Ukraine is boosting its grain processing capacity despite facing EU export hurdles.

Rodion Rybchinsky, director of the Flour Mills of Ukraine union, revealed plans for two new grain processing facilities in 2025. One facility in western Ukraine will produce flour from durum wheat, with a capacity of up to 150 tons per day, followed by pasta production. Additionally, a plant in the Poltava region is expected to process grains into groats, and will be capable of handling up to 100 tons per day.

Rybchinsky emphasized areas for improvement within the flour milling sector, suggesting a focus not just on flour or groats, but on integrated products as well. The investment needed to establish a mill or groat factory in Ukraine starts at $3M, with some enterprises costing as much as $15M. Rybchinsky also mentioned the potential of building multiple flour mills along the Black Sea coast, similar to Turkey’s strategy.

He also pointed out that flour and cereal producers anticipate a decline in EU exports after the autonomous trade measures end, with the EU currently accounting for 75% of these exports. Overall, flour and cereal exports from Ukraine have halved since the war broke out, largely due to logistical issues and decreased production.