KYIV. Nov 10 (Interfax-Ukraine) – Galnaftogaz Concern (Lviv, OKKO filling station chain) has launched a grain forward program worth UAH 1 billion for 2016/17 agricultural year (July-June).
“This agricultural year we would like to make a forward program for UAH 1 billion and next year to increase financing to UAH 3 billion,” Galnaftogaz Vice President Vasyl Danyliak said at a press conference in Kyiv on Wednesday.
He said that the concern created OKKO-Agrotrade in 2016 to cooperate with farmers.
“We have created a division that would trade with fuel and mineral fertilizers and help to sell harvest. We can cover from 30% to 40% of farmers’ needs with our products,” he said.
In 2016/17 agri-year the company expects to receive 250,000 tonnes of grain under the forward program. The key tools for working with farmers will be future harvest as collateral and agrarian receipts. The financing rate will be 10.5% per annum.
Danyliak said that the company is ready to provide eight types of mineral fertilizers to farmers.
“We have many oil depots. Some of them were sold and some are operating. Today we see that we have opportunities for selling mineral fertilizers from them. We do not have the capacity for storing urea-ammonium nitrate (UAN) in Ukraine. We are ready to give our oil depots for storing it,” he said.
OKKO-Agrotrade Director General Oleksandr Nikolenko said that in the future his company seeks to cover 100% of farmers’ needs in goods and finances required for industrial processes. Among the company’s clients are farmers with land banks from 500 ha to 100,000 ha.
