There must be clear balance in grain market between interests of farmers, traders and processors – Millers of Ukraine Union's Director

Exclusive interview with Rodion Rybchynsky, Director of Millers of Ukraine Union, for Interfax-Ukraine

ByOksana Ruzhenkova

- How has Ukraine's flour milling industry changed since the beginning of the war?

-  If before the war, some 678 enterprises specializing in grain processing operated in Ukraine, then in 2022, some 192 enterprises were destroyed and remained in the occupied territories. As of the end of 2024, some 88 enterprises have been restored. Currently, the grain processing sector in Ukraine accounts for about 8% of all food processing. The industry's enterprises process 9% of all grain grown in the country, with 23% of the products being exported.

Due to the transportation problems in the Black Sea, as it is known, container shipping has not yet been fully restored. Therefore, the geography of sales of grain processing products has significantly shifted: 75% of products enter the European market, of which 55% to EU countries, another 15% go to the Middle East, while 4% to Africa and 2% to Asia.

- Is the decline in production also related to the population leaving Ukraine and a drop in demand?

- This is a combination of factors: a decrease in the existing population, the shutdown of a number of enterprises due to security and economic reasons and, of course, destroyed and unrestored enterprises.

The reduction in flour and cereals exports is logical. Previously, we exported these products by sea as container cargo. Currently, there is practically no such possibility. Exports are redirected to Europe – the European Union and other European countries. Please note, we entered a market that was saturated – this is on the one hand, and on the other hand – we had to deal with fundamentally different logistics,