AGRI-Ukraine Export Logistics Support

An additional phytolaboratory for grain analysis opened on the Danube

AGRI-Ukraine Export Logistics Support
16 April 2024

On April 10, the Odesa Oblast Phytosanitary Laboratory opened a second remote branch on the Danube with three employees. USAID’s Economic Resilience Activity (USAID ERA) equipped the new laboratory with necessary equipment including, microscopes, laboratory scales, a bactericidal irradiator, a water treatment system, a set of weights, a laboratory hood, refrigerator, and consumables for conducting daily phytosanitary examinations such as Petri dishes, scissors, test tubes, gowns, and tips. 

This new laboratory will expedite the phytosanitary examination process of grain, ensure uninterrupted work of agricultural enterprises, and improve logistics for exporting Ukrainian grain on the Danube. 

“After Russia’s withdrawal from the “grain agreement”, security issues constrained grain shipment from the ports of Odesa. Companies pivoted and grain was shipped from the Southern ports (Izmail and Reni) instead, so opening an additional remote workplace was necessary. Every day, our main laboratory receives 20-150 samples for phytosanitary examination. The facility is only meant to handle 20 daily examinations, mainly samples of grain for export (corn, wheat, sunflower, rapeseed, soybean). Opening an additional remote location will help us speed up the analysis, because sample deliveries from the Danube to Odesa take a long time, delaying the ships in the port”, says the Acting Director of Odesa Oblast Phytosanitary Laboratory Kateryna Abuselidze. 

USAID ERA is one of the key partners of USAID, which implements the Agricultural Sustainability Initiative of Ukraine (“AGRI-Ukraine”), budgeted at $350 million. This initiative was launched in 2022 with the aim of strengthening Ukrainian agricultural exports and mitigating the global food security crisis exacerbated by the war. As part of the “AGRI-Ukraine” initiative, USAID ERA cooperates with state and private enterprises to supplement and attract investments in transportation and transshipment of grain, which Ukraine desperately needs. 

More about the initiative at the link.

Alternative logistics solutions aid farmers during the war

AGRI-Ukraine Export Logistics Support
26 March 2024

USAID, through the Economic Resilience Activity (ERA) assists NIBULON, one of the largest Ukrainian agribusinesses and a leader in the grain export market, implement alternative logistical solutions during the war. In order to export grain crops and ensure global food security, USAID ERA has purchased 50 grain wagons for NIBULON, to transport grain purchased from 2600 farms. 

NIBULON works with many agricultural enterprises supplying grain for export, including Nikol, based in Kherson Oblast. For over 20 years, Nikol has specialized in grain and oil crop cultivation. At the onset of the war, Nikol’s facilities were under occupation. Later, after the liberation, the Kakhovka Hydroelectric Power Plant was attacked, and operations ceased again. Thousands of tons of the previous year’s grain harvest were stored in Nikol’s warehouses, but due to the branch’s shutdown, not a single kilogram was exported. This complex situation threatened not only the existence of the enterprise itself but also the livelihood of its employees and the well-being of over 500 families from whom Nikol leases land shares. 

In the summer of 2023, NIBULON resumed operations out of its Zelenodolska branch in Dnipropetrovsk Oblast, a very strategic location for Nikol. Thanks to the 50 grain wagons from the USAID ERA, rail exports became possible. Currently, NIBULON uses these wagons to transport grain, like from Nikol, from blocked river terminals to the ports of the Danube. From the ports, the grain is transshipped onto barges and transported to 25 countries around the world. 

With new grain wagons, NIBULON is able to offer Nikol better prices for grain. This income helps farmers pay wages, taxes, repay loans, and purchase fuel and fertilizers for the upcoming sowing campaign. 

“Thanks to assistance from USAID ERA in 2023, we resumed purchasing grain and continue to collaborate with more than 2600 farmers, which allowed us to export 3 million tons of grain through the Danube ports and the deep-water ports of Odessa within the calendar year. Transporting grain solely by trucks is very expensive. Combining road and rail as modes of transportation allows us to optimize logistics costs and offer farmers procurement prices where they can profit. Otherwise, we would have had to stop grain procurement, close river terminals, and that would mean over 500 job losses,” says Mykhailo Rizak, Deputy General Director for Interaction with Public Authorities at NIBULON. 

USAID ERA supports other agro-exporters too. In 2024, USAID ERA purchased 85 grain wagons for Louis Dreyfus Company (LDC) Ukraine, one of the largest exporters of Ukrainian grain and oilseeds among foreign companies. All 85 wagons have already been delivered to LDC’s elevators. 

The procurement of equipment for agricultural companies takes place within the framework of the Agricultural Sustainability Initiative in Ukraine (AGRI-Ukraine), implemented by the USAID, to mitigate the global food crisis exacerbated by Russia’s brutal war against Ukraine. 

More about the initiative here.

