Nutreco announced today that it has signed an agreement to enter into a joint venture with its existing experienced partners who have an extensive sales and distribution network in Ukraine. Nutreco will take an initial 1/3rd share in the company, Dutch Feed. This joint venture will allow Nutreco's premix & feed specialties business, Trouw Nutrition International, a market leadership position in a growing market.
Nutreco has operated a sales office in Ukraine since 2006. And in 2011 operated a new feed mill owned by Dutch Feed, this feed mill will be incorporated as part of the joint venture.
The Trouw Nutrition feed mill produces animal feed concentrates and compound feeds and is located in Kordelivka (Kalynivsky district, Vinnytsya region).
Equipment used at the plant was exclusively designed by Ottevanger Milling Engineers by order of Trouw Nutrition.
Featured of the feed mill include:
fully automated dosing and microdosing, which ensures balanced content of nutrient substances;
high-speed blender for optimal size of particles in the mix;
high-quality mixer assuring maximum homogeneity of the mix;
direct dosing of pre-mix to prevent loss and cross-contamination with microelements;
the latest press for production of granular feed;
maximum equipment operation efficiency to avoid contamination with dust and loss of important microelements in the process of production.
A video of the Kordelivka feed mill, part of the joint venture, can be seen below:
Ukraine is the second largest animal feed market in Eastern Europe after Russia. Its feed market has been growing strongly and is expected to continue to grow by 5-10% per year. Ukraine is a leading cereal producer and the country is expected to become an important meat supplier to Europe.
Dutch Feed had revenues in 2012 of approximately EUR 15 million. The joint venture has one feed specialties plant in the Vinnytsya region of Ukraine. It produced around 20,000 tonnes of concentrates and young animal feeds in 2012 and is expected to increase its production to 30,000 tonnes in 2013. Closing of the transaction is subject to gaining regulatory approval from the Ukrainian competition authority.