Strengthening value-chain financing for credit unions in wartime Ukraine
With Russia’s full-scale war disrupting many traditional supply chains in Ukraine, World Council of Credit Unions’ (WOCCU) Credit for Agriculture Producers (CAP) Project recently began helping its Ukrainian partner credit unions establish new value chains to bring products from farmers to end-consumers.
Credit unions are best positioned to meet the financial needs of agricultural and rural businesses, including input suppliers, producers, processors and other actors, but generally lack the practical experience necessary to build partnerships within these value chains.
To address these needs, the CAP Project, funded by USAID, provides individual support to its partner credit unions by conducting market analyses, organizing negotiations with agribusiness representatives and developing loan proposals.
As a result, CAP Project partner Credit Union Anisia signed a September 14 cooperation agreement with LLC Tetra-Agro, a mineral fertilizer producer. The agreement allows CU Anisia’s member farmers to purchase products from Tetra-Agro at better prices and lays a foundation for value chain financing set by the credit unions.
The September 14 agreement signing between CU Anisia and LLC Tetra-Agro.
In October, the CAP Project facilitated two more cooperation agreements for credit unions under its value chain finance framework.
Credit Union Kredyt-Soyuz partnered with LLC Standard Agro, a producer and supplier of combined fodder, pre-mixes and food supplements. Thanks to a new, lower-interest loan product developed by Kredyt-Soyuz through this partnership, credit union farmers will be able to purchase Standard Agro’s organic products at lower prices, with quick and convenient delivery across Cherkasy Oblast—an agricultural region of central Ukraine. The member farmers will also get access to a professional grain analysis laboratory.
Finally, Credit Union Persha Vseukrayinska Kredytna Spilka (PVKS) cooperated with LLC Volyn-Zerno-Product to ensure their member farmers in the far western Volyn and Rivne Oblasts have the financial resources available and timely access needed to purchase the company’s plant protection products, mineral fertilizers, diesel fuel and seeds—all key inputs for agricultural production.
These partnerships built through the CAP Project will help all stakeholders strengthen value chains in their regions and contribute to the growth of the agricultural sector in Ukraine.
The Credit for Agriculture Producers (CAP) Project in Ukraine began as a four-year activity in 2016. USAID has since extended the project twice, most recently through September 2024.
