The modern complex of “Voznesens’ka” branch will allow them to reduce their expenses for transportation of grain and oil crop. This is currently important because high fuel prices and poor condition of roads across the country complicate the shipment process. It negatively affects the farms’ revenues. NIBULON offers obvious advantages that provide for a transparent and successful model of agricultural business alongside the leader of industry, instead of inappropriate expenses and mere risks.
Agricultural producers waited for commission of the high-tech and high-capacity terminal. There were held open days for them almost immediately after the first delivery of grain to let all the interested people see the work of the large production branch, follow step-by-step the procedure of grain receipt, and make sure once more that cooperation with Mykolayiv company that has a worldwide reputation is really profitably, fast, and easy. NIBULON is always ready for cooperation.
On July 27, 2016 the newly built “Voznesens’ka” branch welcomed the agrarians from Voznesensk district and neighbouring ones, in particular from Domanivka, Yelanets, Arbuzynka, and Veselynove districts, for the second time. The Branch Director Roman Chumachenko, employees of the terminal, and leading specialists of NIBULON welcomed guests.
How to get higher income due to better price and shortening of expenses for transportation?
What is a real reason for the fact that cooperation with NIBULON became more profitable? The Head of NIBULON’s Trading Department Yuliya Murachova gave detailed answers to all agrarians’ questions.
NIBULON offers better price, along with shortening of expenses for commodities shipment. This is the advantage the agrarians got after commission of the terminal at “Voznesens’ka” branch. At present there is no need for agrarians to deliver their commodities to ports of Mykolayiv and Odesa. They received a marvelous opportunity to use their vehicles more effectively owing to the fact that the distance of grain transportation is shortened, i.e. the number of trucks for transportation will be reduced. There is much to gain from it because the expenses for transportation have recently increased by 30 – 60 % (depending on distance).
The agrarians prove this idea using their experience. “Earlier we were delivering grain to Mykolayiv, but now we deliver it to NIBULON’s terminal in Voznesensk district”, says Petro, the driver from Bratske district. “Owing to the fact that the distance of grain transportation is shortened our farm saves money not only for fuel but also for number of trucks for grain transportation. So, I can make 3-4 trips per day”.
The company’s specialists explained the fact that agricultural producers receive more revenue due to NIBULON and shortening of expenses for commodities transportation using particular example. So, the difference in prices at NIBULON’s terminal in Mykolayiv and the ones at elevator in Voznesensk district comprises UAH 100 while the difference in delivery cost, even counted at cost price, e.g. from Domanivka urban village to Mykolayiv and to Voznesensk, comprises over UAH135 per ton. Using this approach an agricultural producer additionally receives at least UAH 35 per one ton to his profit. The agricultural producer can use this profit for salary payment, purchase of fuels and lubricants materials, purchase of new machines etc.
Let us consider selling 5 tons of barley. For example, the price for barley in region comprises UAH 2 600 per one ton. If we take into account the average distance of approximately 50-70 km from field where an individual cultivates barley to NIBULON’s branch, then the cost will not exceed UAH100 per ton. Therefore, the company can offer price of UAH 2 730 per one ton of barley including shipment to “Voznesens’ka” branch at individual’s expense. Using this approach an agricultural producer additionally receives at least UAH 30 per one ton to his profit.
“At present we cooperate with suppliers and I understand that we lose money”, shared his opinion Sergiy Kelnik, an individual. “If you change, so to say, your lifestyle– do it with NIBULON and “Voznesens’ka” branch. I have only positive impressions of everything I have seen here. It is almost unreal to build such a terminal within 100 days. I consider NIBULON’s employees doing great job. The future is behind them”.
Other agrarians who visited the terminal also shared this opinion. Thus, the Head of farm in Yelanets district Viktor Zhylan didn’t cooperate with NIBULON. After everything he has seen and heard he decided to cooperate with the terminal in Prybuzhany, “My colleagues have been convincing me for a long time that there is much to gain from cooperation with NIBULON. Seeing everything I decided to sign the agreement and deliver grain to “Voznesens’ka’ branch. I counted that, considering roads condition, it is the nearest way to deliver grain from Yelanets to Voznesensk. I run farms but always cooperate with individuals. They begged me to ask NIBULON’s representatives a number of questions. I asked and got complete answers. Suppliers, who buy grain, offend us and we lose much of price. I am impressed by everything I have seen and heard here. It would be nice if there were more such companies in our country.
How long does it take to perform analysis of samples and shipment at NIBULON’s terminal?
“Voznesens’ka” branch is a state-of-the-art terminal that can take 76 thousand tons of grain, has 3 lines of grain intake which provide opportunity to receive three different types of crops, and shipment on board with capacity of 500 tons per hour. According to Deputy General Director for Quality Galyna Prudka, the state-of-the-art lab equipment allows performing analysis for record time of 15-25 minutes (depending on type of crop). Therefore, it is not surprising that the unloading process takes less than 40-50 minutes. Service rate and ability, lack of queues are the advantages of cooperation with NIBULON’s terminal of “Voznesens’ka” branch.