On the eve of International Women’s Day, we celebrate the contributions women make to Ukraine’s economic development

AGRI-Ukraine Export Logistics Support
07 March 2024
“Like-minded People Inspire Me” 

Olha Vakarchuk is the Financial Director of a group of agricultural companies in the central part of Ukraine. Mrs. Vakarchuk is proud of her decision, nearly 20 years ago, to build her career in the agricultural field. She is a financier and economist by trade, schooled at the Vadym Hetman National University of Economics, and rose from Financial Controller to Director, serving at various companies. 

Shortly before the start of Russia’s full-scale war on Ukraine, she received an offer to move from her Kyiv office to work in a village in Cherkasy Oblast. She made the brave decision and relocated to a small cozy village. 

“Managing a company from the office is one thing, but being in a village where you see farmers sowing wheat, grinding flour, or constructing an elevator outside your window is a whole new experience. My worldview has expanded”, shares Mrs. Vakarchuk, “Here, everything is in the palm of your hand, you feel and see everything deeply.” 

Ms. Vakarchuk explains how agriculture is not only about growing grains, but also about grain processing and logistics; it is a much broader field where many can attain professional fulfillment. In addition to financial reporting, Olha is responsible for communicating with Ukrainian and foreign partners, implementing new projects, and attracting assistance. 

“It doesn’t matter the gender of those around you. What is important is if they perform their work well, strive for development, and remain humane. When there are like-minded people with whom you look in the same direction, it is inspirational. This is precisely what motivates me to continue working in agriculture. Now, during the war, we are grateful to our partners for their support. Last year, our company received a grain transportation trailer and two generators from USAID Economic Resilience Activity. This affords us stability and enables us to continue to grow grain during the war.” 

​“The Ability to Influence Strategic Decisions Keep Me Going”  

Olena Krysenko has been working at IMK agricultural holding since their inception. Olena grew from a Sales Manager to a Commercial Director within the last 17 years. Currently, she is responsible for developing and implementing sales and procurement strategies, negotiating with key customers, and analyzing market trends.  

Ms. Krysenko explains how during wartime the two main challenges for agricultural businesses are changes in the price and demand for grain, which affects the company’s profitability, and the difficult access to sales markets. These factors force business entities to look for new logistics solutions and export routes. It’s these clever innovations, responding to challenges, that motivate me. 

“What I love most about my job is the opportunity to influence the company’s strategic decisions” says Olena. “In this difficult time for all of us, I am inspired by innovation and the introduction of new technologies in the agricultural sector, and by the fact that I contribute to the development of agricultural production, as well as the potential for expanding sales markets and developing new commercial activities” she continued.  

USAID ERA Fosters Ukrainian Grain Export in 2023 

AGRI-Ukraine Export Logistics Support
13 February 2024

USAID ERA Fosters Ukrainian Grain Export in 2023 

In 2023, USAID’s Economic Resilience Activity (USAID ERA) supported Ukrainian agricultural exporters within the USAID framework of Agricultural Resilience Initiative (AGRI). Following Russia’s brutal invasion on Ukraine, ERA provides necessary equipment to Ukrainian companies to enhance their grain export capacities, increase resilience, and work towards recovery.  

USAID ERA purchased 146 various units of equipment for 16 AGRI companies totaling over $12 million. Examples of equipment that ERA provided AGRI companies in 2023 include grain wagons, mega big bags, truck scales, grain samplers, telehandlers, generators, etc. Using USAID’s equipment, AGRI companies were able to export 203,000 tons of grain in 2023.  

What does resilience and recovery look like? AGRI companies tell us!  

In the spring of 2023, AgroKIM company, which belongs to IMK holding, received 7 telehandlers, 3 truck scales, and 3 generators from ERA. This equipment is actively used in AgroKIM’s production facilities in Poltava, Sumy and Chernihiv Oblasts.  

 “These powerful telehandlers helped us to relaunch the grain storage process and speed up the grain unloading process in our additional floor storages which have no mechanical loading/unloading equipment. One telehandler can load up to 1,000 tons of grain on a vehicle per day. It is a significant boost. Previously, we used old soviet machinery”, says Oleksandr Verzhyhovskyi, IMK’s Director of Operations.   

Between September and November 2023, AgroKIM exported 23,178 tons of grain. Of the total, 12,762 tons of grain was moved using equipment provided by USAID ERA, which is 10% of their annual export volume. 

Another AGRI company, NIBULON received 50 grain wagons and 2 mechanical grain samplers. The grain samplers were installed at their Danube subsidiaries and used to test grain quality input control. After installation, they were able to test 320 vehicles and around 7,500 tons of agricultural products per day. The old equipment only allowed them to process around 200 vehicles per day. 

“Rakoraf samplers provided by USAID ERA allowed us to speed up the unloading of grain from vehicles, sampling and transshipment for export”, says Valeriy Reutsoy, Director of Nibulon’s Elevator Department.  

