Two flour processing plants will be built in Ukraine in 2025 – flour will be produced in western Ukraine, and cereals in the Poltava region, according to an interview with Interfax-Ukraine by Rodion Rybchinsky, director of the Ukrainian Flour Millers Association.
“Currently, a plant for the production of hard wheat flour with a capacity of up to 150 tons per day is being built in western Ukraine, with further processing of pasta, and in the Poltava region, a cereal plant with a combined capacity of up to 100 tons per day is expected to be launched,” he said.
According to the head of the industry association, there are niches in the flour milling business that are worth paying attention to.
“When we talk about grain processing, we must remember that it is not just flour or cereals. There are also combined products: dry breakfasts, energy bars, starch, dry gluten, enzyme preparations based on grain processing products — a very wide range of processed products,” Rybchynsky emphasized, adding that the main priority in the construction of such a production facility is the availability of buyers.
According to him, the cost of building a mill or a cereal plant in Ukraine starts at $3 million, but there are examples of businesses in Ukraine with a higher price tag of $15 million. This amount includes the cost of equipment and buildings (fixed assets), excluding working capital, which can reach 50% of the project cost. After all, in order to launch an enterprise, it is necessary to purchase raw materials, actively enter the market, and anticipate marketing costs, etc.
Rybchinsky also does not rule out the prospect of building a number of flour mills on the Black Sea coast, following the example of Turkey.
“Uzbekistan and Egypt have followed the same path as the Turks. The Uzbeks buy Kazakh grain, grind it, and have become the main exporter of flour to Afghanistan, from where they have ousted Kazakhstan. Egypt buys Ukrainian and Russian grain and has become the leading supplier of flour to the African market, partially displacing both the Turks and the French. All this points to the existence of a state policy,” he stressed, adding that the first step towards such a development of processing in Ukraine should be the interest of the state.
