Farmers are more likely to store grain instead of selling it, — Nibulon

After launching new models of cooperation with agricultural producers, Nibulon records an increase in demand for grain storage services by approximately 30%.

This was stated by Nibulon’s Trade Director Volodymyr Slavinskyi in a comment to USM.

The company records an increase in demand for grain storage services after launching new models of cooperation with agricultural producers against the backdrop of Russian attacks on port infrastructure.

“Demand for storage services has increased by approximately 30%, and the ratio of grain received for purchase and storage has changed from 80% to 20% a week ago to 50% to 50% today,” the Trade Director of Nibulon specified.

Previously, the company offered agricultural producers two options: to sell products at current market prices or to transfer grain for storage with the possibility of selling it later.

“We see that agricultural producers today are forced to adapt to new working conditions. In fact, they are choosing between two scenarios: to gain time and transfer the grain to storage, or to obtain the necessary working capital and sell the products at the current price,” Slavinsky said.

Earlier, USM reported that the Russian Federation’s attacks on ports are increasing the cost of logistics and the purchase prices for grain. This was reported by Nibulon.