17:26 26.05.2022

Ukrainian producers of animal products have joined forces with Pet Alliance to increase exports

4 min read

Ukrainian producers of animal products have joined forces with Pet Alliance to increase exports, according to the CEO of the Animal ID Corporation, and one of the initiators of Pet Alliance, Vasyl Dub, told Interfax-Ukraine.

Vasyl Dub said, “In the conditions of war, it is especially important not only to maintain, but also to strengthen the economic capacity of our country in all industries. In particular, in the segment of pet products there are a number of Ukrainian brands that operate successfully in international markets to help businesses expand their trade internationally”.

Today, the Pet Alliance includes eight companies: Kormotech (Optimeal, CLUB 4 PAWS), COLLAR Company, Animal ID, Harley & Cho, Bark & Go, Mr. Snoopy, VETonline.pro and SPOKK. 

The association continues to accept membership applications (https://ukrpetalliance.com/members-en/).

The expert also said that the industry of pet products is actively growing worldwide. According to research by the American Pet Products Association (APPA), in 2021 sales reached $261 billion - the highest in the development of the segment. In the United States alone, the market was $123.6 billion, with about 40% of sales being pet food.

In Ukraine, this segment has also been actively developing in recent years. But, like other areas of the economy, the industry is undergoing significant tests during the war, so the expansion of exports can be a vector of development.

For example, Animal ID began operating in the US market in late 2019. "The United States is our main strategic export market. In 2020, the share of exports to this country was 10% of our products. In 2021, we grew 3.5 times in revenue, and the share of exports reached 50%. Our goal this year is to grow in exports by 20% more", - said Dub.

The leader of the Ukrainian market, which produces innovative products for pets, COLLAR (collarglobal.com) has exported 120 million products in 2021, the head of the company's marketing department Konstantin Bondarenko told the agency.

Ukrainian manufacturer of cat and dog food Kormotech (kormotech.com) exports to 35 countries.

"We export 23% of everything Kormotech offers. The share of exports in money in 2021 was 19.4%, which, in turn, is 4% more than in 2020", said Rostyslav Vovk, CEO of Kormotech.

According to him, five countries are strategic for exports (the USA, Lithuania, Latvia, Romania, Moldova). The company's products under its own brands and private label can be purchased in 35 countries.

"An important role in the development on the international arena was played by our own production facilities in Lithuania and product production at the partners' sites. With the beginning of the war - even more so. We are developing directions even more intensively, continuing to invest in brands and strengthen communication with all stakeholders".

He is convinced that the combination of strong Ukrainian brands in the association means strengthening in the international arena.

In a comment to the agency, Dub stressed that as part of the alliance, companies with extensive experience will help beginners in the entire chain: advise on markets, find and develop a network of distributors, conduct marketing campaigns.

"The big ones will pull the medium ones, the medium ones small companies. At the national level, these actions help to establish effective foreign trade and contribute to the productive work of the whole economy", he said.

Dub sees exhibition activity as one of the vectors of Pet Alliance activity.

"As a union, we were presented for the first time at the Global Pet EXPO 2022 in Orlando (USA) on March 24. The event is one of the biggest in the pet industry, attended by more than 15,000 people each year. We are preparing for exhibitions in Europe in the near future", he said.

Pet Alliance was established with the financial and informational support of the USAID Competitive Economy Program. The involvement of such a partner has increased the level of trust in Ukrainian companies.

"Our goal is to support small and medium-sized businesses in Ukraine to increase competitiveness in the domestic market and abroad. Such support is extremely necessary, especially now, during the war. We have been working with Ukrainian companies and enterprises, including the pet industry, for the last three years; we know their level and are confident that together they can maintain their operational capability and achieve success", said Olesya Zaluska, Deputy Chief of Party, USAID Competitive Economy Program, Ukraine.