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Kernel is the largest private provider of inland silo services in Ukraine with 2.4 million tons of grain storage capacity concentrated in key farming regions.
Kernel’s silo network is instrumental in the Company’s building long-term relationships with farmers and supports the Company’s leading positions in the grain and sunflower oil businesses. Company`s 30+ silos operate essentially as providers of services to the Group and to third parties (farmers) who need to clean, dry and store their crops. Grain and oilseeds are brought from the fields directly to the silo and are kept for anywhere from a few weeks to several months. Typically, a portion of a farmer’s crop is sold immediately after harvest while the balance is stored and sold over the season. Kernel provides silo services for a monthly fee and the farmer is free to sell his produce to Kernel or to a third party. The Company is, however, in an advantageous position to buy the grain, having good visibility on volumes available for sale and easy access to farmers.
Kernel has been actively adding new modern facilities and focusing on increasing our presence in the storage-deficit regions. Through the construction of greenfield storage capacity, Kernel aims to expand its origination zone for both grains for export and sunflower seed for crush, as well as earn on high-quality services provided to farmers and secure storage for own crop production. Over the last three years, we have commissioned 650,000 tons of greenfield silo capacity.