The construction of the facility is a joint project of international and Ukrainian investors, namely Effective Investments Group in partnership with Mada Participations B.V. (the Netherlands) and UMG Investments (Ukraine).
The project’s investment fund is over $20 million.
“I believe that projects like this—truly ground-breaking for their industry and the country—can change the future. This is the first innovative production of this scale in Ukraine. Given the highest level of international processing standards that we adhere to, Feednova will source raw materials from external suppliers, which is a unique feature of our company, since no one else in Ukraine does it. This makes us leaders in terms of capabilities and volumes of processed and manufactured finished products. Our approach is sustainable development aimed at creating resources rather than depleting them,” Ihor Liski, Majority Investor at Feednova, said at the plant’s presentation.
The company will strictly observe the management and control practices of all production stages under the GMP+ certificate.
“UMGI is developing the Recycling Solutions waste recycling portfolio. Our goal is to become number one in Eastern Europe in strategic by-products and waste management. Before 2020, Recycling Solutions was aimed at processing metallurgical, heat and coal wastes, and Feednova plant became our team’s first project in the agricultural sector, and, in fact, one of the first M&A agreements concluded immediately after the lockdown in March 2020. I want to thank our partners and operational teams for our successful efforts, despite the circumstances, to proceed according to schedule. Today we announce that the construction is completed,” commented Nadiia Kaznacheieva, Investment Director at UMG Investments. “It is fundamentally important for us to invest in companies whose business is committed to environmental, social and corporate governance (ESG). I am sure that the project will be continued and scaled up. It’s just a matter of time for us and our partners.”
The new facility has 4 production lines that will process over 220 tons of raw materials daily. The plant’s production capacity is 90 tons of finished products. Feednova plant is a modern producer of natural and high-quality ingredients in the animal feed market. Innovative technologies, strict adherence to international quality standards, as well as transparent terms and conditions of cooperation are the company’s key priorities.
Feednova plant’s production is based on the use of innovative solutions for animal waste processing. This is the first plant in Ukraine that will become an independent platform, sourcing and processing raw materials from external suppliers—agricultural companies operating in the region.
Taras Dzioba, Deputy Minister of Economy, Trade and Agriculture of Ukraine, who attended the event, confirmed the urgency of the circular economy functioning.
“It is no secret that 6 out of 18 plants owned by Ukrvetsanzavod state company—which is responsible for processing animal waste—are actually out of operation. And this is while the livestock production, especially poultry, is constantly growing. Therefore, it is obvious that we have a problem. In turn, we are moving towards digital solutions, starting from the open data geoportal. First, the problem must be identified, with the systemic solutions being implemented afterwards. The solutions offered by Feednova plant in the Lviv region are a great example of how to look for added value in production. I hope my colleagues will succeed, and it will show all other investors that they should not be afraid of entering new industries, opening new markets.”
Feednova plant will solve the issue of environmental hazards: The high-tech plant will ensure veterinary and sanitary control, as well as environmental safety of the region. Agricultural companies will be able to fully follow the legal and safe animal waste processing.
Adhering to high standards, the plant will produce good quality feed additives for both Ukrainian consumers and customers in worldwide. Over 20% of finished products will be sold on the domestic market. During the first stage of globalization, the Feednova plant will export its products to the EU markets, and then will expand to Africa and Asia.