Study: Elevators and terminals in Ukraine
Ukraine's grain outputs and exports have increased to all-time high values over the recent years and this requires restructuring the grain storage and logistics system, according to a recently released study of UkrAgroConsult.
An upward trend is seen in the amount of investments coming to Ukraine’s elevator sector, but their inflow is not yet enough.
Due to a shortage of domestic market capacities, a significant portion of the crop is stored in improper conditions.
Mainly large companies focused on export of grains, oilseeds or their processed products are engaged in the construction or reconstruction of already existing elevators.
At the same time, no state-owned facility for grain storage has been constructed in the past 40 years.
With regard to port capacities, they are enough and will be able to fully meet export needs. At the same time, the use of the Dnieper River for grain transportation is not sufficient therefore developing a logistics infrastructure along its bed is fairly promising.
When strategically placing elevator capacities, one should take into account the regional development prospects for the grain and oilseed markets, a potential for decreasing logistics costs, and diversification of the given facility in response to changes in the world market conditions.
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