Grain Storage Forum: A New Architecture for Profitability in the Grain Storage Industry

After several years of unprecedented challenges, grain elevators have evolved far beyond their traditional role as storage facilities. Today, they have become one of the key components of an agricultural enterprise's business model. Their performance directly affects production costs, cash flow, logistics flexibility, energy resilience, and a company's ability to adapt to rapidly changing market conditions. These transformations formed the foundation of the Grain Storage Forum agenda.

The Grain Storage Industry Enters a New Stage of Development

Opening the first discussion session, Rodion Rybchynskyi, Director of the Millers of Ukraine Union, Chairman of the Board of the Ukrkharchoprom NGO, FAO Grain Sector Expert, and PhD in Engineering, encouraged participants to look beyond individual grain elevators and consider the broader transformation of the industry.

Ukraine's grain market is undergoing another major restructuring. Logistics routes, export channels, crop patterns, investor expectations, and approaches to asset management are all evolving simultaneously. Against this backdrop, participants discussed the outlook for the upcoming season, the current state of Ukraine's grain storage infrastructure, investment opportunities, and new approaches to operational efficiency.

Sviatoslav Tkachenko, CEO of Agro Marketing Agency and Co-founder of the Association of Elevators of Ukraine, outlined the range of challenges currently facing the grain storage industry. These include labour shortages, rapidly changing regulations, logistics constraints, energy-related risks, and the need to reassess business economics every time new market rules emerge.

At the same time, participants repeatedly emphasized that periods of uncertainty increasingly serve as catalysts for managerial transformation rather than obstacles to development.

Yaroslav Stratutsa, Director of the Elevator and Storage Department at TAS Agro, stressed that operational efficiency has become the cornerstone of business resilience. According to him, every company must honestly assess its operational processes, workforce structure, and the actual workload of its employees. Only after such an assessment can businesses make informed decisions regarding optimisation, automation, and personnel management.

His views were echoed by other panelists. Kyrylo Vynokurov, Deputy Director of the Storage Department at Kernel, pointed out that Ukrainian companies have learned to operate under constantly changing rules. As a result, systematic staff training, cooperation with educational institutions, and long-term workforce planning have become just as important as investments in modern equipment.

A significant part of the discussion focused on the labour shortage affecting the entire agricultural sector. Representatives of major market players openly discussed the risk of losing a substantial share of their workforce and the need to prepare alternative operating models today. Among the practical solutions proposed were greater automation, broader involvement of women, veterans, and young professionals in technical occupations, as well as stronger cooperation between businesses and educational institutions. Participants agreed that workforce management has become far more than an HR issue—it is now a critical factor influencing the competitiveness of agricultural enterprises.

Importantly, the discussion went beyond simply identifying challenges. Industry leaders highlighted the importance of revising management approaches, increasing the efficiency of every production process, and investing in technologies that reduce dependence on manual labour.

The financial perspective also proved highly practical. Yurii Voichak, Director of the SME Sales Department at JSC Oschadbank, noted that the banking sector is increasingly supporting projects aimed at modernising production infrastructure and implementing automation. In his view, investments in technology enable companies to compensate for labour shortages while improving operational efficiency, even under wartime conditions.

Own Grain Storage Is No Longer a Privilege of Large Agricultural Companies

The second major discussion of the forum focused on an issue that has become increasingly relevant for agricultural producers in recent years: can investing in on-farm grain cleaning, drying, and storage genuinely improve farm profitability?

The panel brought together experienced practitioners from across the industry, including Vitalii Shevchuk, expert and former Head of the Boryspil Grain Elevator of Agro-Region Group; Oleksandr Yablunovskyi, Head of the Podilskyi Grain Elevator Cluster at Kernel; Serhii Sindiashkin, Co-owner of KLOCHKIV-LAND Farm; Oleksandr Karpenko, Head of AGRIATIK Farm; and other representatives of Ukraine's agricultural sector.

One of the discussion's key conclusions was that own grain storage infrastructure is increasingly becoming an economically justified investment even for small and medium-sized farms. The ability to independently clean, dry, and store grain enables producers not only to avoid seasonal price pressure but also to maintain product quality, consolidate larger commercial lots, and respond more flexibly to changing market conditions.

The practical case studies presented during the session demonstrated that investments in on-farm storage are no longer driven primarily by the opportunity to generate revenue from storage services. Instead, producers are seeking greater control over when they sell their grain, improved quality management, and reduced dependence on overloaded commercial elevators and logistical constraints.

Oleksandr Karpenko, Head of AGRIATIK Farm, shared his company's experience operating its own grain elevator, emphasizing that even under today's challenging economic conditions, in-house storage remains a strategic asset. According to him, the ability to postpone grain sales creates additional profit opportunities, particularly for oilseed crops, while today's market increasingly rewards producers capable of delivering high-quality, well-prepared grain lots. At the same time, he highlighted the challenges facing smaller farms, including expensive financing, labour shortages, rising logistics costs, and the difficulties of modernising infrastructure during wartime.

