Rating-13/14 of grain exporters from Ukraine - UAС

Ukrainian Agrarian Confederation made a rating of grain exporters from Ukraine as the result of the 2013/14 marketing year. Rankings covered major crops - corn, wheat, and barley, and oilseeds - rape and soybeans, shipments of which represents the main export performed with using the same infrastructure (terminals). The absolute leader is "NIBULON".

Counting was performed from the position of “shipment” within companies - residents of Ukraine, which, in our opinion, more fairly characterizes the activity of companies while conducting grain export, and during its "mining" on the domestic market unlike from the position of “chartering”.

According to the results of counting the absolute winner of the rating is "NIBULON" that exported 4 537 ths tons of grain, on the second and third places - long "persecutors" of Ukrainian grain producers, transnational "daughters", respectively, "A.Topfer Int. Ukraine" (ADM) – 4 078 ths tons and "L.Dreyfus Commodities Ukraine "– 3 557 ths tons. Three leaders of export race provided about 38%, and the first "Seven"- about ¾ of total grain export from Ukraine (32,4 mln tons).

Corn is the main grain export resource of Ukraine, the annual export of which has recently been confidently handled 20 million tons. On the first place in the season 13/14 is "NIBULON" with a volume of 2 362 ths tons or 11.7% of total corn export from Ukraine.

Wheat, if someone had forgotten, was a "political" crop in 2013/14 season, which is evidenced by the presence of... Memorandum between "government and grain traders", as was told in circles of old officials. However, with the disappearance of "governmental" active interest in wheat market, which coincided with the emergence and intensification of the Maidan, nothing "terrible" has not happened for the country in terms of excessive export of wheat. In this sense – market saved Ukraine!

We remember this while "political" component and uncertainty always had a negative effect on grain exporters moods, often, to win market position, selling significant volumes of grain in advance, "in short”.

Nevertheless, even here "NIBULON” is on the first position with a volume of 1 257 ths tons, or 13.4%, which between the two "M" (Memorandum and Maidan) had pretty worried for its export contracts, it seems, with the Kingdom of Jordan.

Barley in recent years has become somehow "wrong" crop for Ukrainian farmers, and especially exporters. Too moody, unpredictable, risky monopsonic market in face of ... Saudi Arabia. That`s how we are stuck in harvesting 7 – 7.5 million tons of barley during recent years, of which nearly 2–2.5 million tons are traditionally exported.

At the beginning of the last season, there was a talk that trader Louis Dreyfus  in early summer played a really successful game in "grain casino" on barley and this allegedly allowed him to dominate in procurement on the domestic market and export of this crop from Ukraine. Anyway, but "L. Dreyfus Commodities Ukraine" in 13/14 season exported nearly a quarter of Ukrainian barley - 556 ths tons. The second position takes "NIBULON" with a share of 326 ths tons (12.9%).

Ukrainian rape remains uncontested oriented for export – 90% of the gross production of 13/14 season was exported, including export conducted by the leaders of this ranking: 687 ths tons by "Serna" (Glencore), 684 ths tons - "A. Toepfer Int. Ukraine" (ADM), 402 ths tons –"NIBULON".

Export of rape from Ukraine is a constant irritant for some of our leaders who do not possess the understanding of subtleties of merchandising and marketing of oilseeds, internal/external markets of rape, rapeseed oil, but are eager to "drive" rape for processing and thus bestow country by the means of different discriminatory instruments including legislative "slingshots" (duties, no VAT refund). Typically, this is done before the election.

In fact, while working on rape the performance of oil-processing equipment falls by 30% mainly because of the erucic acid which harms technological pipelines of refineries, that`s why "oil-processors" having "strong reasons" until recently held from processing rapeseed, giving preference to sunflower and soy.

In addition, it should be noted that due to the economic policies of the main biodiesel players, relatively high prices are established on the world market for rape. The fact of significant competition among buyers of rape on the domestic market in Ukraine, one might say, ensures optimal domestic prices and profitability of this crop for Ukrainian farmers.

Soy is one of the main containing protein crops in the world, which has good conditions and prospects for growth in Ukraine, which is confirmed by the dynamics of its gross output. In recent years, this crop was a "magic wand" for Ukrainian producers in maintaining their financial condition, had strong demand in domestic and foreign markets. Totally for the 2013/14 marketing year nearly 1 160 ths tons of soy was exported from Ukraine or 42% of all produced soybean (2 774 ths tons).

Sergii Stoianov, Director General of UAC