You are on page 1of 7

I N C O R P O R AT I N G

F I S H FA R M I N G T E C H N O L O G Y

July | August 2014
Ukrainian Fish Farming:
Opportunities for growth

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

The International magazine for the aquaculture feed industry
FEATURE

Ukrain
ian Fis
Oppor h Farm
tunitie ing:
s for g
rowth
OVER 40 PERCENT OF
UKRAINIAN MEAT PROTEIN
CONSUMPTION IS DERIVED
FROM FISH

O
n June 27, 2014 Ukrainian The largest 25 cities have a combined popu- has continued to skyrocket. Fish imports
president Petro Poroshenko lation greater than 15 million people. Fifty exceeded €650 million in 2013.
signed an ‘Association percent of current retail sales occur in the five
Agreement’ with the European largest urban markets. Domestic opportunity
Union. Many Ukrainian’s are hopeful that the Presently, over 40 percent of Ukrainian The value of Ukrainian fish imports has
signing of this agreement will mark a change meat protein consumption is derived from increased by 55 percent in the past five
in the economic fortunes in a country where fish. years. 70 percent of these imports consist
economic growth has lagged behind its Ukrainians consume on average 14 kilo- of frozen products. However, an interest-
neighbours in recent years. grams of fish per capita per annum, double ing trend has been the growth of fresh or
the consumption levels of the 1990s. This per chilled fish imports, the value of which have
One sector hoping to benefit from such capita consumption is expected to increase increased by close on 300 percent in the
providence is the Ukrainian fishing and aqua- further to 20kg per capita by 2020. past five years.
culture sector. With a total market size exceeding 600,000
With a population of over 45 million peo- tonnes per annum, Ukraine has a significant Little sourced from aquaculture
ple, infrastructure and distribution enhance- trade deficit in fish. Presently, only 13 percent of domestic fish
ments in recent years have made Ukraine an With an aging fleet and lack of invest- production is sourced from aquaculture.
attractive consumer market. ment, Ukraine’s domestic catch has declined Consequently, Ukraine has the opportunity
Across the country, the supermarket net- from approximately 350,000 tonnes in 2000 to expand its fish farming activities to meet
work has increased exponentially over the to 200,000 tonnes today. At the same time growing market demand. With this growing
past 10 years. Supermarket retail sales have demand for fish products have continued to demand for fresh quality product, Ukrainian
trebled in the past 10 years to over US$50 grow, with fish imports exceeding 425,000 entrepreneurs have started to look at busi-
billion per annum. tonnes in 2012. ness opportunities for domestic aquaculture
Food retail sales alone have increase by Whereas the value of Ukrainian fish ventures.
160 percent in the past five years. exports has never exceeded €20 million One such company, FishFarm Ukraine, is
Ukraine has a largely urban population. over the past 10 years, the value of imports a Ukrainian start-up whose founders have an

Table 1: Exports from Ukrainian to neighouring countries

Total Fish Fresh Whole Percent of Total
2013
Imports ‘000 Imports ‘000 Imports Table 2: Imports of fish into
Ukrainian in value
Million €

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

14 | INTERNATIONAL AQUAFEED | July-August 2014
Your challenge is our passion.
The superior methione source for your aquafeed.

DL-Methionine
for Aquaculture™ www.evonik.com/feed-additives feed-additives@evonik.com

Find out more by scanning
this code with the QR-reader
of your mobile-camera.
FEATURE

establish track record within Ukrainian busi- context, Ukraine has a greater landmass than Commonwealth of Independent States (CIS)
ness circles. France. Fifty-four percent of Ukrainian land is countries facilitate the potential for greater
They told International Aquafeed, at the used for agriculture, ranking it third globally regional growth.
Future Fish Eurasia exhibition, that working in this area. Neighbours Poland, Russia and Belarus
with international partners who all spotted an In fact, Ukraine’s agricultural arable land imported over €1.4 billion in fresh fish in
opportunity in the industry and are looking area is almost one-third of the existing agri- 2013.
for investment. culture land area of the entire European Regional demands for fish products with
The aim is to help restore Ukraine to be Union. FishFarm Ukraine also plans to take continue to outstrip supply for the foresee-
the ‘bread basket’ of Europe again. advantage of Ukraine’s prowess as a leading able future. This adds to the attractiveness of
They are complimenting their local knowl- food producer. aquaculture development across Ukraine.
edge and experience with international tech- Advisory Board Member, Tom O’Callaghan As illustrated in the table above, CEE &
nical fish expertise and food business know- says, “Ukrainian’s traditionally appreciate high CIS countries account for about 8 percent
how. quality food. of global fish imports. However, the signing
Founding partner Petro Berezhnyi explains, “Yet, at the same time Ukraine needs to of the EU Association Agreement will bring
“Through our relationship with key Ukrainian do more to promote itself across the world added possibilities for Ukrainian food busi-
food retailers we discovered that there is a as a country with an abundance of natural nesses to develop business within the world’s
shortfall within the Ukrainian market for fresh resources that compliment superior food pro- largest import market for fish. Mr. Berezhnyi
fish. duction. As we enter into the EU Association concluded, “Our existing business model
“We see an opportunity in the market Agreement we anticipate both an overhaul is initially focused on fulfilling the untapped
place to develop an aquaculture business in and modernisation of Ukrainian food legisla- demands of the local Ukrainian market.
Ukraine that is focused on delivering quality, tion, coupled with a greater awareness across Nevertheless, looking into the horizon, we
freshness, and superior customer service.” Europe of the food production capability of foresee teaming up with international part-
Ukraine has over 71,000 rivers and lakes. Ukraine. ners to exploit wider export opportunities
In particular Mr Berezhnyi sees the opportuni- “We strongly believe that these two fac- across Europe”. Their plan is formulated to
ties to locate such fish farms in the western tors will also help strengthen and grow our start with farming trout due to its adaptabil-
half of the country where the topography, business.” ity on land, the high quality of the product
infrastructure and water quality is ideal for and because it is a good value for money
aquaculture growth. Regional Growth alternative to salmon. A leaving hint from
For decades Ukraine has had a renowned Indeed, Ukraine’s position as one of the Mr. Berezhnyi at moving to farm additional
reputation as a leading agricultural producer 10 designated Central and Eastern Europe species such as crayfish, and cheap sorts of
and exporter. (CEE) countries and traditional relationships fish like carp in the future could be an excit-
To put the country into a European with neighbouring former Soviet Union, ing development for this fish farm.

Your global technology process supplier
for the aqua feed industry
ANDRITZ is one of the world’s
leading suppliers of techno­
logies, systems, and services
relating to advanced indu­
strial 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 finis­
hed feed bagging.

ANDRITZ Feed & Biofuel A/S
Europe, Asia, and South America: andritz-fb@andritz.com
USA and Canada: andritz-fb.us@andritz.com www.andritz.com

July-August 2014 | INTERNATIONAL AQUAFEED | 15
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

Innovations for a better world.
This digital re-print is part of the July | August 2014 edition of International
LINKS
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.

I N C O R P O R AT I N G
F I S H FA R M I N G T E C H N O L O G Y
• See the full issue
Tilapia farming in China
• Visit the International Aquafeed website
Ukrainian Fish Farming:
– Opportunities for growth

El Niño
– plan ahead and manage the risk
• Contact the International Aquafeed Team
Microalgae:
– A sea of opportunities for the
aquaculture industry

Fish Farming Technology supplement
- Stock protection
- Biomass control
- Technology round up
• Subscribe to International Aquafeed
Vo l u m e 1 7 I s s u e 4 2 0 1 4 - J u lY | A u G u s T

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

www.aquafeed.co.uk