Kernel Pilots Modular Grain Storage to Cushion Export Disruptions

As Ukraine’s agricultural sector is looking for new ways to store excess grain amid Russia blocking Black Sea exports, Kernel assembled the first modular grain storage that can safely keep more grain than regular grain bags. The new storage was assembled in four days and filled with 3,400 metric tons (all weights in metric tons, 1 metric ton = 2,204.6 pounds) of grain over the next two days, Ukraine’s largest agriholding wrote in a press release sent to the media. A Ukrainian manufacturer developed the design at Kernel’s request, and Kernel served as the first test site, taking on the risk of piloting the prototypes and refining them. Kernel said grain staying longer in the country leaves producers and elevators needing to add storage quickly, without building new permanent facilities.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. As Russia started its missile strikes on ships in the Black Sea corridor, the sea grain exports came to a halt, and grain is struggling to leave the country. The Ukrainian Agribusiness Club (UCAB) told Kyiv Post that alternative export routes – Danube, rail and road routes could handle only about 1.4 million tons of grain a month in August, compared with the 4.1-5 million tons Greater Odesa handled monthly in the first half of 2026. Kernel's modular grain storage, shown covered on a hard-surface site. (Photo courtesy of Kernel) Other Topics of Interest Kremlin Says No Progress in Ukraine Peace Talks Moscow provided no proposed date or venue for renewed negotiations involving Ukraine, Russia, and the US. Kernel wrote that a plot where polymer grain bags can hold up to 1,000 tons can hold 3.5 times as much in the modular store. The modules take up less space, can be installed on hard-surface sites and depend less on the weather, according to the company. They are reusable and can be assembled, dismantled and moved, and later structures can go up faster because assembled elements can be used again. The press release quoted Serhii Shcherban, head of Kernel’s storage department: “We operate the largest network of elevators in Ukraine and want to support the entire market. Our scale allows us to act as the industry’s R&D: to draw up technical specifications for Ukrainian manufacturers, test prototypes on large volumes and fine-tune the economics in practice. In effect, we take on the risks of the first mover so that the agricultural market gets a ready, field-tested solution that will save grain at a critical moment and rescue the businesses of many producers.” Kernel has already bought such facilities, which together will add 40,000 tons of storage capacity. The company plans to use them not only for its own harvest but also to make the space available to other agricultural producers. Kernel wrote that other market participants are already showing interest in the design, which it said confirms the value of a partnership between a large market operator and a Ukrainian manufacturer. For security reasons, Kernel does not disclose the manufacturer’s name or the locations where the stores are installed. The pressure on farmers’ cash is building alongside the storage shortage. UCAB estimated in August that Ukrainian wheat was already selling about $15 per ton below production cost and barley more than $40 below. Olena Hrazhdan is the Business Reporter at Kyiv Post, covering Ukraine’s markets, business, and economic policy. While she reports broadly on economic issues, her core focus is banking, finance, monetary and fiscal policy. Olena previously wrote for leading Ukrainian business media and became a Fellow of the International Monetary Fund’s Journalism Fellowship in 2024.