Bai-Tushum Bank hosts round table on financing vegetable and fruit value added chains
On February 10 the Head Office of Bai-Tushum Bank hosted round table on the subject of: “Financing of value added chains operators: Farmers– Processors– Trading Company – Store”. The round table participants were the representatives of processing enterprises, Vkus Solnca TH, Frunze and U Doma trading networks, as well as AVEP PF, Helvetas, TES Centre PF and USAID Agro Horizon Project.
The key objective of the round table was the elaboration of collective decisions regarding the further development of value chains and establishment of stable linkages between farmers, processing entities, trading networks and the bank. Bai-Tushum Bank presented the concept of contract financing to the participants. Certain crucial issues pertaining to the necessity of training farmers on farming techniques, the adherence to which would enable to significantly increase the yield and quality of farmers’ products were brought up in the round table discussion.
All the participants have pointed out that in the past years there has been significant turndown in vegetable and fruits production due to the decreased number of orders received from the neighboring countries and low consumption rates in the domestic market. In this connection, the representatives of processing enterprises have emphasized that this chain is impossible without the launch of the national Lets Support Local Producer campaign, which will incite the population in Kyrgyzstan to purchase more products produced domestically. And, therefore, will increase the number of jobs at enterprises, thus stimulating country’s economy.
Bai-Tushum Bank understands the importance of developing finance for the enterprises engaged in domestic production in the Kyrgyz Republic in the current economic conditions. Starting with 2015 it provides pilot financing of various value chains. In the past year a successful project encompassed sugar beet finance chain in Chui province, which became possible under cooperation with Kaiyndy Kant OJSC factory. Moreover, this February Bai-Tushum Bank and the USAID Agro Horizon Project launch interest free loans for the farmers growing corn in Jalal-Abad and Osh provinces.