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Feed and Livestock Industry Development Proposal

Roy Chapin brainstorming on how to improve (or how to approach the improving of) the feed industry in Western Ukraine via a Feed and Livestock Industry Development Program.

  1. Determine project objective. Suggest improvement of feed quality, delivery and use so as to increase the efficiency and profitability of animal production. This would increase processor activity, increase grain and protein use adding sales to this sector of Ukraine and supply the consumer with more domestically produced products at competitive prices. Identify areas where the USA will be benefited, such as the supply of specialty feed ingredients. U.S. feed manufacturing equipment may be marketable in Ukraine.
  2. Determine geographical area of activity. Suggest L'viv, Ternopil and L'viv Oblasts. This would be consistent with the increasing focus of USAID in Western Ukraine and the L'viv Oblast in particular.
  3. Determine with whom to work. Suggest (1) state feed control officials, (2) ingredient suppliers to the feed industry, (3) consultants to the feed industry such as animal nutritionists (4) feed manufacturers (5) processors of animal products into human food and (6) purchasers of livestock feed - the livestock raiser including all animals - dairy, swine, beef, poultry, etc. The final sector whose demand and buying habits finance the entire food production chain, the consumer, might be included in our study to the extent that we try to determine product demand and then work backwards through the animal industry. This may be beyond the scope of this study, although final customer satisfaction should be addressed.
  4. Identify the players in the above five sectors.
  5. Talk with those identified in #4 to determine the Ukrainian situation and to determine specifically what needs to be done. This is a needs assessment.
  6. Determine specifically what we can do and how to do it to meet our objectives given in #1 based on the inputs from #5.
  7. Expected areas in which to work.
    1. State Feed Control Officials. It may be outside the scope of this study to try to influence the state control officials but we need to be knowledgeable of how they work. If they are receptive, get some consultants from the USA who are U.S. state feed control officials. Changing the state's involvement in the Ukrainian feed industry would help in the transformation of the feed sector.
    2. Suppliers to the feed industry. For a feed mill to manufacture nutritious feeds there will need to be a source of supply for ingredients. Helping feed manufactures to find supplies as well as introducing suppliers to the potential buyers would help make for efficient marketing.
    3. Consultants to the livestock industry. Finding and working with consultants would be an efficient way for two-way exchange of information. Training consultants that work with the industry would leverage our training inputs.
    4. Feed Manufacturers. This sector would be our major target. Suggestions would be training them in nutritional requirements for specific metabolic functions, convincing them to focus on manufacturing feeds that support optimal animal performance and to use good feed manufacturing techniques, working with them on computer formulated rations, marketing, good business management, etc. should strengthen the animal production industry.
    5. Poultry and Livestock Feeders (producers). Work with them via seminars, performance comparison demonstrations etc. to convince them of the increased profitability from feeding properly formulated rations. Show the value of feeding for the highest profit and not the lowest feed cost. This is where animal production takes place and also where the demand for quality feed is generated. This group could be included in other USAID sponsored activities involving agribusiness management training.
    6. Processors in the food industry that depend on animal products.
    7. Encourage and support the formation of a feed industry association involving the feed manufacturing and ingredient supply people.
    8. Encourage and support the formation of associations for poultry and a livestock feeders.
    9. Encourage and support the formation of an association of food processors of animal products. These individual associations would work cooperatively for the interests of their members with the over-all objective of making the food supply system more competitive and efficient.
    10. Be aware of the buying habits of the final consumer.
  8. Integrate the activities of others in working for our project goals. For example, Tacis has a program to develop an agricultural extension system. They could help us reach livestock producers. There are many Western programs teaching agribusiness management that could contribute and would find a receptive "adult learner" audience that was searching for specific answers rather than general information. Part of the function of this project would be to serve as a coordinator for other programs that would be of value to those in our targeted group in the animal industry. The Western Ukraine Initiative has a consultant development mission. The banking and credit program of Ken Smith could play a big role in the financial success of the participants in our Feed and Livestock Industry Development project.
  9. Expected impact. (1) Substantial improvement in the profitability and size of the animal agriculture sector in Ukraine because of improved nutrient delivery to the animal and an (2) increase in the consumption of domestically produced animal products. Increasing the amount of animals on feed would (3) increase the consumption of crops grown in Ukraine including grain and oil seeds pressed into high protein meals when the oil was extracted. (4) Greater wealth creation in Ukraine. (5) Increased demand for feed ingredients, including some from the USA. (6) Improved human health because of the consumption of more protein. (7) Increased demand for high performance feed milling equipment, including some from the USA. (8) Aid in Ukraine's transition to a market economy by encouraging economic development in the private sector. This could include greater economic self-reliance. (10) Improved export potential of animal products to Russia. Russia used to be a big market for Ukrainian agriculture. (11) Can be used as a pilot study to see if it could be effective in other areas of Ukraine.
  10. Personnel Needed. One full-time U.S. animal scientist (animal nutritionist)/agribusiness type taking advantage of the strong support resources in the LOL office in L'viv plus one translator, which may already be on the LOL staff, although with the increased work it would probably be necessary to add a translator. LOL drivers and office facilities should be used. I envision this as a program similar to Ken Smith's banking and credit initiative that is trying to transform an industry, which is a big assignment but necessary if Ukraine is reach its potential. It would appear logical also to make the effort to transform the livestock feed industry a part of the Western Ukraine Initiative (WUI) in order to take advantage of a lot of support already in place and to reduce the overhead costs. Having this be a stand-alone operation would be neither as operationally effective nor as cost efficient as being a part of the larger WUI group.

Roy Chapin, Ph.D., Animal Nutritionist

11145 Chapin Lane, Amity, Oregon 97101
Phone: 503-835-7317
Fax: 503-835-3333
E-mail: <[email protected]>

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