In the soybean segment of Ukraine’s oil and fat industry, positive trends continue in the 2025/26 marketing year in terms of both physical volumes and foreign exchange revenue, according to the Ukroliyaprom association.
According to the association’s data, from September to February of the current season, foreign exchange revenue from soybean oil exports rose by 19.3% compared to the same period of the previous marketing year.
Revenue from soybean meal exports for the same period increased by 21%, while physical volumes of meal shipments rose by 38%.
The association attributes the growth in the soybean segment to increased domestic processing and the industry’s overall shift toward higher-value-added products.
“Ukroliyaprom” notes that it was precisely the increase in soybean and rapeseed processing that helped the industry mitigate the effects of the decline in sunflower yields and maintain stable operations at processing facilities.
According to the association, oil and fat products account for 34.4%, or $7.737 billion, of Ukraine’s agricultural and food exports totaling $22.515 billion, confirming their systemic role in the country’s foreign exchange earnings.
Rapeseed oil exports from Ukraine in July–February of the 2025/26 marketing year increased 2.2-fold compared to the same period last season, while foreign exchange earnings rose 2.7-fold, according to the Ukroliyaprom association.
The association also reported a sharp increase in the rapeseed meal segment. Over the first eight months of the season, exports of rapeseed meal increased 2.3-fold, while foreign exchange revenue rose by 85%.
Ukroliyaprom views this trend as evidence of the industry’s strategic shift from exporting raw materials to selling products with higher added value.
According to the association’s assessment, it was the increase in rapeseed processing, along with soybeans, that made it possible to offset the shortage of sunflower seeds and maintain oilseed processing plants’ capacity utilization at a stable level.
At the same time, the industry continues to operate under difficult conditions. Among the main risks, the association cites restrictions on energy supply, risks to exports via seaports, and the vulnerability of rail logistics.
Overall, oil and fat products remain one of the key items in Ukrainian exports. According to Ukroliyaprom, they account for 19.2% of total goods exports, or $7.737 billion.
Ukrainian oil and fat industry companies expect sunflower oil exports to decline by 6.4% in the 2025/26 marketing year—to 4.4 million tons from 4.7 million tons the previous season, according to the UkroliyaProm association.
According to the association’s estimates, sunflower oil production this season will also decline by 10%—to 4.6 million tons, down from 5.1 million tons in the previous marketing year.
The association explained that the decline in the sunflower segment is linked to the lowest sunflower yield in the past 10 years, which fell by 16.8%, as well as a 7.8% reduction in harvested acreage.
At the same time, despite the decrease in physical shipment volumes, foreign exchange revenue from sunflower oil exports is growing thanks to higher global prices.
According to data from the National Scientific Center “Institute of Agricultural Economics,” the profitability of sunflowers in 2025 stood at 54.7%, which remains one of the highest indicators among agricultural crops and is second only to rye at 56.4%.
Ukroliyaprom emphasized that additional pressure on the industry is being exerted by energy capacity constraints due to shelling of critical infrastructure, threats to the operation of deep-water ports, and attacks on the railway network, which is vital for exports to EU countries.
JSC “Lynovychi Sugar Plant ‘Krasnyi’ (Chernihiv region), part of the ”Gals Agro” group, plans to retain a loss of UAH 664,000 incurred as a result of operations in 2025, the company reported in the NSSMC’s disclosure system.
The relevant issue has been included on the agenda of the annual general meeting of shareholders scheduled for April 18. According to the draft resolution, shareholders also intend to approve the results of operations for the past year and hear the supervisory board’s report.
The shareholders will also consider a proposal to grant preliminary consent for significant transactions to be conducted within one year of the decision’s adoption. This refers to transactions whose value exceeds 25.00% of the company’s asset value as per the latest annual financial statements, with a maximum aggregate value of UAH 48.80 million. The list of such transactions includes obtaining loans, credits, and other banking products; pledging or mortgaging property; providing guarantees for third-party obligations; as well as the purchase, sale, rental, and leasing of property.
According to data from the Opendatabot service, JSC “Lynovychi Sugar Plant ”Krasnyi” reduced its revenue by 2.67% in 2025—to UAH 211.28 million—while its debt obligations decreased by 15.97%—to UAH 180.13 million. The company’s assets decreased by 18.13% over the year to UAH 159.82 million, while the number of employees decreased by 6 to 151.
JSC “Lynovychi Sugar Plant ‘Krasnyi’ (Chernihiv Oblast) is part of the ”Gals Agro” agricultural holding and specializes in the production of white crystalline sugar, molasses, and beet pulp. The current sugar beet processing capacity is approximately 2,800 tons per day, which allows the company to process an average of 170,000 tons of raw materials and produce over 23,000 tons of finished products per year.
The beneficiaries of the plant are Serhiy Kravchuk, Vadym Vaisapir, Mykhailo Yevstratov, Volodymyr Havrylenko, and Mykola Havrylenko. The main shareholder of the enterprise, with a 73.38% stake, is Gals Agro LLC.
The Ukrainian group of companies Kormotech, a manufacturer of dog and cat food, expects revenue of approximately €200 million by the end of 2025, with exports currently accounting for 30% of sales, said co-owner and CEO Rostislav Vovk at the Forbes Ukraina Exporters Summit.
“We are currently working very hard on this (increasing the export share – IF-U). I am confident that by 2028–2029, we will increase our export sales to at least 45% of our turnover and continue to grow from there. In other words, for us, internationalization means that the majority of our revenue comes from foreign markets,” Vovk noted.
