After two months of wartime, local pet industry concerns seek for solutions of dealing with pet food production, sale and supply.
“We need to plan, even in these kinds of circumstances,” highlights Kormotech CEO Rostyslav Vovk.
“We understand that the Ukrainian market will decrease by a minimum of 30% in 2022 and we need to sell our products somewhere else,” forecasts Vovk in an interview with GlobalPETS.
In 2021, Kormotech reached a total revenue of $110 million (€102.5M) that intended to increase by more than 40% in this year. Because of the current situation though, the company hopes on achieving the same volume as in 2021.
Vovk stated: “We can do even better than last year, except if rockets impact on our installations.”
This month, the total revenue of producer COLLAR decreased by 60-70%. This year the enterprise abides a decrease by 50% in the national market.
CEO Yuriy Sinitsa thinks Ukrainian pet owners will purchase more now “in the wake of the desire to make stock and the expectation of a shortage.”
Master Zoo’s owner Suziria has transferred its dispatch centres to western Ukraine but only was able to take 20% of all pet products along.
Some companies also thought about relocating to other countries “We keep going searching for new premises and continue producing in Kharkiv at the same time,” said Polina Kosharna, Head of the Board at Suziria company group.
COLLAR intends to transfer around 2/3 of the company’s production to safer areas in the Ukraine. “The transfer of the entire production in a short period is both organizationally and financially an overwhelming task,” reminds Yuriy Sinitsa.
“We are preparing the recipes, the designs…. If something bad happens, we will switch to our partners and they will produce for us and do the sales and marketing of our products,” says Kormotech’s CEO Rostyslav Vovk planning on collaborate with international partners.
To Kormotech, moving the company to another country is out of the question: “This is our own home market, we know how to produce here, where to buy the raw materials and because producing here is cheaper than producing anywhere else.”
Countervailing the missing turnover in the own country, the mentioned Ukrainian pet food producers are figuring out possibilities to vend their products in international mar
Ukrainian manufacturers are also looking for the most suitable ways to sell their products in other markets in order to compensate for the lack of business In the country. While Kormotech formed a special team to enter new markets, Suziria has already contracted with warehouses in western Ukraine to simplify product distribution.
read the original article at – globalpetindustry.com