The Ukraine’s animal feed market is projected to grow at a CAGR of 2.27% during the forecast period to reach US$3.228 billion by 2027, up from US$2.759 billion in 2020.
Increased consumer consciousness about the safety of animal-based foods, combined with outbreaks of infectious diseases in animals, is expected to be the main factor influencing demand for animal feed during the forecast period. Feed for animals refers to food products grown and produced for consumption by swine, aquatic animals, poultry, and ruminants, among others. It is made by combining high-nutritional-value products. Users' growing demands for animal-based products are anticipated to accelerate the growth of the animal feed market in Ukraine. The industry is expected to grow as a result of a strong emphasis on animal care. Furthermore, the greater emphasis on farm animals' health and the growing movement of adherents of organic farming are predicted to spur growth in the animal feed market. Steadily increasing livestock farming is expected to most certainly result in increased animal feed demand.
The major drivers of expansion in the region could be the country's larger agricultural holdings, as well as the advancement of compound feed exports. Ukraine’s agro-based strength on a global scale, as well as key sectors such as feed ingredient production, feed produce, livestock farming, poultry production, egg production, and export of these products, are expected to play a major role in the growth of the animal feed market in the region. According to Ukraine's agricultural ministry, "Ukraine is a critical country for global food security."
Challenges
Market opportunities are predicted to be hamstrung in the short term by a strong regulatory framework controlling animal feed production. The elevated variation of raw material costs, as well as the branding of oil and fat products and safety concerns, are presumed to stymie the growth of the Ukrainian animal feed market in the near future.
HoReCa closures around the country have also had a negative impact on the animal feed industry. Because of the dramatic change in consumer consumption patterns caused by the COVID-19outbreak, producers have been forced to reconsider their plans and strategies. Lamb yield, aquaculture, veal, and beef production are among the worst affected industries. Fish farming farmers and farm animal producers in the country have called for emergency management measures to mitigate the effects of COVID-19. The consumption rate of fish and meat has decreased dramatically. As a result, demand for animal feed has decreased significantly.
A heinous war on Ukraine has far-reaching consequences. The direct human cost is enormous and unquantifiable. The consequences for the agri-food trade and commodity systems will be enormous. The four F’s – fuel, animal feed, fertilizer, and, of course, food – are all complicit. According to the Interregional Union of Poultry and Feed Manufacturers of Ukraine, Ukraine's compound feed industry has raised by nearly 40%, reaching 11 million tonnes in 2018. According to the Interregional Union of Poultry and Feed Manufacturers of Ukraine, Ukraine exports 11,000 tonnes of feed per year on average and imports 30,000 – 40,000 tonnes per year. Ukraine is the main staple grower due to its deep and humus-rich black soils in the country's east. Its production is also heavily export-oriented during the war scenario. The country is suffering from a lack of exports, which is expected to hamper the growth of the market in the country due to the shutdown of exports. Being a major exporter of animal feed in countries like North Africa and the Middle East, which are both accessible via the Black Sea maritime routes, is also important for Ukraine. The Black Sea is an important component of economic exchange in Eastern Europe, and it is currently the site of global uncertainties. Major Ukrainian ports, including Odessa, Mariupol, Mykolaiv, and Kherson, permitted the shipment of Ukrainian wheat exports in 2020. Those supply lines would be adversely affected in the event of an armed confrontation. After the first Russian attacks, the ports of Mariupol and Odessa were already closed. This scenario of conflict between two nations is expected to see the decline of the animal feed market in the country.
| Report Metric | Details |
| Market size value in 2020 | US$2.759 billion |
| Market size value in 2027 | US$3.228 billion |
| Growth Rate | CAGR of 2.27% from 2020 to 2027 |
| Base year | 2020 |
| Forecast period | 2022–2027 |
| Forecast Unit (Value) | USD Billion |
| Segments covered | Type, Livestock, Raw Materials, And Production Systems |
| Companies covered | Nutreco, Novus International, Cargill, Novozymes, Royal Agrifirm Group, BASF SE, Charoen Pokphand Foods PCL, Archer Daniels Midland Company |
| Customization scope | Free report customization with purchase |
Key Segmentation
Nutreco
Novus International
Cargill
Novozymes
Royal Agrifirm Group
BASF SE
Charoen Pokphand Foods PCL
Archer Daniels Midland Company
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