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From Raw Grain to High-Margin Goods: Where Ukraine’s Farm Exports Go

by Roman Cheplyk
Thursday, June 26, 2025
3 MIN
From Raw Grain to High-Margin Goods: Where Ukraine’s Farm Exports Go

Spain, the Netherlands, Italy and Germany absorb half of Ukraine’s agricultural exports. Moving up the value chain—not moving more tonnage—now offers the best risk-adjusted returns for domestic and foreign investors

1. Current export map

Destination market 2024/25* share of Ukrainian agri-export earnings Predominant cargoes
Spain ~11 % Feed maize, sunflower-oil cake, barley
Netherlands ~6 % Oilseeds, poultry, rapeseed oil
Italy ~5 % Soft wheat, sunflower oil, soy meal
Germany ~5 % Corn, rapeseed, niche organics

*Marketing year July–June, provisional Customs data to early June 2025.

These four EU economies—heavily dependent on livestock and biodiesel feedstocks—retain strong pull-factors for Ukrainian grain and oilseed flows even after the bloc reinstated tariff quotas.


2. Why raw-crop dominance suppresses margin

  • Unit-value gap. Ukraine’s average export price sits near US $309 / t; neighbouring Poland ships largely processed foods at ≥ US $1 560 / t.

  • Tariff exposure. Crude grain faces faster quota exhaustion; refined oils, protein isolates and ready-to-eat goods fall under more liberal rules or avoid quotas entirely.

  • Freight leverage. A tonne of meal or starch captures 2–3× the dollar value per cubic metre shipped, offsetting Black Sea insurance premia that eat into raw-grain margins.


3. Where the investment delta lies

Segment Cap-ex range Typical EBITDA margin Strategic tailwind
Cold-pressed rapeseed & sunflower oil €8–12 m per 100 kt/y line 18–25 % EU Fit-for-55 biodiesel targets
Corn wet-milling (starch, glucose, ethanol) €45–60 m per 200 kt/y 22–30 % Rising high-fructose syrup demand in MENA
Soy/pea protein isolates €25–35 m per 50 kt/y 25–35 % Alt-protein boom, tariff-free into EU after June 2025 review
Specialty poultry and egg products €10–15 m per 20 kt/y 15–20 % Continuous deficit in southern EU

4. Policy catalysts to watch

  1. Export Credit Agency (ECA) cover for agri-processing lines—expected Q4 2025 under the Ukraine Facility.

  2. Tax-offset investment incentive (Draft Laws № 13414/13415) allowing up to 70 % cap-ex recovery via profit-tax credits for projects > €100 k in processing.

  3. 31-market access agenda 2025—priority dossiers for MENA, Sub-Saharan Africa and China include value-added oils, meals and frozen poultry, opening non-quota demand pools.

  4. Rail-to-sea intermodal upgrades funded by EIB/EBRD, shaving US $12–15 / t off inland transport costs for processed goods versus bulk grain.


5. Investment checklist

  • Input security: Partner with on-farm storage clusters to hedge against logistical disruptions.

  • EU compliance: Design facilities around ISO 22000 + FSSC 22000 and pending CBAM carbon-footprint reporting.

  • FX strategy: Revenue in euros but costs in hryvnia—natural hedge, yet consider NBU forward instruments to lock spreads.

  • Exit optionality: Equity stakes could list on Warsaw or Amsterdam Euronext segments once wartime restrictions ease.


Take-away

Selling another five million tonnes of raw grain will not double Ukraine’s export earnings—but converting even 15 % of existing volumes into higher-value proteins, oils and starches could. For equity sponsors and industrial strategics, the window to secure capacity—before EU partners formalise tougher quotas—is 2025–27.

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