- 1.1 Mill. citizens - 12.000 SME comp. - 25.000 enterpreneurs - 100.000 farmers - 25 domestic banks - 4 foreign banks Branch NS Region
Jan 13, 2016
- 1.1 Mill. citizens
- 12.000 SME comp.
- 25.000 enterpreneurs
- 100.000 farmers
- 25 domestic banks
- 4 foreign banks
Branch NS Region
AGRO LENDING PRESENTATION
ProCredit Bank
AGRICULTURE
● 21% of GDP, second only to manufacturing (24%)
● 25% of GDP togethter with associated food and beverage product.
● 44% of the population lives in rural areas, 1/3 of whom rely wholy or in part on agriculture for their livelihoods.
● 17% of total exports is export of agro products, processed food, beverages, and tobacco products.
● Agriculture producers: private farmers, Agro Kombinats (460) and co- operatives (400).
● Private farmers own 83% of the 3.35 mill. ha of arable land. Most farm 2- 5 ha, usualy in several plots
● 3% of land is irrigated
Introduction
● MFB started in March 2002.
● Faculty of Agriculture, Novi Sad
● Great potentials in Vojvodina and Serbia
● Novi Sad-training and database centre
● Agriculture-long tradition in Vojvodina
● Vojvodina-regions
Variety of agricultural production
Vegetables/CropsFruits/CropsVegetables/HogsHogs/CropsHerbsCows/CropsCrops
Variability of corn income by regions
Variability of the price of corn throughout a year
0.0980.098 0.1 0.10.11 0.11
0.120.13
0.14
0.09 0.09 0.09
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
January April July October
Crop Year
CROP YEAR
Revenues
Soybean,Sunflower,Corn Sugar Beat Barley Wheat
September October November December January February March April Jun July August
Wheat,BarleyCorn,Soybean,Su
nflower,Sugar Beat
Investment period
Agro Credit Technology
Technological Maps
Financial resume
Income statement
Cash flow
Agricultural analysis
Technological map
● Lists all necessary operations
● Gives the months for this operations
● Includes all expenses ( seed, fertilizers, fuel…)
● Map has two sections
● Comment
● We have about 40 maps
● Maps for cattle breeding
Example of
Technological Map
CORN cultivated area (ha): 10
Technological operation / used material
Operatio
n done in
month
Consumpti
on kg or
liter / KJ
Cost per kg
or liter
(EUR)
Cost f or
mechanization
serv icies (EUR)
Total cost f or
technological
operation/ KJ
(EUR)
Total costs
f or cultiv ated
area (EUR)
Optimal consumption kg or liter /
KJ
Optimal cost for
technological operation/ KJ
(EUR)
Skim plowing july 9.00 0.61 5.49 54.90 8.00 0.49
Harrowing july 3.00 0.61 1.83 18.30 2.80 1.71
Main fertilizing august 3.00 0.61 1.83 18.30 2.50 1.53
Transport of manure august 2.50 0.61 1.53 15.25 2.50 1.53
- stable manure (tons) august 10.00 5.00 50.00 500.00 15.00 75.00
Transport of fertilizers august 0.61 0.00 0.00 0.30 0.18
Fertilizers august 0.00 0.00 0.00
- NPK 15:15:15 august 0.20 0.00 0.00 200.00 40.00
Ploughing august 18.00 0.61 10.98 109.80 12.00 7.32
Harrowing march 3.00 0.61 1.83 18.30 3.20 1.95
Seedbed preparation april 3.00 0.61 1.83 18.30 3.00 1.83
Transport of seeds april 0.25 0.61 0.15 1.53 0.20 0.12
Seed april 10.00 2.13 21.30 213.00 10.00 21.30
Seeding april 3.00 0.61 1.83 18.30 2.30 1.40
Plant protection - herbicides april 3.00 0.61 1.83 18.30 2.50 1.53
Transport of water april 0.50 0.61 0.31 3.05 0.30 0.18
- ATRAZIN april 0.50 8.00 4.00 40.00 0.50 4.00
- MOTIVEL april 0.70 45.00 31.50 315.00 0.70 31.50
Transport of herbicides may 0.25 0.61 0.15 1.53 0.25 0.15
Cultivation + top dressing may 3.00 0.61 1.83 18.30 2.80 1.71
Transport of fertilizers may 0.25 0.61 0.15 1.53 0.30 0.18
- KAN may 100.00 0.19 19.00 190.00 100.00 38.00
- UREA may 200.00 0.23 46.00 460.00 150.00 34.50
Second cultivation jun 3.00 0.61 1.83 18.30 2.80 1.71
Digging up july 10.00 10.00 100.00 15.00
Corn harvesting october 40.00 40.00 400.00 40.00
Transport of corn october 3.00 0.61 1.83 18.30 5.20 3.17
Storaging in crib (day-salary) october 0.61 0.00 0.00 5.00 37.50
Corn shelling october 15.00 15.00 150.00 15.00
TOTAL COSTS 272.03 2,720.28 378.49
Fuel consuption 57.75 55.95
Yeald 3900 4420Comment
CLIENT OPTIMAL
Technology for basic cultivation and fertilizing has been applied.
