CHS Inc. Reduces Operations in Ukraine Due to War and Market Risks

One of the leading global grain traders, the American agricultural cooperative CHS Inc., has decided to significantly limit its operational activities in Ukraine. The company will maintain only a representative office, while its main operations will be scaled back. The reasons for this move include increasing war risks, the lack of shareholder approval for resuming operations through deep-water ports, and a challenging market situation.

This is reported by AgroReview

CHS’s Experience in Ukraine

CHS Inc. began its operations in Ukraine in 2008, focusing on the export of corn, wheat, niche crops, and also participating in oilseed processing. One of the company’s largest investments was a grain terminal in Odessa, which cost about 30 million US dollars to build. However, later on, due to a conflict with partners, CHS exited this project. The company also actively developed a network of regional offices and collaborated with Ukrainian agricultural producers, achieving a record export in 2021 of over 1.5 million tons of grain.

Export Restrictions and Future Prospects

Since the beginning of the full-scale invasion by the Russian Federation, CHS exported up to 600,000 tons of grain per year through Ukraine’s Danube ports and the port of Constanta in Romania. However, even after the unblocking of Black Sea ports in the fall of 2023, the company’s Board of Directors did not permit the resumption of exports through these routes.

“CHS maintains its presence in Ukraine,” the company assured.