Since the beginning of the 2014/15 marketing year, at the end of March, NIBULON exported almost 3.1 million tons of grain and oil crops, where corn comprises 37,86% of shipments, wheat share is 35,11%, barley – 16,77%, rapeseed – 8,06%, sorghum – 1,86% and soybean – 0,34%. NIBULON’s major export directions are Egypt, Saudi Arabia, Iran, Spain, Pakistan and Bangladesh.
NIBULON, as a large agricultural producer and leading Ukrainian exporter, continues to develop its activities in the strategic and leading directions, namely to improve agricultural trade. Our company is an important player in the world grain market, competing successfully with large foreign exporters (NIBULON supplies commodities to more than 60 countries around the world) and enabling Ukraine to lead in this segment of the economy.
The development of logistics and the creation of efficient system to transport cargoes (by constructing infrastructure and own cargo fleet) play a crucial role. In addition, NIBULON makes everything so that agricultural producers may understand their role in the given process. In particular, NIBULON provides information on agricultural commodity prices at each elevator complex at a specific time.
NIBULON is a reliable partner
Several core departments and services at the company work efficiently in order to develop trading and purchasing activity and exports. NIBULON’s sales department is among them. Its specialists monitor prices in the domestic market, ports and regions, follow price level on the commodity exchange (CBOT, MATIF) and currency rate, analyze logistic expenses and presence of available space at the elevators. According to this information, they form proposals for the Pricing Committee as to the establishment of prices for agricultural commodities.
An important component in their activity is to negotiate, sign hryvna and monetary agreements for agricultural commodity supply and to cooperate with key suppliers and producers. In addition, taking into account economic reasonableness and market opportunities, there is formed a tariff policy on services provided by NIBULON’s elevators. This is an important factor to ensure the efficient operation of both each separate elevator and NIBULON’s logistic system as a whole.
NIBULON aims to bring an agricultural producer to a consumer as close as possible so that they may become full market participants. The analytical data (in particular, production volumes, major crop resources in different countries, world balance of supply and demand in the global agrarian markets, etc.) obtained due to the constant monitoring performed by the sales department and information on current price trends in the world grain markets which is regularly published in the trade mass-media enable grain growers to understand price formation better and to plan their work.
In 2013-2014 calendar years, NIBULON demonstrated the improvement of trading activities by many indices. Last year, in comparison with the previous one, the number of suppliers on DAP terms (delivery at place) according to foreign economic contracts (48 and 44 business entities respectively) was increased as well as the total volume of grain purchased on DAP basis (about 700 thousand tons to 608 thousand tons). The share of grain purchased on DAP basis was increased up to gross yield in 2013 and 2014: wheat –4,15%, barley–4,86%, sorghum –24,53%.
The specialists achieved a positive result in this type of trading in the first quarter of 2015. Thus, within three months the company purchased more than 200 thousand tons of all crops from 35 suppliers.
NIBULON actively competes with traders in all Ukrainian ports. A vertically integrated logistic system and efficient quality control system implemented by the company play a significant role.  When purchasing grain at the prices being advantageous for suppliers, the company has an opportunity to bring grain to the required export conditions at its own grain storages and transshipment terminal. This enables NIBULON to receive agricultural commodities which quality indices deviate considerably from their basic level. Due to this, the company always establishes purchase prices either at the market level or higher, though deep-water ports have significant advantages over Mykolayiv port; the difference in prices for ship entry reaches 2 dollars per ton.
NIBULON’s competitiveness can be proved, by comparing purchase prices at NIBULON’s transshipment terminal (Mykolayiv city) with the average prices at other ports (according to APK-Inform) by major crops in the first quarter of 2015.
Comparison of corn prices

Comparison of food wheat prices

Comparison of fodder wheat prices

Procurement according to the civilized market principles
Philosophy, principles of responsibility and business transparency of NIBULON are proved by practice and cooperation experience with thousands of partners. The company itself is a reliable link between producers and consumers. NIBULON strengthens Ukraine’s positions in the world grain market. Cooperation and business relations among our company and agricultural companies, farmers are important in this process.
According to the procurement department, in 2014, NIBULON signed more than 2,500 agreements for agricultural commodity supply. The company’s specialists responsibly perform their duties and require the same responsibility from partners. This is a compulsory condition so that modern and civilized market may function. NIBULON’s General Director Oleksiy Vadaturskyy repeatedly called on all market participants to work transparently and openly like NIBULON does. Thus, NIBULON prefers to cooperate directly with agricultural producers with which NIBULON has established business partnership relations.
The statistics confirms this. The share of agricultural commodities purchased from agricultural producers is the following: wheat – 67%, corn – 65%, barley – 65%, rapeseed – 76%. NIBULON achieved the highest procurement volume in July, September, October and November.
Despite increasing competitiveness in the domestic grain market, NIBULON maintained and even increased the number of agreements signed in 2012-2014 MY. This means that our company enjoys confidence of agricultural commodity suppliers.
Foreign economic contracts: innovation and efficiency
Highly-skilled specialists of NIBULON’s executive department who are responsible for execution of foreign economic contracts play an important role in the foreign economic activity. Well-coordinated work and innovation approaches strengthen NIBULON’s authority both in the domestic and international grain markets.
In 2014, the company reduced freight expenses, by optimizing shipment standards, using outer roads (St. Mykolai floating crane efficiently operates for the benefit of NIBULON) and by optimizing freight rate during negotiations with shipowners (NIBULON’s authority as an active player in the world grain market is of great value here).
Another important factor is to save lay time during which the vessels are processed and grain is loaded. In 2014, NIBULON loaded a motor vessel by 50 hours less than specified by a charter-party. The norms are quite strict here, demonstrating high organizational and technical level of loading-unloading operations at NIBULON’s transshipment terminal. Efficiency and time saving during these operations are ensured by a flow and transport system, by using modern noria and conveyer equipment (the terminal’s technological scheme consists of five points for simultaneous shipment). The efficient planning of logistics (grain transportation from the field to the port) also plays an important role.
By increasing the efficiency of all trade components, NIBULON strengthens its position in the world grain market annually.
NIBULON is a reliable partner that operates transparently in the grain market, providing suppliers with reliable price information. You will find it on NIBULON’s website www.nibulon.com in the section “Purchase prices”.