On March 24-25, 2015, in the USA there was held the Ukrainian-American Agrarian Congress aimed at searching for ways to implement the Ukrainian agrarian potential and establishing the Ukrainian-American agrarian dialogue that will promote skill sharing and improve business relations between two countries.

The Ukrainian Grain Association and APK-Inform organized the forum with a support of U.S.-Ukraine Business Council (USUBC). More than 170 participants from 13 countries around the world participated in the congress. They discussed world food security, prospects of investment in the Ukrainian agrarian sector as well as key issues concerning the development of biofuel market, genetic researches in the agrarian sector, and others. Representatives of state structures and agribusiness, agrarian specialists, sectoral experts and representatives of public agricultural organizations represented Ukraine.

NIBULON’s General Director participated in the congress. At the plenary meeting he spoke about “World food security: the U.S. and Ukraine contribution”, noting that NIBULON was the only Ukrainian company that supplied high-quality food wheat to starving people as part of the UN World Food Program. The company actively participates in the international tenders for supply of agricultural commodities to governmental and non-governmental organizations, said O. Vadaturskyy.

The company is one of the leading domestic investors and agricultural producers. It is reviving shipbuilding, developing and improving logistics, creating logistics infrastructure and increasing cargo transportation along the DniproRiver. NIBULON is the largest domestic exporter of grain and oil crops for many consecutive years. At the same time the company is one of the largest tax payers in the agrarian sector. Generally, such an internal consolidated policy aims to increase production efficiency and to strengthen positions of both NIBULON and Ukraine in the world grain market, stressed NIBULON’s General Director.

In the agricultural production sector, according to Oleksiy Vadaturskyy, the major factor to improve the efficiency is to combine components of agrarian technologies properly, depending on the geographical and climatic areas of production, to use modern high-capacity machinery, to implement scientifically-based crop rotations, to purchase the best seed, to use fertilizers and plant protection agents rationally, to preserve soil fertility. The entire package of agrotechnical measures is aimed at increasing crop capacity, improving grain quality and bringing grain to world quality standards.

“NIBULON enters the top ten largest Ukrainian land users on the area of more than 82 thousand hectares in eleven regions (almost in all soil and climatic areas, thereby minimizing risks caused by diverse weather conditions; a land specific weight in the areas of sufficient moisture comprises 52 %)”, informed O.O. Vadaturskyy. “Above 2,400 employees work at 22 production branches that have the required material and technical basis. NIBULON operates Fendt tractors (70 %) and Lemken tillage machinery (60 %), used in Ukraine. This confirms a high technique level at the production branches”.

Skilful combination of agrotechnical and organizational measures, reasonable planning of sown areas and risk spreading give convincing results. During the last five years, NIBULON’s crop yield has been exceeding an average level by Ukraine, in particular wheat – by 24%, corn – by 26 %, and rapeseed – by 44 %.

Oleksiy Vadaturskyy mentioned that on condition that an average crop yield by the country was at NIBULON’s level, Ukraine’s gross yield could be increased by 15-15.5 million tons (including grain crops – up to 12.6 million tons), achieving 78.7-79.2 million tons. This is Ukraine’s potential in grain production.

According to O.O. Vadaturskyy, NIBULON is developing logistics and efficient schemes to transport and store grain and oil crops. NIBULON’s “field-port” logistics scheme enables it to use the most optimal and efficient routes to transport products from producers to shipment points. As part of its investment project, NIBULON has constructed and continues to construct modern automated elevator complexes and transshipment terminals along the Dnipro and the Southern Bug. The facilities are equipped with up-to-date foreign equipment. This enables NIBULON to bring commodities to the required export conditions.

Along with facility construction, the logistics chain includes NIBULON’s cargo fleet that numbers 28 non-self-propelled vessels, 9 tugs (6 newly constructed ones out of which 2 tugs were constructed at NIBULON shipbuilding and repair yard), high-capacity transshipment floating crane, plus a dredger. At present the company is performing its program to construct cargo fleet. The program goal, in addition to developing a network of facilities to store grains, is to transport 3 million tons of products on the Ukrainian inland waterways annually.

NIBULON’s General Director emphasized problems of development of the Ukrainian cargo transportation infrastructure, in particular the Dnipro dredging, the construction of terminals and river fleet. He mentioned that it was necessary to involve foreign investments in constructing ten terminals and dredging of the DniproRiver. According to him, foreign bank investments are necessary to purchase 400 thousand tons of metal, thereby providing shipyards with work for four years. As a result, Ukraine will have towing and cargo fleet with the deadweight of 550 thousand tons and will transport 10 million tons of cargoes annually. Metallurgical works will be provided with work for at least 4 years; about 15 thousand shipbuilders will get a job.

Oleksiy Vadaturskyy added that this program would motivate not only Ukraine’s economy but also would provide for equipment imports from the USA. According to O.O. Vadaturskyy, it is necessary to develop mutually advantageous cooperation, as NIBULON achieves leading positions in industrial equipment imports from many countries around the world (for the construction of its infrastructure facilities and fleet), thereby stimulating operation of foreign companies.

NIBULON’s export activity acknowledged in the world grain market is a final link of an economic model used by NIBULON. The company has been maintaining an absolute leadership in Ukraine in agricultural commodity exports for a long time. The company closed the 2013/2014 marketing year with a figure of more than 4.5 million tons of products exported; almost every tenth ton of grain supplied to foreign consumers was shipped by our company. The 2014/2015 marketing year is successful for NIBULON. The company is ranked in first place among grain exporters and takes third one among oilseed exporters. 

Taking into consideration his speech theme, Oleksiy Vadaturskyy stressed that only by ensuring a crop yield achieved by NIBULON, modernizing agricultural machinery fleet and irrigation system, developing grain logistics and carrying out dredging, Ukraine would strengthen its positions in the world grain market and make a considerable contribution to the world food security.

Within his working visit to the USA, NIBULON’s General Director also met with the management of ExportImport Bank of the United State, IFC, representatives of the U.S. Grains Council and with managers of companies that produce elevator equipment.

To view presentation of Oleksiy Vadaturskyy on Ukrainian-American Agrarian Congress 
Vadaturskyy_NIBULON_Investment_Infrastructure_UAAC_2015.pdf