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Created in 2016, new business unit OKKO Agrotrade aims to comprehensively satisfy the most pressing needs of agribusiness, namely to provide them with high-quality fuel, mineral fertilizers and best help with selling the crop. Already during this season the company has started financing farmers totaling USD 40 million, pledged with the next harvest, and the next marketing year the company plans to increase the volume of such funding to up to USD 120 million.
Forward program offered by OKKO Agrotrade is a unique complex product that allows agricultural producers to receive the fuel from OKKO network and fertilizers for the main stages of production just in right time, with option pay for them after harvesting by the crops. The risk insurance for the mutual commodity operations of the parties is secured by Universalna Insurance Company, which is also a part of OKKO GROUP.
"In the future we plan to cover 100% of the needs of farmers in goods and financial resources required for their production processes, - says OKKO Agrotrade CEO Olexander Nikolenko. – The cooperation mechanism is transparent and clear: our company provides the farmers with fuel and lubricants, fertilizers and other goods during the field work, and the farmers does are not directly pay with the money immediately, but later with the grown harvest. By its value our services are the most competitive in the market and we give fair price to the agricultural products, based on the prices on similar goods of three largest agro traders of the region. In this marketing year we expect to receive 250 thousand tons of agricultural products through the forward program".
Unlike bank loans where the farmer deposits to pledge his/hers property, in case with OKKO Agrotrade the future harvest is the pledge for the deal, documented by the pledge contract or agricultural warrant, which is quite new financial instrument for Ukraine, but very comfortable and modern. The risk insurance for the mutual commodity operations of the parties is secured by Universalna Insurance Company, which reinsures the risks with the best international insurers. The rate of such insurance is much lower than similar offerings on the market.
The program has funded the cultivation of major grain crops - wheat, barley, corn, and further cooperation is planned with producers of buckwheat, peas and propably other legumes and rapeseed. According to Olexander Nikolenko, Among the actors who have applied for participation in OKKO Agrotrade forward program there are both farmers with 500 hectares and companies with several thousand hectares of land. Any interested agricultural producer can apply for participation without unnecessary formalities and bureaucratic delays. The experts of OKKO Agrotrade can conduct a fast one-day analysis of the possibility of providing funding.
"We live in a great agricultural country with a long tradition and strong potential. That’s why agriculture in Ukraine is an extremely interesting area for business and investment”, the First Vice-President of Concern Galnaftogaz Vasily Danylyak is sure. “Our holding company already has experience in agricultural sector - for example one of its units is Concern Khlibprom, which owns several bakeries and flour mills in Ukraine. We supply fuels and lubricants under direct contracts to many agricultural enterprises. However with OKKO Agrotrade as a separate business unit our activity in this area is becoming more complex and ambitious. OKKO brandname and reputation of the business holding is a guarantee of quality and integrity for our agricultural partners".
Read more details: https://www.okko.ua/uk/agro
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