PJSC Agrarian Fund financed UAH 233 million under the forward program for agricultural producers, purchasing 72,000 tonnes of grain crops.
According to a report on the company’s website on Tuesday, the spring forward program of the company will last as long as applications from producers arrive.
“To date, PJSC Agrarian Fund funded agricultural producers for UAH 233 million by purchasing 72,000 tonnes of grain. Yes, this is not enough compared to previous years, but the forward program has not yet been completed, and contracts will be concluded while applications from agrarians arrive,” acting Head of the Agrarian Fund Bohdan Bunchuk said.
Under the terms of the 2020 forward program, financing is provided in mineral fertilizers and cash. Funds in the financing structure can be up to 50% of the contract amount. The collateral is the grain of the 2020 harvest.
PJSC Agrarian Fund will provide UAH 2.5 billion for advance payments to buy grain from farmers under the spring forward campaign 2019, the press service of the company has reported.
According to a posting on the company’s website, Agrarian Fund plans to buy 710,000 tonnes of grain, including 500,000 tonnes of wheat, 100,000 tonnes of corn, 50,000 tonnes of barley, 30,000 tonnes of rye, 10,000 tonnes of buckwheat, 10,000 tonnes of millet and 10,000 tonnes of yellow peas.
The advance payment does not exceed 65% of the cost of delivery under the contract. The forward contract is subject to the signing of contracts for the supply of mineral fertilizers worth no more than an advance payment. “Thus, the agricultural producer can now not only purchase mineral fertilizers of domestic production, but also exchange them for agricultural products,” the Agrarian Fund said.
According to the company’s data, the interest rate for using prepayment funds without taking into account exchange rate fluctuations will be from 23% to 25%, and taking into account the exchange rate fluctuations it will be 15%.
PJSC Agrarian Fund was established in spring 2013 by a government decree. Its charter capital is UAH 5 billion. The company currently estimates its share on the domestic grain market at 20% and on the domestic flour market at 13%.
PJSC Agrarian Fund sold 700 tonnes of grain, 34,200 tonnes of flour and 103,000 tonnes of mineral fertilizers in April-June 2018, the Ministry of Agrarian Policy and Food reported on the website. In the second quarter of this year, the Agrarian Fund’s revenue amounted to UAH 1 billion, the company’s net profit after the payment of corporate profit tax was UAH 2.2 million against an expected loss of UAH 28 million, it said.
The ministry says that flour was sold by the Agrarian Fund in wholesale and retail batches, including in retail outlets under its own brand.
Public joint-stock company Agrarian Fund has signed a contract with Turkey’s Alapala Makina Gida Sanayi Ve Ticaret A.Ş. to supply equipment of a new flour mill. The company said on its website that the cost of the first part of the framework contract is EUR 2.5 million. The sum of the tied loan is EUR 2 million. “The Agrarian Fund has concluded a beneficial contract with the Turkish company Alapala on the terms of attracting a tied loan for a period of three years. In a year and a half, Ukraine will have a new high-tech production facility,” Board Chairman of the Agrarian Fund Andriy Radchenko said.
The equipment will be manufactured within six months, then it will be delivered to Ukraine, installed and launched. The mill should be put into operation in 18 months.
The production capacity of the future flour-grinding complex will amount to 300 tonnes of grain per day. The enterprise will have with high-tech equipment, which has no analogues in Ukraine. The equipment will allow expanding the product line (bakery, confectionery mixes and vitaminized flour).
Now the Agrarian Fund considers four areas where the future flour milling complex can be built – Kyiv, Cherkasy, Kharkiv or Vinnytsia. PJSC Agrarian Fund was created in the spring of 2013 under a government resolution.
