From November 23till 25, 2010, the Ukrainian-Egyptian business forum with the participation of relevant ministries and representatives of Ukrainian business was held in Cairo (Egypt). The partnership relations between the two countries in the agricultural sector were demonstrated during the forum.
Cooperation between Ukraine and Egypt in the agricultural sector is extremely urgent. Cairo Three A (an Egyptian group of companies headed by Ayman Mohamed Abdou El Ryefaat Hamil) is the largest importer of Ukrainian corn. Cairo Three A receives grain mostly from NIBULON being a sort of cooperation bridge between the two countries in the agricultural sector. Cooperation of the national company with the Egyptian partners is a key point to develop trade relations between Ukraine and Egypt in terms of grain supply and food security of Egypt. And Ukraine will receive a stable and promising market to supply grain grown.
According to NIBULON’s Deputy General Director Andriy Vadaturskyy, “Ukraine with its fertile land traditionally exports grains and, thus, is one of the largest world exporters, and Egypt traditionally imports grains, having large population and small volume of grain production. Therefore, we have to carry on trade with each other”.
Today NIBULON is rightfully considered to be the leader in the Ukrainian grain supplies to the world markets. The company’s leading positions are confirmed by agricultural commodity exports. The company closed the 2009/2010 marketing year with the result of more than 4.8 million tons to 4.6 million tons previous year, supplying the Ukrainian grain to more than 65 countries. The company has rightfully gained the title of “National grain trader” and represents Ukraine in the world grain markets with dignity.
By 2005, Egypt market was almost closed for Ukrainian corn because of its poor quality. NIBULON was the first among all operators of the Ukrainian grain market to enter the Egyptian market, supplying domestic corn. Due to NIBULON’s cooperation with Cairo Three A, corn quality requirements in Egypt have been thoroughly studied. NIBULON’s specialists in quality control took part in the training program on corn and sorghum quality, which was held in Egypt in the “Regional Centre for Food” under the auspices of the Ministry of Agriculture of Egypt. At the same time, representatives of importers are cooperating with NIBULON, inspecting product quality shipped from Ukraine.
The result of this cooperation was not only to open the Egyptian market for the Ukrainian corn but also to increase Ukraine’s presence there.
NIBULON has also contributed to the significant increase in supplies of Ukrainian wheat to Egypt. For a long time the quality of wheat grown in Ukraine was lower than, for example, in Russia. This was a serious deterrent factor for Ukrainian companies that prevents from entering the international markets of food grain. The Ukrainian wheat was damaged by a corn-bug. Due to the measures taken by the government, experience and knowledge of NIBULON that was aware of the advanced agricultural technologies, Ukraine got the opportunity to be represented in the international wheat market as well as in the Egyptian market. The company actively started to supply Ukrainian wheat to Egypt.
Ukrainian grain has become competitive due to the innovative investment program to revive navigation along the Dnipro and other waterways of Ukraine implemented by NIBULON.
Indeed, NIBULON and Cairo Three A have been successfully cooperating towards supplies of Ukrainian corn and wheat to Egypt for over 3 years. The latter has ensured that a leading share of Ukrainian corn was supplied to the Egyptian market: 35% in 2008, 65,9% in 2009 and 73,7% in 2010.
A total volume of Ukrainian corn supplied to the Egyptian market in the 2009/2010 marketing year increased in ten times (30%) compared with the previous one and will be increasing in future; wheat supply increased almost three times as much (12%).
Not without reason,  during the business forum Oleksiy Vadaturskyy said that the very agricultural sector is one of the priority areas of development in Ukraine, as it would give a powerful impetus to develop not only trade relations between the two countries but also the economy of the countries as a whole. He also noted that a 3-year cooperation with the Egyptian company shows a high business reputation of the Ukrainian company which products meet the requirements of an importer. Representatives of the Egyptian company were convinced of the improvement of corn quality and its competitiveness during their visit to NIBULON’s transshipment terminal in September.
Signing a Memorandum on Cooperation as to the further development of relations and the supply of Ukrainian corn and wheat to Egypt in 2011 between the two companies during the forum has become a logical result of their long partnership.
Such cooperation at all government levels will give a positive effect: the ability to expand cooperation, to promote Ukrainian agricultural products to the international market and this, in its turn, will ensure stability of prices for products and confidence of Ukrainian farmers in the future.