Agricultural Production Technology

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1 PUTTING IN PLACE THE CONDITIONS TO SET UP A CREDIT GUARANTEE SCHEME FOR AGRIBUSINESS SMEs IN UKRAINE Agricultural Production Technology Capacity Building Seminar 1-2 February 2016 Ministry of Agrarian Policy and Food Khreschatyk str., 24, Kyiv 3rd floor room #308 1

2 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where governments work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The European Union takes part in the work of the OECD. OECD EURASIA COMPETITIVENESS PROGRAMME The OECD Eurasia Competitiveness Programme, launched in 2008, helps accelerate economic reforms and improve the business climate to achieve sustainable economic growth and employment in two regions: Central Asia (Afghanistan, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan and Uzbekistan), and Eastern Europe and South Caucasus (Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova and Ukraine). The Programme contributes to the OECD outreach strategy implemented by the Global Relations Secretariat. PUTTING IN PLACE THE CONDITIONS TO SET UP A CREDIT GUARANTEE SCHEME FOR AGRIBUSINESS SMEs IN UKRAINE The project Putting in place the Conditions to Set up a Credit Guarantee Scheme for Agribusiness SMEs in Ukraine (CGS project) emerges out of the OECD Sector Competitiveness Strategy for Ukraine, which identified high-potential sectors in the Ukrainian economy and competency-based barriers that were hindering their development. Agribusiness is a key sector identified in this work, and access to finance for agribusiness SMEs was identified as a major constraint hampering the sector s development. Within the frame of the CGS project, the OECD will design an instrument to guarantee a proportion of loans to agribusiness SMEs of ha. The scheme will be designed on the basis of a pilot covering four Oblasts (Cherkassy, Vinnytsia, Poltava and Kharkiv), before being scaled up as results are revealed. This project was launched in September 2013 and will conclude in February It is fully financed by the Government of Sweden. 2

3 ABOUT THE SEMINAR The training modules on Agricultural finance are designed to convey the needed knowledge and skills to financial institutions involved in the process of analysis, risk assessment and decision making in the course of lending to the agricultural sector. Good partner bank understanding of agricultural lending best practices will be crucial to the sustainability of a CGS scheme. The training on Agricultural Production Technology should help familiarize the participants with the segmentation of agro clients and their needs; provide knowledge about technology of crop production and livestock farming (what financier should know); describe the importance of poultry, livestock, and crop production to the agricultural industry. The main expected outcome of this training is to enhance participants analytical skills in order to better identify credit risk of agro clients. The training will be divided in two parts. Day one will provide initial training on the main aspects of agricultural loan product technology. Day two will offer advanced training on the detailed aspects of agricultural loan product technology for loan officers and commercial staff of commercial banks. The advance training is to focus on banking and lending skills, and will only include banking representatives. This seminar is part of a series of capacity building events organised in the context of the project Putting in place the Conditions to Set up a Credit Guarantee Scheme for Agribusiness SMEs in Ukraine (CGS project) financed by the Government of Sweden. The training will be provided in Ukrainian. PARTICIPANTS The 2-days training is addressed to specialists of selected banks involved in the process of analysis, risk assessment and decision making in the course of lending to the agricultural sector. Training may also include representatives of the National Bank of Ukraine and of the Ministry of Finance, both members of the project s Task Force. REGISTRATION Participation is free of charge, but participants are committed to take an active role in the entirety of the training. Registration is limited to participants selected and invited by the OECD. If you would like to be considered for the training, please send your CV to the project contacts. ABOUT THE PROJECT The project Putting in place the Conditions to Set up a Credit Guarantee Scheme for Agribusiness SMEs in Ukraine (CGS project), financed by the Government of Sweden, builds on previous OECD analysis which identified agribusiness as a priority sector for investment and business climate reforms and recommends establishing a Credit Guarantee Scheme (CGS) for agribusiness SMEs in Ukraine in order to hedge sector-specific risks. This is advocated as a market mechanism with a high leverage effect, reducing the costs of learning-by-doing that result from informational asymmetries in the sector. The OECD has been working with the Government of Ukraine in designing an appropriate CGS for a segment of credit constrained and underserved agribusiness SMEs. A Task Force was set-up to collect information, discuss analysis and provide guidance on the implementation of the project. The Task Force is chaired by the Vice- Minister of Agrarian Policy and Food of Ukraine, and formed by representatives of the Ministry of Finance, Ministry of Economic Development and Trade, Ministry of Agrarian Policy and Food and the National Bank of Ukraine. Since the launch of the CGS project in 2013, the OECD has been designing an instrument to guarantee a portion of loans to agribusiness SMEs of ha; which will initially be piloted in the regions of Cherkassy, Vinnytsia, Poltava and Kharkiv. The project benefits of the technical support of Internationale Projekt Consult (IPC) who work in close collaboration with the OECD. A series of capacity-building seminars is organised as part of the CGS project. These trainings will be held at the premises of the Ministry of Agrarian Policy and Food of Ukraine (24 Khreshchatyk str., Kyiv) throughout the month of February 2016, and will help to build governmental and commercial bank knowledge on key issues of importance to the operation of a CGS and goodpractice agricultural/ SME finance. OECD Contacts in Paris: Ms. Gabriela Miranda Ms. Yerim Park Project Manager Project Co-ordinator Tel: Tel: gabriela.miranda@oecd.org yerim.park@oecd.org OECD Contact in Kyiv: Mr. Mykhailo Semchuk Local Consultant in Kyiv Tel: mykhailo.semchuk78@gmail.com 3

4 Monday, 1 February 2016: Agricultural Product ion Technology (I) Goal of the training: Improve participants knowledge and understanding to trends and challenges in the agricultural in Ukraine s economy, and show how farmers, agribusinesses are adjusting to them by using technology available for today s agriculture production; familiarize the participants with the segmentation of agro clients and their needs; provide knowledge about technology of crop production and livestock farming (what financier should know); describe the importance of poultry, livestock, and crop production to the agricultural industry.; enhance the participants analytical skills in order to better identify credit risk of agro clients. Target group: Representatives of potential partner banks; Training may also include representatives of NBU and MOF. Day Characteristics and segmentation of target group "Agro" (framework) Coffee Break Characteristics and segmentation of target group "Agro" (framework) Lunch Risks Affecting Results of agricultural activities and ways to minimise them Coffee break Crops Overview of major crops, soils and fertility, fertilizer, nutrient and pest control for efficient using in agricultural production End of training

5 Tuesday, 2 February 2016: Agricultural Product ion Technology (II) Goal of the training: Improve participants knowledge and understanding to trends and challenges in the agricultural in Ukraine s economy, and show how farmers, agribusinesses are adjusting to them by using technology available for today s agriculture production; familiarize the participants with the segmentation of agro clients and their needs; provide knowledge about technology of crop production and livestock farming (what financier should know); describe the importance of poultry, livestock, and crop production to the agricultural industry.; enhance the participants analytical skills in order to better identify credit risk of agro clients. Target group: Representatives of potential partner banks; Training may also include representatives of NBU and MOF. Day Crops Overview of major crops, soils and fertility, fertilizer, nutrient and pest control for efficient using in agricultural production Livestock Overview of types of breeding including cattle, pig, poultry and sheep Coffee Break Livestock Overview of types of breeding including cattle, pig, poultry and sheep Lunch Farm machinery Overview of types of agricultural machinery and operations, as well as calibration of equipment Coffee break Consolidating and concluding End of training 5

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