17 Jun 2022 12:57

Ukraine's KSG Agro to export sunflower seed oil to EU instead of seeds

MOSCOW. June 17 (Interfax) - The KSG Agro agricultural holding has signed a contract with a Ukrainian oil extraction factory to produce sunflower seed oil and soybean oil from the holding's raw materials and to subsequently export ready products to the European Union, the agrarian group said in a press release on Thursday evening.

"Our military realities are prompting us to look for new strategic solutions. Thus, we have made a decision that oil seed rape and sunflower will be processed, because there are more chances to sell ready products on foreign markets such as ready-for-use vegetable oil, but at a better price than just sunflower seeds," KSG Agro quoted chairman of its board of directors Serhiy Kasianov as saying.

Enterprises in EU countries will then fine-tune and package this vegetable oil, the holding said, adding that negotiations on this issue are ongoing with European partners.

KSG Agro's oil will be delivered by road, and the holding has already acquired Turkish flexitank containers, which will make it possible to transport up to 22-24 tonnes of oil in ordinary trucks.

KGS Agro is a vertically integrated holding, which specializes in pig-breeding and in storing, processing and selling grain and oil-bearing crops. Its land bank is approximately 21,000 hectares. According to KGS Agro, it is among Ukraine's top five producers of pork.

KSG Agro saw a 16-fold increase of its net profit to $20.27 million in 2021 year-on-year. In 2021, the company's revenue grew by 44% to $30.75 million, and its EBITDA doubled to $12.28 million.

Serhiy Kasianov is the owner of KSG Agro Holding and the chairman of its board of directors.