POSEIDON TRADEWAVES: "Swans of varying degrees of gray and blackness" in the season 2021/22





POSEIDON TRADEWAVES started active operations on May, 2021. It is a new company representing development of trading activities of agroholding FREEDOM FARM INTERNATIONAL and Tavria Agro Invest Oil Extraction plant. It`s focused on providing grains, oils and feed products deliveries from Ukraine to international markets.

POSEIDON TRADEWAVES operates trading activities with vegetable oils (crude and refined sunflower, rapeseed, and soybean), meals and cakes (sunflower, rapeseed, and soybean), grains and also can to produce bottled oil under its brands and Private Label.


Konstantin Bugera
Commercial Director of the company


— Konstantin, your company began its activity in one of the most difficult seasons for the oil and fat industry. How does it feel to launch a project in chaos?

— In fact, the idea of ​​creating a new project has matured a long time ago. Four years ago, a group of people with the same ideas and experience in trading came together for a common goal. The goal is to provide the whole world with high-quality sunflower oil and meal.

At the beginning, the activity consisted in cooperation with Ukrainian oil extraction plants, and then grew into the POSEIDON TRADEWAVES project. And «yes» - we decided to expand our presence in the market in this difficult year.


— How would you rate the 2020/21 season for the market in general and for POSEIDON TRADEWAVES in particular?

Last season showed that "the morning sun never lasts a day" and the old mechanisms no longer work. In 2020, the market has become hypervolatile and this is a new reality. Ripple Effect influenced all spheres - demand, price, logistics and fulfillment of obligations. And today we understand that we need to adapt to this.

For ourselves, we have determined that flexible planning, plan "B" and even "C" and quick response, a desire to optimize risks and manage them - are the keys to successful activity today.


— What type of product is the priority for POSEIDON TRADEWAVES when exporting and to which countries? Does the company plan to expand the range of exported goods and in what directions?

— POSEIDON TRADEWAVES exports agricultural products from Ukraine to Europe, the Middle East, the Asia-Pacific region and Africa (about 60 countries in total).

The plans for the near future are to strengthen our presence in the existing markets and add new countries to the list, increasing the volume of transactions by at least 1.5 times.

  In addition to trading in oil, meal and cake, in the new season we are planning extensive deliveries of grain crops to international markets on different bases from FCA (warehouse) to CIF (port).


— What are your expectations for the new season?

 — If the crop is not “heated” by the sun or “overmoistured” with rain, it is possible that 100 million tons (cereals, legumes and oilseeds) will be harvested, which experts “prophesy”.

In any case, I think that the season will be interesting, and we, in turn, intend to be strong players who are increasing sales, discovering new markets and increasing the company's product portfolio.


— Experts predict a fairly high yield of sunflower in the new season. How will this affect the market in your opinion? How do you assess the prospects for the harvest of the new 2021/22 season?

— We expect that there will be more offers on the market, since the forecast of a new sunflower crop is 16.5 million tons, of which more than 6.5 million mt of sunoil and more than 6 million tons of sunmeal should be produced - accordingly, we should expect that the market will be more stable. But looking back, one cannot be sure of this.


— What are the key risks of trading on the market for oilseeds and their by-products in the new season, and how do you think they can be avoided?

— We assume that all the trends of 2020 will continue in the new season: climatic "swing", unpredictability of demand, large fluctuations in the volume of importers' purchases, information chaos and, of course, trade risks for non-fulfillment of obligations by counterparties and partners.


— What factors, in your opinion, will be key for pricing in the Ukrainian export market of vegetable oils and meal / cake in the season 2021/22?

— Despite the fact that Ukraine is the largest exporter of sunflower oil in the world, its price strongly depends on world prices for alternative products – crude oil and main vegoils (palm, soybean, rapeseed). This trend remains relevant today, which means that the price in the new season will be formed on the basis of the balance of supply and demand, conjuncture of adjacent markets. ("Swans of varying degrees of gray and blackness").

According to the forecast of APK-Inform, in 2021/2022 MY the export of sunflower meal is expected to grow by 16% (up to 5.3 million mt), rapeseed meal (198,000 mt), at the same time, the export of soybean meal may decrease in comparison with the previous season by 3% to 465,000 mt. As for pricing policy, fluctuations in meal prices will traditionally depend on price movements for the entire feed group.


— How do you assess the competition in the domestic and foreign markets? What are the competitive advantages of your company?

Competition has always been, is and will be. But the specificity of our activity is such that with some companies we are competitors on one deal, and in other cases we are partners.

Nevertheless, I would like to note our advantages: many years of experience in trading, striving to take into account the interests of all parties and make every effort to optimize trade interactions, offering the best solutions in organizing trade processes, logistics and financing.


Your wishes to partners for the new marketing year.

We wish all market players an interesting and productive season. Let us jointly develop the promotion of Ukrainian products to international markets.