Kusto Agro purchased 70 grain-hopper railcars

Kusto Agro started investing in agrologistics to improve its own grain transportation effectiveness. The company purchased 70 grain-hopper railcars.

"Kusto Agro as well as other small and medium agricultural producers faced the problem of grain transportation — timely delivery of agricultural products from elevators," the message reads.

More than 30% of the company's export contracts are concluded on forward terms.

To estimate the marginality of the contract, according to the report, appropriate calculations are made and plans for the next year are formed, and the main cost part is grain supply.

"Therefore, it is very important to ensure traceability and predictability in logistics issues," the company says in a statement.

The company's decision to invest in its own logistics was influenced by several factors: frequent change of the rules by Ukrzaliznytsia during the active season, lack of locomotives, inability to schedule logistics and fulfil contracts.

Previously reported that the high rate of grain export today preserved in Ukraine was facilitated by the railway logistics.