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Major Organic Oil Producer Focuses Investment on Small-Scale Projects With a 2–3 Year Payback Period

Major Organic Oil Producer Focuses Investment on Small-Scale Projects With a 2–3 Year Payback Period

A major producer of organic oils is redirecting investment toward improving the efficiency of existing capacities rather than expanding them amid excess processing capacity in the market

UkrOliya, a major Ukrainian producer of organic vegetable oil, has shifted its focus toward improving the efficiency of its existing capacities instead of pursuing large-scale investment projects. The company says this decision reflects both the current security situation and the location of its processing assets on the left bank, which limits opportunities for expansion.

This was stated by Artem Skliarenko, Deputy Director for Strategic Planning at UkrOliya, during the BLACK SEA GRAIN.KYIV industry conference. According to him, the company is betting on intensive development — modernizing processes and making targeted investments in its existing production base.

The company notes that Ukraine’s oilseed processing market is currently characterized by excess capacity. At the same time, sunflower production volumes cover only about 60% of the needs of processing plants. Under such conditions, building new plants is economically unjustified, while the priority is to increase returns from the infrastructure already in place.

UkrOliya’s investment strategy involves implementing small-scale projects aimed at optimizing individual stages of production. These include increasing oil yield from raw materials, boosting processing volumes on existing equipment, and reducing energy consumption. Such projects have a relatively short payback period — within 2–3 years — and together form a growth model driven by efficiency gains.

The company specializes in processing high-oleic and organic sunflower seeds and holds a leading position in Ukraine’s organic oil production segment.

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