The first UAH 13.8 mln agrarian receipt signed with Bizon-Tech in Dnepropetrovsk region

The company Bizon-Tech, which is part of the BKW group of companies, in early March 2018, signed the first agrarian receipt in Dnepropetrovsk region for the amount of UAH 13.8 million. This receipt was the first in the region and for the Bizon-Tech company.

Agrarian receipt from Bizon-Tech in Dnepropetrovsk region was signed with the farm Skoruk M.A. The owner of the farm Tamara Skoruk said that the company uses this financing to purchase the plant protection products (PPP) and seeds for the future harvest. The farm culticates about 15 thou. ha.

"We are using agrarian receipts for the first time. We decided to try this instrument solely because we have been cooperating with Bizon-Tech for a long time and trust them," she said.

The company noted that the amount of the receipt is determined individually and there a few more agrarian receipts to be signed in 2018.

"Agrarians are interested in this financial instrument, yet it has certain specifics, because companies have to go through a rather complicated path. But those who pass it, see the advantages. At least so respond those who have already tried it," said Aleksey Berdnikov, Commercial Director of Bizon-Tech.

Today, Bizon-Tech does not demand much of farms that want to use agrarian receipts. The company is ready to work with all applicants.

"We are ready to work with any client. Perhaps in the future, when this instrument gains more popularity, we will have some preferences, but so far there are none. We would also like to apply these receipts in work with our seed suppliers, PPP and so on. But not all companies are ready to work with this instrument yet," Aleksey Berdnikov said.

The regional coordinator of the IFC project Agrarian Receipts in Ukraine in Dnepropetrovsk region Alexander Vashchuk says that this agreement is of great importance for the region.

"There are two main points: this is the first agrarian receipt in Dnepropetrovsk region and the first receipt from Bizon-Tech. Both the size of the farm and the attracted amount were quite significant," the expert comments.

Reference: today BKW Group of companies includes 4 business lines, which are represented by the following companies: Bizon-Tech, Ambar Export BKW, LANDFORT agroholding and Ocean Invest.

Note: Agrarian receipts are a financial instrument that helps farmers to obtain working capital from banks or input suppliers before harvest. The instrument introduced by the new Law on Agrarian Receipts will allow Ukrainian farmers to pledge their future crops and, against this pledge, obtain loans to buy farm inputs such as seeds or fertilizers. The first agrarian receipt in Ukraine was signed in 2014 in Poltava region.