In Kota korm: the second large agroholding enters the pet food market

Miratorg is planning to compete with turkey producer APK Damate in the animal feed market: in January, the holding filed an application for registration of the Indilite Pets trademark, Izvestia learned from Rospatent data. The company has confirmed the plans. The interest of Russian businesses in the market is linked to its high margins and growing demand for pet supplies — by the end of 2025, it was estimated at 590 billion rubles. About why agricultural holdings diversify their business and what are the prospects for the pet supplies market, see the Izvestia article.

For dogs and cats

Damate intends to launch its own pet food production, a source close to the company told Izvestia, and its representative confirmed. In January 2026, the manufacturer applied for registration of the Indylight Pets trademark for classes 05, 31, 35 and 40 of the International Classification of Goods and Services (ICTS) - animal feed, wholesale and retail services, as well as waste recycling into feed, according to Rospatent data.

At the first stage, it is planned to produce food for adult dogs, and later for cats, a company representative explained to Izvestia. The products will be made from turkey, duck and lamb of the human grade class (an animal feed quality standard in which the ingredients are initially suitable for human nutrition. — Ed.), he noted, specifying that the launch will be localized at a site in the Karachay-Cherkess Republic. The products will be presented in the premium and super premium segments, and will be sold on marketplaces and in specialized retail, the source said. The group expects to start production during this year. The volume of investments in the company was not disclosed.

Damate Group of Companies (GC) is the largest turkey producer in Russia, founded in 2012 by Naum Babaev and Rashid Khairov. Based on the results of 2024 (latest available data) it produced 241.5 thousand tons of this type of meat in slaughter weight. The holding is also engaged in the production of duck meat and is developing a mutton project in the North Caucasus. The company's land bank is, according to its own data, about 100 thousand hectares. It produces products under the brands Indilite, Ozerka, BazarCo, etc. By the end of 2024, the group's revenue under IFRS amounted to 72 billion rubles, which is 18% more than a year earlier, and EBITDA (reflecting earnings before interest, taxes, and depreciation) increased by 23% to 15 billion rubles, the company reported.

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Why does the company need a new segment

The interest in the pet food market is related to its growth potential and the availability of the necessary raw materials for production, the company representative explained. Deep processing of turkey produces offal and secondary raw materials that can be effectively monetized through the production of animal feed, said Ilya Bereznyuk, Managing partner of Agro and Food Communications. Turkey as the basis of the feed, according to him, is considered a premium ingredient — it is hypoallergenic, is absorbed by 95% and contains all essential amino acids.

This method of business diversification is a global trend for agricultural producers, explained Kirill Dmitriev, President of the National Association of the Pet Industry, Chairman of the Opora Russia Pet Business Commission. The pet industry, he says, proves to be the most resilient in times of crisis because consumers are not ready to save on their own pets. Owners treat pets as full-fledged family members and take care of their health and well-being, agrees Daria Lashchenko, the company's marketing and sales director. This stimulates the demand for high-quality and complete feeds for them, the top manager noted.

Retail feed sales in January – September 2025 increased by 8% in physical terms and 16% in monetary terms compared to the same period a year earlier, according to NTech analysts. The category of such products is the second most important driver of the development of the consumer goods (FMCG) market in the omnichannel market after ready—to-eat food in 2025, Nielsen estimates. They clarified that by the end of 2025, sales in this category increased by 3.9% year—on-year in physical terms, and by 13.2% in money in the omnichannel market.

In Russia, many new pet food projects have been launched over the past five to seven years, including in the premium segment, Ilya Bereznyuk pointed out. In 2019, Miratorg began to produce complete dry and wet feeds, as well as specialized veterinary diets for animals. A large pork producer, Talina Group of Companies, also has its own feed line.

Despite this, there is still very little competition in this segment among large vertically integrated agricultural holdings, Ilya Bereznyuk believes. According to the Federal Antimonopoly Service (FAS), in 2023, about 75% of the dog and cat food market was controlled by two foreign manufacturers — Mars (Royal Canin, Sheba, Whiskas, Kitekat, etc.) and Nestle (Friskies, Felix, Darling, Pro Plan, Purina, etc.)

At the same time, the scale of companies such as Damate or Miratorg makes it possible to significantly reduce production costs and increase the profitability of this line of business, the expert said.

However, not all manufacturers consider this market for themselves. Cherkizovo Group does not plan to make its own line of pet food yet, its representative noted.

By the end of 2025, Russians kept about 79 million pets (+3.3% by 2024), including 53.4 million cats and 26.1 million dogs, estimated Ilya Bereznyuk. Today, more than 60% of households in the country have pets, Kirill Dmitriev added. According to the results of last year, the monetary volume of this market amounted to 590 billion rubles, which is 15.8% higher than a year earlier, the industry portal Zooinform estimated.