Grain processing remains less profitable than crop production

The development of grain processing in Ukraine remains challenging and less profitable compared to crop production, while scaling up the sector requires access to affordable financing and the removal of bureaucratic barriers. This was stated by Oleksandr Varavka, Chairman of the Supervisory Board and CEO of ALVIVA GROUP, during Grain Storage Forum 2026, ProAgro Group reports.

According to him, processing is a “long game” involving a complex technological cycle operating 24/7/365 — from grain to flour and finished products. At the same time, profitability in processing is lower than in raw commodity exports, while risks and quality requirements are significantly higher.

“Of course, there is a temptation to invest not in processing but in crop production, as payback periods are faster and cash turnover is relatively strong. Risks exist in any business, but in processing they are much higher because operations run 24/7/365. The human factor plays a far more important role here than in agriculture, although it is also present there,” Varavka said.

He added that the development of grain processing requires not only rhetoric but real access to affordable credit resources and the removal of bureaucratic barriers.

Read also: Less hype, more action: How GRAIN STORAGE FORUM 2026 took place

Source: Latifundist.com

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