The USAID Investment for Business Resilience Activity (IBR) signed a $2-million grant agreement with Suziria Group, one of the leaders in the Ukrainian pet goods market originally from Kharkiv. According to the terms of the agreement, the company will co-invest another $4.5 million through loans from Ukrainian banks and its own resources. The grant will allow Suziria Group to open a new wet pet food production facility in the city of Kalush in the Ivano-Frankivsk region.
Suziria Group will receive the grant funding under the IBR’s objective to support Ukrainian war-affected businesses. After a missile attack had damaged their warehouse in Kharkiv, Suziria Group relocated grain feed production to Kalush. At this new site, they also set up new facilities for the production of meat treats for dogs and cats. Meanwhile, some manufacturing units continue to operate in Kharkiv.
“Russia’s armed aggression against Ukraine and the depreciation of the national currency affected the company’s operations. 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,” said Polina Kosharna, co-owner of Suziria Group.
With the support from IBR and the launch of a new wet pet food production line, Suziria Group will be able to increase its own production capacity in Ukraine, create 130 new jobs, and significantly reduce its 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. 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,” said Yulia Vitka, Deputy Chief of Party of the USAID Investment for Business Resilience Activity.
Currently, Suziria Group relies on contracted wet pet food production at partner facilities in the EU countries. The development of their own new production capacities will enable them to phase out imports of this product category and expand their sales geography. Suziria Group plans to leverage this expanded production to broaden its market reach, collaborating with local raw materials suppliers to meet growing consumer demand. Additionally, the producer intends to work more closely with key Ukrainian retailers and manufacture wet pet food for them under private labels. In three years, Suziria Group plans to start exporting their wet pet food products to the European market.
