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Kernel plans to increase annual processing of oilseeds to 6 million tonnes, grain exports to 15 million tonnes by 2026
KYIV. Oct 4 (Interfax-Ukraine) – Kernel, one of the largest Ukrainian agricultural groups, intends to increase the volume of sunflower seeds processing to 6 million tonnes per year by 2026, while in 2021 fiscal year (FY, July 2020 – June 2021) their processing at facilities of the agricultural holding amounted to 3.2 million tonnes, the oil producer also plans to increase grain exports to 15 million tonnes (in FY2021 – 8 million tonnes).
The relevant statement by founder and chairman of the board of directors Andriy Verevsky about a group’s development strategy until 2026 (Strategy 2026) was published by Kernel in its report for FY2021 on its website on Monday.
"A new action plan for the next five years includes ambitious targets to reach 6 million tonnes of annual sunflower seed processing and 15 million tonnes of grain export from Ukraine," Verevsky is cited in the report.
According to him, Kernel also wants to increase its land bank by 700,000 hectares (now it has 506,000 hectares under cultivation).
"The growth will be driven predominantly by M&A expansion as opposed to greenfield which was a cornerstone of Strategy 2021. Our geographic focus remains intact with 100% of planned investments to be solely deployed in Ukraine," Verevsky said in the annual report.
He also recalled that during the implementation of a previous five-year action plan – Strategy 2021, Kernel became the largest soft commodities export powerhouse in the Black Sea region (goods other than metals traded in the futures markets, these include coffee, grain, potatoes and sugar).
In addition, over the specified period, the agricultural holding has invested more than $1 billion in new and M&A projects in Ukraine.
He also clarified that the indicators of production and processing of oilseeds and grain crops in Ukraine over the past five years have gradually leveled off compared with international peers, therefore, the growth of these industries in Ukraine will slow down in the future.
Kernel is a producer and exporter of sunflower oil, operating in production, export and domestic sales of sunflower oil, crop production, export of grain crops, provision of services for storage and transshipment of grain at elevators and port terminals.
