Agro Expert Team of Credit Agricole Bank continues to study agrarian sector of Ukraine

The series of AgroExpeditions traditionally started in 2016 with monitoring of winter crops and analysis of seeding campaign. Expert team of Credit Agricole Bank and representatives of the national agrarian portal Latifundist.com visited Volyn, Ternopil, Vinnytsia, Dnipropetrovsk, Cherkasy and Poltava regions. Just in 5 days the team covered over 3500 kilometers having analyzed 12 enterprises. This expedition demonstrated that difficult weather conditions in the period of autumn seeding campaign challenged good harvest of winter crops.

For significant part of agrarian companies the revision of crop rotation structure became a rational solution. Thus, seeding areas of late spring crops were partially increased, which is typical for the steppe climate zone. Adjustment of seeding standards and depth of seed burying, later seeding of grain crops made positive influence on wintering of plants. Thus, our experts saw good fields of wheat in Volyn, Ternopil, Vinnytsia, Cherkasy and Poltava regions. Up to 90-95% of seeds sprouted. In Dnipropetrovsk region sprouting was slightly worse. As for the rape seeds, only 40-70% of crops survived winter in the visited enterprises. Some companies plan to reseed lost areas with other crops. Most likely, agrarians will compensate failed crops with sunflower and corn.

“Today the priority task for agrarians is to ensure full working capital finance. Underfinancing of seeding campaign in the present situation challenges targeted productivity of intensive growing crops. Crisis year 2015 showed that agrarian producers with experienced and competent management may be efficient even in difficult and unstable conditions. These are the enterprises that create long-term trust relations in the banking sector”, said the expert of agro-business development of Credit Agricole Ihor Hurzhii.

“For almost 20 years of operations our company cooperated with many banks. Credit Agricole Bank has been our financial partner for the last 5 years and we are comfortable with it. Everything is transparent. The funds we receive from our cooperation are sufficient”, tells Mykola Khorolskyi, agrarian firm “Kolos”.

Field data in numbers

According to the Ministry of Agrarian Production, as of 8 April early grain crops were seeded on 1.8 million hectares, which is 74% of the forecast.

77% of winter grain crops seeded on 5.4 million hectares are in good or satisfactory conditions while 23% (1.6 million hectares) are in weak or spaced conditions and seeds on 23 thousand hectares failed.

Rape seeds are in good or satisfactory condition after winter on 80.5% of area or on 699.6 thousand hectares, in weak conditions – on 16% (140 thousand hectares) and up to 3.5% of seeds (30 thousand hectares) failed.

According to preliminary data of regions, total expected area of agricultural crops for 2016 harvest is 26.5 million hectares (at the level of 2015). Grain area will slightly grow due to increased areas of corn and late cereal crops and will make 14.4 million hectares, i.e. 54% in the structure of cultivation areas. It is planned to seed spring grain crops on the area of 7.5 million hectares.

Field innovations

Ukrainian agrarian producers are in step with the time and already use innovative agrarian techniques to facilitate their work, minimize costs and improve return on investments. The participants of the recent AgroExpedition saw the confirmation during their visit to FC “Zoria Podillia”. Here it is planned to improve wheat crops due to special drone service that includes 6 people, 4 quadcopters and 1 drone aircraft. By means of mobile drones significant field areas are viewed from the air, which enables timely reaction if any problem plots are detected.

Learn more about TOP trends of seeding campaign 2016 on
http://latifundist.com/blog/read/1416-posevnaya-2016-pod-kontrolem-itogi-agroekspeditsii

About the Bank:

PJSC «CREDIT AGRICOLE BANK» is a modern universal bank owned by the leading financial group in Europe – Credit Agricole Group (France). The Group is a major partner of the French economy and one of the largest banking groups in Europe. It is a leading retail bank in Europe, having the largest portfolio of assets under management, being first in the field of bank insurance and third - in project financing in Europe. CREDIT AGRICOLE has been operating in the financial market of Ukraine since 1993 and renders the entire range of banking services to private individuals, including VIP clients, and business. The Bank pays special attention to cooperation with agricultural enterprises. Reliability and business reputation of CREDIT AGRICOLE in Ukraine is confirmed by the highest possible FITCH ratings, leading positions in bank sustainability, bank deposit reliability and bank profitability rankings, as well as by 442 000 private and 35 000 corporate customers, including representatives of small and medium business, large Ukrainian companies and international corporations.