The last season of MY 2008/09 is characterized by an unprecedented grain harvest in Ukraine. The previous swift growth of grain prices led to the increase of grain crops plantings that, together with extremely favorable weather conditions, resulted in high productivity and a consequent high gross yield. According to the preliminary data as for the 2008 harvest, grain production increased by 81.8% compared to the previous year.
Such a high harvest was not only a victory for agrarian companies, but it also caused big problems since grain surplus made domestic prices collapse, and as a consequence, caused the loss of agrarians’ profits. Thus, large carry-in stocks, excellent grain harvest in MY 2008/2009, limited access to elevators and high elevator and grain silo tariffs in Ukraine, as well as absence of opportunities to quickly export large grain volumes caused excessive domestic supply and low grain procurement prices.
All producers, consumers as well as grain traders have a need for high-quality storage services. For the first time during Ukraine’s independence, this problem became very acute for Ukrainian companies. However, as long as Ukraine increases grain production this issue will not lose its importance. At present, probably, there is no agrarian market participant who would not consider purchase or lease of an elevator for grain storage. It should be noted that grain storage is not a commonplace activity, and to be successful in agricultural business it is necessary to know market situation as for elevator industry, storage systems, legislative issues, which knowledge makes a grain market participant more competitive and less subject to risks.
In view of this, ProAgro prepared a market research "Ukraine: Grain Storage System and Silo Industry". This study covers almost all grain market aspects, and it will be interesting not only for those who are interested in elevator industry but also for all grain market participants. For example, the research analyzes the Ukrainian grain and oilseed markets, compares production and consumption, and looks at the exports potential. And, of course, the main emphasis is made on the thorough analysis of the elevator market and elevator services in Ukraine.
Those who plan to build their own elevator or are ready to buy an available old-pattern concrete object or those who consider leasing an elevator will also find answers to their questions in our research. SWOT-analysis prepared by our specialists will help to assess the prospects of the new object management. Comparison of technical characteristics of different equipment for elevators offered in the Ukrainian market by a number of foreign companies will allow making the right choice.
Furthermore, knowledge of the market competition policy will be indispensable for everybody who came across or will come across a necessity to store grain.
You can find further information on the new research, its content as well as the list of tables and diagrams on the research page "Ukraine: Grain Storage System and Silo Industry".