Representatives of major grain market operators also noted a significant shift in farmers' behaviour. Just a few years ago, producers were forced to deliver grain to the nearest commercial elevator immediately after harvest. Today, however, an increasing number of farms have invested in their own grain cleaning, drying, and storage facilities. This trend is reshaping the competitive landscape of the grain storage market. Elevators can no longer rely solely on their location or storage capacity – they must compete through service quality, speed of grain intake, laboratory transparency, and long-term partnerships with agricultural producers.

Sviatoslav Tkachenko highlighted this trend, noting that competition between traditional grain elevators and farms investing in their own storage infrastructure has already become a new market reality.

The discussion also focused on technology selection. Vitalii Shevchuk stressed that there is no universal solution: equipment should always be selected based on crop structure, expected grain volumes, and the specific logistics of each farm. Oleksandr Yablunovskyi shared a similar view, emphasizing that the most important criterion is not the equipment manufacturer but a properly designed technological process in which every component operates as part of a single integrated system. Poorly balanced processing capacity, he noted, often becomes the main source of unnecessary time losses, excessive energy consumption, and higher operating costs.

Another important topic was the practical support already available to small and medium-sized agricultural producers investing in grain storage infrastructure. Participants shared their experience of using modular grain storage facilities supplied through FAO support programmes funded by the Governments of Canada and Japan. These solutions allow farms to rapidly expand storage capacity, strengthen operational resilience, and reduce risks associated with wartime disruptions.

At the same time, the experts agreed that support programmes should extend beyond providing equipment. They stressed the importance of improving access to financing and simplifying investment procedures, as timely access to financial resources is often the decisive factor determining whether a project can be implemented when it is most needed.

Independence Begins with Efficiency

The final session of the Grain Storage Forum focused on the factors that will shape the future of the grain storage industry in the years ahead: automation, energy efficiency, digitalisation, workforce development, and investment.

A common theme throughout the discussion was that competitive advantage no longer depends on individual technologies alone, but on a comprehensive approach to managing grain storage operations.

Serhii Shcherban, Head of the Storage Department at Kernel, emphasized that the efficiency of a modern grain elevator is determined not by isolated technological upgrades, but by a company's ability to manage every operational process as part of an integrated system. In his view, modernization should encompass not only equipment, but also workflow organisation, personnel management, energy consumption, and an enterprise's readiness to operate under constantly changing conditions. Such a comprehensive approach, he noted, is essential for ensuring stable operations and maintaining long-term competitiveness.

This perspective was further developed by Valerii Reutsoi, an expert in agribusiness, grain, and grain logistics, who argued that the greatest untapped potential lies not in increasing equipment capacity but in improving the quality of grain elevator management. According to him, businesses gain a competitive advantage by reducing unnecessary grain handling operations, optimising internal logistics, minimising vehicle downtime, and maintaining strict control over operating costs at every stage of the process.

Oleksii Skuba, an independent expert in grain elevator construction and operation, highlighted automation as one of the most effective tools for simultaneously reducing energy consumption, lowering labour requirements, and improving operational stability. He also stressed that continuous employee training remains one of the most important investments a company can make, as staff competence has a direct impact on both productivity and financial performance.

Yurii Kravchuk, Founder of the Ekvivalent project, encouraged participants to view grain elevators not as standalone businesses but as integrated elements of the grain supply chain. According to him, the economic performance of modern grain elevators increasingly depends on how effectively they are connected with grain trading, logistics, production, and the company's overall business model. It is precisely this integration, he argued, that defines the economics of today's agribusiness.

Throughout the forum, one broader trend became increasingly evident. While discussions about grain elevators once centred primarily on equipment specifications and technical solutions, today's priorities are operational efficiency, management quality, and the ability to make timely decisions in an environment of constant uncertainty. These factors are rapidly becoming the key determinants of competitiveness, regardless of a company's size.

The Grain Storage Forum once again demonstrated that a modern grain elevator is far more than a grain storage facility. It is an investment in business resilience, a tool for risk management, a platform for technological innovation, and a foundation for developing new business models. This is precisely why professional dialogue between agricultural producers, grain storage operators, financial institutions, technology providers, and industry experts is becoming increasingly valuable for the sector's future.

Agro Marketing Agency extends its sincere gratitude to all speakers, partners, and participants for an open, practical, and highly professional discussion. If you are planning an industry forum, conference, roundtable, seminar, corporate event, or any other business gathering, the Agro Marketing Agency team is ready to manage the entire process—from concept development and audience engagement to event delivery and post-event communications. We create business events that generate exclusive industry expertise, foster meaningful professional dialogue, and transform networking opportunities into long-term partnerships and signed agreements.

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