Astarta Holding faces problems with logistics

14 December 2016

According to CEO of the company, Mr. Ivanchik, problems with logistics (shortage of railcars) on Ukrainian grains market can lead to non-fulfilment of existing grains and oilseeds contracts by the company.

Due to the same reason Astarta has not completed its harvesting campaign the company is to harvest corn from nearly 2k ha of its land bank, in addition there are problems to move the sugar beets from the fields.

We see several main reasons of significant worsening of situation with railcars on Ukrainian market in new season: more strict controls of vehicles overweight in ports (means less usage of vehicles for grains delivery to the port, radius of their effective and profitable usage decreased), growth of late crops harvest (historically late crops are harvested more in Northern regions of Ukraine, so should be delivered to the ports by railcars), weather conditions (in some cases farmers were forced to delay corn harvesting campaign) and, finally, problems at Ukrzaliznytsya (potential conflicts between management of the company on different levels of authority).

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