CHS winds down operations in Ukraine

One of the largest U.S. farmer cooperatives — CHS Inc. — is effectively winding down its operations in Ukraine. Despite official statements about “maintaining its presence,” the company has downsized its team and will keep only a representative office, Latifundist.com reports, citing company sources.

According to the outlet’s sources, the decision stems from the position of the cooperative’s shareholders, who did not give the “green light” to return to deep-sea ports after the Ukrainian Armed Forces regained control over the Black Sea.

“CHS maintains a presence in Ukraine. At the same time, we are reducing the size of our team due to market conditions and operational needs,” the company commented.

In practice, CHS continues to operate only along the Danube route and in Romania’s Constanța, while most international traders — ADM, Bunge, and Cargill — have already resumed shipments through the ports of Odesa, Chornomorsk, and Pivdennyi.

Employees explain that CHS’s cooperative structure made it difficult to make a quick decision about returning to Black Sea ports.

“We were the only ones left without a ‘go-ahead’ after the fall of 2023. We don’t have a single shareholder willing to take on the risk and say: ‘Let’s go.’ In a country at war, our risk profile is too conservative,” said one employee.

As a result, the company began losing market share, and logistics through the Danube became economically unfeasible.

In addition to war-related risks, the decision was influenced by shrinking margins in global grain trading. Other major players are also cutting costs: Cargill has laid off about 8,000 employees, while ADM announced plans to reduce expenses by $300–500 million.

In Ukraine, CHS will retain only a few employees for basic market monitoring and legal matters.

In 2024, Sierentz also closed its office in Ukraine, citing the war as the main reason.