According to the brief statement released by the company on its official website, Cereal Planet has completed setting up distribution network on the territory of Ukraine. Company stated that its partners are present in every region of Ukraine. Expansion of distribution network led to decision to close down its subsidiaries in Poltava and Sumi. Funds received from liquidation of subsidiaries will be used for purchase of additional raw materials with the purpose of expanding production.

Company also stated that current situation in Crimea has very little effect on company’s financial performance as only Crimean company of Cereal Planet accounted for 1% of company’s revenue sales. Company also used Odessa ports for delivery of exports. Exports to Russian Federation amount to 2-3% of total company’s sales. Company was previously dependent on exports from Russian Federation due to lower prices, however currently company is diversifying its exports having signed contracts with Kazakhstan.

UkrAgroConsult has completed review and recommendations study on investing in Ukrainian Agrarian Sector. You can follow this link to find out more about the study “How to profit from Ukraine’s agricultural sector?”. In case you are interested in state of agrarian sector within CIS region, please follow the link below to read UkrAgroConsult monthly report “Agrarian Business in CIS region” for January 2014 (featuring Ukraine). First issue is free of charge. You can subscribe to the report to receive it on a monthly basis.

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