LDC in Ukraine
Ukraine is a key market for LDC. Having established a strong origination and logistics network, we continue to expand our presence and activities in the country.
Ukraine has long been known as the breadbasket of Europe, with a total land area of 60 million hectares, of which roughly 42 million are classified as agricultural land.
Winter wheat, spring barley and corn make up most of the country’s grain crops, with sunflower and sugar beet as the main crops on an industrial scale.
In recent years, the country has experienced significant growth in agricultural production and exports, which made it one of the world’s leading agricultural powerhouses.
LDC Ukraine is firmly established as one of the country’s three largest grains and oilseeds exporters, specializing in wheat, barley, maize, sunflower and soybeans.
And in 2019 LDC’s Sugar Platform succeeded in becoming one of Ukraine’s main actors in the export of beet sugar to international markets.
Ukrainian grain production and exports are expected to grow substantially in the next few years, driven by higher yields, the proliferation of corn crops and increasingly efficient farming operations.
LDC’s ongoing expansion in the country aims to address the resulting need for efficient export capabilities, through an established network that is able to handle large volumes of grain and oilseeds quickly and effectively.
Ongoing Strategy in Ukraine
LDC runs a dynamic network of operations in Europe, Middle East & Africa (EMEA), as this region encompasses strategic origination points and key destination markets for many of the major commodities we handle.
Ukraine is a key country for LDC. Having established a strong origination and processing network, including one of LDC’s largest grain storage networks in the region, we continue to expand our presence and activities in the country.
LDC is committed to long-term investment in Ukraine, with a focus on reinforcing our inland origination capacity.
- Over 2018 and 2019 LDC acquired 660 grain railcars, and secured funding for a further 340, all to be constructed locally. The new fleet will allow us to originate and transport an additional 1.2 million tons of grains annually thanks to Ukraine’s expansive railway network, through which almost 70% of grains are delivered to ports for export.
- Ongoing operational improvements at our interior grain silos, and potential investments in additional grain storage capacity in optimal geographic sites in terms of local harvests and road and railway access
- Alongside Brooklyn-Kiev, the anchor operator of our Odesa terminal, we are pursuing efficiency improvements to achieve full annual capacity of some 4 to 5 million MT
LDC’s investments in transport, storage and export infrastructure will give Ukraine’s farmers greater access to export markets and reinforce our ability to deliver efficient, reliable supply for our customers.
LDC’s origination and merchandizing activities in Ukraine are supported its multi-commodity port terminal in Odesa and four grains and oilseeds warehouses, where local products are dried, blended and sorted by quality to meet customer requirements. They also serve as logistics hubs for exports.
- Located in the Vinnytsia region, our Rakhny grains and oilseeds warehouse has a storage capacity of 159,000 tons
- At the center of the Cherkasy region, our Serdiukivskyi grains and oilseeds warehouse has storage capacity of 32,000 tons
- The Haisyn grains and oilseeds warehouse is a complex of two warehouses (Ziatkivskyi and Hubnyk) situated in Vinnytsia region, with a total storage capacity of 57,000 tons.
- Run in partnership with Brooklyn Kiev LLC, our multi-commodity Odesa port terminal is located on the Black Sea, in southern Ukraine. The facility’s total grain storage capacity is 250,000 MT, and expected to reach 4-5 million tons with the completion of a new berth in 2021.