Many agricultural market experts state that Ukrainian agricultural industry is one of the few industries that were able to withstand economic crisis. The example of that is the fact that despite the situation in the country, many agricultural companies start construction or are already constructing elevators and grain silos. Heads of those companies realize that the crisis will be over sooner or later, but grain will be harvested as it was harvested, all the more so in the case of a good harvest the issue of its storage becomes especially acute. Many agrarians ask themselves: is it better to wait for better time or to invest in a grain silo construction – for the future. If you do not have your own harvest you will always find lessees for the grain silo.
Let us recall that in 2008 there were about 650 grain storage enterprises in Ukraine with total capacity of 31 million tons, and the grain harvest was 53 million tons, while as of January 30, 2008 certified elevators capacity slightly exceeded 30 million tons.
If a company is not engaged in large-scale grain trade, construction of a new linear elevator with the capacity over 50 thousand tons in Ukraine is economically problematic. Extreme competition and dense location of linear elevators in Ukraine can hamper effective operation of such an enterprise, and it will be under-loaded. But the construction of the company’s own small object is justified in this case.
Besides, one should pay attention to the recently emerging trend toward reconstruction and modernization of old Soviet concrete elevators, which is much cheaper than construction of a new one, while economic result can be the same.
New research by ProAgro “Ukraine: Grain Storage System and Silo Industry” will help you to get more information on a specific nature of grain storage in Ukraine. Among the issues covered in this study are types of elevators and grain silos, grain storage methods and modes, services provided and their costs, export flows, main players of the grain storage market, competition policy as for depository market, elevator SWOT-analysis, state policy and legal framework, as well as many other aspects that more or less influence the situation in this agricultural branch.
