Company's Main Activities

Trade in Agricultural Commodities

Trade in agricultural commodities, both produced by the Company and purchased, is a strategic guideline of "Nibulon Ltd." activities. Since the very foundation, the Company has been involved in trade, along with production. Initially, the Company`s few trade activities in the market allowed accumulating experience, and by 2000 trade activities were outlined as the Company`s separate program. For this purpose, the following departments and services were organized:

Since 2003-2004, the following departments and services were organized:

Creation of the new departments and services allowed differentiating the issues being in the scope of each department and employee, and accurate interaction between the departments and services increased efficiency of the Company`s management.

"Nibulon Ltd." has constantly increased the volume of trade activities and exports. Due to construction of the Company`s own transshipment terminal, delivery of grains, first of all, from grain producers, became simpler. Start of the Terminal`s operations enabled the Company even to increase the volume of trade operations in the lean year 2003, as compared to the previous years.

"Nibulon Ltd." purchases agricultural produce from more than 1195 small and private firms.

In 2004/2005 marketing year, the Company effected sales in the volume of over 1,4 million tons of grains and oilseeds, including exports of nearly 1,3 million tons of agricultural produce. Thus, in 2004/2005 marketing year, "Nibulon Ltd." increased its total sales volume by 6,4 times, as compared to previous year.

Based on the results of 2004/2005 marketing year, Ukrainian issue "Ukraina Moloda" (20.09.2005) noted: "Each 5-th ton of grain, shipped from Ukraine to abroad in this season - was shipped by "Nibulon"". The issue "Galytski Kontrakty" noted: "This season distinguished by the fact that, for the first time, a company, not related to transnational grain traders, - "Nibulon" - entered the rank of five largest grain exporters (according to the data of "ProAgro"). This is a vertically integrated company, which by own means grows agricultural produce and now exports by own means, having constructed a port grain terminal in Nikolaev. Due to availability of infrastructure and good image with the partners, Nibulon became the leader in exports of maize …"

Ukrainian issue "AgriNews, Kyiv" (#18, 01-05/05/2006) of the agency UkrAgroConsult, analyzing Ukrainian grain market trends in 2005/06 marketing year, highlights: "In the previous years, roughly 50% of grain exports belonged to 2 companies. In the 2005/06 season, for the first time about 60% of the total grain export volume is accounted for by 6 companies, with the share of each of them coming to 10-15%. These companies include, first and foremost, all such international traders like Bunge, Glencore, Topfer, Cargill, Luis Dreyfus, other companies, and the Ukrainian exporter Nibulon."

The analysts especially note the role of vertical integration, applied by "Nibulon Ltd.", in the further development of grain sector: "Participation of … traders in the agricultural production itself may be a quite likely solution of the problem of intensifying the ag production. For example, the Ukrainian exporter Nibulon has already included grain growing into the chain via land lease and organizing grain production. We suppose that in many respects the example of Nibulon shows the direction in which other international traders will also develop (in this or that form)."

In 2006/07 marketing year, the total volume of grains shipped through "Nibulon Ltd." transshipment terminal exceeded 1,7 million tons.

"Nibulon Ltd." occupies the leading positions in the rating lists of Ukrainian exporters (in such periodicals as: AgroPerspektiva, AgroMonitor, UkrAgrokonsalt, and others).

For instance, in the "ProAgro" rating list of exporters of grains from Ukraine in 2006-2007 marketing year, "Nibulon Ltd." holds the following positions:

Despite 3 months of long export prohibition, general grain export volume for 2007/08 marketing year was 1,2 million tons. According to pan-Ukrainian Internet publication “AgroSphere” “NIBULON”was recognized the biggest wheat exporter (July – December 2008). “NIBULON” was also recognized as a leader among Ukrainian barley exporters for the first six months of the 2008/09 marketing year. The company occupies the second place among three leading exporters of corn.

In current 2008/09 marketing year including February the company exported 2.4 million tons of grains.

3,4 million tons of grains were loaded on transshipment terminal of NIBULON from January 2008 till 31 January, 2009. And in general the company has loaded for export 582 vessels, i.e. 8.5 millions tons from the day Transshipment Terminal has started to operate in 2003.