Business news from Ukraine

Business news from Ukraine

“Flour Millers of Ukraine” to establish “Brokerage House” for export of large batches of flour

The public association “Flour Millers of Ukraine” plans to create a “brokerage house” for the formation of large export consignments of flour and grain processing products, their marketing and promotion of products on world markets, the press service of the association reported following a meeting of the union’s Board of Directors.

“The goal of this project is to market and promote products on global markets, increase annual export volumes, and provide logistics. The main task is to process importers’ requests and form appropriate product batches, as there are requests for large batches that one company cannot fulfill on its own,” explained Rodion Rybchinsky, director of the association, whose words are quoted in the report.

He emphasized that by the end of 2025, the industry had achieved a strategic result: after lengthy negotiations involving Ukrainian Trade Representative Taras Kachka, the European Union decided to allocate a separate tariff quota for the export of Ukrainian flour in the amount of 30,000 tons.

Currently, the union, with the support of SIPPO, is conducting a comprehensive study of the quality of Ukrainian wheat and flour. Doctor of Technical Sciences Dmytro Zhigunov presented the results of the analysis of 14,000 wheat samples and 200 flour samples in terms of physical, chemical, functional, and technological indicators. According to Rybchynsky, these data will strengthen communication on global markets regarding the quality and safety of Ukrainian products.

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Head of Ukrainian Millers Union predicts shortage of rye flour and food grain in Ukraine

The total forecast for wheat production in Ukraine for the 2025-2026 marketing year (July-June) is about 21 million tons, of which 10.3 million tons will be food wheat, while the harvest of grade 1-2 grain, which is needed to produce bread-making flour, is forecast at 1.7 million tons, according to Rodion Rybchinsky, chairman of the Ukrainian Millers’ Union.

“We are already seeing growing competition between processors and exporters for high-quality wheat, while farmers, who have the opportunity to store grain for several years, are in no hurry to sell it. This creates risks for price stability and the availability of flour and bakery products for consumers,“ the association’s press service quoted him as saying at the ”Khleb.ua” conference on its Facebook page.

Rybchynsky drew attention to the situation with rye. Domestic production of this crop in Ukraine does not fully cover domestic demand. In 2025/26 MY, flour millers will have to import about 9,000 tons, while in the previous season this figure was 1,600 tons. The expert emphasized that such an increase in imports indicates the formation of a persistent shortage of raw materials.

“The current production structure and behavior of farmers may lead to further increases in flour prices. While the shortage of first- and second-class raw materials already determines the industry’s prospects, the issue of food grain availability poses risks to the country’s food security,” stressed the head of the Ukrainian Millers Association.

 

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