ukrainian fish farming: opportunities for growth
DESCRIPTION
On June 27, 2014 Ukrainian president Petro Poroshenko signed an ‘Association Agreement’ with the European Union. Many Ukrainian’s are hopeful that the signing of this agreement will mark a change in the economic fortunes in a country where economic growth has lagged behind its neighbours in recent years.TRANSCRIPT
July | August 2014
Ukrainian Fish Farming: Opportunities for growth
The International magazine for the aquaculture feed industry
International Aquafeed is published six times a year by Perendale Publishers Ltd of the United Kingdom.All data is published in good faith, based on information received, and while every care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of action taken on the basis of information published. ©Copyright 2014 Perendale Publishers Ltd. All rights reserved. No part of this publication may be reproduced in any form or by any means without prior permission of the copyright owner. Printed by Perendale Publishers Ltd. ISSN: 1464-0058
INCORPORAT ING F I SH FARM ING TECHNOLOGY
Volume 17 / Issue 4 / July-August 2014 / © Copyright Perendale Publishers Ltd 2014 / All rights reserved
On June 27, 2014 Ukrainian president Petro Poroshenko signed an ‘Association Agreement’ with the European
Union. Many Ukrainian’s are hopeful that the signing of this agreement will mark a change in the economic fortunes in a country where economic growth has lagged behind its neighbours in recent years.
One sector hoping to benefit from such providence is the Ukrainian fishing and aqua-culture sector.
With a population of over 45 million peo-ple, infrastructure and distribution enhance-ments in recent years have made Ukraine an attractive consumer market.
Across the country, the supermarket net-work has increased exponentially over the past 10 years. Supermarket retail sales have trebled in the past 10 years to over US$50 billion per annum.
Food retail sales alone have increase by 160 percent in the past five years.
Ukraine has a largely urban population.
The largest 25 cities have a combined popu-lation greater than 15 million people. Fifty percent of current retail sales occur in the five largest urban markets.
Presently, over 40 percent of Ukrainian meat protein consumption is derived from fish.
Ukrainians consume on average 14 kilo-grams of fish per capita per annum, double the consumption levels of the 1990s. This per capita consumption is expected to increase further to 20kg per capita by 2020.
With a total market size exceeding 600,000 tonnes per annum, Ukraine has a significant trade deficit in fish.
With an aging fleet and lack of invest-ment, Ukraine’s domestic catch has declined from approximately 350,000 tonnes in 2000 to 200,000 tonnes today. At the same time demand for fish products have continued to grow, with fish imports exceeding 425,000 tonnes in 2012.
Whereas the value of Ukrainian fish exports has never exceeded €20 million over the past 10 years, the value of imports
has continued to skyrocket. Fish imports exceeded €650 million in 2013.
Domestic opportunityThe value of Ukrainian fish imports has
increased by 55 percent in the past five years. 70 percent of these imports consist of frozen products. However, an interest-ing trend has been the growth of fresh or chilled fish imports, the value of which have increased by close on 300 percent in the past five years.
Little sourced from aquaculturePresently, only 13 percent of domestic fish
production is sourced from aquaculture. Consequently, Ukraine has the opportunity
to expand its fish farming activities to meet growing market demand. With this growing demand for fresh quality product, Ukrainian entrepreneurs have started to look at busi-ness opportunities for domestic aquaculture ventures.
One such company, FishFarm Ukraine, is a Ukrainian start-up whose founders have an
Table 1: Exports from Ukrainian to neighouring countries
2013 Total Fish Imports ‘000
Fresh Whole Imports ‘000
Percent of Total Imports
CEE €2,940 €1,063 36 percent
CIS €3,254 €913 28 percent
Poland €1,316 €649 49 percent
Russia €2,154 €734 34 percent
Belarus €317 €63 20 percent
Table 2: Imports of fish into Ukrainian in value
Ukrainian Fish Farming: Opportunities for growth
OVER 40 PERCENT OF UKRAINIAN MEAT PROTEIN CONSUMPTION IS DERIVED FROM FISH
Mill
ion
€
14 | INTERNATIONAL AQUAFEED | July-August 2014
FEATURE
www.evonik.com/feed-additives [email protected]
Your challenge is our passion.The superior methione source for your aquafeed.
Find out more by scanning this code with the QR-reader of your mobile-camera.
DL-Methionine for Aquaculture™
14-01-260 AZ, Int Aquafeed Magazine, Your Callenge is our Passion,210x297mm,Jul14.indd 1 18.06.14 15:05
establish track record within Ukrainian busi-ness circles.
They told International Aquafeed, at the Future Fish Eurasia exhibition, that working with international partners who all spotted an opportunity in the industry and are looking for investment.
The aim is to help restore Ukraine to be the ‘bread basket’ of Europe again.
They are complimenting their local knowl-edge and experience with international tech-nical fish expertise and food business know-how.
