Head of the German company Getreide AG Ukraine Pte Ltd told about how the company made a bold decision to start operations in Ukraine

The reality is that the world needs Ukraine’s agricultural production in full swing to help feed global populations.

In an interview with LDaily, Stendel Bjoern, the head of the German company Getreide AG Ukraine Pte Ltd, discussed the decision to begin operations in Ukraine during a challenging wartime period. He shared how Getreide AG Ukraine Pte Ltd is providing tangible support to Ukrainian farmers, assisting with transportation and ensuring quality control to meet high German standards.

He also outlined the company’s ambitious plans for the future in Ukraine, including creating new opportunities for small farmers and developing infrastructure for stable partnerships with the Ukrainian agricultural sector.

LDaily: Could you please tell us about the history of Getreide AG Ukraine Pte Ltd and its operations in Ukraine?

B. Stendel: Certainly. To start, Getreide AG Ukraine Pte Ltd is a company that has been family-owned for three generations in Germany. The company operates a rapeseed crushing facility in Rostock with a capacity of 1 million tons. Approximately 90% of the oil produced is for human consumption, primarily delivered to large mayonnaise manufacturers and bottled for supermarkets. You’ll find our oil under various brands on German supermarket shelves. It’s a complex industry, with strict quality standards due to the human consumption factor.

Furthermore, the company has throughput facilities at the Port of Hamburg, where we can load and discharge Panamax vessels. Beyond that, we also have a substantial brewing business, operating two plants in Germany, and we source commodities from Ukraine to support these operations.

As for our activities in Ukraine, they began at the start of the war. At that time, the typical commodity flows – mainly going to CPT and the Black Sea ports – were disrupted as major buyers withdrew due to war risks, with no insurance coverage available. Many large Ukrainian farming operations, which previously relied on easy sales and cash flow from CPT to the ports, found themselves with surplus commodities and limited options.

At that time, I was assisting Mr. Kosiuk of MHP in exploring alternative paths for commodity transport, including rapeseed. We began looking for viable routes, primarily overland, given the risks of sea transport amid frequent attacks and mines. Through my network, I connected with former colleagues from Getreide and we developed a quality-control process with the support of the company called Cotecna. This allowed us to ensure that Ukrainian farmers could meet German quality standards from the outset. Initially, we used trucks for cross-border transport, but we eventually scaled up to full train operations.

Over the last three years, I’ve acted as an exclusive agent here. Recognizing the need to support smaller farmers who lack the capacity for full-train shipments, we decided to establish LLC Getreide AG Ukraine Pte Ltd to assist them. This would allow us to purchase from them directly in hryvnia, although it hasn’t fully materialized due to capacity constraints. Many farmers prefer to hold funds in hryvnia rather than risk bank freezes or currency devaluation, creating a market disparity with the dollar.

In preparation, we’ve assembled a local team: myself, a chief trader, execution staff, and a chief accountant, with some accounting functions outsourced to keep initial staffing lean. However, finding qualified personnel remains challenging due to workforce migration to Germany.

Our company has established itself as a key player in the Ukrainian rapeseed market. We provide Ukrainian farmers with services and quality checks at our expense without charging commissions, offering genuine support during these challenging times.

LDaily: How is your supply chain structured, and what impact has the war had on its operations?

B. Stendel: Due to the war, there’s a lot of uncertainty about what tomorrow may bring, especially given the recent U.S. elections.

Our quality measures are stringent. We collaborate with a professional company that conducts thorough checks before loading any rail cars at the stations. By analyzing the products before the train departs, we ensure both parties – the farmers and us – have full confidence in the quality. When a farmer receives confirmation that our quality standards are met, they can rest easy.

Regarding the impact of the war, we’ve encountered significant challenges, particularly last year at the Polish border, where we faced disruptions from Polish farmers. Thankfully, the green border hasn’t been a major target for attacks. Meanwhile, the ports continue to face disruptions; just yesterday, I learned of another crushing plant hit by an attack, with the tank farm sustaining heavy damage. Shipments are regularly targeted, underscoring that we’re operating in a war zone, which leaves certain risks beyond our control.

LDaily: Could you tell us more about your team and how your growth strategy is shaped by current conditions?

B. Stendel: Currently, we’re a small team of four or five people, and we aim to expand as the commodity flows increase. Unfortunately, when we started two years ago, crop yields were much higher. This year, yields have suffered due to adverse weather, yet we’ve managed to maintain our market share. However, growth potential for the coming years is limited – given this summer’s hot and dry conditions, many planned crops haven’t been planted. As a result, we’re not overextending our organization with additional overhead at this stage. If we see good crop yields, we have the appetite to grow and expand operations.

In a more stable environment, we would even consider larger investments in Ukraine, such as a crushing plant. Currently, we’re exploring smaller investments in logistics points that align with our business model and promise quicker returns.

LDaily: Could you explain how your company navigates the risks and challenges unique to the Ukrainian market?

