FREQUENT QUESTION: WHAT IS COMMODITY AND WHY IS IT IMPORTANT FOR UBM?
In 2023, one of the goals of the UBM Group is to further develop the regional commodity trading structure related to the feed industry through our offices in Romania, Serbia and Austria.
The commodity trading segment includes the classic trading activities of wheat, maize, barley, oilseeds, soybean meal, soybeans and mid-proteins. Around 13-15% of the total commercial volume is used by the UBM Group’s factories.
Feed production at regional level is closely linked to commercial activity at regional level:
- On the one hand, this is a supply option to meet the raw material needs of factory production,
- on the other hand, it allows a wider geographical scope for the different specificities of local markets to be traded. Such features may include the weather situation, expected crop averages and stocks, the price movements of the currency of the market, logistical possibilities, etc., in other words, any factor that can be exploited to generate profits for the trade.To this end, it is important to develop and operate a regional structure of commercial businesses.
“Based on the above, exploiting our export potential could also provide growth potential for our commodity business. The extreme commodity market volatility we have seen in the recent past will, in my opinion, persist in the coming years, which is why we are optimistic about our commodity business – there is nothing more inspiring for commodity traders than dense, significant price movements. Accordingly, we are making significant IT improvements to support our national and regional colleagues in their work, to ensure that the accelerated process is supported by the most efficient decision-making tools possible.” – emphasised Balázs Janositz, CFO of the UBM Group.
Within the UBM Group, the commodity segment is performed by the following entities:
- UBM Agro Zrt.(commodity): Its main profile is the wholesale of protein carriers, both domestically and abroad. The products marketed are typically soybeans and soy meal.
- UBM Grain Zrt.(commodity): Its main activity is the trade of grain crops and oilseeds. The grain trading activities of UBM Grain Zrt. will be merged with the protein trading activities of UBM Agro Zrt. under the long-term legal restructuring plan.
- In Romania, UBM Agri Trade s.r.l., in Serbia UBM d.o.o. and in Austria UBM Agrar GmbH are responsible for the trade in protein and grain products.
The photo shows Balázs Janositz, CFO of the UBM Group.
If you have any questions, please do not hesitate to contact us at firstname.lastname@example.org.