One of the current priorities is the development of its own storage capacity. UAI is targeting 75% self-sufficiency in storage which provides for lower storage costs per tonne, quality control and greater flexibility to sell crops when prices are right.
In April, 2011, UAI completed the acquisition of the Bilovody Grain Silo located in Sumy region, one of UAI’s key operating areas. This concrete silo has operating capacity of over 120,000 tonnes of storage, as well as flour milling facilities.
This is the first acquisition in a series of planned infrastructure developments. In addition to cost savings, elevators bring further benefits, namely improved control over harvested crops, the ability to provide elevator services to local farmers, and form a key element of UAI’s trading platform. Elevators, with good rail and road access, also fill an important role in the inbound logistics of materials and inputs.