The agricultural holding KSG Agro has signed a contract with a Ukrainian oil extraction plant for production of sunflower and soybean oil from its raw materials with subsequent export of finished products to the European Union, according to a press release from the agrarian group on Thursday.
“Our military realities are pushing for the search for new strategic solutions. So we decided that rapeseed and sunflower seeds will be processed, since there are more chances to sell such products abroad in the form of the same vegetable oil, ready for consumption, at a better price than just sunflower seeds,” KSG Agro quotes its board chairman Serhiy Kasyanov.
He recalled that the blockade of Ukrainian seaports due to Russian military aggression makes traditional supply chains and export supplies of grain and oilseed agricultural products impossible.
It is specified that the refinement and packaging of vegetable oil will be carried out in the EU countries, and relevant negotiations are currently underway with European partners.
Sunflower and soybean oil from Ukraine to Europe will be transported by trucks, for which KSG Agro has already purchased flexitank containers in Turkey, which will allow transporting 22-24 tonnes of oil in conventional trucks.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as production, storage, processing and sale of grains and oilseeds. Its land bank is about 21,000 hectares.
According to the agricultural holding itself, it is among the top five pork producers in Ukraine.
