DuPont Pioneer seed company launching a barter project in Ukraine

20.03.2015

DuPont Pioneer, one of the world’s largest crop seed producing companies, is starting a pilot barter project in Ukraine in 2015 for supporting cooperation with local agricultural producers. “We started the development of barter from 2015, at the level of a pilot project yet. We see that financial resource is of hard access for the agricultural sector, or it is very expensive. This is especially so after a recent boost in the National Bank’s rate, already to 30%,” Olena Dunina, DuPont Pioneer Business Finance Director, Ukraine & Russia told journalists. “This is not absolutely natural exchange: money is nevertheless present in the project.

Pioneer continues supplying seeds to the farmer via a distributor, or directly to agricultural holdings. At the same time, the farmer or the distributor, or both get an option to offer agricultural produce on barter terms. Then a trilateral or quadripartite agreement can be signed with participation of a trader, an exporter to sell this produce and then make monetary payment for Pioneer seed supplies,” she explained the operating scheme under the new project. According to Olena Dunina, DuPont Pioneer has already begun cooperation with a few major trading entities in Ukraine within the framework of the barter project. The company’s programs of this sort have shown good results in Latin America countries.

Jeff Rowe, Regional Director of DuPont Pioneer Europe, said that the company is going to continue investing in its production facility in Ukraine (Stasy village, Poltava region). According to him, this project’s total value reaches $90 Ml, and over $50 Ml has been invested in it to date, including $11 Ml the company invested in launching the second corn seed producing line in 2014. DuPont Pioneer reportedly opened a seed factory in Poltava region in 2013, having invested $40 Ml in that facility. The factory is designed for producing some 500,000 of seed units of corn and sunflower hybrids. In 1998, DuPont Pioneer opened its representative office in Kyiv and began to work on testing new corn and sunflower hybrids. LLC Pioneer Seeds Ukraine was registered in 2001. The company officially announced the opening of its research center in Kyiv region on August 27, 2010. At the moment, the company is a major supplier of hybrid corn, sunflower, and rape seeds.

 

UkrAgroConsult


 

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