Over the last 2 years, USAID’s Economic Resilience Activity (ERA) has provided 58 grain trailers for 12 agricultural companies through USAID’s Agricultural Resilience Initiative (AGRI) Ukraine to facilitate grain exports.  

With traditional export routes blocked during the war, many of ERA’s private sector partners pivoted their grain export logistics strategies, turning to more use of trailers, which can play a key logistics role, such as reaching blocked river ports by road. 

ERA’s partner Nibulon received 13 grain trailers in May 2024, each with a carrying capacity of 25.5 tons. These USAID-provided trailers will transport grain from Nibulon’s headquarters at blocked river ports to Odesa ports and will help preserve nearly 600 jobs in Mykolaiv. 

Fenix Agro, another ERA partner, received 4 grain trailers from USAID. Prior to the war, Fenix Agro rented trailers, which were expensive and added transportation costs. 

“Thanks to the USAID-provided trailers, Fenix Agro will reduce the total cost of grain logistics,” explains Oleksandr Tetianko, Executive Director of Fenix Agro. “Having our own fleet of trailers will make it possible to expand the volume of road exports directly from the Ukrainian agricultural producer, primarily from small and medium-sized farmers who are strategic partners of Fenix Agro. We cooperate with more than 400 farmers from Vinnytsia, Kyiv, Cherkasy, Kirovohrad, Ternopil, Khmelnytskyi, Chernivtsi and Odesa oblasts.” 

Background: Assistance to agricultural producers and infrastructure companies is part of the Agriculture Resilience Initiative (AGRI) – Ukraine, implemented by the United States Agency for International Development (USAID). It aims to help Ukraine increase its capacity to produce, store, transport, and export grain.  

In July 2022, the United States Agency for International Development (USAID) launched the Agriculture Resilience Initiative (AGRI) in Ukraine. 

USAID’s Economic Resilience Activity (ERA) joined AGRI-Ukraine, providing Ukrainian agricultural exporters with critical equipment so they can continue to export grain despite the challenges instigated by the war. To date, USAID ERA has provided 37 powerful diesel generators to 12 state and private partners to allow them to continue operations in spite of Russia’s relentless attacks on Ukraine’s energy infrastructureOne of these partners is Agro-Region, a Ukrainian logistics company that received two generators with a capacity of 80 kW and 420 kW for its facilities in Kyiv Oblast. Since May 2024, the generators work an average of 8 hours a day and ensure that elevator operations can continue during blackouts, allowing the export process to proceed uninterrupted.  

“One generator ensures operation of the laboratory, administrative office, scale, grain cleaning equipment, grain drying, and the production workshop,” said Agro-Region’s Chief Energy Engineer, Maksym Rudniev. “Thanks to this generator, 58 workers continue to work every day, and shipped 6,700 tons of grain in two months.” The other generator ensures uninterrupted work for more than 150 workers. Without it, work productivity would drop by 60%.  

Another ERA partner logistics company, Eridon, received two 544 kW generators through USAID ERA in May 2024, which they use at their grain elevator facilities in western Ukraine. 

“Alternative power sources help us to ensure uninterrupted receipt and shipment of grain and earn foreign exchange from export operations, which is extremely important to sustain our nation’s economy at war,” explained Serhii Griaznov, CEO of Eridon. “These generators help us to avoid machinery and equipment downtime and to fulfill our obligations to suppliers and buyers on time.” 

Background: Assistance to agricultural producers and infrastructure companies is part of the Agriculture Resilience Initiative (AGRI) – Ukraine, implemented by the United States Agency for International Development (USAID). It aims to help Ukraine increase its capacity to produce, store, transport, and export grain. 

On June 12, USAID’s Economic Resilience Activity (ERA) attended Louis Dreyfus Company’s (LDC) Elevator Day in Vinnytsia Oblast. More than 50 local farmers were invited to the event to showcase the Rakhny elevator operated by UkrElKo, part of LDC, and promote future cooperation. LDC’s last Elevator Day was in 2019, before the Covid-19 pandemic and the full-scale war.  

At the event, the Rakhny elevator representatives highlighted their grain storage capacity, modern upgrades, a new wagon rental service, and laboratory, to entice future cooperation. The elevator has a storage capacity of more than 140,000 tons. With the help of the onsite laboratory, UkrElKo can dry, ventilate, conduct pest control measures, and maintain proper conditions for the grain with modern equipment.   

Grain moves from the Rakhny elevator using LDC’s 1,200 wagons to the Black Sea ports. USAID provided LDC with 85 additional wagons to build their fleet and accelerate the export of grain.  

“In May, LDC transported 245,000 tons of grain – 10% by USAID wagons – reducing logistics costs for farmers” says Bohdan Shveda, the Head of the Wholesale Trade Group at LDC Ukraine. 

This season, LDC is testing a wagon rental service to farmers because transportation by rail is twice as cheap as by road. Bohdan Shveda explains how it works, “a farmer can bring several batches of grain to us at the elevator, we will collect and store the grain in a separate silo. Then the farmer will load their grain into a wagon rented from us and transport it independently for export. So far, this is only an experiment, but if we see farmers interested, we plan to make it permanent. In May, dozens of farmers used this service.”  

Mrs. Tetiana Kokyza is a farmer from the Shargorod district of Vinnytsia Oblast. Her family cultivates more than 2,000 hectares of leased land, where they grow wheat, rapeseed, barley, and other crops. She has been cooperating with Rakhny elevator for more than 20 years and attended the Elevator Day event.  

“We are interested in reliable partners. We have never been disappointed here; if we bring grain in the morning, the next day we collect our money,” explains Mrs. Kokyza, Head of the Agricultural Enterprise Khliborob. She continues, “If in addition to a good purchase price, Rakhny can also help with logistics, provide wagons and trailers, it will greatly help us to independently export, so we are interested.” 

