Ukraine breaks ground on largest potato processing hub to cut import reliance, boost exports

UKRAINE – Ukraine has officially launched construction on a massive potato processing hub at the Biosens Industrial Park in the Cherkasy region, aiming to achieve national self-sufficiency in potato flour and create new export opportunities.

Ukraine currently depends entirely on imported potato flour, purchasing approximately 2,500 tonnes annually for use in bakery, confectionery, meat-processing, and sauce industries.

Once the first phase is commissioned in late 2026 or early 2027, the plant is expected to fully cover Ukraine’s domestic demand. The project was announced by Dmytro Kysylevskyi, Deputy Chairman of the Ukrainian Parliament’s Committee on Economic Development.

To begin with, the multi-phase initiative involves significant infrastructure upgrades and substantial financial investment. The first phase will have an annual production capacity of 25,000 tonnes, with investment estimated at UAH 960 million (approx. US$22.9 million).

Secondly, the production building will cover 6,500 square metres, and the main processing equipment has already been delivered to Ukraine. Infrastructure development includes expanding the access road to the industrial park and connecting the site to the natural gas network.

For instance, in December 2025, the Ukrainian government allocated UAH 24.7 million (approx. US$0.55 million) for these works under a co-financing programme. To accommodate the large-scale project, the Biosens Industrial Park is expected to expand from 29.6 hectares to 40 hectares, with a 60-hectare reserve site designated for future expansion.

Furthermore, the second phase is scheduled to begin in 2027 and will include the construction of a French fries production facility with an annual capacity between 60,000 and 150,000 tonnes. Investment in this phase is estimated at approximately UAH 2.5 billion (approx.US$ 55.7 million).

In addition, a third phase will involve further expansion of French fries production, requiring an additional UAH 3 billion (approx. US$66.8 million). The wider development plan also includes a 20,000-tonne potato storage facility, a plant that will process potato peel into protein and starch, and a greenhouse complex equipped with a cogeneration unit.

More importantly, this industrial complex is expected to bolster the agricultural economy, significantly reduce Ukraine’s dependence on imported processed potato products, and create new opportunities for local potato growers, food manufacturers, and exporters.

Lastly, this industrial complex represents a transformative investment in Ukraine’s agricultural processing capacity, creating a vertically integrated supply chain from farm to finished product.

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