Kormotech sold 50,200 tonnes of products in Ukraine for UAH 3.144 billion in 2022, Eduard Babenko, head of the Ukraine-East Asia strategic business area of Kormotech, said in an interview with Interfax-Ukraine.

"In the Ukrainian market in 2022, we grew by almost 30% in monetary terms: sales amounted to 50,200 tonnes and UAH 3.144 billion. In general, the company grew by 12% in 2022, and if measured in foreign currency, our turnover amounted to $124 million. Compared to last year, the growth dynamics slowed down, but the circumstances in which we grew changed," Babenko said.

He noted that in 2021 the volume of the animal feed market in Ukraine was estimated at UAH 18.6 billion, in 2022 it fell by 1.5%. However, in 2023, according to the company's analysts, an increase of up to 5-7% is expected.

Babenko said that in 2022, the company's three factories in Lviv and Kedainiai (Lithuania) produced about 60,000 tonnes of animal feed, in particular, 33,200 tonnes of dry granules and 26,600 tonnes of wet pouches.

"Taking into account outsourced production, we sold almost 70,000 tonnes of feed in Ukraine and on export markets. Now we are actively filling warehouses in order to form a safe supply for two months in Ukraine and in our foreign warehouses," he said.

At the same time, the expert noted that in 2022 two negative trends were recorded in Ukraine, indicating a slowdown in the development of the pet food market: a sharp decrease in the number of dog kennels and animal matings in the first half of the year, as well as a decrease in the number of visitors to veterinary clinics.

As for the structure of sales, in Ukraine, due to the destruction of infrastructure and store chains, the online segment has increased. "Compared to 2021, they have grown by about 50%. In general, Internet channels are growing faster year by year than physical ones, and this trend has continued," Babenko said.

At the same time, amid a decrease in sales of premium and super premium feed in Ukraine as a whole, these Kormotech's segments have grown, Babenko stressed.

"We are good at working with a complex product and understanding its value. After all, premium rations are about longevity, health and beauty of a pet," he commented.

According to him, in the regional context in retail outlets, the dynamics was proportional to the danger: the farther from the war, the higher the demand. In the country as a whole, sales of Kormotech brands in supermarket chains in 2022 fell by only 7% in tonnes.

The largest growth was observed in the central region (up by 86%), as well as in the western region (up by 21%). In the south, sales in local markets increased by 3%, while in the east they decreased by 11%.

Babenko recalled that Kormotech produces and supplies up to 30% of the total volume of PL (private brands) of Ukrainian chains.

Kormotech LLC is a leading Ukrainian manufacturer of food for cats and dogs. The company exports products to 33 countries, including the USA, UK, Germany, France, Finland, Sweden, the Netherlands, Spain, Italy, Poland, Turkey and Chile.

With the participation of CFI, Agence française de développement médias, as part of the Hub Bucharest Project with the support of the French Ministry of Foreign Affairs