Cheap crop storage: how to reduce costs for elevators and warehouses

For every Ukrainian farmer, harvesting is only half the battle. The second, no less important and often more expensive part is its high-quality and cost-effective storage. Prices for elevator services are growing, and losses from improper storage can negate all the efforts invested in growing. In this article, we will analyze in detail how to optimize costs, what alternatives exist to traditional elevators, and how to organize cheap crop storage without losing quality.

Why is crop storage expensive? Analysis of the main costs

Before looking for ways to save money, you need to understand what makes up the cost of storing grain at an elevator in Ukraine. The traditional model of cooperation with an elevator includes a whole range of services, each of which has its own price:

• Acceptance: Weighing and laboratory analysis of grain quality (moisture, foreign matter, presence of pests).
• Cleaning: Removal of weeds, straw, stones and other impurities. The cost depends on the degree of contamination.
• Drying: One of the most expensive stages. The price directly depends on the initial and final moisture content of the grain, as well as on the cost of energy (gas, electricity).
• Direct storage: Payment per ton-day. Tariffs may vary depending on the season - at the peak (harvest) they are maximum.
• Shipping: Loading grain into road or rail transport.

In addition to direct payments, there are also hidden costs: technological losses (shrinkage, spraying), possible reduction in grain quality due to mixing of batches and dependence on the work schedule and logistics of the elevator. All this forces farmers to look for more flexible and cheaper solutions.

Optimization of work with elevators: how to pay less

Not everyone can completely refuse the services of elevators, especially small and medium-sized farms. However, even within the framework of the traditional scheme, it is possible to significantly reduce the costs of the elevator.

Preliminary preparation of the harvest on the farm

Investments in your own equipment for preliminary cleaning and partial drying can pay off in 1-2 seasons. By bringing already prepared grain to the elevator, you:

• Reduce the cost of processing: The elevator will take less money for cleaning and drying.
• Reduce the "physical weight": You do not pay for the storage and transportation of debris and excess moisture.
• Increase the quality of the grain: Clean and dry grain can be sold at a higher price.

Correct timing and contractual relations

Avoid delivering the harvest "off the road" at the very peak of the season. If there is a possibility of temporary storage (for example, in a hangar or under a canopy), it is better to wait out the rush. Concluding long-term contracts with an elevator or combining volumes with other farmers to receive a wholesale discount is another effective tool for saving.

Alternative storage methods: investing in independence

The modern market offers effective alternatives to elevators that allow you not only to save money, but also to gain full control over your harvest.

Polymer sleeves (agro-sleeves)

This is one of the most popular technologies for temporary and medium-term storage. Grain is poured into sealed three-layer polyethylene bags 60-75 meters long.

Advantages:

• Low capital costs: No need to build a capital structure. All you need is a level area and special equipment for loading/unloading.
• Minimum losses: In a sealed environment, due to the "breathing" of grain and microorganisms, oxygen is displaced and carbon dioxide accumulates, which creates natural preservation and prevents the development of pests.
• Flexibility: You can store different crops and batches of grain separately, laying sleeves as needed.
• Savings on logistics: Storage takes place directly in the field or on the farm.

Disadvantages and risks:

• Risk of damage by rodents or birds.
• Need for constant monitoring of the integrity of the sleeves.
• A perfectly level and prepared area is required.
• Single use (although the polyethylene itself is subject to processing).

Despite the risks, polymer sleeves for grain storage are an excellent solution for those who want to quickly and with minimal investment organize storage for 6-18 months.

Construction of owngrain warehouse

This is the most capital-intensive, but in the long term the most profitable option. Your own warehouse gives you complete independence and control.

Types of warehouses:

• Floor warehouses (hangars): A cheaper and more versatile option. They can be frame or frameless. They are suitable for storing several types of crops, but require equipment to move grain and are more difficult to organize effective ventilation.
• Metal silos: A more expensive, but also more technologically advanced solution. They provide better protection, full automation of processes (loading, unloading, ventilation, temperature control) and take up less space.

Calculating the payback period for building your own grain warehouse depends on its volume, type, cost of building materials and average annual savings on elevator services. On average, the payback period for an average farm is from 3 to 7 years.

Cooperation with other farmers

The idea is not new, but today it is becoming especially relevant. Cooperative storage of crops involves joint construction or rental of a warehouse for grain. This allows you to distribute the financial burden and gain access to modern storage technologies that would be unaffordable for one farm.

Key factors for successful storage in your own warehouse

Regardless of the type of warehouse chosen, its efficiency is determined by compliance with technologies.

• Temperature and humidity control: The basis for maintaining quality. Modern thermometry systems allow you to monitor indicators in real time.
• Active ventilation: Allows you to cool the grain mass, equalize the temperature and remove excess moisture, preventing self-heating and mold development.
• Pest protection: A set of measures including fumigation, setting traps and maintaining cleanliness in the warehouse.

Comparison table: Elevator vs. Alternative methods

Conclusions

There is no single correct answer to the question of how to save on grain storage. The choice of strategy depends on many factors: production volumes, crops grown, financial capabilities and long-term plans of the farm.

For small farmers, a combination of preliminary grain preparation and competent work with an elevator may be optimal. For medium and large farms striving for independence and maximum profit, investing in modern storage technologies, such as polymer sleeves or building their own warehouses, becomes an economically sound and strategically correct decision. The main thing is to carefully calculate the cost of storing the crop for each of the options and choose the one that will ensure the maximum profitability of your agribusiness.