Kernel loses over half of grain exports due to port infrastructure damage

Significant decline in export indicators

Agro-holding Kernel has published data on its performance for the first quarter of fiscal 2027. According to the report, the company significantly reduced product sales volumes. Vegetable oil sales fell by 48% compared to the same period last year, reaching 165,000 tonnes. Grain exports from Ukraine decreased by 54%, amounting to 574,000 tonnes.

The company explains the sharp drop in indicators by Russian attacks on port infrastructure and commercial vessels. Due to these actions, Kernel was unable to fully ship products through Black Sea ports for most of the quarter.

Oilseed processing

From July to September, Kernel processed 564,000 tonnes of oilseeds. This figure is almost in line with data for the same period last year but is 13% lower than in the previous quarter. The reduction in processing volumes is linked to the planned monthly shutdown of processing facilities ahead of the start of the new season.

The processing structure was distributed as follows: 59% was sunflower seeds, with the remainder consisting of soybeans and rapeseed.

In the reporting quarter, Kernel sold 165,000 tonnes of edible oil. This is 48% less than a year earlier and 52% less compared to the previous quarter. The main reasons for this decline were disruptions in port logistics operations and lower processing volumes compared to the fourth quarter of fiscal 2026.

Logistical challenges and grain exports

Kernel's grain export volume from Ukraine amounted to 574,000 tonnes. This is 54% lower than last year's figure and 71% lower than in the previous quarter.

Due to Russian strikes on port infrastructure and commercial vessels, the company partially redirected cargo through Danube ports and the western land border. Meanwhile, the lower throughput capacity of alternative routes and higher logistics costs allowed losses to be compensated only partially.

Through Kernel's export terminals, 742,000 tonnes of products were handled in the quarter. This is 59% less on an annual basis and 73% less compared to the previous quarter.

The group's port facilities, which were damaged during the July attacks, were not operational. Their restoration continued throughout the quarter, while repair work was additionally interrupted by frequent and prolonged air raid alerts.

Domestic supplies and agricultural indicators

Receipts of grains and oilseeds at Kernel's domestic elevators decreased by 21%, reaching 969,000 tonnes. This is explained by slower corn harvesting rates.

Meanwhile, the area of land under the company's cultivation increased by 48% year-on-year to 530,000 hectares.

Wheat yield was 6.4 tonnes per hectare, and sunflower yield was 3.1 tonnes per hectare. These indicators are 9% and 18% higher, respectively, than last year. For corn, Kernel expects a 13% decrease in yield to 8.1 tonnes per hectare due to summer heat and a lack of precipitation.