Leading Feed Producer to Invest HUF 20B in Kazakhstan

UBM, Hungary’s leading feed producer and one of the largest feed materials traders, plans to continue its expansion in Kazakhstan with a total investment of around EUR 50M, or approximately HUF 20B.

According to Index, within two years, UBM plans to build a premix plant with an annual capacity of around 30,000 tonnes, a laboratory, and a training center in the south of Kazakhstan. In the second phase of the investment, expected to be completed by 2028, the agricultural group will also set up three feed mills in the Central Asian country, each with an annual capacity of around 100,000 tonnes.

The Kazakh government is making significant efforts to improve animal health and increase output from livestock production.

As a result, UBM estimates that the country’s poultry industry’s feed demand could increase by one and a half times to around 2.6 million tonnes per year, the swine industry’s feed demand by almost a third to 577,000 tonnes per year, and the cattle sector’s feed consumption by almost two-thirds to 3.1 million tonnes per year by 2029. All in all, Kazakhstan’s industrial feed demand is expected to increase within five years to more than one and a half times the current level of 4 million tonnes per year, roughly the same as in Hungary, to approximately 6.3 million tonnes per year.

Thanks to the expansion of intensive livestock farming, Hungary is now at the technological level of developed Western European countries in the field of livestock farming and feed production.

With the expected investment of around HUF 20B, we would like to contribute to the dissemination of our Group’s outstanding sector know-how and state-of-the-art technology, based on research and development activities, to Kazakhstan, thus contributing to the further development of livestock farming and agriculture in the region,” said Péter Horváth, CEO of the company.

Via Index; Featured Image: Pixabay