The cost-effective maintenance of the elevator will be only if its complex includes services for acceptance, refinement, and storage. To reach the desired level of income, the company must be in the structure of the agricultural holding or use its own products that the company grows. One of the ways to increase profitability is the processing of grain at the elevator. Analysts share the opinion of how this approach is appropriate and whether it can make a profit.
Grain processing at the elevator: which crops are popular
In order to know how profitable it is for grain elevators to process, it is necessary to understand where to get the raw materials and to whom to sell the finished products.
Despite the fact that the company has the necessary equipment and personnel, the provision of services will not give the desired profitability. This is due to an ill-conceived policy on the market itself. On the one hand, there is an excess of some grain crops, and on the other, there is a shortage of others.
This industry is experiencing a decline in popularity among the population. The volume of domestic consumption is reduced. This is due to various reasons, including a decrease in the demographic number of people.
Exporting cereals is quite difficult, there is fierce competition. Countries, where products are imported, may refuse to supply, arguing that they do not comply with standards or contain pesticides.
Wheat, corn, and sunflower are considered to be the market leaders among the crops. Recently, barley production has been increasing, which is supplied in large quantities to Saudi Arabia. But soon the export may fall, due to the fact that the country in the production of fodder begins to use corn instead of barley. Already, the acreage of this crop is reduced.
Despite the fact that last year was successful for farmers and almost 100 million tons of raw materials were collected, not all of it is suitable for processing.
Flour production is a leader in this segment. Approximately 300-350 thousand tons are cereals, and these volumes are enough to satisfy the domestic market and exports.
The technology of processing wheat flour at the elevator is simple, but it is not needed in large volumes – the population has little demand for products. Other types of flour are not so popular.
Capacities for the production of flour are concentrated in five regions of the country. Last year and this was only in Kyiv, an increase in production was observed, in other regions – the figures decreased.
To provide the elevator with the necessary equipment for production, about $ 6.5 million are needed. For profitability, an enterprise must process grain in volumes from 15 to 30 thousand tons annually. If these figures are less, the company incurs losses.
Therefore, the processing of grain at the elevator would be appropriate if the company itself grows raw materials and can provide it in full.