- 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