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NIBULON exported record volume of commodities over 10 years
13 January 2020, 16:16
NIBULON exported around 5.3 mln t of agricultural commodities in 2019. The company managed to set another record, having increased the 10-years one by 8%.
"The company plans to export 6 mln t in 2019/20. We aim to achieve this indicator by increasing the volume of shipped products to the Middle East and Southeast Asia. High yields of wheat and corn in Ukraine in the current marketing year and their appropriate quality will contribute to the development of trade cooperation with major consumer countries," the company says in a statement.
As noted by the company's senior trader Dmytro Furda, NIBULON main trading activity covers wheat, corn, barley, and sorghum, a major share of which is exported to the EU, Middle East, Northern Africa, and Southeast Asia.
In 2019/20, NIBULON continues developing the markets of China, South Korea, Saudi Arabia, Indonesia and Bangladesh.
"An increase in the UAH exchange rate and complicated foreign economic situation connected with trading contradictions among the USA, China, and the EU make it difficult to spread Ukrainian goods on the global market and limit the demand considerably. Consumers do not buy large volumes of products during a period of uncertainty and hesitate to make decisions for the future. They work only within the current month. This approach will, first of all, harm buyers. It is difficult to sell at a profit same-day because of high competitiveness inside the country as well as because of other exporters," says Dmytro Furda.
On the other hand, he stresses, the irreversible consequences caused by African swine fever in China, Philippines, Vietnam, and South Korea since August 2018 have considerably changed fodder demand dynamics in the region.
"We are convinced that the company’s trading tendencies in 2019/20 will depend on the political situation among the above-mentioned countries, global macroeconomic factors as well as other geopolitical threats, in particular in the Persian Gulf," comments Dmytro Furda.
As a reminder, in the first half of 2019/20, wheat export shipment from Ukraine approached 15 mln t, 44% higher than the prior season's comparative indicator (10.4 mln t).
