UBM, the agricultural company listed on the Budapest Stock Exchange continues its expansion in Italy
UBM Holding Nyrt., a market-leading feed producer, and largest feed material trader in Hungary, continues its expansion in Italy. UBM Italy S.r.l., a newly established Milan-based subsidiary of the Group, is expected to trade 100,000 tonnes of corn, wheat, soybeans, barley, sunflower, rapeseed and soybean meal for feed production in Italy in the financial year of 2023/2024 and 180,000 tonnes in the financial year of 2024/2025.
Italy has always been an important export market for grain products for Hungary. Last year, the volume of grain export from our country to Italy exceeded 2 million tonnes: Hungary shipped about 840,00 tonnes of wheat, 1.1 million tonnes of corn and 310,000 tonnes of barley to Italy in 2022.
UBM expects poultry and pork meat consumption to grow dynamically at around 10 percent globally in the upcoming years. On 9 March this year, UBM Group presented its growth strategy and business plan for the 2025/2026 financial year, which outlined that one of the strategic elements of the plan is to open a new commercial office each in Eastern and Western Europe by 2025, to further expand its continental commercial activities, in response to the expected growth in meat consumption. As a result, the Group will be able to supply all markets within a radius of around 2,000 kilometres within two years.
“By opening our commercial office in Milan, we will be able to supply a much larger potential customer base than before – feed producers and traders. In the 2023/2024 financial year, we intend to trade around 100,000 tonnes of feed materials, corn, wheat, soybeans, barley, sunflower, rapeseed and soybean meal, in Italy. This volume could reach 180,000 tonnes in the next business year (2024/2025), while our long-term plan is to exceed 500,000 tonnes per year” – said Péter Horváth, CEO of UBM Group.
UBM Group has operated four commercial offices in Hungary, Romania, Serbia and Austria so far, which means that the commercial office operated by the newly established subsidiary UBM Italy S.r.l. the fifth in the line.
UBM is the leading feed producer group with its current production volume of 575,000 tonnes as well as the largest feed materials trader in Hungary with a traded volume of 1.7 million tonnes. The company operates 6 feed mills in Hungary, Slovakia and Romania, where 450 different products are produced. UBM Holding Nyrt. is currently the only agribusiness company on the Budapest Stock Exchange (BÉT), which closed the trading day on 11 July at HUF 1,460.
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