experience of a belgian investor in ukrainian market | vitamex
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![Page 1: Experience of a Belgian investor in Ukrainian market | Vitamex](https://reader036.vdocument.in/reader036/viewer/2022062617/54c0c2ce4a7959f4488b45f3/html5/thumbnails/1.jpg)
•The Vitamex group•Our presence in Ukraine•Logistics in Ukarine
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SAFE & INNOVATIVE NUTRITION
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Through nutritional knowledge and an innovation driven attitude, we create products that bring a high added value for our customers and ourselves. This is achieved by the outstanding technical performance of our products in animal nutrition.
Our growth strategy is built on two solid legs:
• Safe nutrition through innovation
• Presence in emerging markets
Mission & Strategy
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Organisation
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Presence in Emerging markets
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Vitamex Ukraine Limited
99% Vitamex group1% Local management
Chv Korm
Joint Venture between Vitamex group and Theeuwes holding
50% Vitamex group ( Belgium)50% Theeuwes holding (Netherlands)
Presence in Ukraine : two companies
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Vitamex Ukraine LimitedStart in 1997Employees: 20 office workers4 sales managers2 nutritionists2 veterinariansGeneral Director – Mr Yuri MalyarevskiTechnical Manager – Mr Valery Chobotov
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Presence
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Local production: Since 1999 Toll production: at first in Kiev institute of grains, since 2002 in Papelnja (Zhitomir region) Why ? Loss of the concentrate market because of ban of some raw materials in EC
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Local production: Products: Mainly prestarters feeds for piglets and calves, concentrates and premixes for poultry, pigs and cattle. Feedadditives as Aromabiotic, Vitazym, mineral- and vitamin blends are imported from Belgium Advantage: cost efficient because of cheaper local labor and raw material sources
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ToolsVeterinary and nutritional support
remain very important on farm level Propose business oriented solutions
and explain this to owners of pig and poultry farms
Constant training of own people
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Chv Korm
“Theeuwes Holding”
and “Vitamex”
Organization Chart
Theeuwes Holding
Cehave Korm
Vitamex NV
Thegra Ukraine
50%50%100%
Processing ofoilseeds
Production of Concentrates +
PreStarters
High protein by products
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Project P/planningCapacityLogisticsPersonnel
Building a state of the art production plant
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Project P
All the permits to receive final building permission
Started June 2008
Multimix with two subcontractors
Finalising 25 August 2009
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Planning
Multimix turn key project
Start building 17 Aug 2009
First production 1 Mrt 2010
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Project P/planningCapacityLogisticsPersonnel
Production plant
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Capacity set up
1000 Ton / month in 1 shift– 40 to 50 % raw materials via Hammer mill– 500 ton / month pellets– 500 ton / month premix & concentrates– 95 % bags & 5 % bulk / big bags– 10 % hand addition
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Hammer mill
40 to 50 % raw materials=> 500 ton / month=> 25 ton / day=> 3.5 ton / hour
Pellet mill
500 ton in shift to 700 ton / month=> 500 ton / month=> 25 ton / day=> 3.5 ton / hour
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Bagging installation
950 ton / month= 5.6 ton / hour5 ton / hour manualSecond bagging installation if needed
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Project PCapacityLogisticsPersonnel
Content
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Project P/planningCapacityLogisticsPersonnel
Production plant
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Raw materials
P75%
5%
20%
75% Protein SH partner20% Aminoac / Ca/ P / Na loc5% specialties Belgium
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RM inclusion purchaser storage
Protein/cereals 75% SH Partner Partner
AminoacidsCalcium 20% Local own warehousePhosphorSalt
specialties 5% Vitamex Bel own warehouse
Raw materials
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Storage Raw materials
Storage End products
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End products
P W
W
From warehouses
Gaysin: 450 m2
Kiev: 400 m2
Dnepr: 400 m2
Direct To warehouses
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Logistics
Import
Transport Belgium Ukraine: 2 a 3 days (ca. 2300 euro/20 tonnes)Custom clearance: 2 days
1 week
Starting from June 2009 more strict
Special custom stockCustom clearance: 4-7 days
2 weeks
Conclusion: higher costs and longer time
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Logistics
Inside Ukraine
Indirect to warehouses
From warehouses to clients
Delivery time < 5 days
5 tonnes/truck till 20 tonnes/truck
Depending on route and number of clients from 1000 uah/20 tonnes till 7000 uah/20 t
Availability of standard trucks no problem
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Logistics
Documents Labels
Veterinarian Ukrainian languagePacking list info of importerCertificate of origin info of producerCertificate of quality expiry dateInvoice production date
category animal
NO nutritional info needed
Main challenge Veterinarian Certificate
Ukrainian norms differs from EU standardse.g.- Free of mycotoxins (which one ??)- Peroxide value
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Logistics
Bottle neck:
Custom clearance of imported products
- Ukrainian norms differs from EU norms- Ukrainian veterinarian norms can differ from Ukrainian custom
norms- Very strict and very difficult cooperation
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Project P/planningCapacityLogisticsPersonnel
Content
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Personnel
Start 1 shift
1 Manager1 Quality2 Magazin4 Production2 Packing2 Administration/Accountant
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Conclusion
– We consider Ukraine as one of the emerging markets for our business, the country is rich in raw materials and that’s where the needs are
– In our business logistics in the country is not a problem
– Legislation concerning transport and vetarinarian documentation is sometimes confusing
– Import administration has become very difficult