December 4 2007, 09:05

"Kvity-Service" plans to build up champignon production up to 60 tons per month by May 2008

The management of Kyiv LLC "Kvity-Service", the specialized producer of mushrooms, announced about its intention to build up the enterprise capacities threefold by means of construction of a new complex. Maxim Kuznetsov, the President of the company, told "Delovaya Stolitsa" that a new enterprise for champignon production will be located in Dimitrovo village (Brovarskoy district of Kyivskaya region) in the neighborhood to the already working production facility of the company. The launch of a new complex let the company increase the production twofold up to 40 tons per month. The construction of the first stage of the complex will last till January 2008.The launch of the second stage is planned for May 2008 - it is able to increase the mushroom production volumes up to 60 tons/month. Simultaneously the company intends to increase twofold, up to 2,400 tons per month the capacity of its compost producing plant located in village Krasilovka (Brovarskoy district). The additional workshops are to be constructed there. "The total investments to this project will amount to around $550,000", M. Kuznetsov observed.

The representatives of "Kvity-Service" say that the implementation of these plans let the company extend its share on Kyiv market of fresh mushrooms from 7% to 15%, and on Ukrainian market up to 3-4%. According to M. Kuznetsov, the main reason for such a significant extension of production capacities is a dynamic market development. The capacity of mushroom market has increased almost 50% in 2007, or around 25,000 tons in natural units. "According to our forecasts, next year the market will reach the mark of 30,000 tons", he said adding that champignons occupy more than 90% of this market. The enterprise's representatives point out that one more reason for the built-up capacities is the possibility of large producers to enter Ukrainian market. They are able to quickly occupy the most part of the market. As of today, only "Ukrchampignon" is referred to as a large player. The enterprise was created by "Veres" group in 2007 to supply its products for processing. The most part of the other producers in Kyivskaya region control not more than 3-5% of the local market. "The problem of small enterprises is that they are unable to provide stable supplies. They are no longer attractive for Kyiv retail", Yevgeniy Tanchuk, the Director of "BM Trade" LLC ("Bumi-Market" chain) explained. However, the experts point out that if the company builds up the production volumes and starts cooperating with large chains, it may face the competition from the side of Polish producers, which products are 20% as cheap, according to Yevgeniy Tanchuk.