The company continues to strengthen its positions in the global grain market and maintains leadership as the Ukrainian exporter of grain and oil crops.
The highest rating positions taken by NIBULON in exporting grain and oil crops testify that the company’s specialists can promptly and accurately analyze the situation in the domestic and global grain markets, make good decisions depending on the period of marketing year. It is clear that every small success serves as basis for future achievements.
During the nine months of 2014/2015 MY, NIBULON shipped almost 3.2 million metric tons of grain and oil crops with an average monthly shipment of 350 thousand metric tons. The company received and loaded 82 motor vessels at the transshipment terminal and in the outer roads.
Dynamics of grain and oil crop shipments during the nine months of 2014/15 MY
The market has its own laws and active periods; it depends on exporters a lot. NIBULON proposes reasonable prices, flexible logistics and civilized partnership relations.
And the result is logical: due to the effective work of NIBULON’s employees in January-March 2015, corn (39,8 % or more than 1.25 million metric tons) became the major export crop as of April 01, 2015. According to the working results during the nine months of 2014/2015 MY, the wheat share comprised 34,3 % which is about 1.79 million metric tons, barley – 16,7 % (almost 524 thousand metric tons).
The export structure by crops (July 01, 2014– April 01, 2015)
Two major factors have influenced the dynamics of corn sales in the domestic market this marketing year. On the one hand, these are favourable weather conditions to cultivate and harvest a corn yield: the company harvested high-quality grain in many regions; thus, this allows NIBULON to store grain for a long time without spending additional money on grain storage services to bring grain indices to basic conditions. On the other hand, agricultural producers, taking into account the difficult economic situation in the country, restrained investment in construction of new facilities, purchase of machinery, etc. Thus, the urgent necessity for money from grain sales was reduced.These factors caused a decrease of corn supply in the first half of 2014/15 MY. Thus, the total corn supply is evenly distributed among other months of the second half of this MY.
Concerning export geography, NIBULON maintains its positions in the global grain market and at the same time expands its presence there, supplying commodities to new countries. In the 2014/15 marketing year, Egypt remains a leader in commodity imports – 26 % of grain exported by NIBULON or almost 822 thousand metric tons). The company supplied 24 % of the total corn exports and 48 % of wheat to this country. Saudi Arabia is ranked in second place (11% or about 338 thousand metric tons). The third position belongs to Spain (9 % or almost 280 thousand metric tons) which takes second place for corn exported by NIBULON – 15,6 %. Bangladesh is ranked in second place for wheat imported from NIBULON. Its share is 13 %.
During the nine months of 2014/2-15 MY, the geography of NIBULON’s exports covers 22 countries. China (3 % of the total volume of commodities exported) and Thailand (2 %) are among new export directions for NIBULON.
The geography of agricultural commodity exports from July 2014 to March 2015
The company actively conducts its import activity. As a result, specialists of the foreign economic relations and marketing department signed 55 import contracts with companies that are leaders in their sectors in the world market.
In January-March 2015, the company signed about 50 contracts with foreign suppliers to supply equipment for construction and operation of NIBULON’s own cargo fleet. Despite the difficult economic situation in our country, the company continues to implement its investment project to revive the Dnipro and the Southern Bug as transport waterways of Ukraine, in particular, to construct pusher tugs (121 project) and non-self-propelled vessels (NBL-91 project).
In order to meet NIBULON’s own needs during the 2015 sowing campaign, the company has already imported 13,566 units of hybrid corn seed, 3,449 units of hybrid sunflower seed and 970 units of hybrid grain sorghum produced by Pioneer High-Bred Switzerland S.A. (Switzerland), Monsanto International Sаrl (Switzerland) and CajoInc. (the USA).
In February NIBULON signed a contract for supply of Euro-5 standard diesel fuel with AB ORLEN LIETUVA (Lithuania) that has its own modern petroleum refinery. The diesel fuel purchase from the EU country allows the company to meet the needs for high-quality oil products. In February-April, the company received 46 tank railcars with fuel of 2.6 thousand tons.
The goal of NIBULON’s export and import activities is to open new world grain markets, to strengthen its positions there in order to integrate Ukraine in the global economic space and to strengthen Ukraine’s image as an international trade participant.