Sunflower shortage forced Kernel to switch to soybean processing

Agroholding Kernel has started processing soybeans at three of its plants due to a shortage of sunflower seeds on the market.

In October-December, Kernel launched soybean processing at three of its plants due to a shortage of sunflower seeds on the market. Latifundist reports this with reference to the company’s report.

In the first quarter of the 2025 fiscal year (July-September), Kernel processed 684 thousand tons of oilseeds, which is 12% more than last year. The growth is due to the additional capacity of the recently commissioned plant and the earlier start of sunflower harvesting.

However, the volume of oilseed processing decreased by 28% compared to the previous quarter due to repairs that lasted a month in the summer.

Thus, due to the quarterly reduction in the volume of oilseed processing, sales of edible oil in the first quarter of 2025 FY decreased by 31% – to 269 thousand tons.

EBITDA margin decreased to $136/ton, compared to $171/ton in the first quarter of FY24 due to increased competition for lower raw material supply in the country. As a result, the segment’s EBITDA amounted to $37 million, down 37% year-on-year.

“With the completion of the sunflower harvest, we maintain our estimate for the new season’s harvest at 12.2 million tons. This relatively low harvest, combined with expanded oilseed processing capacities, continues to put significant pressure on processing margins,” the company commented.

Earlier, USM reported that Kernel had signed an agreement with FMO: this is the bank’s first investment in Ukraine since the start of the war.