Agrarian Fund has sent 1.5 billion hryvnia for the forward program to support farmers.
The company buys 1 million tons of wheat or 20% of total domestic consumption to ensure food security.
PJSC “Agrarian Fund” as part of the forward programs directed at supporting farmers 1.5 billion hryvnia between spring and autumn sowing. In the forward company buys food wheat, barley, rye and buckwheat.
At the time of conclusion of the contract the farmer receives at the hands of 65% of the target value of the grain.
Purchase price is determined on the basis of crop forecasts, and a number of macro factors, including the expected dollar. This price – is more indicative, as the final calculation of the cost of care given to the market. For example, during the spring campaign forward second class wheat price was set at 3500 hryvnia, making the harvest period in 3700 UAH/ton, and in some areas reaching up to 4,200 UAH/ton.
Forward program “Agrarian Fund” – one of the last remaining mechanisms for farmers working capital in the period of peak demand. “In the conditions of instability, including the military, large private players do not risk giving money to farmers with the prospect of grain supplies with backlash up to six months”, – explains the absence of the influx of competitors Andrey Radchenko, CEO of PJSC “Agrarian Fund”, recalling that delivery risk Ukraine does not insure no insurance company. In addition to supporting farmers, contracting grains ensures the stability of the food market. At constant domestic consumption at 5.3 million tonnes, AF buys about 20% of this volume”. This is our anchor program, since the 1 million tonnes and is the one resource that can ensure stability in the food market”, – says Andrey Radchenko.
Preliminary assessment of the budget of the autumn sowing campaign – about 90 billion hryvnia. This figure, adjusted for the dollar is increasing from year to year: in 2015 the cost of field work was estimated at about 80 billion hryvnia in 2014 – 56 billion USD. For example, compared to the previous year, the cost per hectare of wheat increased by 9%, to 12.5 thousand. UAH.
PJSC “Agrarian Fund” created by the decision of the Cabinet of Ministers №364 April 22, 2013. The statutory fund – 5 billion hryvnia. 100% of shares belong to the state. Annually buys from farmers about 1 million. Tonnes of wheat and takes up 40% of the domestic flour market.
