Silos and Terminals of Ukraine

29.03.2018

Silos and Terminals of Ukraine, 2018.

 

Assessment of competitive advantages of the largest ports and analysis of the competitive environment in the grain storage market.

 


“Silos and Terminals of Ukraine” UkrAgroConsult  study  

Updated Mar. 29, 2018

 

Key questions

Latest update

Timeliness of the topic

Contents

Conclusion

 

The study “Silos and Terminals of Ukraine” presents essential data necessary to understand silo business peculiarities in Ukraine and the operation of bulk grain handling facilities in Ukraine’s sea ports. It contains an analysis of key trends of the grain and oilseed markets.

 

Its important aspects include defining development prospects of the market of the respective crops and analyzing the whole technological process of their production – from loading terminals to handling at sea ports and shipping for export.

 

A special attention is paid to assessment of competitive advantages of the largest ports and analysis of the competitive environment in the grain storage market.

 


 


 

The study addresses the following key questions and issues:

  • general trends in Ukrainian grain production
  • general trends in Ukrainian oilseed production
  • development prospects of the grain and oilseed market in Ukraine
  • description of grain storage systems and silo complexes
  • impact of seasonal factors on the utilization rate of silos and grain purchases by processing companies
  • key groups of grain storage market players: analysis of the competitive environment and main consumers of grain storage services
  • estimated theoretical and actual capacities for handling bulk grain at sea ports
  • quantitative assessment of grain terminals’ utilization, 2005 – 2017
  • assessment of competitive advantages of major ports
  • construction of new facilities, projects for upgrading and expanding available ones.

     

The most important points in the latest update:

“Silos and Terminals of Ukraine” Main page study. UkrAgroConsult

 

Improvement of the situation in Ukraine’s grain market owing to investment in agriculture

Growth and stabilization of Ukrainian grain production at 60-65 MMT in 2013-2017 results from considerable investment made in the farming sector in 2008-2013. As a consequence, previously abandoned land parcels were returned to cultivation and better tillage practices were applied. In addition, comparatively favorable weather conditions are to be taken into account.

 

Forecasts for developments in the grain and oilseed markets

Ukraine has significant potential for further expansion of grain and oilseed production due to rising yields.

Since oilseeds are more remunerative than traditional grains, plantings of oil crops may expand in the coming years that will likely bring oilseed production to a higher level.
 

Key domestic and foreign players in the grain storage market

The largest silo owners in Ukraine include: state-owned companies; representatives of large international traders; Ukrainian companies owning milling or fat-and-oil facilities; companies or company groups specialized in providing storage and transport services. Mostly these groups compete between each other for the distribution of available resources.
 

Key quantitative indicators of grain-handling terminals’ utilization at Ukraine’s ports

The utilization of grain-handling terminals at Ukraine’s ports can be quantitatively assessed by the means of a utilization rate, which relates the actual grain volume handled by a terminal (both export and transit flows) to its theoretical handling capacity. Some grain terminals have a rate exceeding 100% due to the use of  various methods of grain handling.

 

Factors that necessitated the construction of new ports and grain-handling facilities

The construction of new ports and specialized grain terminal was encouraged by abundant grain harvests and, consequently, a rise in demand for efficient, cheap handling services in 2001 – 2002. In addition, the latest surge of interest in the construction and development of grain handling took place over recent years due to the above-mentioned abundant harvests and a crisis-provoked drop in the flow of other goods (ore, coal, metals). A few companies have already announced intentions to build new grain-handling facilities at Ukraine’s sea ports.


 

Timeliness of the topic:

The study presents an in-depth analysis of grains and oilseeds regarding their production, domestic consumption, processing, exports, and crop forecasts for next seasons. In addition, it reveals strengths and weaknesses of grain storage systems, as well as those of alternative storage methods. The regional distribution of grain storage capacities is shown there.

The development of silo business in Ukraine and the expansion of bulk grain handling capacities at sea ports are driven by the nation’s powerful potential for grain and oilseed production and exports.

Ukraine’s grain resources are enough not only for meeting the needs of the food industry and animal sector, but also for stepping up grain exports. The global trend toward population growth in developing countries will lead to stronger demand for inexpensive grain, including Ukrainian one, and oilseeds (sunseed, soybeans, rapeseed).

The study pays much attention to peculiarities of silo business in Ukraine and the status and development prospects of bulk grain handling capacities at Ukrainian sea ports.

In view of keen competition in the grain storage services market, a special emphasis is put on the cost of respective services – this matter is elucidated in detail in the study.

Port handling is a key component of grain and oilseed exportation. In Ukraine, export and transit grain cargoes are handled by 14 commercial sea ports. The study contains their estimated capacities.

The unique location of Ukrainian ports and their proximity to a number of major markets (the Near East, North Africa, Europe) make them much more competitive despite other nations’ efforts to develop own port capacities.

The study elucidates in detail weighty factors (grain production cost, delivery cost, competitive advantages) helpful for market players in selecting the ports to work with.


 

Contents:

1. Grain and oilseed market

  • 1.1. General description
  • 1.2. Key trends
    • 1.2.1. General trends of grain production in Ukraine
    • 1.2.2. General trends of oilseed production in Ukraine
    • 1.2.3. Domestic grain consumption
  • 1.3. Development prospects of the grain and oilseed market

2. Foreign trade

  • 2.1. Key trends in grain exports
  • 2.2. Processing and export of oilseeds

3. Silo business in Ukraine

  • 3.1. Description of grain storage systems and silo complexes
  • 3.2. Impact of seasonal factors on the utilization rate of silos
  • 3.3. Seasonality of grain purchases by processing companies
  • 3.4. Regional distribution of silos in line with the geographical pattern of grain production and consumption. Availability of storage capacities in the regions
  • 3.5. Key groups of grain storage market players. Analysis of the competitive environment. Main consumers of grain storage services
  • 3.6. Typical silo services and their costs
  • 3.7. SWOT-analysis and risk-analysis of a project for providing grain storage and shipping services

4. Bulk grain-handling capacities at Ukrainian sea ports

  • 4.1. Brief review of the port sector
  • 4.2. Export infrastructure. Grain handling capacities at Ukraine’s ports
  • 4.3. Estimated theoretical capacities for handling bulk grain at sea ports
  • 4.4. Development trends of the port grain-handling sector in Ukraine
  • 4.5. Estimated actual capacities for grain handling at sea ports
  • 4.6. Quantitative assessment of grain terminals’ utilization, 2005 – 2017
  • 4.7 Grain storage facilities at ports
  • 4.8 Trends in grain handling tariffs at Ukraine’s ports, 2008 – 2017
  • 4.9. Assessment of competitive advantages of major ports
  • 4.10. Construction of new facilities, projects for upgrading and expanding available ones.

5. Conclusion


 

Conclusion:

Ukraine produces enough grain and oilseeds now. The focus of the national farming sector on export stimulates intensive construction of new loading/unloading facilities both in major and minor ports on the Azov and Black Sea. A positive factor is that building new modern grain complexes along inland routes and upgrading available ones become more and more attractive. The desire of market players to cut their financial losses related to storage and shipping may spur upgrade of the grain storage and conditioning system not only at ports, but also at inland silos.

 

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Key questions

Latest update

Timeliness of the topic

Contents