B. Stendel: Well, first, I represent a company from Hamburg, which has a longstanding business tradition. In Hamburg, we value a handshake as much as a written contract. Looking each other in the eye and agreeing verbally holds significant weight. Unfortunately, this culture doesn’t always exist in Ukraine. We have what we call “AAA” clients, but we also encounter “C” or “D” grade clients – even down to “Z” grade at times.

After 30 years in this market, I know most people, and they know me. We’re selective about whom we work with, avoiding many new, transient players. The market is more challenging than before. Yet, there are good, trustworthy people with whom business is feasible. For Ukraine to truly integrate with Europe, part of my role is to help filter out the unreliable players who don’t align with European trade standards. That’s our approach: supporting reputable partners with green channels for their shipments, and avoiding those who evade taxes or act dishonestly.

LDaily: What are Getreide AG Ukraine Pte Ltd strategic plans in Ukraine for the next five years?

B. Stendel: To be candid, I’m planning day-to-day right now, given the current situation. Ask me again in two months, once we know more about the U.S. political stance on Ukraine, especially with the potential influence of Mr. Trump. Much depends on how foreign policy evolves.

LDaily: How do you envision its agricultural sector’s future amid current global and local challenges?

B. Stendel: I’ve spent 30 years in Ukraine – I arrived in ‘95, and I’ve made a life here. I live near Kyiv and have invested significantly in this country. I support our armed forces and have even spent time at the front myself. I’m committed to staying here, and I want to see Ukraine thrive as a free, democratic society over the next five years.

Ukraine is a beautiful country, and I’m incredibly proud to be here, contributing to its growth. Over the past 30 years, I’ve been actively involved in developing the agricultural sector. For example, I was the managing director responsible for building the UkrElevatorProm grain port terminal, which is now owned by ADM. This project, along with the infrastructure and organizations surrounding it, came together under my leadership. Furthermore, I’ve supported the growth of several well-known agriholdings, providing financial backing and other resources through the companies I’ve represented. While this wasn’t done single-handedly, I was able to convince people to believe in Ukraine’s potential because I genuinely have faith in this market.

The reality is that the world needs Ukraine’s agricultural production in full swing to help feed global populations. This will enable people to sustain their livelihoods in their own countries rather than seeking opportunities abroad, including in Germany or other regions. We can’t afford to keep crops at such low yields or leave large parts of the country out of production. This war needs to end, and the sooner, the better, because we’re losing too many skilled and dedicated people. In this day and age, we should be able to settle differences at the negotiation table instead of sending ordinary people to the battlefield.

LDaily: How might the recent U.S. election results impact your operations?

B. Stendel: First and foremost, I believe we should focus on our closest markets. High-end products such as oil, rapeseed, and malting barley hold significant value and can be seen as top-tier commodities. Take oil, for example- right now, it’s delivered to the port at $1,150 per ton, which means that a 1,000-ton load translates to more than a million dollars. Since ships carry between 6,000 and 10,000 tons, we’re talking about shipments worth six to ten million dollars. This is a high-quality product commanding a high price, and there’s demand for it in Europe.

Fortunately, we are not heavily dependent on the U.S. market. Our traditional markets for these commodities are the Mediterranean region, Asia, and Europe, where there is consistent demand. Consequently, the recent U.S. elections and any resulting policies will likely have less direct impact on us. However, there may still be an indirect impact, especially if American protectionist policies influence our leadership to make certain decisions they wouldn’t otherwise make. Personally, I’m a firm believer in free markets, and I feel that markets should be allowed to operate independently, without undue regulation.

Markets have a way of developing on their own, and it’s essential that people pay their taxes on their profits. However, creating countless reasons to restrict or substitute exports is nonsense. If a crop isn’t profitable, then don’t plant it – opt for something more viable. It’s as simple as that.

LDaily: How has the war’s environmental impact or “ecocide” devastated Ukraine’s agriculture?

B. Stendel: To be completely honest, it’s difficult to assess the full impact right now. But Ukraine is likely the most heavily mined country in the world at this point. Clearing all that will take time. I have friends who are farmers here in Boryspil; they’re terrified to venture off-road into wooded areas. Some have even found mines on their own fields. A few tractor drivers have tragically lost their lives. The process of restoring the land to its former state will be lengthy and challenging.

As we speak, it sounds like there’s an air raid warning – the anti-aircraft systems are moving out. If it turns out to be serious, well, I don’t exactly have a bunker here.

LDaily: Let us wrap up then, is there anything you’d like to add?

B. Stendel: I would say it’s vital for us Ukrainians to stay united. I consider myself more than half Ukrainian by now. I have a daughter born here, and I’ve built a life with a Ukrainian partner. This is a beautiful country, but we need strength and resilience to get through this. The toughest times may still be ahead of us, and it’s essential that we stand together. Thank you to everyone who continues to support our nation.

Tags: Ukraine, rapeseed, Getreide AG