Ukrainian farm holding closes silos, cuts staff due to war, weather impact
KYIV, Sept 16 (Reuters) -Prometey, a large southern Ukrainian farm holding, is closing some of its grain silos and cutting staff due to economic difficulties caused by the Russian invasion and negative weather, which has caused a drop in the harvest.
"In the third year, the war also got to the Prometey group of companies," Elena Zinovieva, head of business development department said in a statement on Monday.
Prometey, which even during the war managed to keep jobs for more than 1,200 employees, is now forced to reduce its staff and three of its 28 grain silos are being closed, the company said, adding that during the war it lost 7 silos and 2,000 hectares of land were under occupation.
Prometey cultivates over 20,000 hectares of land, located mainly in the south of Ukraine.
The southern regions have been hardest hit by record heat and drought this summer and the company says the crop shortfall has been significant.
The company had high hopes for a good harvest this year, but it was not without setbacks as the summer of 2024 in Ukraine was the hottest in the last 100 years, Prometey said.
It noted that the harvest of soybeans, lentils and sunflowers, which occupied about 7,000 hectares, was extremely low due to the dry summer.
"Despite the difficult conditions, Prometey agroholding continues to fight for its survival. However, if the situation does not change soon, the company will have to make radical decisions to save its business," the company said.
Reporting by Pavel Polityuk; editing by David Evans
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