” the report said.
SKC reported that “100 applications for participation in the initiative have been submitted.”

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“Grain deal” has already exported more than 14 million tons of food

A dry cargo ship with more than 32,000 tons of corn left the Ukrainian port on Friday, the Joint Coordination Center (JCC) reported.
“On December 16, the vessel Almeray left the port of Odessa, it is carrying a total of 32.4 thousand tons of corn to Libya as part of the Black Sea grain initiative,” the report said.
There are two dry-cargo ships headed for Ukrainian ports, which on December 16 passed through the maritime humanitarian corridor.
“As of December 16, the total tonnage of grain and other agricultural products exported from the three Ukrainian ports is 14,023,297 tons. A total of 1,112 vessels were allowed to move so far: 556 to arrive at Ukrainian ports and 556 to leave them,” summarized the JCC.
It is noted that from December 1 to 15, more than 1.6 million tons of Ukrainian food products were shipped to other countries.
As many as 13 million tons were shipped on December 5, 12 million tons on November 26, 11 million tons on November 16, 10 million tons on November 3, 9 million tons on October 28, 8 million tons on October 21, 7 million tons on October 12, 6 million tons on October 5 and 5 million tons on September 28.

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Ukraine exported 10 million tons of food within “grain initiative”

Another seven ships with 290 thousand tons of agricultural products for countries, Asia and Europe left the Ukrainian ports of Chornomorsk, Odessa and Pivdenny on Thursday, the Ministry of Infrastructure of Ukraine reports.
“In particular, among them are Esentepe with 29,000 tons of sunflower seeds for Oman and Key Knight with 67,000 tons of corn for China,” the agency said on its Facebook page.
In total, since the launch of the first vessel with Ukrainian food, 10 million tons of agricultural products have been exported, and the number of ships that left Ukrainian ports for the countries of Asia, Europe and Africa with food has reached 430.
As reported, in Istanbul on July 22, with the participation of the UN, Ukraine, Turkey and Russia, two documents were signed on the creation, first, for a period of 120 days, of a corridor for the export of grain from three Ukrainian ports: Chernomorskaya, Odessa and Yuzhny. Ukraine set as its goal to export 3 million tons of agricultural products per month as part of the initiative.
After Russia announced on October 29 that it was withdrawing from the “grain initiative” because of an alleged Ukrainian attack on ships in Sevastopol, exports were interrupted for several days, but on October 2 the barriers were finally lifted.

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Ukraine exports 7 mln tonnes of food from ports

Another seven ships with 177,500 tonnes of foodstuffs left the Ukrainian ports of Odesa, Pivdenny and Chornomorsk on Tuesday for the countries of Africa, Asia and Europe, the Ministry of Infrastructure of Ukraine has reported.
“In particular, among the ships leaving the Ukrainian ports is the bulk carrier Sea Pearl J, which will deliver 30,000 tonnes of wheat to Tunisia,” the ministry said on its Facebook page.
Five ships were sent from the port of Chornomorsk: Hazar S, Sea Pearl J, Ince Evrenye, Milina, Magnum Power, while Lucky Trader and Erdek departed from Odesa and Pivdenny, respectively.
In general, since the launch of the first ship with Ukrainian food, 7 million tonnes of foodstuffs have been exported, and the number of ships with food sent to Asia, Europe and Africa has reached 316.

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