Kernel estimates that it will take at least 12 months to rebuild after the Russian attack

Kernel’s facility in the port of Chornomorsk was hit by a Russian missile attack on the night of July 19, leading to significant damage to the warehouse and the destruction of 60,000 sq. m. tons of grain, but there were no casualties, the company said. Currently, Kernel is assessing the extent of the material damage, and preliminary data suggest that the reconstruction of the facilities will take at least 12 months. Attacks on Ukrainian ports and the impossibility of sea exports will lead to a 30-40% increase in corn and wheat prices in the short term, and there is also a risk of an additional 20-25% increase in world sunflower oil prices, it was reported.

“In addition to infrastructural damage, during the attack on the night of July 19, the fire partially destroyed and damaged 60,000 tons of grain in the port of Chornomorsk. This cargo was to be loaded onto the Alexis heavy-duty vessel and shipped to China. However, this ship, which had been waiting in the ‘grain corridor’ queue for more than 60 days, could not be loaded at Chornomorsk. Once again, the world has been deprived of Ukrainian agricultural products due to the sabotage of the ‘Grain Initiative’ and delays caused by Russian officials.

“Further attacks on Ukrainian ports, increased risk to industrial complexes and the inability to export grain by sea will lead to a 30-40% increase in corn and wheat prices in the short term. There is also a risk of suspending the operations of several Ukrainian oilseed processing plants and reducing the processing rate of sunflower and rapeseed by more than 30%, which will significantly affect the global price of sunflower oil, causing an additional increase of 20-25%.

Kernel Holding is a food producer operating in Ukraine. It has been listed on the Warsaw Stock Exchange since 2007.


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