Founding partner Petro Berezhnyi explains, “Through our relationship with key Ukrainian food retailers we discovered that there is a shortfall within the Ukrainian market for fresh fish.
“We see an opportunity in the market place to develop an aquaculture business in Ukraine that is focused on delivering quality, freshness, and superior customer service.”
Ukraine has over 71,000 rivers and lakes. In particular Mr Berezhnyi sees the opportuni-ties to locate such fish farms in the western half of the country where the topography, infrastructure and water quality is ideal for aquaculture growth.
For decades Ukraine has had a renowned reputation as a leading agricultural producer and exporter.
To put the country into a European
context, Ukraine has a greater landmass than France. Fifty-four percent of Ukrainian land is used for agriculture, ranking it third globally in this area.
In fact, Ukraine’s agricultural arable land area is almost one-third of the existing agri-culture land area of the entire European Union. FishFarm Ukraine also plans to take advantage of Ukraine’s prowess as a leading food producer.
Advisory Board Member, Tom O’Callaghan says, “Ukrainian’s traditionally appreciate high quality food.
“Yet, at the same time Ukraine needs to do more to promote itself across the world as a country with an abundance of natural resources that compliment superior food pro-duction. As we enter into the EU Association Agreement we anticipate both an overhaul and modernisation of Ukrainian food legisla-tion, coupled with a greater awareness across Europe of the food production capability of Ukraine.
“We strongly believe that these two fac-tors will also help strengthen and grow our business.”
Regional GrowthIndeed, Ukraine’s position as one of the
10 designated Central and Eastern Europe (CEE) countries and traditional relationships with neighbouring former Soviet Union,
Commonwealth of Independent States (CIS) countries facilitate the potential for greater regional growth.
Neighbours Poland, Russia and Belarus imported over €1.4 billion in fresh fish in 2013.
Regional demands for fish products with continue to outstrip supply for the foresee-able future. This adds to the attractiveness of aquaculture development across Ukraine.
As illustrated in the table above, CEE & CIS countries account for about 8 percent of global fish imports. However, the signing of the EU Association Agreement will bring added possibilities for Ukrainian food busi-nesses to develop business within the world’s largest import market for fish. Mr. Berezhnyi concluded, “Our existing business model is initially focused on fulfilling the untapped demands of the local Ukrainian market. Nevertheless, looking into the horizon, we foresee teaming up with international part-ners to exploit wider export opportunities across Europe”. Their plan is formulated to start with farming trout due to its adaptabil-ity on land, the high quality of the product and because it is a good value for money alternative to salmon. A leaving hint from Mr. Berezhnyi at moving to farm additional species such as crayfish, and cheap sorts of fish like carp in the future could be an excit-ing development for this fish farm.
July-August 2014 | INTERNATIONAL AQUAFEED | 15
FEATURE
ANDRITZ Feed & Biofuel A/SEurope, Asia, and South America: [email protected] and Canada: [email protected] www.andritz.com
Your global technology process supplier for the aqua feed industry
ANDRITZ is one of the world’s leading suppliers of technologies, systems, and services relating to advanced industri al equipment for the aqua feed industry. With an in-depth knowledge of each key pro-cess, we can supply a compa-tible and homogeneous solution from raw material intake to finished feed bagging.
Innovations for a better world.
Aquafeed – complete solutions from a single source.
Turn to Bühler for one of the most comprehensive lines of aquafeed process technology available anywhere: from raw material handling, cooking and shaping through extrusion to drying and coating of finished products. With an extensive know-how and a passion for quality we ensure not only product uniformity and production efficiency, but also maximum sanitation and safety. Bühler – gentle processing at its best. www.buhlergroup.com/aquafeed
Aquafeed_Aeroglide_en_es_cn.indd 1 12.03.2014 13:30:59
www.aquafeed.co.uk
LINKS
• See the full issue• Visit the International Aquafeed website
• Contact the International Aquafeed Team
• Subscribe to International Aquafeed
Tilapia farming in China
Ukrainian Fish Farming:– Opportunities for growth
Volume 17 I s sue 4 2 014 - J u lY | AuGusT
INCORPORAT ING F I SH FARM ING TECHNOLOGY
El Niño – plan ahead and manage the risk
Fish Farming Technology supplement
- Stock protection
- Biomass control
- Technology round up
Microalgae:– A sea of opportunities for the
aquaculture industry
This digital re-print is part of the July | August 2014 edition of International Aquafeed magazine. Content from the magazine is available to view free-of-charge, both as a full online magazine on our website, and as an archive of individual features on the docstoc website. Please click here to view our other publications on www.docstoc.com.
To purchase a paper copy of the magazine, or to subscribe to the paper edition please contact our Circulation and Subscriptions Manager on the link above.
INFORMATION FOR ADVERTISERS - CLICK HERE