Ukraine has lost nearly a third of its mills since the start of the full-scale war
Since the start of the full-scale war, the number of operating mills in Ukraine has fallen by 31%, from 678 to 466. In the past two months alone, Russian attacks have damaged three large flour milling facilities, according to Rodion Rybchynskyi, director of the Union of Millers of Ukraine.
In 2024, Ukrainian mills produced around 2.3 mln tons of flour, while installed capacity stood at about 3.5 mln tons. At the same time, domestic consumption fell to 2.1 mln tons in 2025 from around 3 mln tons before the full-scale war, meaning the market has lost roughly 30% of demand.
The economics of flour production have also deteriorated. Operating margins at milling companies declined from 12% to 8% amid higher costs, logistics disruptions and weaker domestic demand.
At the same time, companies continue to invest in adapting production. Average annual capital investment in 2023–2025 increased to UAH 1.21 bln from UAH 542 mln in 2022. Funds are being directed, among other areas, toward energy independence and the implementation of international quality standards.
A separate challenge is the sharp decline in maritime exports. After July 22, cargo handling at the Greater Odesa ports fell by more than 15 times, while the number of vessel calls dropped to one or two per day in late July and was close to zero in August.
The Union noted that lower Ukrainian exports of flour and grain products could increase risks for countries dependent on food imports. Despite the losses, Ukrainian mills continue to supply the domestic market, deliver products to eastern and southern regions, and participate in procurement for the army and humanitarian programs.
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