NIBULON is ready for cooperation with agrarians from the moment of sowing, when its specialists go to farms to provide necessary advice, give recommendations, and hold visiting meetings up to the moment of grain shipment on board a vessel.
Wide range of services at NIBULON’s terminal
Besides grain receipt, the terminal offers free sampling of grain in order to define class to which it corresponds, services in storage and processing of grain (drying and cleaning), weighting of trucks, services in transportation of grain.
“At present we collected the best technological achievements of agricultural industry and implemented them into Voznesensk’s elevator”, added Deputy General Director for Trade and Logistics Oleksandr Grygorenko. “Voznesens’ka” branch has already received over 30 thousand tons of new grain for three full weeks of its operation. Most of 55 farms that have brought grain to “Voznesens’ka” branch have the experience of cooperation with NIBULON. It is evidence to the fact that there is much to gain from cooperation with our company”.
How are we going to save our roads with NIBULON?
“So far, “Voznesens’ka” and “Novoodes’ka” branches took more than 100 thousand tons of grain to the silos”, added Oleksandr Grygorenko. Thus, we removed more than 4 thousand trucks from highways. Our company will continue its strategy of cargoes redirection to waterways, thus reducing traffic loading on highways that in turn will amend the environment of the region”.
NIBULON expects that further development of navigation along the Southern Bug River will contribute to decrease in traffic loading on highways of Mykolayiv region and the whole country. We propose the agrarians of the region to contribute to preservation of highways of the region as NIBULON does. Furthermore, according to NIBULON’s specialists, light-duty trucks provide more convenient way of grain transportation for agrarians whose farms are located within 100 kilometers radius of the high-tech terminal in Voznesensk district, Mykolayiv region. Light-duty trucks do not cause damage to roads.
There is no need for agricultural producers of Domanivka, Voznesensk, and Veselynove regions to use roads of national significance. At present, they can drive to the terminal of “Voznesens’ka” branch through field roads in order to deliver their commodities.
Why do your taxes bring benefits to your family if you cooperate with NIBULON?
Besides the obvious advantages, the agricultural producers were told about benefits of work only within the legal environment. At present, due to cooperation with NIBULON small agricultural enterprises and individuals, who cultivated their commodities and are the owners of land plots, have an opportunity to refuse from shadow realization of their commodities for cash forever. This irresponsible risk often leads not to enrichment but to useless expenses and losses of profit.
NIBULON’s Chief Accountant, Svitlana Shulika, helped the agrarians in clearing the questions of tax accounting. “Let us make our country prosperous and legalize grain market”, urgued Svitlana Shulika.
They explained benefits using particular example. For instance, the price for 1 ton of grain of basic conditions comprises UAH 2730. An individual gets this amount as net income. But it is prescribed by the law that you have to pay taxes: 18 % income tax and 1,5 % military tax. So, the total is 19,5%. In order to define the amount of taxes for net income of UAH 2730,00 (the price for grain of basic conditions) we make a simple proportion: the sum of UAH 2730,00 is equal to 80,5% (the difference between 100% and 19,5% of taxes), X stands for 19,5 % or UAH 661,30. This calculation shows that you have to pay UAH 661,30 of taxes to get net income of UAH2730,00. We add the taxes (UAH 661,30) to the price of grain (UAH 2730,00) and check: 2730,00+661,30= UAH 3391,30. Then we find out the amount of taxes out of it: income tax (19,5%) – UAH 3391,30 *19,5 %=UAH 610,43, military tax (1,5%) – UAH 50,87. The difference, UAH 2730,00, is the net income an individual receives on his settlement account or card. Buyer, i.e. NIBULON will pay UAH 661,30 of taxes to the local budget.
Please note that the calculation of price is approximate. It is given for visualization. Every offer to sell commodity made by an individual will be considered during the negotiations in an individual way. There will be formed a competitive price acceptable for both sides.
Anyway, it is a model of transparent relations: an individual gains more profit and NIBULON pays taxes to local budget of the district, which is home to agricultural producer, his family and children. The benefits are obvious to everyone, so there is no need to hide and take risks dealing with shadow schemes.
NIBULON is a reliable partner and the example of transparent and successful business for agricultural producers of different districts of Mykolayiv region. So, it is not surprising that the local government sincerely supported commission of the powerful facility. Thus, Deputy of Domanivka District State Administration Natalia Falko noted, “I hope that farmers of Domanivka district will benefit from cooperation with NIBULON, with its new terminal in neighbouring area as it is literally close at hand. It is the nearest point for agrarians to sell grain”.
NIBULON offers equal transparent partner relations and simple model of cooperation to agricultural producers. The essence of the model is money for commodity; without delays, deception, and hidden information. After all, a farm’s owner can visit the company’s official website (www.nibulon.com) at any convenient time and find detailed information about commodity prices. Most of the farms that have brought their grain to “Voznesens’ka” branch have the experience of cooperation with NIBULON. It is evidence to the fact that there is much to gain from cooperation with our company.
The Open day was not only informative but also productive for NIBULON and its potential clients. Most of the farms who didn’t cooperate with company decided to sign agreements. They assured that they will share everything they have seen with others because agricultural producers are looking forward to good news in harvesting period.
