Ukraine: Vitagro expands DDGS feed for pigs and export markets

Over the past 3 years, Ukraine has invested more than $50 million in building an oil extraction plant and expanding bioethanol and animal feed production, according to Roman Kantarovsky, head of external financing projects at Vitagro. A significant portion of this investment supports the production of high-protein DDGS (dried distillers’ grains with solubles) feed, which is increasingly used in pig farming.

Speaking at the Ukrainian Investment Congress in Kyiv on March 6, Kantarovsky revealed that bioethanol production is one of Vitagro’s key priorities. The company has launched a bioethanol plant in the Ternopil region with a processing capacity of 75,000 tonnes of corn per year, yielding 27,000 tonnes of bioethanol.

To maximise efficiency, the plant is undergoing modernisation to process bioethanol production waste into DDGS feed, a cost-effective and nutritious ingredient for pig diets.

Vitagro, a leading pork producer, began using DDGS in pig feed at its farms in October 2024, achieving a 7% reduction in feeding costs. Encouraged by these positive results, the company has committed to expanding DDGS production.

“Incorporating DDGS into our pig feed has helped optimise our costs while maintaining animal performance,” Kantarovsky said. “This success has driven our decision to ramp up production.”

Vitagro plans to produce around 27,000 tonnes of DDGS annually, with the majority intended for export. The company sees strong demand from international pig farmers, particularly in Eastern Europe and the Middle East.

“We see demand from foreign consumers, and from the point of view of return on investment, foreign markets for us are much more interesting [than Ukrainian],” said Yevhen Kotlyarov, head of Vitagro’s alternative fuels department. He estimates that 60-70% of DDGS feed will be exported, while 30% will serve the domestic market.

To ensure quality and facilitate exports, Vitagro is pursuing GMP+ certification and implementing strict toxin control measures.

Ukraine’s bioethanol industry is expanding rapidly, supported by a new government mandate requiring bioethanol to make up at least 5% of automotive fuel by May 2025. This reform is expected to secure a domestic market of 80,000 tonnes of bioethanol, indirectly driving further growth in DDGS production.

Aside from Vitagro, Ukraine’s overall DDGS production remains limited to just 5,000 tonnes per year, highlighting the company’s leading role in supplying this feed ingredient to pig farmers at home and abroad.

Tags: demand, bioethanol, VITAGRO, Ukraine, Production, investment, animal feed