Cargill has announced plans to invest U.S.$7 million in Ukraine to construct a new animal feed mill. The feed mill, which will be built in Kutsovka, marks the company's entry into the animal nutrition market in Ukraine.
The mill has the capacity to produce, mix and pellet approximately 50,000 metric tonnes of bagged and bulk animal feeds per year. Construction is expected to begin in January 2011, and it is anticipated that the facility will be operational by the end of 2011. The new facility is expected to employ up to 40 full-time positions.
By entering the animal nutrition market in Ukraine, Cargill was expanding the existing network of animal feed plants globally in order to meet the growing demands of the livestock industry, said Dan Burke, head of Cargill's animal nutrition business in Europe. In recent years, one had seen a significant increase in meat consumption and meat production in Eastern Europe, Burke went on.
Once operational, the mill will distribute feed, under the Purina brand, to local dairy, swine and poultry livestock farmers through a dealer network. Cargill expects this network will be made up of over 100 dealers in three years' time. While the mill is being built, Cargill intends to explore opportunities to help meet current local demand for animal feed.
Cargill has been based in Ukraine since 1991, and it has a significant presence mainly in the food and agricultural sectors, including grain and oilseeds origination and processing. With over 700 Ukraine-based employees, Cargill is one of the leading foreign investors in Ukraine.
Source: Cargill, Incorporated