A press release issued by the American Machinery Company on 19 September 2011 states that the agricultural sector of Ukraine needs a global approach, modern technology, more developed stock-raising and processing, and increased production of crops. The basic problem in Ukraine’s agricultural sector today is the absence of facilities for storing the harvest and transporting it to the border. The report concludes that like production, the processing of agricultural products in Ukraine has huge potential, but needs investment for development.
All the grain was stored in grain elevators that mostly belong to the biggest grain traders in Ukraine, such as Nibulon, Serna, Kernel Trade and many smaller companies. The main player on Ukrainian grain market is Nibulon. The company exported more than 3.5 million tons, or 15.5% of the total volume of grain exports.
In 2011, Ukraine had a record harvest of 56.7 million tons of grain, which was 44.3% more than in 2010. The domestic consumption of grain crops is estimated at 27 million tons per year.
Ukrainian grain silos can reportedly store approximately 35 million tonnes of grain and oil seeds, but crop forecast for the following years, together with remaining stocks from previous year, is expected to reach up to 65 million tonnes.
Shortage of grain elevators gives exceptional opportunity for investors, willing to invest in emerging market countries. Government has simplified the process of approving land for grain silo construction. And potential of the grain trading companies in such agricultural-oriented company as Ukraine is huge. Year after year local farmers increase grain production in Ukraine, by using modern equipment, productive crop seeds and fertilizers. So shortage of grain storage facilities will bring big profits to their owners.
If you are in grain trading business, or looking for a great income investment, we are here to help you. Our company my offer a few grain elevators, that have big potential for prospective owners. Also we may help you with getting a good location and land negotiation for construction of new grain elevators.