KYIV, UKRAINE — Suziria Group announced July 30 that it has received $2 million grant from the USAID Investment for Business Resilience Activity (IBR). The grant will allow Suziria Group to develop a new wet pet food facility in Kalush, Ukraine.
The pet food company will receive the funding through IBR’s mission to help support Ukrainian business that have been impacted by the war with Russia. A recent missile attack damaged Suziria Group’s warehouse in Kharkiv, Ukraine, forcing the company to relocate its grain feed production to Kalush. At this new site, the company has also established new facilities for the production of meat-based pet treats. Some of the company’s operations are still continuing in Kharkiv.
“Russia’s armed aggression against Ukraine and the depreciation of the national currency affected the company’s operations,” said Polina Kosharna, co-owner of Suziria Group. “All this prompted us to revisit our business model and focus on developing our own production facilities in the west of the country. We are grateful to IBR and the partner banks. Our cooperation demonstrates that all the stakeholders are committed to Ukraine’s victory and are ready to invest in the development of competitive businesses and support to the Ukrainian economy.”
According to terms of the grant, Suziria will use an additional $4.5 million through loans from Ukrainian banks and its own resources.
Through the support from IBR, as well as the recent launch of a new wet pet food production line, Suziria Group aims to increase its capacity in Ukraine, create 130 new jobs and significantly reduce production costs.
“Despite the constant shelling of Kharkiv and the loss of some of its stores in the temporarily occupied territories, Suziria Group has not stopped, but continues to grow and adapt to the new realities,” said Yulia Vitka, deputy chief of Party of the USAID Investment for Business Resilience Activity. “The launch of advanced production facilities, the creation of new jobs, and, in the long run, access to new external markets will contribute to Ukraine’s economic recovery and GDP growth, which will be of benefit to both the company and the country as a whole.”
The pet food company currently contracts out its wet pet food production through partner facilities in other countries throughout the European Union. In developing its own wet processing capabilities, Suziria Group will be able to phase out imports and expand its sales geography. To produce its wet pet foods, the company will collaborate with local raw materials suppliers, allowing it to keep pace with consumer demand and expand its reach.
Additionally, Suziria Group plans to work closely with Ukrainian retailers, co-manufacturing wet pet food products for them under private labels. The company expects to begin exporting its wet pet foods to the European market in the next three years.
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