KIEV, UKRAINE — Ukraine is exploring options to sell State Food and Grain Corporation of Ukraine (DPZKU), its only state-run grain company, according to Reuters. Founded in 2010, DPZKU operates 47 grain silos across Ukraine.
“This, the largest corporation, is a grain exporter in Ukraine and the largest flour producer in the country,” said Ukraine Prime Minister Oleksiy Honcharuk. “On paper, for some reason, it is unprofitable and inefficient.”
DPZKU claims to own about 10% of certified storage capabilities in Ukraine, and its port terminals can provide up to 6% of the average annual volumes of Ukrainian grain export shipping. The company also claims to be able to provide up to 10% of domestic market demand in flour, cereals and fodders.
According to Reuters, DPZKU exported a total of 2.44 million tonnes of grain in 2018-19, including 921,000 tonnes to China.
The company in the first six months of the 2019-20 July-June season has exported one million tonnes of grain, up 50% from the 2018-19 season, Reuters said.