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Kernel plans to process 3.7 mln tonnes of oilseeds, export 11 mln tonnes of grain in FY2022 – Verevsky
KYIV. Oct 4 (Interfax-Ukraine) – Kernel, one of the largest Ukrainian agricultural groups, predicts an increase in sunflower seed processing in fiscal 2022 (FY, July 2021-June 2022) by 16% compared to FY 2021, to 3.7 million tonnes, and grain exports – by 38%, to 11 million tonnes, this growth is associated with a good harvest of major agricultural crops in the current season.
The corresponding statement of the founder and head of the board of directors of Kernel, Andriy Verevsky, was made public in the report for FY2021 on the website of the agricultural holding.
"We plan to export 11 million tonnes of grain from Ukraine (more by 38% from FY2020), transship 10 million tonnes of Soft Commodities (goods other than metals traded in the futures markets, these include coffee, grain, potatoes and sugar) through our terminals (more by 23%) and process 3.7 million tonnes of oilseeds (more by 16%), including at our new oil extraction plant in western Ukraine," Verevsky said.
According to the co-owner of Kernel, this season Ukraine will harvest more than 100 million tonnes of grains and oilseeds, including 79 million tonnes of grain (corn, wheat and barley) and 16.8 million tonnes of sunflower seeds. A good harvest will allow the group of companies to load their extraction plants at full capacity, while in FY 2021 their level of utilization was 87%.
"In the agricultural business, we will continue to benefit from global grain and oilseed prices, which are likely to remain strong next year as well. The bulk of our crop has been hedged at prices higher than it was sold in FY2021, although we maintain substantial long positions on corn to play with the expected volatility," Verevsky said.
In addition, Verevsky predicted capital expenditures (CapEx) in FY2022 at $ 265 million. Additional investments are also envisaged in the construction of the Starokostiantyniv oil extraction plant (Khmelnytsky region), under construction since 2019 and designed to process up to 1 million tonnes of sunflower seeds per year.
