Hungary's UBM Group to invest $83 million in Kazakhstan's agriculture sector

Hungary's UBM Group has announced plans to invest $83 million in production facilities in Kazakhstan, according to the Ministry of Agriculture of Kazakhstan.

The investment will be used for the construction of three animal feed production plants in the Kostanay, Akmolinsk, and Turkestan regions, as well as a premix production facility in the Almaty region, Caliber.Az reports per local media.

These projects are scheduled for completion between 2025 and 2028.

Kazakhstan's Minister of Agriculture, Aidarbek Saparov, expressed during a meeting with Hungarian company representatives that the ministry will provide full support in the implementation of these projects.

Both parties highlighted that this collaboration would provide a new impetus to the expansion of trade and economic relations between Hungary and Kazakhstan.

Note that, the UBM Group, a leading Hungarian agricultural enterprise, has been a dominant force in the country's crop trading, feed manufacturing, and distribution industry for over 27 years. With a robust network of 16 companies, the group is owned by UBM Holding Plc., a public entity listed on the Hungarian stock exchange, and is managed by UBM Trade Zrt.

Its flagship companies, UBM Grain Zrt. and UBM Feed Zrt., oversee crop trading and feed production activities, with an expanding footprint in livestock businesses. The group's feed services span poultry, cattle nutrition, supported by professional services, R&D, and training initiatives.

UBM Group has experienced significant growth, expanding its geographical reach across Central and Eastern Europe, including Austria, Italy, Romania, Serbia, and Slovakia. With 55% of its consolidated sales of HUF 231 billion coming from Hungary, the company operates in 15 countries, with multiple feed mixing plants in Hungary, Slovakia, and Romania.

In 2024, UBM produced 436,000 tonnes of feed and sold 1.5 million tonnes of crops and feed raw materials. Looking ahead, the company aims for 2 million tonnes of annual crop and raw material trade and 1 million tonnes of compound feed production within the next 3-4 years, prioritizing regional growth, sustainability, and ESG compliance.

By Aghakazim Guliyev