Agroprodservice invests US$36M in new feed mill in Ukraine
The facility will have an annual feed production capacity of 400,000 tonnes and is expected to become operational in 2027.
UKRAINE – Agroprodservice, a private agricultural enterprise, has begun construction of a new feed mill and grain storage complex in western Ukraine as the diversified agribusiness group seeks to strengthen feed production capacity and support its growing livestock operations.
The project is being developed within the Western Ukrainian Industrial Hub industrial park in the village of Ostriv, Ternopil Region, with a total investment of UAH 1.5 billion (US$ 36 million).
According to Deputy Chairman of the Verkhovna Rada Committee on Economic Development Dmytro Kysylevsky, the facility will have an annual feed production capacity of 400,000 tonnes and is expected to become operational in 2027.
Earthworks have already commenced at the site, marking the first stage of construction.
The new feed mill and accompanying grain storage complex will occupy five hectares within a recently expanded section of the industrial park.
The expansion follows the full occupation of the park’s original 10.6-hectare site, which was increased to 55 hectares in December 2025 to accommodate new industrial investments.
The project forms part of Agroprodservice’s broader strategy to strengthen vertical integration across its crop production, feed manufacturing and livestock businesses.
One of Ukraine’s largest agricultural holdings, Agroprodservice cultivates between 45,000 and 50,000 hectares of farmland and operates grain storage facilities with a combined capacity of 200,000 tonnes.
The company also owns livestock operations comprising approximately 60,000 pigs, 16,000 cattle and 600,000 poultry.
The additional feed manufacturing capacity is expected to enhance supply security for the company’s animal production units while supporting future growth in livestock and poultry output.
To facilitate the investment, Agroprodservice plans to utilize industrial park incentives that allow participants to import production equipment under zero-rate customs duty and VAT arrangements.
In parallel, the Western Ukrainian Industrial Hub is preparing an application for state co-financing to support infrastructure development linked to the project.
The funding would be used to secure an additional 10 megawatts of electrical capacity to operate the new facility.
The investment reflects continued confidence in Ukraine’s agricultural and feed sectors despite ongoing economic and logistical challenges.
Agroprodservice has continued to expand its operations in recent years through investments in food processing, poultry production and meat processing facilities.
In 2025, the company invested UAH 45 million (US$1.1 million) to launch the Babushka Marusya food-processing plant within the same industrial park.
Financially, the agricultural holding reported strong growth in 2025, with net profit increasing by 9.3% to UAH1.61 billion (US$38.6 million), while revenue rose 23.9% to UAH5.27 billion (US$126.5 million).
Industry analysts note that demand for compound feed remains closely tied to livestock and poultry production trends, with large integrated producers increasingly investing in feed manufacturing capacity to improve efficiency, control costs, and strengthen supply chain resilience.
Once completed, the new facility will rank among the larger feed manufacturing investments announced in Ukraine in recent years.
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