On Farming in Ukraine

Ukrainian agriculture relies heavily on grains such as wheat and barley production that is susceptible to international trade problems. This makes the majority of farmers vulnerable to international price fluctuations in grains, and it also creates a buyer’s market as farmers retain little to no ability to negotiate prices. Wheat itself is planted in the fall and harvested in the spring but is subject to losses from frost that vary wildly from year to year.

ACM seeks to rectify this by focusing all our products on diversifying the client’s output. By choosing to grow berries and grapes the client has a greater negotiating hand when selling their product allowing for an increase in their personal income. There are 32 million hectares of arable land in Ukraine alone providing many opportunities to help farmers shift their focus away from the production of low income grains to the production of high income berries and table grapes.

Many farmers lack onsite storage facilities and because of this tend to sell their harvested grains right when they are harvested and when prices are lowest. When farmers decide to grow their business with the help of ACM provided products they also have the opportunity to purchase cold-storage units to safely house their delicate grapes and berries until they are prepared to sell them.

Farmers have issues receiving credit due to high interest rates and collateral demands. Commercial interest rates are effectively 25-30% and are offered on short term repayment schedules. With little trust or business occurring with banks, farmers are left with little developmental opportunities in growing their businesses. ACM is a leader in financing agricultural products in southern Ukraine and we understand the unique needs of farmers better than any bank ever could. Our entire focus is to provide the best possible output for the farmer.