In Ukraine, the prospect of creating community grain elevators is being considered

Interest is growing in Ukraine regarding the implementation of a new model of elevator infrastructure — community grain elevators, which could become an important tool for supporting small farming enterprises. This was stated by Andriy Semenovych, the director of the “Grain House.”

This is reported by AgroReview

Differences Between Ukrainian and American Cooperatives

According to the expert, the main difference between grain cooperatives in Ukraine and the USA is the lack of experience in collective farming that is characteristic of the Soviet past in the United States. In American cooperatives, farmers unite to conduct business together, independently finance infrastructure, and pay only for actual services, which depend on the volume and quality of the harvested grain. The larger the cooperative elevator, the lower the cost of processing. This is what allows structures like CHS to confidently maintain leading positions in the US market.

Potential for Developing Community Elevators in Ukraine

In Ukraine, cooperative elevators often emerge thanks to grant support; however, they do not always involve real financial engagement from farmers, which is why they remain artificial entities. Nevertheless, Andriy Semenovych is convinced that with honest partnerships, the classic cooperative model can take root in Ukrainian conditions.

“In my opinion, I see another prospect — in the construction of not only cooperative but also community grain elevators. This is when a territorial community builds its facilities to serve the farmers of the subordinate areas. After all, small farmers are not very appealing as partners to large agribusinesses. If these farmers are cared for by the community, which builds an elevator for them and hires a team of professionals to manage the grain storage, then this idea should work well. It is currently possible to obtain grant co-financing for such projects,” Semenovych noted.

Thus, the development of community grain elevators could become an effective solution for supporting small farmers, allowing them to enhance their competitiveness and ensure stable access to modern infrastructure for grain storage and processing.