Its purchase was started by Agrotechnika LLC, which is a part of Pan Kurchak. Agricultural processors pay for rape in hryvnias, but fix the market price at the time of concluding the contract in Eurocurrency. Therefore, sellers are protected from exchange rate fluctuations and also have the opportunity to invade more than during the harvest season, when the market is oversaturated and the price is understated.
For not yet grown rapeseed LLC “Agrotechnics” immediately pays 30% of its market value. Sellers receive an advance payment at 8% per annum. This money is three times cheaper than credit. Moreover, in the conditions of limited bank financing of the agricultural sector for small agricultural producers this is almost the only opportunity to attract working capital. And they are needed by farmers both to repay previously received loans and to purchase expensive fertilizers, plant protection products, fuels and lubricants and spare parts for agricultural machinery.
The final settlement under forward contracts farmers will receive in the summer after the supply of rapeseed to the warehouses of LLC “Agrotechnics”. In addition, they offer a surcharge to the market price of 40 hryvnias with VAT per ton for each additional percentage of oil per crude substance exceeding 40%.
According to the chairman of the supervisory board of APG “Pan Kurchak” Serhiy Horlach, microlending to small farmers is a costly, but necessary investment in the quality of raw materials for the production of feed. After all, in difficult economic conditions, farmers cannot get loans, and therefore do not even have the money to prepare equipment for the timely harvesting of rapeseed. At the same time, forward contracts are guaranteed financing and a market at a favorable price fixed in Eurocurrency. And this allows you to risk-free forecast agricultural activities for the next marketing year.
Cooperation with Agrotekhnika LLC is beneficial for farmers, said Lyudmyla Zavaliy, Head of Oilseeds Processing and Sales of Agrotechnika Products Processing Products, as the company has a strong network of modern elevators in the Volyn region (Turiysk, Lokachi, Charukiv (Nesvich)). Maryanivka), where rapeseed is received, cleaned, dried and stored. In addition, if in the future the farmer decides to sell it to the company, it automatically receives a 100% discount on storage.
For reference: Agrotechnika LLC has been contracting grain for more than a year. In addition, the number of farmers selling uncultivated crops to agricultural processors is growing every year. The geography of those wishing to take advantage of favorable forward conditions is also expanding. This is also a testament to the reliability of Agrotechnika LLC as a business partner. All agrarians who have rapeseed crops can appreciate the benefits of cooperation, as Agrotechnika LLC has enough elevator, storage and processing facilities to purchase unlimited raw materials.