According to the CEO, the company is currently actively expanding its presence in the U.S. Last year, revenue in the U.S. market was approximately $4 million, but the plan for this year calls for growth to over $10 million. The products are already available on Amazon and the specialty retailer Chewy, as well as in 150 stores in the New York area and neighboring states. Vovk added that “this is precisely why we are in the United States—to understand which trends will reach Europe in a few years.”
Assessing competitiveness, the CEO noted that Europe currently lags behind the U.S. in innovation by five to seven years. For Ukrainian businesses, expansion is a way to “gain a foothold” to ensure the company’s stability regardless of the domestic situation in the country, energy supply issues, or veterinary risks.
In Europe, Kormotech’s strategy is focused on 15 countries in Central and Eastern Europe. The priority markets are Romania, Bulgaria, and the Baltic states. In particular, in Lithuania—which the company considers its “second home market” due to the presence of its own factory there—the manufacturer already controls 10% of the market.
Vovk named Bulgaria and Romania as the most promising markets in the region, as they are growing rapidly and the company’s products are ideally suited to the needs of local customers. According to him, experience in Ukraine allows the company to anticipate competitors’ moves and the stages of development in these markets.
The company’s CEO emphasized that expansion into new markets requires long-term investment—five to eight years of operating without profit to successfully compete with multinational giants. The manufacturer continues to invest in diversification and uses its own profits for development in EU countries.
In terms of capital, Kormotech is exclusively considering an acquisition strategy and is currently seeking suitable targets. The expansion is financed through internal funds and credit lines from the EBRD and Raiffeisen Bank. At the same time, the company remains a family business: according to the “family constitution,” bringing in outside investors is only possible for a minority stake, with the owners retaining the mandatory right to buy it back in the future.
“We are building a century-old company, so we cannot afford to ‘shoot in all directions at once.’ Our path is to establish corporate governance where shareholders have systematic control, and the business develops as a large family structure, following the example of Mars or Walmart. (…) My main advice to my past self is not to expect very quick victories, not to enter Poland right away due to the extremely fierce competition in the discount market, and not to be afraid of mistakes, because without them it would be impossible to achieve what we have now,” Vovk concluded.
Kormotech is an international family-owned company with Ukrainian roots, founded in 2003. It produces cat and dog food under the brands Optimeal, Club 4 Paws, Delickcious, Meow!, Woof!, and My Love. It has production facilities in Ukraine and the EU, and its product range includes over 650 items. The company’s products are available in 55 countries worldwide, both under its own brands and under the brands of partner companies.
According to published information, the company’s strategic goal is to become one of the top 30 global pet food manufacturers by 2029, with annual revenue of EUR500 million, of which EUR300 million is planned to come from European markets.
Ukrainian honey producer BEEHIVE (part of the EFI Group) is considering opening production facilities in Europe due to the European Union’s reinstatement of import duties on honey, which has led to the company losing ground in the European retail market, said BEEHIVE General Manager Semen Gagarin.
“When the 17.3% tariff was reinstated, we didn’t expect it. At one point, our margin dropped by 20% at the base level, and we started getting pushed out of retail chains—we were left with only 10–15% of the list of retailers we had previously. For us, this was a real ‘cold shower,’” he said at the Forbes Ukraina Exporters Summit.
According to Gagarin, entering complex markets, particularly the British Morrisons chain or the German REWE, requires significant preparation. He emphasized that for Ukrainian honey to make it onto the chain’s shelves, the manufacturer had to offer extreme terms. Specifically, in Germany, the company was forced to provide a “55% margin for the chain” to have a chance of gaining entry.
The general manager explained that BEEHIVE used a “top-down” pricing model in the EU, taking into account competitors’ pricing policies. Under this model, if the product’s cost price is EUR1, the shipping price to the EU must be EUR1.5, and the final shelf price for the consumer will reach around EUR2.5.
“We always work based on the shelf price and the competitor’s price: if their price is EUR3, we need to be a little cheaper to give the buyer a reason to vote for us with their money,” he said.
Assessing the competitive environment, Gagarin noted that Ukrainian producers have to compete with European family-owned companies that have a 150-year history. Since honey is largely a commodity, unique taste or a price advantage become key success factors. To ensure stable expansion, he advised his colleagues to first capture the maximum share of the local Ukrainian market in order to have the financial cushion needed for costly investments in marketing and product listings abroad.
Currently, the company sees two paths forward: either wait for Ukraine’s full EU membership, which would eliminate customs barriers, or localize production directly in Europe.
“Exporting is expensive, exporting takes time, and exporting is complicated. But it’s doable if you have a ‘margin buffer,’ are ready to invest in trading houses, and hire ‘native speakers’ who will communicate with clients in their own language,” Gagarin concluded.
EFI Group (Effective Investment Technologies), founded in 2007, implements business projects in Ukraine. Its investment areas include healthcare and medtech, the paper, food, and woodworking industries, and the supply of agricultural products. Most of the group’s assets are export-oriented and hold international FSC, IFS, and BRC certifications.
The company’s businesses include Feednova, a producer of animal fats and feed additives; the “Beehive” honey production plant; the “Medical Star” honey retail chain, the Zhytomyr Cardboard Plant, the cardboard packaging manufacturer “Sem Ecopack,” the timber processor “Forest Technology,” the agricultural products supplier “Efi Agro,” and the online medical hub Doc.ua.
