Ukraine is actively increasing its grain processing capacities, even amid uncertainty regarding future exports to the European Union. According to Rodion Rybychynskyi, director of the “Ukrainian Millers Association,” two new enterprises specializing in deep processing of grain crops will be opened in the country by 2025.
This is reported by Finway
New Investments in Grain Processing
In western Ukraine, construction is already underway for a facility producing flour from hard wheat. Its daily capacity will reach up to 150 tons, with plans to produce pasta products. In the Poltava region, a factory specializing in processing grains into cereals with a capacity of up to 100 tons per day is planned to launch. Both projects aim to strengthen Ukraine’s positions in the domestic and international food markets.
Prospects and Challenges for the Industry
Rybychynskyi emphasizes that there are promising directions in the milling business that should be developed. This includes not only the production of flour and cereals but also combined products. The cost of building a mill or cereal plant in Ukraine starts at 3 million dollars, while some enterprises can reach up to 15 million dollars. The director of the association also does not rule out the emergence of new milling enterprises along the Black Sea coast, modeled after Turkish ones.
“Flour and cereal producers expect a reduction in supplies to the EU after the expiration of autonomous trade measures. Notably, the EU accounts for 75% of the exports of these products.”
Overall, since the beginning of the war, the volumes of flour and cereal exports from Ukraine have halved. The main reasons for this decline have been logistical complications and reduced production, which have significantly impacted the positions of Ukrainian producers in the international market.