New Grain Processing Plants to Be Built in Ukraine in 2025 Despite Export Risks to the EU

In Ukraine, two new grain processing facilities are planned to be put into operation in 2025. One of the plants will be located in the western part of the country — it will produce flour from hard wheat varieties with a capacity of up to 150 tons per day. The facility will also manufacture pasta products. The other plant will be situated in the Poltava region, where up to 100 tons of grains will be processed into cereals daily.

This is reported by AgroReview

Investments in Processing and Market Prospects

The head of the “Millers of Ukraine” association, Rodion Rybychynskyi, believes that there are untapped opportunities in the processing industry. According to him, the demand is not only for traditional products — flour or cereals — but also for combined products. The starting cost of building a mill or a cereal plant in Ukraine is from 3 million dollars, although there are examples of projects with budgets up to 15 million. Rybychynskyi also notes that a promising direction could be the construction of several milling enterprises along the Black Sea coast, similar to Turkish models.

“The cost of building a mill or a cereal plant in Ukraine starts at $3 million, but there are examples of businesses reaching the upper price limit of $15 million. Rybychynskyi does not rule out the possibility of constructing several milling enterprises along the Black Sea coast, following the example of Turkey.”

Challenges for Grain Product Exports

At the same time, flour and cereal producers are concerned about the future reduction of exports to the European Union after the end of autonomous trade measures. This market accounts for 75% of Ukrainian product exports. Overall, since the start of the war, exports of flour and cereals from Ukraine have halved, which has resulted from logistical issues and a decrease in production volumes.