Agrarian Economy 2021 Т. 14 № 1-2:18-26

Features of formation of the feed additives supply in Ukraine

Temnenko S., PhD students
Lviv National Agrarian University

https://doi.org/10.31734/agrarecon2021.01-02.018

ANNOTATION

The article presents result of the analysis on formation of the feed additives supply in Ukraine. The main trends in the relevant market are described. In particular, it was found that the market is experiencing a reduction in feed production in physical terms and an increase in the production of premixes. The analysis of foreign economic operations shows a significant excess of imports over exports, which indicates the unstable position of domestic producers in foreign markets. In addition, a comparison of the value of one ton of imports and exports in 2019 confirms the fact that feed operations are characterized by the export raw materials vector.

The analysis of the state register of veterinary medical products, feeds and feed additives demonstrates that out of 1682 names of authorized feed additives, only 16% are domestically produced. The formation of feed additives supply in the domestic market is highly dependent on imports. In particular, fodder vitamins and microelements are not produced in Ukraine at all, and domestic production of enzymes and amino acids satisfies only a small share of domestic demand. In this regard, the domestic premix market experiences the situation, when Ukrainian producers need about 90% of imported components for their production. Moreover, about 80% of the premixes in circulation are of domestic production.

At the same time, the Ukrainian producers of feed additives have a number of competitive advantages over importers. Despite approximately the same cost of active substances, they have significantly lower labor costs, lower cost of the finished product transportation and shorter sales chains. However, it is more difficult for them to compete with European manufacturers in terms of product quality and sales organization.

In recent years, the domestic market of feed additives has shown a restrained growth in total turnover, has many segments with high potential for profitability. However, it is characterized by a very low supply of active substances of domestic production and, as a consequence, the prevailing competitive advantages of foreign manufacturers.

KEY WORDS

feed additives, feed additive market, production, import, feed, premixes

FULL TEXT

LINK

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