Due to Russia’s full-scale war, many traditional supply chains in Ukraine were disrupted, leading to the need for building new or restoring existing value chains to bring products from farmers to end-consumers.
Credit unions are best positioned to meet the financial needs of agricultural and rural businesses, including input suppliers, producers, processors and other actors, but generally lack practical experience in building partnerships within these value chains.
To address these needs, the USAID Credit for Agriculture Producers (CAP Project, implemented by World Council of Credit Unions (WOCCU), provides individual support to a group of partner credit unions in conducting market analyses, organizing negotiations with agribusiness representatives and developing loan proposals.
As a result of that support, on September 14, CAP Project partner Credit Union Anisia signed a cooperation agreement with LLC Tetra-Agro, a mineral fertilizer producer. The agreement allows CU Anisia’s member farmers to purchase products from Tetra-Agro at better prices and will lay a foundation for value chain financing set by the credit unions.
In October, the CAP Project facilitated two more cooperation agreements for credit unions under its value chain finance framework.
Credit Union Kredyt-Soyuz partnered with LLC Standard Agro, producer and supplier of combined fodder, pre-mixes and food supplements. Thanks to a new, lower-interest loan product developed by Kredyt-Soyuz through this partnership, credit union farmers will be able to purchase Standard Agro’s organic products at lower prices, with quick and convenient delivery across Cherkasy Oblast. The member farmers will also get access to a professional grain analysis laboratory.
Finally, Credit Union Persha Vseukrayinska Kredytna Spilka (PVKS) cooperated with LLC Volyn-Zerno-Product to ensure their member farmers in Volyn and Rivne Oblasts have the financial resources available and timely access needed to purchase the company’s plant protection products, mineral fertilizers, diesel fuel and seeds – all key inputs for agricultural production.
These partnerships built through the CAP Project will help all stakeholders strengthen value chains in their regions and contribute to the growth of the agricultural sector in Ukraine.