The harvest will begin in Vinnytsia Oblast in July. Despite the challenges—weather conditions, war, and labor shortages—farmers hope for a good harvest and to get market prices for their grain which is bound for export to countries around the world to ensure global food security. 

On May 31, USAID, through its Economic Resilience Activity (ERA) delivered 13 grain trailers, each with a carrying capacity of 25.5 tons, to Nibulon. These trailers will reduce grain transportation costs and facilitate further exports.  

The USAID provided trailers will reduce Nibulon’s transportation costs by 20 percent and reduce dependence on rentals from third-party providers. Nibulon currently owns 212 grain wagons and 139 grain trailers.  

Nibulon’s Director for Interaction with Public Authorities, Mykhailo Rizak highlights how important the 13 grain trailers are in their strategic logistics pivot, responding to the Russian blockade of the Dnipro and Pivdennyi Buh river ports. The USAID-provided trailers will transport grain from Nibulon’s headquarters at the blocked river ports to the Odesa ports. 

Starting in 2023, USAID provided Nibulon with 50 grain wagons, grain testing equipment and samplers, three generators, two truck scales, and two train scales. USAID support allows Nibulon to mitigate their asset losses due to Russia’s full-scale invasion and continue to export grain, despite Russia’s blockade. 

Assistance to agricultural producers and infrastructure companies is part of the Agriculture Resilience Initiative (AGRI) – Ukraine, implemented by the United States Agency for International Development (USAID). It aims to help Ukraine increase its capacity to produce, store, transport, and export grain.      

USAID Economic Resilience Activity (USAID ERA) delivered 15 grain wagons to Cygnet, a group of agri-companies growing grain and oilseeds in Ukraine. Cygnet expects these 15 wagons will increase grain exports, optimize logistics costs and reduce transportation service provider dependence. These wagons were produced in Ukraine by the Ukrainian manufacturer Karpaty Plant.  

Cygnet uses wagons to transship grain via rail within Ukraine and it usually rents wagons from third-party providers. Renting wagons during the peak season subjects Cygnet to rates fluctuations and availability, leading to periodic disruptions in transshipping. The USAID-funded wagons, the first owned by Cygnet, will reduce Cygnet’s demand for rented wagons by 10%, provide consistent shipping capacity, and reduce disruptions. 

In 2022, after Russia’s full-scale invasion, Cygnet pivoted to alternative export routes. All alternative routes proved less efficient and more expensive, so when the Grain Corridor reopened, Cygnet returned to the traditional Black Sea port channels.

Background: Assistance to agricultural producers and infrastructure companies is part of the Agriculture Resilience Initiative (AGRI) – Ukraine, implemented by the United States Agency for International Development (USAID). It aims to help Ukraine increase its capacity to produce, store, transport, and export grain.

On May 30-31, USAID Economic Resilience Activity (USAID ERA) and 14 of USAID ERA’s agri-exporting partners took part in the 9th annual Grain Ukraine International Conference in Kyiv. The theme this year was “Grain in the Time of Chaos” and participants focused on finding new ways (political, economic, and logistical) to promote Ukrainian agribusiness on the global market.  

USAID ERA’s Supply Chain and Expert Logistics Lead, Thomas O’Callaghan and AGRI Private Partnerships Relations Specialist, Elvira Aleksyeyeva attended to meet with partners to understand the latest market trends. 

The conference focused on reviewing global trends which influence Ukrainian exports to the global market, the prospect of EU integration, the challenges of the war, and creative solutions to tough logistical problems. 

Petr Krogman, the owner of Agromino—USAID ERA’s partner—and President of the Czech-Ukrainian Chamber of Commerce, spoke on a panel discussion citing challenges Agromino faces during the war and ways to overcome the regional imbalance. Mr. Krogman had just come from Kharkiv Oblast, where Agromino had just sowed their fields for the season. Mr. Krogman noted that

“We sow to preserve economic life in these regions. It is necessary for the border regions to survive.” 

Unfortunately, businesses like Agromino, operating in Kharkiv Oblast are severely disadvantaged. Overall, the average cost of production on fields on the eastern boarder are 40-50% higher than in the western regions of Ukraine. Many agricultural areas are now militarized zones and unfit for use and companies face additional costs to demine their land. Mr. Krogman believes that incentives and compensation programs from the government can significantly help companies continue to work near the contact line. 

Another USAID ERA partner feeling the heat of the war is Nibulon. On a panel, Mykhailo Rizak, Nibulon’s Director of Interaction with Authorities discussed the negative impact of legislative changes on Nibulon’s land bank. He continued by explaining how Nibulon is reviving mined land back to a safe field suitable for cultivation and he emphasized the need to demine water areas to ensure the safety of sea vessels. 

Moreover, USAID ERA’s partner Kernel, represented by Oleksandr Golovin, Commercial Director spoke about the importance of the Black Sea on a panel. Mr. Oleksandr also predicted the next marketing year will be the manufacturer’s year.   

Looking forward, USAID ERA’s partner Ukrainian Grain Trading Company (UGTC) emphasized training programs which will help future businesses. UGTC’s co-owner, Serhiy Verenkiotov, was grateful for the equipment USAID provides but stressed the significance of developing labor potential at the conference. 

Similarly, Kateryna Rusina, the owner USAID ERA’s partner Ascet Shipping, is looking forward to create future reliable business connections at the Grain Ukraine conference.  

Assistance to agricultural producers and infrastructure companies is part of the Agriculture Resilience Initiative (AGRI) – Ukraine, implemented by the United States Agency for International Development (USAID). It aims to help Ukraine increase its capacity to produce, store, transport, and export grain.