Shakir Shamilyov has been heading the trading direction of the company “Kusto Agro Trading” already for two years. We took a small interview and talked about the peculiarities of his work.
“Kusto Agro Trading” never refuses to the customer, if the transaction is real and can benefit
– What are your duties?
– We are engaged in sales, in particular export of grain. But we aren’t limited exclusively to the elevators of the company “Kusto Agro”. We can cooperate with other suppliers. We don’t sell only our own grain, but we also sell third-party volumes.
– Do you cooperate with other traders?
– We cooperate with both Ukrainian and multinational traders: Louis Dreyfus, Kernel, Cardiff, Spike, Agritera, MHP and others. If we talk about international companies, then “Kusto Agro Trading” works in the Middle East – these are UAE, Saudi Arabia, Kuwait, Bahrain, Qatar, develops directions for Iraq, Lebanon and Jordan. Our other direction is the market of Southeast Asia: India, Pakistan, Bangladesh, Nepal, Taiwan, Malaysia, Vietnam, and Indonesia. These are the countries where there were real shipments.
– Do you work with outside organizations?
– There are different types of transactions. Sometimes we are approached by brokers or intermediaries who have a contract, for example, for 5 thousand tons of some products at a fixed price. We are offered conditions, we expect. If it is profitable for us, we agree. All companies work in such way. This is the standard world practice.
– Some companies provide cargo escort services for a certain commission. Or they help with the export of small enterprises that can’t form a pitch. Do you find this direction interesting?
– I’ve heard of such deals, but we work a little differently.” Which small enterprises can’t independently export – we just buy and supply ourselves to foreign markets.
– Does “Kusto Agro Trading” provide brokerage services?
– We don’t have such a service, but “Kusto Agro Trading” never refuses to the customer, if the transaction is real and can be useful and benefit. If there is an opportunity to earn as a broker, why not?
“We approach each trading transaction individually”
– What about the “Kusto Agro” the road infrastructure? Are there railroad entrances to elevators?
– Yes, all our elevators have railway entrances, we ship grain to the cars, and for several years the stamping equipment has been working at the elevator complex in Zhmerynka. Today, we can independently staffiring up to 12 containers per day, taking into account the unloading of the elevator complex by the shipment of grain to wagons. Containers are filled in the following way: two containers of 20 “cubes” are put on the railway platform, loaded under the supervision of the surveyor, fumigated, sealed, sealed and sent to the port. And then they are loaded onto the ship and leave for the buyer.
– Do you work directly with foreign traders?
– We work in different ways: through well-established brokers and directly.
– With whom it is easier to cooperate: with Ukrainian companies or with foreign companies?
– There can’t be generalized, there are many factors that affect the work. We approach each transaction individually, we consider everything separately.
In “Kusto Agro” there is no priority in trading for any culture, but if there is a profitable deal for some position – let’s go!
– What cultures do you grow?
– Wheat, corn, soy, rape, barley, sunflower, a number of niche crops: peas, flax, coriander.
– Do you grow or buy niche crops?
– Both: we grow and buy. We buy coriander.
– And what culture do you predominate?
– Depends on the season and, of course, on market prices at the time of the transaction.
– Are you the only one engaged in trading or are there traders in “Kusto Agro”?
– I’m engaged in trade.
– And what is the annual turnover of “Kusto Agro Trading”?
– Our company is small. We have just started our work in the market of traders. “Kusto Agro Trading” plans to enter the turnover of 100 thousand tons of grain. There is a view of both its harvest and its products from suppliers.
In addition to new directions, Kusto Agro Trading will expand the already mastered markets of Southeast Asia and the Middle East
– In 2017, which crops are the most promising for trading?
– We don’t focus on a particular culture. There was an idea at the beginning of the year to bet on peas. But the freight of containers has risen, besides, today there are certain restrictions in the importing countries. In “Kusto Agro” there is no priority in trading for any culture, but if there is a profitable deal for some position – let’s go!
– You aren’t engaged in processing products?
– We are negotiating in this direction with both suppliers and consumers, but so far the transactions have not been finalized.
– What exactly are you going to work with?
– We plan to have many directions – at the moment we will try to work on flour and bran.
– Are there any difficulties for traders in Ukraine?
– Difficulties have always been, are and will be. Difficulties with cars, difficulties with expensive logistics: to deliver goods to Indian or Indonesian ports isn’t cheap, as well as to the ports of Odessa or Ilichevsk.
– The peculiarity of trading is that you sometimes don’t even see the product, and the trade is “on paper”. Is it the same futures trading?
– It all depends on the transaction. Often there is also trade, as you said, “on paper”.
– But you are selling more “live” goods?
– What are the future plans for the company “Kusto Agro”?
– Political events of recent years have opened access of Ukrainian producers to Turkey. Now there are problems with the export of wheat from Russia to Turkey, I would like to use this situation. Also of interest to us are Iran, North Africa, Tanzania, Angola, possibly Nigeria. In addition to new directions, we will expand the already mastered markets of Southeast Asia and the Middle East.