Moreover, NIBULON utilizes their grain wagons to transportation grain between river and marine ports. NIBULON’s fleet consists of 212 grain wagons, 50 of which were provided by USAID ERA. NIBULON saved $1.7 million on equipment rental costs simply by owning their own wagon fleet. Between July and December of 2023, the company increased transportation from 10% to 23%, moving 164,000 tons of grain products.  

Trigon Farming Company, the Ukrainian subsidiary of Agronimo, received 550 mega big bags in 2023. Designed for grain transportation, these mega big bags hold 14 tons of grain. The equipment moved 7,659 tons of grain in October and November 2023, which is 50% of the total amount exported. Trigon Farming Company exported wheat, corn and soybeans to Türkiye, Romania, and Israel. 

 “The cooperation with USAID ERA helped our company increase grain export during the war. At the beginning of last year, we discovered how useful mega big bags can be for loading grain. USAID ERA procured these mega big bags upon our request. We transport 3 tons of grain each month with these mega big bags, and we used to do it with bags and trucks. We use the same mega big bag 2 or 3 times. All of these mega big bags are intact and are stored at our premises”, says Oleksandr Andreiev, Technical Director of Trigon Farming Company.  

Lastly, 3 telehandlers helped Astarta-Kyiv increase the volumes of grain moved from elevators in Poltava and Khmelntyskyi Oblasts for export.  In October and November 2023, using USAID’s equipment, Astarta-Kyiv exported 72,693 tons of grain (wheat, corn, and rapeseed). This is 10% of their total annual export amount.  

All this to say, in 2024, USAID ERA continues helping Ukrainian agricultural companies export grain to global markets.   

We would like to reiterate that the procurement of equipment is carried out within the framework of the Agriculture Resilience Initiative (AGRI) – Ukraine, implemented by the United States Agency for International Development (USAID). This initiative is aimed at mitigating a global food crisis exacerbated by Russia’s brutal war against Ukraine.   

Read more about the initiative 

USAID Empowers Louis Dreyfus Company with 85 Grain Wagons

AGRI-Ukraine Export Logistics Support
06 February 2024

USAID Economic Resilience Activity (ERA) purchased 85 grain wagons for Louis Dreyfus Company (LDC), one of the largest foreign exporters of Ukrainian grains and oilseeds. ERA delivered the first set of 20 wagons to their elevators.  

LDC expects these wagons will increase grain exports by 111,000 tons per year and enhance their market independence. Additionally, LDC will be able to expand their geographic reach and load grain from previously inaccessible corners of Ukraine.  

LDC’s entire fleet consists of 660 grain wagons. Most of their grain wagons are fully operational, while a few wagons are stranded in Russia-occupied territories. LDC exports grain to countries in Asia, Africa, and Europe. 

The procurement of equipment for agricultural companies is carried out within the framework of the Agricultural Sustainability Initiative in Ukraine (AGRI-Ukraine), implemented by the United States Agency for International Development, to mitigate the global food crisis exacerbated by Russia’s brutal war against Ukraine. 

More information about the initiative is available under the link.

USAID ERA enhances the efficiency of grain transportation in Ukraine

AGRI-Ukraine Export Logistics Support
18 January 2024

USAID, through its Economic Resilience Activity (ERA), delivered sixteen grain trailers to eight agricultural companies in 2023 and two more in 2024. These modern, lightweight trailers will speed up grain collection and unloading and help increase grain handling by approximately 31,400 tons/year.

As an example, a subsidiary of Astarta-Kyiv received two grain trailers which will increase their annual transshipment capacities by 12,000 tons. At the moment, the company uses trucks for transporting grain and oils from elevators. The new trailers procured by USAID ERA will enable Astarta to transport corn, wheat, rapeseed, soybeans and sunflower seeds to sea and river ports more efficiently.

Furthermore, Phoenix Agro, a service provider of the First Ukrainian Agricultural Cooperation in central and western Ukraine, received four grain trailers from ERA. This equipment will enable them to transport grain from local farms to the transshipment terminal in Cherkasy oblast. From there, the grain is then exported through Ukrainian maritime/river ports and railways. Prior to obtaining their own grain trailers, Phoenix Agro was leasing similar trailers from other companies.

“Now, we will be less dependent on other third parties and we will not be subject to the availability of equipment on market. The trailer we received from USAID can be certified for transportation to Europe, so our company can export its products to European countries and deliver them directly to processing plants” says Olha Vakarchuk, Financial Director of one of the benefitting companies. “We expect that one trailer will allow us to increase export capacities by 5-10%”.

We would like to reiterate that the procurement of equipment is carried out within the framework of the Agriculture Resilience Initiative (AGRI) – Ukraine, implemented by the United States Agency for International Development (USAID). This initiative is aimed at mitigating a global food crisis exacerbated by Russia’s brutal war against Ukraine.