Part (32%) of the yield is used for animal feeding purposes, the other part (68%) was sold (see Income Statement).
Costs of production has been decreased in comparison with the optimal technology, due to the use of stable manure. Fertilizing with stable maunre is to be applied once in four-five years.
Yield of 6,800 KG/ha corn is relatively high, knowing that applied production technology is not matching the optimal one.
For digging up, seasonal workers were paid, harvest was done as service.
Financial resume
● Continuation of the technological map
● Role is to sum up the expenses listed in t.m.
● The fin.resume does not include the yields eaten by animals
● Serbian Chamber of Commerce
● Stock exchange
Wheat Corn Sunflower Sugar beet ONION PEPPER POTATO TOTAL
*1
Production costs per Ha (EUR) 354.78 238.21 220.68 787.84 1586.07 3796.37 2067.51
*3 Yield kg/Ha 4374.83 6956.52 2956.52 42260.87 26086.96 17391.3 22608.7
*4 Price per kg (EUR) 0.117 0.100 0.200 0.033 0.150 0.400 0.167
Production value per Ha (EUR) 508.7 695.65 591.3 1394.61 3913.04 6956.52 3775.65
Operationa profit per Ha (EUR) 153.91 457.44 370.63 606.77 2326.97 3160.16 1708.14
*2 Cultivated area (Ha) 5.00 7.00 10.00 10.00 3.00 2.00 5.00 42.00
Total revenues for cultivated area (EUR) 2543.48 4869.57 5913.04 13946.09 11739.13 13913.04 18878.26 71802.61
Total costs for cultivated area (EUR) 1773.91 1667.46 2206.78 7878.43 4758.21 7592.73 10337.57 36215.10
Profit for cultivated area (EUR) 769.57 3202.1 3706.26 6067.65 9680.92 6320.31 8540.70 35587.51
*5 RENT 1,000.00
Operational Income from crop
production34585.51
Financial resume for crops and vegetables
Income statement and Cash flow
● Is filled in with data based on the financial resume
● Income and expenses presented on a monthly level
● Indicates cash flow monthly excluding any transaction which is not financial-barter trade
● Seasonal nature of the business
● -Non-equal payment plan
Risks in agricultural production
● Agricultural production is specific in many ways:
● it is done in the open air
● returns on investments is a slow process
● Risks that have been very important for the bank are the following:
1. Long production process
2. Weather conditions
3. Diseases
4. Quality of soil
Risk in Agriculture
Long production process Farmers with min.one year experience
Wheather Meteorological posts,
Farmers with min. three crops
Diseases Veterinary institutes
Land Map with six types of soil
Risk Mesures taken for Risk Reducement
Meteorological posts in Vojvodina
Veterinary Institutes in Vojvodina
Types of soil in Vojvodina
Structure of the current production in Agriculture
PRODUCERS
Foreign market
Domestic market
PROCESSING COMPANY
LOCAL COOPERATIVE
Structure of sales in Agriculture
PROCREDIT BANK
PRODUCER
Foreign market
Domestic market
PROCESSING COMPANY
LOCAL COOPERATIVE
Products
● Individual loans
● Credit associations
● Loans for mechanisation (Belarus, Claas, John Deer...)
● ADF cooperation
Agriculture perspective
● Privatization and restructuring of AK and agro-processors
● Land restitution and strenghten land markets
● Rejuvanate the food marketing chain
● Rehabiltate dranage canals
● Regional development
● Rural finance
Branch Novi Sad